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what is interim award?

4 replies [Last post]
Thu, 2005-09-15 08:31
Q ZHOU
User offline. Last seen 16 years 47 weeks ago. Offline
Joined: 26 Jul 2005
Posts: 12
Groups: Petro-Chem / Oil & Gas
Can anybody help me understand this clause in my contract?

2.3 INTERIM AWARD
"the lump sum referred to in clause *** above shall be deemed to include the following items of work further referred to in clause 7.1.3 of this section, the lump sum price of which is included in PartII of Appendix A.

question:
(1)what is an iterm award?
(2)is it an normal practice?
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Replies

Fri, 2005-09-16 08:13
#1
Stuart Ness
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Joined: 30 Jun 2004
Posts: 352
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I always thought that an Interim Award was related to the issue of an arbitration award!

I live and learn!!

Cheers,

Stuart

www.rosmartin.com
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Fri, 2005-09-16 02:26
#2
Bill Guthrie
User offline. Last seen 7 years 50 weeks ago. Offline
Joined: 14 Mar 2005
Posts: 262
Groups: Petro-Chem / Oil & Gas
By all means include it. just to play safe.

cheers and have a wonderiful weekend.

bill
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Thu, 2005-09-15 22:22
#3
Q ZHOU
User offline. Last seen 16 years 47 weeks ago. Offline
Joined: 26 Jul 2005
Posts: 12
Groups: Petro-Chem / Oil & Gas
Thank you so much, Bill.
Before signing the contract, we got a letter of award from the Client.
The clause I mentioned is in the formal contract we signed 45 days after the LOA.
Do you think it is still necessary to include this clause in the formal contract?
Appreciated.
Q-Zhou
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Thu, 2005-09-15 09:17
#4
Bill Guthrie
User offline. Last seen 7 years 50 weeks ago. Offline
Joined: 14 Mar 2005
Posts: 262
Groups: Petro-Chem / Oil & Gas
Yes.
Interm award for a item specified in the contrct, prior to contract award shall be incuded in the contract.

example.

company does not want to commit to full contrct for building a building. however this may impact the schedule, so he awards via letter of intent or mini contract, for construction of the foundation for the building.

later, company decides to commit for total building, and wants the contract for the building to be inclusive of the foundation that was prior award.

Not normal, but have seen it before.
hope this helps
Cheers Bill Guthrie
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