LSTK Contract
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hi all
"The funny thing is that the consultant based his monthly valuations on the actual quantities executed within the period"
actually i find this approach very practical, and where i work it is a common practice. even in the case of a lump sum contract, sure when you finish the work you will get the 100 % of the original amount.
whats about payment based on intermediate milestone ? you have to complete a whole area to be payed. thats what i call funny ;)
best regards
Mimoune
we have a similar "funny" cl. in a LS Contract that says:
Employer shall reserve the rights to add/omit any items and/or cancel any parts of Works from the Contract and the sum incurred thereby shall be adjusted from the total price accordingly.
Dont understand how to revise a LS total price Contract after award, and the most funniest thing is that the Employer utilized this cl. and deleted nearly 15-20% from the scope till now!
Karim
Thank you all.
What I meant by 91% completion is the current progress status.
All your advices are noted and the CoC will be followed
Warmest regards
Dear Raphael,
We need to repeat the two golden rules;
1. Read your conditions of Contract.
2. Documentation of any extra works.
What Gary and Mike said is correct. The Lump sum amount should be paid in full.
I would like to bring to your kind attention that it seems to me that your consultant is doing something wrong in reducing your invoiced amount by changing your contract amount. This is not up to them. They cant change the Contract amount.
I woul recommend that you start applying your conditions of contract and seek professional expert opinion in your industry to serve on dispute resolution if it arise in the future.
With kind regards,
Samer
Hi Gary
The phrase "by 91%" should probably be "to 91%".
Who prepared the BOQ? - If it was 10% underpriced would the consulant pay the extra?
You are right - if there is no remeasurement clause then there is no remeasurement.
Best regards
Mike Testro
Can I just check my understanding here: Lump Sum contract was let, 90% of the job is complete but based on re-measurement, less than 10% of the original BOQ has been used? How can this be possible?
If this is the case, I completely understand why the consultant would be keen to avoid overpaying by a factor of ten.
Nevertheless, it seems clear that if there is no provision for re-measurement in the contract, then re-measurement cannot be used to determine payment.