" The contract shall be Firm Lump Sum,save for the provisional sum"
My interpretation is:
(1) Firm price: therefore not subject to adjustment for any duration of the project.
(2) Lump Sum means: it is a type of contractual relation where the price is Lump Sum and unless there is an instruction from the Architect to add/omit, the Lump Sum price will not change. The Provisional Sum expenditure must also be instructed otherwise whatever is enterred in the Provisional Sum stay.
This type of contract is not remeasurable, therefore no changes to the contract sum unless AI but... if an AI issue construction drawings which have changes from the tender drawings, is it an automatic signal to measure the changes and use the AI as part of Add/Omit to alter the Contract Sum?
Firm price only apply to the original Contract Sum? If there are changes and the additional items do not have rates in the BoQ, can the new rates be of present pricing and not using prorata in the BOQ rates?
Lump sum is type of contracts that puts almost all the risk on the contractor shoulder and it is as less risk on the client, it means that there is no remeasuring for the quantities along the project duration, as i understand
Lump Sum Means a job inclusive of several activities that should be done and its cost shall be due upon the completion of all activities where such activities shall not be subject to remeasuring. Thus, I beleive that the term means the contract price is a fixed price not subject to reamusring rules or unit rates except for the provisional sum amounts
RE: Firm Lump Sum
Hi,
" The contract shall be Firm Lump Sum,save for the provisional sum"
My interpretation is:
(1) Firm price: therefore not subject to adjustment for any duration of the project.
(2) Lump Sum means: it is a type of contractual relation where the price is Lump Sum and unless there is an instruction from the Architect to add/omit, the Lump Sum price will not change. The Provisional Sum expenditure must also be instructed otherwise whatever is enterred in the Provisional Sum stay.
This type of contract is not remeasurable, therefore no changes to the contract sum unless AI but... if an AI issue construction drawings which have changes from the tender drawings, is it an automatic signal to measure the changes and use the AI as part of Add/Omit to alter the Contract Sum?
Firm price only apply to the original Contract Sum? If there are changes and the additional items do not have rates in the BoQ, can the new rates be of present pricing and not using prorata in the BOQ rates?
Is my interpretation hold?
RE: Firm Lump Sum
Lump sum is type of contracts that puts almost all the risk on the contractor shoulder and it is as less risk on the client, it means that there is no remeasuring for the quantities along the project duration, as i understand
Regards,
RE: Firm Lump Sum
Lump Sum Means a job inclusive of several activities that should be done and its cost shall be due upon the completion of all activities where such activities shall not be subject to remeasuring. Thus, I beleive that the term means the contract price is a fixed price not subject to reamusring rules or unit rates except for the provisional sum amounts