I think you can revise the unit rate, since your contract is of remeasurable type and also the said item exceeds 10% varaition in quantity as per FIDIC. The RE has to agree upon. Write a letter to him, mentioning the contract clause of FIDIC, as per you are eligible to revise the unit rate i believe.
Cheers!!!
Daya
Member for
19 years 11 months
Member for20 years
Submitted by Edwin kolandasamy on Mon, 2006-11-13 04:37
Here i would like to add that my current contract is BOQ subject to remeasurement.
Futhermore, FIDIC contract has a provision for any increase or decrease in quantity beyond 10% of the BOQ quantity, either party contractor or client may ask for a revision of unit rate of that particular item. It means it is VO addition or VO omission to the contract (in case there is an addition of quantity beyond 10%)
Only on this basis i am trying to get a vo addition as my quantity of RE wall has reduced more than 50%.
I have workout my raw cost plus profit and overhead and simply dividing it using the qty in the BOQ at the tender stage. Upon completion i found out i lost my pofit and overheads as the qty has reduced.
However the Engineer is not in favour.
thanks.
EDWIN.K
Member for
19 years
Member for19 years
Submitted by Tahir Naseem P… on Sat, 2006-11-11 17:15
My point of view is based on unit rate. If there is lumpsum in this case there is nothing loss to the contractor because he got the money of 75000 m3 in place only did the job of 35000 m3.
I am still insist on it that in unit rate contract the claim is valid and can be avail on the two basis i explained.
I hope you will write in detail to prove me wrong.
Different point of view from what Tahir mentioned.
Totally support what Charlie said...
No way to claim especialy all detail of work being supervise closely by the consultant .
What your contract said about the quantity in the BOQ ?
Lump Sum or subject to measurement ??
Increase of unit rate is definately not a right choice to move.
From the way you describe seem it involved Negative VO, where there might be some deduction on the original scope.
Putting your preliminary as a bullet to negotiate will be in high risk , imagine you didnt get what you claim under 75000m3 somemore highlighting to them that your prelim is allow based on 75000m3 . . . You might suffer TWO deeply cut from the client .
cheers....
Member for
19 years
Member for19 years
Submitted by Tahir Naseem P… on Thu, 2006-11-09 19:48
In my opinion you can claim it on the following basis
1-That preliminary the quantity of RE wall around 75000 M3. You bid on the basis of this quantity and you plan your resources on the basis of this during the bid stage. May i right.
2- the cost of overhead/indirect cost is basically calculated with acertain ratio of direct work cost. But when the contract finalize indirect / overhead cost ( mobilzation of indirect staff / offices setup/ transportation etc.) can not be reduce / increase with the change in direct work qunatum normally. So the profit margin you get from indirect/overhead cost is also reduce but the cost reamin there. so you claculate seprately it and include in your claim.
I think on these bases may be you get some soft reply from client.
Regards
Tahir
Member for
20 years 3 months
Member for20 years4 months
Submitted by Charleston-Jos… on Thu, 2006-11-09 10:14
Member for
22 years 7 monthsRE: Reduction of Quantity of RE Wall
Hi Edwin,
I think you can revise the unit rate, since your contract is of remeasurable type and also the said item exceeds 10% varaition in quantity as per FIDIC. The RE has to agree upon. Write a letter to him, mentioning the contract clause of FIDIC, as per you are eligible to revise the unit rate i believe.
Cheers!!!
Daya
Member for
19 years 11 monthsRE: Reduction of Quantity of RE Wall
Hi Tahir,
Thanks for your comments.
Here i would like to add that my current contract is BOQ subject to remeasurement.
Futhermore, FIDIC contract has a provision for any increase or decrease in quantity beyond 10% of the BOQ quantity, either party contractor or client may ask for a revision of unit rate of that particular item. It means it is VO addition or VO omission to the contract (in case there is an addition of quantity beyond 10%)
Only on this basis i am trying to get a vo addition as my quantity of RE wall has reduced more than 50%.
I have workout my raw cost plus profit and overhead and simply dividing it using the qty in the BOQ at the tender stage. Upon completion i found out i lost my pofit and overheads as the qty has reduced.
However the Engineer is not in favour.
thanks.
EDWIN.K
Member for
19 yearsRE: Reduction of Quantity of RE Wall
Hi King
My point of view is based on unit rate. If there is lumpsum in this case there is nothing loss to the contractor because he got the money of 75000 m3 in place only did the job of 35000 m3.
I am still insist on it that in unit rate contract the claim is valid and can be avail on the two basis i explained.
I hope you will write in detail to prove me wrong.
Thanks & Best regards
Tahir
Member for
18 years 11 monthsRE: Reduction of Quantity of RE Wall
hi Edwin,
Different point of view from what Tahir mentioned.
Totally support what Charlie said...
No way to claim especialy all detail of work being supervise closely by the consultant .
What your contract said about the quantity in the BOQ ?
Lump Sum or subject to measurement ??
Increase of unit rate is definately not a right choice to move.
From the way you describe seem it involved Negative VO, where there might be some deduction on the original scope.
Putting your preliminary as a bullet to negotiate will be in high risk , imagine you didnt get what you claim under 75000m3 somemore highlighting to them that your prelim is allow based on 75000m3 . . . You might suffer TWO deeply cut from the client .
cheers....
Member for
19 yearsRE: Reduction of Quantity of RE Wall
Dear Aadwin
In my opinion you can claim it on the following basis
1-That preliminary the quantity of RE wall around 75000 M3. You bid on the basis of this quantity and you plan your resources on the basis of this during the bid stage. May i right.
2- the cost of overhead/indirect cost is basically calculated with acertain ratio of direct work cost. But when the contract finalize indirect / overhead cost ( mobilzation of indirect staff / offices setup/ transportation etc.) can not be reduce / increase with the change in direct work qunatum normally. So the profit margin you get from indirect/overhead cost is also reduce but the cost reamin there. so you claculate seprately it and include in your claim.
I think on these bases may be you get some soft reply from client.
Regards
Tahir
Member for
20 years 3 monthsRE: Reduction of Quantity of RE Wall
Hi Edwin,
IMHO,
No need.
How can you claim profit on activities you did not work? What is the logic?
You may charge it in your accounts as loss imaginary profit.
So in Malaysia they are still using the profit and loss stattement in closing accounts.
Wish you all the best but it is so adsurd to claim profit on work not done.
It is a nuisance.
cheers,
charlie