Hi all,

 

My doubt is, whose responsibility is to appoint provisional sums contractor, it is employers or contractors in design-build contract. Suppose, employer have not appointed or delayed appointment of contractor for provisional sums, then do contractor have rights to claim time as per program?? or is it contractor's reposibility to propose for appoitments.

Dear Mai,

What exactly are you agreeing to?

Each Contract has Conditions of Contract and a BOQ. In case you have a Provisional Sum item, it is part of the Contract and you have to complete it within the Contract duration.

The amount of the provisional sum is the cost. If that amount exceeds the amount stated in the BOQ, then you have a "Change Order-cost" and only then. If on the other hand the desciption (scope) of the Provisional Sum has changed depending on the request of the owner, then you have a "Change order-scope", and you can submit your analysis for its impact and ask for revised money and time.

With kind regards,

Samer

Dear Shahul,

The RED book (1999) is expected to be updated this year. So, we will see if they have any new revisions to this clause.

With kind regards,

Samer

Dear Shahul,

If the Design is provided by the Client and the Contractor is doing the Contractor then it is the RED Book.

If the Design is done by the Contractor and the Construction is done by the Contractor it is the SILVER Book.

If you have a Design, Build and Operate job, then you use the GOLD Book.

For simple repetitive jobs of low value, use the GREEN Book.

For Dredging and Reclamation works, use the BLUE Book.

Maybe I missed one. Not sure.

With kind regards,

Samer

Dear Shahul,

Which Book under FIDIC?

With kind regards,

Samer

Dear Richard,

The conditions that you mentioned has to do with modifying the unit cost. They are different now. Of course, when the quantities change, the durations changes as well. Hence, you can submit an impacted schedule with showing the effect of the extra quantities.

With kind regards,

Samer

Dear Mike,

Please find below what is stated in the Condition of Contract per FIDIC 1999 RED BOOK about the Provisional Sums, clause 13.5:

"
Each Provisional Sum shall only be used, in whole or in part, in accodance with the Engineer’s instructions, and the Contract Price shall be adjusted accordingly. The total sum paid to the Contractor shall include only such amounts, for the work, supplier or services to which the Provisional Sum relates, as the Engineer shall have instructed. For each Provisional Sum, the Engineer may instruct:

(a) work to be executed (including Plant, Materials or services to be supplied) by the Contractor and valued under Sub-Clause 13.3 [Variation Procedure]; and/or
(b) Plant, Materials or services to be purchases by the Contractor, from a nominated Subcontractor (as defined in clause 5 [Nominated Subcontractors]) or otherwise; and for which there shall be included in the Contract Price;
(i) the actual amounts paid (or due to be paid) by the Contractor, and
(ii) a sum for overhead charges and profit, calculated as a percentage of the actual amounts by applying the relevant percentage rate (if any) stated in teh appropriate Schedule. If there is no such rate, the percentage rate stated in the Appendix to Tender shall be applied.

The Contractor shall, when required by the Engineer, produce quotations, invoices, vouchers and accounts or receipts in substantiation.
"


I agree with you to some extent. It all depends on the wording of the Condition of Contract. But I would have to state that usually the provisional sum item are small amounts. And in most cases are not critical activities.

But Contractually, if the contract is issued without the provisional sum amount included in the total price, then it will be dealt with as a variation order as per the recommendations in clause (a) above. If on the other hand, the total amount of the Contract includes the provisional sum, then it is included within the duration of the Contact. Unless it clearly states otherwise.

If the provisional sum amount is changed, then the Contractor can ask for a variation order as well.

With kind regards,

Samer

Dear Richard,

I highly appreciate the point that you are making. Yes all my background is in Civil Engineering; Design, Construction and Management. For the past 10 years I have been in the pre-construction phase preparing the design and documents preparation and the post award; actually building the projects.

The conditions of contracts in Jordan are based on FIDIC. Several BOQs are prepared as you discribed with a X amount for X works. This is part of the scope. It is not detailed, but defined. The time necessary to complete this scope has to be part of the Schedule, otherwise the Schedule wouldn’t be complete. The Contractor will define the start and end dates and the Engineer will approve it. Subsequently, if the design drawings (activity needed to complete the works) is delayed, then the Contractor has to issue a notice to the Engineer. Once the design drawings (and BOQs) are issued, the Contractor will do the necessary execution drawings for approval and submit a revised impacted schedule (if necessary).

Unless the Conditions of Contract states clearly that the X works will be given extra time to complete, it is considered within the duration of the contract.

Dear Shahul,
It is great that you have an approved program. You can start with the delay event which should be at the start of the project. You have several Electrical systems. You need to identify what has changed and when, and what was the effect of the 1st, 2nd and 3rd fix.
You need to read the provisional sum clause and check what has changed. Usually, the design is not complete at the time of signing the contract, but the BOQ item cost is fixed. Therefore, if the new scope did not change, but the new design is calling for more material that will cost more; then you need to ask for a Change Order.

With kind regards,

Samer

Hi Samer.

I appreciate what you say but in the UK it is not unknown, and ineed common, for clients and project managers to include a provisional sum for, say £15000 for signage, with no drawings or other information. It is not possible to include a period in the programme for this - it may be provided by a specialist with a 26 week delivery period, or it may be basic signage available at 2 or three weeks notice. Therefore the scope of the work is undefined, and it has been accepted that it impossible to allow for this in the programme. I believe it isa way for the clientto mae the contractor aware that something may be called for, and to include he value in the contract.

If the client then issues an instruction to expend this provisional sum 6 weeks from the end of the contract, and it is a specialist installation, the contractor is entitled to an EOT.

I appreciate that it is quite different in Civil Engineering. Don’t shoot the messenger, am highlighting that buildingcan be much different from your experiene in Civil Engineering. I don’t write the contracts or tenders, I just have to build the building for the client, and pick up the pieces that are left.

In building works the answer is that it depends. (And it also depends upon the form of contract)

If the provisional sum is defined in the tender, as in the quantum is known, then the contractor is deemed to have allowed for the works in his contract. If the instruction to expend the provisional sum has been given at the correct time in accordance with the contractor’s Schedule of Information, then no delay is claimable.

If the provisional sum is undefined, then the contractor cannot have allowed for it in his tender, and delay is claimable if the contractor can prove cause and effect.

Dear Shahul,

All project deliverables are transformed into activities in a Schedule. Any activity can delay the Finish Date if it is not completed, and if it becomes critical.

Your model has to be correct, and conforms to the Condition of Contract, etc.

With kind regards,

Samer