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A lump Sum Contract to Re-measurable Contract?

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Arnel Francisco Senior Estimator/Cost Control Pasig City, Philippines
Is it possible to change a lump sum contract to a re-measurable contract because that is the case with one of our on-going project. We tried to explain it to the main contractor but instead they advised us that they cannot do anything because that is what is happening and it is what the client QS representative assessment on any additional items. Please advise what is the win-win solution on this matter.

Thanks in advance.
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Anonymous
Contracts are agreement between two parties - and if they jointly agree to close one contract form and open another one - that is their choice. The key is mutual agreement.
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Sungjoon Park Coral Springs, Fl, United States
I fully agree with Mounir. The type of contract can generally changeable by mutual agreement.

Many times it is not clear who's responsible for change of the type of contract from the Lump Sum Contract to other types. It might result from the scope change of the Works but it is not common to change types of the contract.

I am not sure of your organization's position from your statement. Are you the staff of the subcontractor or client? If you are a consultant engineer to represent the client, it is not simple because it might be from a major default of the client. Best way to handle this issue is between the Client and main Contractor by trade-off of their interests or objectives on time and cost as a result of change of type of contract. Or the Contractor should be reimbursed any costs and time for changed scope (additional items) under the current L.S. Contract if both parties agree to do so and amend the relevant Clauses of the Contract.
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1 reply by Arnel Francisco
Sep 04, 2016 1:30 PM
Arnel Francisco
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Thank you, Mounir and Sungjoon.

With regards to your question regarding if I am a staff of the subcontractor or Client? I am a staff of the subcontractor. Actually there are no proper amendments done in the Contract. Should there be a formal amendments or a verbal instruction from the MC? what is acceptable?
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Arnel Francisco Senior Estimator/Cost Control Pasig City, Philippines
Jul 19, 2016 1:24 PM
Replying to Sungjoon Park
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I fully agree with Mounir. The type of contract can generally changeable by mutual agreement.

Many times it is not clear who's responsible for change of the type of contract from the Lump Sum Contract to other types. It might result from the scope change of the Works but it is not common to change types of the contract.

I am not sure of your organization's position from your statement. Are you the staff of the subcontractor or client? If you are a consultant engineer to represent the client, it is not simple because it might be from a major default of the client. Best way to handle this issue is between the Client and main Contractor by trade-off of their interests or objectives on time and cost as a result of change of type of contract. Or the Contractor should be reimbursed any costs and time for changed scope (additional items) under the current L.S. Contract if both parties agree to do so and amend the relevant Clauses of the Contract.
Thank you, Mounir and Sungjoon.

With regards to your question regarding if I am a staff of the subcontractor or Client? I am a staff of the subcontractor. Actually there are no proper amendments done in the Contract. Should there be a formal amendments or a verbal instruction from the MC? what is acceptable?

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