Jan08-Q&A-5
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My replies are given in red below:- 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 From: Noufel K.Mohamed [mailto:[email protected]] Sent: Tuesday, March 25, 2008 12:52 PM To: [email protected] Subject: Float in the Clause 14 Program Dear Dr. Sam Please spare few minutes to answer. In the Jan 2008, For one question in the class, you answered that Float in Clause 14 program submitted by the Contractor is belongs to Whoever utilize it first, means either the Contractor or the Client who utilizes the Float first, they are eligible for it. When I mentioned about the “ One who utilizes it first ”, I was not referring to the ownership of Float but to the eligibility to use the Float. When a contractor schedules the Works, if he uses realistic and logical durations, sequences and links, then the Float emerges realistically. Since it is not created by the Contractor, it cannot be considered as owned by the Contractor. Also it cannot be considered to be owned by the Employer as t he Employer has not created it . Therefore the Float is best considered to be owned by the Project ! If the Contractor is in early culpable delay, he utilizes the Float first. If the Employer gets to it before that as a result of any of the 2 2 + delaying events that we discussed at the course, then he utilizes it. For this answer can you please give any supporting clause in FIDIC or some thing? According to Sub-Clause 41.1 and according to the law applicable to the Contract, ( as we discussed during the course) the Contractor has an obligation to mitigate delays. At a time when the Employer has delayed the Contractor, if the Contractor prepares his delay impact analysis /recovery programme keeping the Flo a t in tact and claim ing full EOT, then he is not taking into consideration the possible
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Transcript of Jan08-Q&A-5
My replies are given in red below:-
Regards,
Prof. Sam. Prof. Indrawansa Samaratunga PhD, DScFRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEngChartered Quantity Surveyor and Registered Arbitrator / ExpertAustralian Inst.of Qty.Surveyors-Middle East RepresentativePO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
From: Noufel K.Mohamed [mailto:[email protected]] Sent: Tuesday, March 25, 2008 12:52 PMTo: [email protected]: Float in the Clause 14 Program
Dear Dr. Sam Please spare few minutes to answer. In the Jan 2008, For one question in the class, you answered that Float in Clause 14 program submitted by the Contractor is belongs to Whoever utilize it first, means either the Contractor or the Client who utilizes the Float first, they are eligible for it. When I mentioned about the “One who utilizes it first”, I was not referring to the ownership of Float but to the eligibility to use the Float. When a contractor schedules the Works, if he uses realistic and logical durations, sequences and links, then the Float emerges realistically. Since it is not created by the Contractor, it cannot be considered as owned by the Contractor. Also it cannot be considered to be owned by the Employer as the Employer has not created it. Therefore the Float is best considered to be owned by the Project !
If the Contractor is in early culpable delay, he utilizes the Float first. If the Employer gets to it before that as a result of any of the 22+ delaying events that we discussed at the course, then he utilizes it.
For this answer can you please give any supporting clause in FIDIC or some thing? According to Sub-Clause 41.1 and according to the law applicable to the Contract, (as we discussed during the course) the Contractor has an obligation to mitigate delays. At a time when the Employer has delayed the Contractor, if the Contractor prepares his delay impact analysis/recovery programme keeping the Float in tact and claiming full EOT, then he is not taking into consideration the possible mitigation of the delay by allowing the Float to consume part or whole of that delay.
Regards,
Prof. Sam. Prof. Indrawansa Samaratunga PhD, DScFRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEngChartered Quantity Surveyor and Registered Arbitrator / ExpertAustralian Inst.of Qty.Surveyors-Middle East RepresentativePO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Thanks & Best regardsNoufel
----- Original Message -----From: wimalaratne wijesooriya To: [email protected]: Tue, 11 Mar 2008 22:37:06 -0700 (PDT)Subject: Maximum Retention MoneyDear Dr. Sam Please spare few minutes to advice me; Our original Contract price was Dhs. 133 million and were instructed VOs to reach 370 million now. in the appendix to tender says; Retention money = 10% and Max. Retention money = 10% of the Contract price.Our present valuation is amounted to Dhs. 270 million and requested the Employer (Nakheel)to deduct only 13 million as the retention.. But they have deducted 27 million instead.What is the correct amount to be deducted from the valuation pls.?
If the Contract stated that the limit of retention is 10% of the Contract Price, then the Engineer should certify only Dhs 13.3 M as retention money deduction and the Employer does not have a right to retain anything more than that (unless any other clause/provision in the Contract clearly states that, if the Contract Price is exceeded due to variations that retention would be applicable to such excess as well).
Regards,
Prof. Sam. Prof. Indrawansa Samaratunga PhD, DScFRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEngChartered Quantity Surveyor and Registered Arbitrator / ExpertAustralian Inst.of Qty.Surveyors-Middle East RepresentativePO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
-----Original Message-----From: [email protected] [mailto:[email protected]] Sent: 14 February 2008 16:02To: [email protected]: Dear sir,
Dear Dr.Sam,
I am M.P.Sivakumar one of your student attended "sound contract administration class " Jan 08. I would like to clarify that, during the execution of the project, some variations are instructed and new rates involved for some items, which is not similar to any original BOQ Items.
New rates breakdown should I apply the % of OH/Profit same as original contract. (Or) it can be more than that I wish.
Where parties have agreed to use the contract rates to value variations, the OH&P % in those rates is the applicable mark-up. Therefore, where new rates are built-up to value variations too, the same mark-up should be used.
Regards,
Prof. Sam. Prof. Indrawansa Samaratunga PhD, DScFRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEngChartered Quantity Surveyor and Registered Arbitrator / ExpertAustralian Inst.of Qty.Surveyors-Middle East RepresentativePO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Pls. clarrify.
with regards,
M.P.SIVAKUMAR
