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Signed records/Dayworks by the Main Contractor Rep

10 replies [Last post]
Tue, 2006-11-14 13:02
Skan Bu
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Hi,

I am dealing with an account where the SubContractor have submitted loads of Daywork sheets.
The SubContract was let with BoQ, Drawings & Spec.

My understanding is that "daywork" is a record of the work carried out and not necessary a variation.
If Submitted with signature from the MC representative signing say 2 men x 8hrs,plant & materials and I consider that the work involve is part of an original contract work,can the subcontractor still insist that he should be paid based on the Daywork & deduct the measure quantities from the contract?
Does it matter whether the representative had signed the sheet?
Are there any previous case law which clarify this issue of whether it is a Daywork or " a sign for record purposes only"?

As detailed above, it was clear that the men did not spent the whole a day or 8hrs on that job. Can the QS amend according to his assessment or the signed records carry more weight when an Adjudicator view this?

I ready would appreciate if someone can clarify since I have encountered a number of this "daywork" issue in my short experience.

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Replies

Sat, 2006-12-16 03:22
#1
Skan Bu
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Hi,

Does any one know whether other than Fidic which have this 15% allowance only, any other contract also state such allowance?

If I am looking for a good reference book that explain/guidance on sub contract JCT dom1 & others etc)

Can someone recommend one?

Thanks
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Fri, 2006-12-15 08:52
#2
Shahzad Munawar
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The relevant document is Provisions of your Contract Agreement which is the best evidence in support of your statement before any Legal Forum
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Tue, 2006-12-12 04:30
#3
Dayanidhi Dhandapany
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Hello Skan,

As per FIDIC Clause 52.3 in Conditions of Contract for Works of Civil Engineering Construction, Fourth Edition 1987 Reprinted 1992 with further amendments, you can find that up to 15% variation is allowed to the contract price, but Employer has the rights to change this percentage in conditions of particular application. Its another headache to us.

I don’t know how this will work out for you in England, they follow different contract(JCT??)format.

Cheers!!!

Daya

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Mon, 2006-12-11 17:36
#4
Skan Bu
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Hi Daya,

Thanks for the reply.

So basically, once a "Sheet is signed" call it allocation or daily record or daywork, it is a valid document that can be used as evidence in court.

So it is regconised to be true and accurate. My earlier interpretation is right then.

SO DON’T SIGN anything otherwise it could come back to haunt you and you do not have much of a leg to stand on.

Where or on which case law that identify/regcognise 15% Variation is acceptable to use the same rate as in BoQ and greater than 15% could be subject to re-rate? Could you refer me to the relevant document or case because it could prove useful in the future.

Thanks
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Sun, 2006-12-10 08:49
#5
Dayanidhi Dhandapany
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Skan,

Once the daywork sheet is signed by both parties, it shall be considered as a valid document provided this item has to be captured in the contract. Even if it is not captured in the contract, you are agreeing for the facts if you are signing on the daywork sheet. I think this can be produced as an evidence in court without any doubt. This will be helpful to the subcon if he seeks for any claim subject to the terms as per the contract agreement.

Cheers!!!

Daya
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Sun, 2006-12-10 08:42
#6
Dayanidhi Dhandapany
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Hi Edvin/Skan,

As per my understanding, i try to explain the usage of Dayworks in the following example.

The subcontract item says that complete the blockwall in all respects incl. cutting/raking etc. for 1000m2 area. if the rate quoted by subcon is say 10, the subcontract value will be 10,000. at later stage if the maincontractor wanted to do the job for 1100m2 (upto 15% variation is not allowed in price let us say as per contract clause), then the subcon has to use the same unit rate to claim for the increase in quantity due to variation of works.

let us say, if the qty is increased to 1500m2 and also he has to finish the job on the original duration. If it is the case, as per the sub contract clause he has the rights to revise its unit rate, because he needs to mobilize more resources/transportation costs also to be considered. or he can do the additional works due to the varied qty and claim that portion using the rates as per Daywork(agreed rates mentioned in the subcontract for labour/plant/materials).

sometimes for an example, if you request the subcon to do chasing/cutting works for MEP conduiting on block wall, this is a new item to the subcontractor(let us say it was not captured originally in the subcon agreement)in that case he can use dayworks rate to claim.

fianlly its all depend on the terms dictated in the subcontract agreement.

HTH

Cheers!!!

Daya

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Sun, 2006-12-10 03:50
#7
Skan Bu
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Hi Edwin,

Thanks for your clarification.

Yes, I understand that the sub contract should claim against the Sub Contract agreement/measured work which are all in the BoQ. This seems to be theory only.

Obviously, they are indicating that the work are not exactly the same as per BoQ or not executed in the same condition, that is why they record on daywork sheet & ask the MC representative to sign (a) for record purposes & (b)to show that the work had been carried out with those resources.

In case of VO, my understanding is that it should be measured up & price using rates from the BoQ, but again the SC is indicating that the work is different in some way. Time/sequence/timing/qty of work/location elements might come into play here.

On another note:

"FOR RECORD PURPOSES ONLY" written and signed.
How does this stand in a legal aspect?
Is the signature recognising that the work & resources are correct/accurate OR the "FOR....ONLY" is the priority?
My experience is that once signed, the SC have numerous backing to say that any rates used as per the BoQ is not a reflection on the work carried out. The work carried out is as per record signed by the MC rep.
SO IN WHICHEVER WAY, I loose & pay & Daywork sheet signed seems to win.

What do you all think?

Drawings & Joint measurement only record/account for the quantities but still does not account for the resources/time/difficuties/complexity.
So even if the qty can be determined, the SC still want a revised/Star rate to reflect the above so the record on the Daywork comes into play again.

What is the RIGHT WAY to resolve this?
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Sun, 2006-12-10 01:57
#8
Edwin kolandasamy
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Hi Daya & Skan,

Once a subcontract is given with BOQ, the subcontract can only claim progresively not as per Daywork sheet.
In case any VO arising from the MC’s site representative instruction, then it is allowable provide all daywork sheet verifed by MC rep. If not then you are to instruct the MC rep’s not to sign any daywork sheets, and if signed it should be clearly written ONLY FOR RECORD NOT FOR PAYMENT! And the payment for the subcontract shall be based on ON SITE Joint Measurement Sheet duly signed by MC and SC rep’s or as per measurement fr dwg.

I hope i have answered you.


regards.
edwin
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Thu, 2006-11-30 08:33
#9
Dayanidhi Dhandapany
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Where you can’t find an specific unit rate in the bill for the job executed due to variation in works, you can use daywork(as agreed in the contract the rate for the labours, plants etc.,)to pay for it. otherwise if they park everything under daywork record means something wrong i believe. They can use Site diary record to display their manpower, plant & materials usage for their regular subcontract works execution.

In Dayworks record, the client will pay for the actual man-hours spent for the completion of an activity.

HTH
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Fri, 2007-01-19 10:35
#10
Ian Lee
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Skan

Just picking up what you said about not signing daywork/allocation sheets.

This is no defence as the the burden of proof will fall on yourselves to proove that the sub-contractors records were inaccurate.

It is better to amend the records to what you consider the true facts are before signing and then sign "For record purposes only" to indicate that you are only confirming the records accuracy and not agreeing to payment on a daywork basis.

In JDM Accord Limited v The Secretary of State for the Environment, Food and Rural Affairs, TCC 16 January 2004 the Contractor recorded hours worked sorting out the 2001 foot and mouth outbreak. In many instances the Client didn’t sign the sheets as they had insufficient resources to do so. It was held that as the Client couldn’t proove otherwise the Contractors records stood and the Client had to pay.

This is a great judgement for Contractors as it makes clear that Clients refusing to sign records will ultimatly pay the price.

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