Dear All,
Our Contact is a Item rate Contract.Scope includes Structure ,Finishing & MEP.
Preliminaries cost is provided in the contract only for structures which is 5% of Structure Contract Value.
Now we made a claim for preliminaries for MEP & Finishing.Calculation is based on the same percentage (5%) on Finishing & MEP Contract Value.
Is this a right logic for the claim .For example we got 1 Cr for doing safety works as a perliminaries for structural works.But actual cost came around 2 Cr .These safety features are utilising by MEP & Finishing team also .So we made a claim of additional 1 Cr as a preliminaries for MEP & Finishing Works.
Thansk & Regrads
Sankar Vijayan
Hi Sankar
Most people outside India do not know the value of a Crore so it would give some indication of the scale of your problem if it can be converted to US$.
A straight percentage on value is not an accurate method of valuing time related costs.
Since your contract only contains preliminaries for the structure element I would sugest that you work out the weekly value of the 5% and apply it to the whole contract period - thus avoiding any overlaps.
Best regards
Mike Testro