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Topics: Construction, Consulting, PMO
if contract is re measurable for quantities and an item is not included in BOQ and the Contract says any missing item that contractor didn't highlight at tendering time shall not be paid. Shall we pa
if contract is re measurable for quantities and an item is not included in BOQ and the Contract says any missing item that contractor didn't highlight at tendering time shall not be paid. Shall we pay as re measurable or not to pay as per clause i mentioned earlier.
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Dear Norman,
It depends on the client/sponsor.
You can replace the non contractual items with contractual equalivant in price to avoid variations or contract addendum which is time consuming, if not then variation or addendum.
Best Regards,
Riad
The contract is a contract not a guideline. Read the contract and apply the terms as provided. Failure to do so sets a precedent which may prove uncomfortable later on.
Were these items added to the work after contract award or are they 'incidental' to the measured items?
As an example, if the scope included the installation of items of structural steel as measurable items then the fasteners to hold the items in place and not highlighted at the tender are incidental to the work and not measurable.
If the missing items could not have reasonably been anticipated at the time of tender then in my opinion they are payable.
Hi Noman,

This should be treated like any change request. Should any item not accounted for at the time of tendering - which is quite is possible, it should be raised and treated like a CR with proper justification and business case so that its paid by the company and not the contractor. Why should the contractor pay for some of the item not accounted for at the time of tendering. What if the said material is a very expensive ? You could do that to win subsequent projects.

The entire process of establishing the material quality, quantity will have to be approved by the company, then qualify the vendors, who will supply the materials. (Contractor cannot get any supplier of his choice, in that case the quality of material could be compromised to save money & the cost being burdened on the contractor). In many large companies - vendor who supply materials have to complete a pre-qualification process after which they can supply any materials.

In my opinion, one should not accept such clause at the time of signing the contract and renegotiate such a clause, since projects are few, contractors may be compelled to stay in business, hence blindly accept such conditions will only do more harm then any good.

All the best - Ganesh.

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