I do agree as any savings made vide Value Engineering need to be shared with the Client and hence contractors’ option to go for a cheaper supplier need to be communicated to the Engineer to assess the savings made.
Member for
17 years 3 months
Member for17 years3 months
Submitted by Samer Zawaydeh on Mon, 2010-03-29 06:05
"Value Engineering" is mentioend under FIDIC clause 13.2 and it reads as follows:
"The Contractor may, at any point, submit to the Engineer a written proposal which (in the Contractors Opinion) will, if adopted, (i) accelerate completion, (ii) reduce the cost of the Employer of executing, maintaining or operating the Works, (iii) improve the efficiency or value to the Employer of the completed works, or (iv) otherwise be of benefit to the Employer."
The important issue is that you can select any of the above, but you have to submit it to the Engineer.
If the Contractor is not working as per the Engineers instructions then you have plenty of problems on the job.
What is "Value Engineering" has to do with this issue? When the Contractor selects a cheap source, that is cost reduction not value engineering. "Value" is determined by the End User not the Contractor.
This is a management issue not a FIDIC issue. The FIDIC gives the right to the Engineer to approve on behalf of the client as per clause 3.1, If the Particular Conditions are silent, then you need to come to an understanding about the way the project is going to be managed at the kick off meeting.
The Contractor must submit a program of works to complete the work. In this program, the contractor must show how they intend to do the works. A specific section must be shown right after mobilization. It must show all the material that is required to be used on the project.
Once the material is approved, then you need to purchase that material. If the Contractor changes the material, then they must submit a material submittal again and get it approved again.
If you have a situation where the Contractor is not complying. Then you (Engineer) must issue him a verbal/ written notice to take any corrective action that is necessary for the successful completion of the project.
With kind regards,
Samer
Member for
19 years
Member for19 years
Submitted by Rodel Marasigan on Sun, 2010-03-28 03:48
Yes you can change to cheaper supplier as long as the specifications are the same unless otherwise brand and supplier is specified in the contract. Check the contract if it has a clause (or equivalent)
Member for
20 years 8 monthsRE: Material Supplier Change
Yes Basha and thank you and Samer for your responses
Member for
16 years 11 monthsRE: Material Supplier Change
Hi francis
I trust you got a solution to your issue
Member for
20 years 8 monthsRE: Material Supplier Change
Thanks Samer and Basha,
I do agree as any savings made vide Value Engineering need to be shared with the Client and hence contractors’ option to go for a cheaper supplier need to be communicated to the Engineer to assess the savings made.
Member for
17 years 3 monthsRE: Material Supplier Change
Dear Shahul,
"Value Engineering" is mentioend under FIDIC clause 13.2 and it reads as follows:
"The Contractor may, at any point, submit to the Engineer a written proposal which (in the Contractors Opinion) will, if adopted, (i) accelerate completion, (ii) reduce the cost of the Employer of executing, maintaining or operating the Works, (iii) improve the efficiency or value to the Employer of the completed works, or (iv) otherwise be of benefit to the Employer."
The important issue is that you can select any of the above, but you have to submit it to the Engineer.
With kind regards,
Samer
Member for
16 years 11 monthsRE: Material Supplier Change
Fine you r correct samer.Thanks
Member for
17 years 3 monthsRE: Material Supplier Change
Dear Shahul,
If the Contractor is not working as per the Engineers instructions then you have plenty of problems on the job.
What is "Value Engineering" has to do with this issue? When the Contractor selects a cheap source, that is cost reduction not value engineering. "Value" is determined by the End User not the Contractor.
With kind regards,
Samer
Member for
16 years 11 monthsRE: Material Supplier Change
Hi to all
Contractor can go for another supplier as per his value Engineering but he should comply specifications agreed in the contract.
Member for
17 years 3 monthsRE: Material Supplier Change
Dear Francis,
This is a management issue not a FIDIC issue. The FIDIC gives the right to the Engineer to approve on behalf of the client as per clause 3.1, If the Particular Conditions are silent, then you need to come to an understanding about the way the project is going to be managed at the kick off meeting.
The Contractor must submit a program of works to complete the work. In this program, the contractor must show how they intend to do the works. A specific section must be shown right after mobilization. It must show all the material that is required to be used on the project.
Once the material is approved, then you need to purchase that material. If the Contractor changes the material, then they must submit a material submittal again and get it approved again.
If you have a situation where the Contractor is not complying. Then you (Engineer) must issue him a verbal/ written notice to take any corrective action that is necessary for the successful completion of the project.
With kind regards,
Samer
Member for
19 yearsRE: Material Supplier Change
Francis,
Yes you can change to cheaper supplier as long as the specifications are the same unless otherwise brand and supplier is specified in the contract. Check the contract if it has a clause (or equivalent)