Jul08 Q&A 2

-----Original Message-----
From: Maithri Induruwa [mailto:maithrii@yahoo.com]

Sent: Saturday, August 09, 2008 2:31 PM
To: sam99@eim.ae
Subject: Re: Q&A-Jul 08-1
Dear Prof. Sam,

Again my thankful gratitude for the services you are engaged with to enhance
the knowledge of contract administration among us.
Kindly explain the following if the time is permitted.
Landscape works have been carried out by the nominated sub contractor
under the main contractor in a project in Dubai, in accordance with the
FIDIC 4th edition type of contract.
The Contractor has been instructed by the Engineer to omit some part of
landscape works at the later stage. The Engineer reviewed & evaluated
the value of the omitted works accordingly.
The landscape contractor has already brought some materials for works
as per their program at the time of receiving E.I. to omit such works.
Prof. Sam,
Please elaborate the scenario.
Under which provision in the contract, the contractor can recover their
materials (redundant?) cost? Under 52.2 (a) the Contractor can request a
lower rate than in the BOQ to price the omission, thus recovering either
the abortive cost of material supplied (which would then become the
property of Employer) or the order cancellation costs charged by the
Supplier.
Could it be treated as a Variation or otherwise a Claim? Variation under
Sub-Clause 51.1 (b).
If it is a Claim, then the contractor’s Profit has to be paid or not? (Is it
an additional Cost incurred?) Not applicable. Loss of profit due to the
omission can be claimed by the Contractor only if the omitted work is
undertaken by the Employer.
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Maithri Induruwa
Senior Quantity Surveyor
Blair Anderson Ltd,
----- Original Message -----

From: Charlie Vince
To: sam99@eim.ae
Date: Wed, 06 Aug 2008 12:34:51 +0400
Subject: RE: Urgent Query
Dear Prof.Sam,

many thanks for your continued Q&A info which I have found invaluable. I have a query that I
need an urgent answer on if at all possible please. The contractor that I work for has recently
received back from the employer a set of contract documents that have been executed by both
parties without a date being present at the beginning of the form of agreement. The works have
continued for many months on the strength of an LOI. Is the undated contract valid???
The undated but signed document is evidence of the existence of a contract. Neither party can now deny
that they agreed to the terms and conditions thereof. However it is advisable to point out the mistake to the
other party and get an appropriate date inserted on both originals. The date would be an important issue if
one has to go to courts in the future to enforce the contract.
Regards,
Prof. Sam.
Regards

Charlie Vince
From: abdul azeez isma lebbe [mailto:azeezmora@gmail.com]
Sent: Wednesday, August 06, 2008 12:05 PM
To: Prof Sam
Subject: [!! SPAM] Regarding the insurences
Dear Prof.

We are the Client, currently dealing with EPC/Turnkey projects, we using FIDIC 1999
Conditions of Contract for EPC projects.
Can you Plese Explain,

1) how the Insurences/Policies would Effect under this Conditions of Contract regarding
the Advance Payments, Interim Payments, and Certifying of Material On site, etc.
2) If it is a Small Jobs( Less than 1 Million Dhs), under taking a Bank Bond or
Security Check in regarding Advance Payment( 15%), Interim payments and for
retention Money ( On the offer submitted by the contractor" No retention money
applicable " for the project) would be a right practice??

Please Clarify those
In order to reply to the above I have to study FIDIC 1999 in detail and therefore, it is not
possible in this forum. Questions should be limited to those matters covered in the
“Sound Contract Administration” training programme (i.e. FIDC-4th Edition issues), or
related there to.
Regards,
Prof. Sam.

thank you very much.
--
With Best Regards From
Abdul Azeez IL
From: Udayanga Palane Vidane Aradrichige Chathura
To: "sam99@eim.ae" <sam99@eim.ae>
Date: Thu, 07 Aug 2008 09:14:53 +0400
Subject: Q&A July 2008
Dear Prof. SAM,
(I was a student of July 2008 session-Sound Contract Administration. I would like direct
this question to Q&A- July class 2008)
The contract is third type of lump sum contract as lecture note of first day. Quantities,
Drawings and specification would be provided by the employer, while contractor has not
provision to make add anything as an amendment.
Just assume these circumstances :
In Drawings, it was clearly mentioned that 10 numbers of wall lamp fittings. But, it was
not included in the BOQ provided by employer at the tender stage.
During the post contract period, the Engineer needed to delete the wall lamp fittings. He
said that, the Employer does not need wall lamp fittings. He issued the variation
instruction for it.
1. How we can deal with this situation? The Lump Sum Contract Price is deemed to be inclusive of the price
for the wall lamp fittings. Therefore such price should be deducted from the Lump Sum Contract Price.
2. How can we fix the rate for wall lamp fittings? By obtaining competitive quotations from the market for their
supply and adding suitable installation costs and OH&P.
Regards,
Prof. Sam.
Thank you Sir,
Regards,
Udayanga P.V.A.C

From: kumaran somalinga
To: sam99@eim.ae
Date: Wed, 06 Aug 2008 02:44:21 -0700 (PDT)
Subject: QUESTION FOR MARK UP
Dr Sam - Good day

Our contract is lump sum based with Fidic contract .my question is following below

1) There is 5000 m2 hollow core slab as per contract, now engineer instruct to us to do with cast insitu. in
these as a contractor we can take margin from HCS ? The Contractor cannot recover any loss of profit. He
can recover any under-recovery of Head Office Overheads, subject to Sub-Clause 52.3. Any under-recovery
on other risk factors that are built in to the HCS price too can be recovered, provided that such under-
recovery can be demonstrated.

2) Arrive new rate for cast insitu and submit with margin to consultant. ? Yes.
The above answers are given assuming that the variation is necessary or appropriate. If however the
variation is neither necessary nor appropriate, then, unless there is a value-engineering obligation written
into the Contract, the Contractor can either reject the cast-in-situ option or negotiate a price acceptable to
him (including all costs, losses and under-recoveries including loss of profit).
Regards,
Prof. Sam.
Pl reply my question.

Thank you

Kumaran.
From: fars suliman [mailto:sindibadroads@yahoo.com]
Sent: Thursday, August 07, 2008 12:52 PM
To: sam ss
Subject: Draft/Format Letters
Dear Proffessor Sam,

I would like to ask any available draft or format if you have of the following letters;

-Notice of Claim/Variation
-Notice of Delay
-Notice for Time Extension
-Notice of Obstruction
-Submission of Particulars
-Substantial Completion Letter
-Claim Diary Format

It would be a great help if you could give me all the above requested drafts.
Thank you and more power!
The general format of notices and claims were discussed during the Course. Specific
formats have to be prepared depending on many aspects, mainly whether the agreement is
a Contract or Subcontract, whether it is FIDIC or Bespoke, if FIDIC then what provisions
have been amended via Part II, the differing circumstances giving rise to the
incident/event etc. etc. I do not have any suitable formats. It may be possible for you to
search on the internet for standard formats, but if you get any, use them very carefully as
you can do more damage by using a format in the inappropriate circumstance than not
having a standard format at all.
Regards,
Prof. Sam.
Best Regards;
Engr. Firas Al Ali

From: NUJ OGB [mailto:nujogb@yahoo.com]
To: sam99@eim.ae
Subject: Re: Q&A-Jul 08-1

Dear Prof. Sam,

First of all thank you very much to all the guidance & information you shared to us. It is a
pleasure to receive again your advise to my next question.

My questions:

1. A PC rate breakdown is reflected in the BOQ of Main Contractor

a) Incl. the PC rate of Dhs 150/set for hardware 150
b) Allow profit and overhead of 10 % 15
c) Fixing rate 56.55

In the actual no hardware will be installed & no hardware will be supplied (since it a PC
rate
where in Client will supply the materials thru Nominated Supplier) . Do I have to
recommend payment for b & c only since no materials will be supplied. Yes.

2. Marble threshold is missing item in the BOQ do I have to recommend payment for
material on site. Yes.
Regards,
Prof. Sam.
For your guidance .

Regards,

Victoriano Bago , Jr.
From: Anna Jimenez [mailto:Anna.Jimenez@nakheel.com]
To: sam99@eim.ae
Subject: [!! SPAM] Q&A-Jul 08
Dear Prof. Sam,
I have read all the Q&A’s that you’ve sent to us but I found no related questions to which I’m
going to ask. There are many more yet to come !
Regarding Extension of Time:
1. One contractor is supposed to finish by 1 March 2008, based on the approved clause 14
programme (EoT # 1). Due to delays attributable to both contractor and employer it came
out to another 175 days extension of time (EoT # 2) Approved & Final. Now the
contractor has submitted another EoT # 3 claim due to Site Instructions. Please advice
whether “As-built” or “As-planned” impact analysis is the best way to analyze their claim.
Either of them may not be the right method. It is not possible to answer in this forum as
all the circumstances need to be studied in detail. It is advisable to get the expert input of
a Delay-Analyst who would no doubt choose the method most suitable in all the
circumstances.
2. Another contractor is currently awarded with extension of time under interim EoT#4 and
we required them to submit the revised clause 14 programme based on the latest
awarded interim EoT. Contractor is not yet submitting their revised programme and 21
days has now over, if the reason of the contractor is not in agreement to the awarded
interim EoT#4 is there any provisions in the contract in which the contractor is oblige to
submit revised programme whether they agree or not on the latest awarded interim EoT?
The Contractor has an obligation to submit a revised programme pursuant to Sub-Clause
14.2 of FIDIC Forms of contract. However, the completion date that the contractor is
obliged to show in such revised programme is not the date resulting from the EOT (where
he disagrees with the amount of EOT), but the date which in his opinion would be the fair
and reasonable date up to which he has a justifiable entitlement to EOT.
Regards,
Prof. Sam.
Thanking in advance for your valuable time.
Regards,
Mrs. Anna Lee Jimenez

Class July 2008

Jul08 Q&A 2

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-----Original Message-----

From: Maithri Induruwa [mailto:maithrii@yahoo.com]

Dear Prof. Sam,

----- Original Message -----

Dear Prof. SAM,

Just assume these circumstances :

Thank you Sir,

----- Original Message -----

Dear Proffessor Sam,

For your guidance .

Regarding Extension of Time:

Thanking in advance for your valuable time.

Mrs. Anna Lee Jimenez

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