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The differences between Tender Sum & Sub Contract Sum

3 replies [Last post]
Mon, 2006-12-11 18:21
Skan Bu
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Hi,

While discussing on LOI with some mates, this is another subject that prop up by one of them.

"Contract Sum or Sub Contract Sum is basically not remeasurable and the sum is the total that should be pay at the end while Tender Sum is subject to Remeasure"

At first, I thought he is right. I tried to look for a defination and distinction between the two but none of my text book gave any reference so that got me thinking.

Can anyone shed some light on the above?
Can anyone recommend a good reference book for all the difference construction contract words or phrase?
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Replies

Fri, 2007-01-19 11:58
#1
Ian Lee
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Dayaniddi is correct. The terms you need to look out for are "Lump sum" and "Re-measure".

A re-measure contract final account value is based on the quantity of works actually completed at the rates tendered. (Provided that the original BoQ was reasonably accurate in the anticipated quantities).

A lump sum contract final account value (in the absence of any variations) should be equal to the tender value. However if the contract is based on a BoQ provided by the Client and that BoQ is prooved to be inaccurate the Contractor is normally entitled to the recovery of the costs relating to errors/omissions contained in the BoQ.
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Wed, 2006-12-20 09:04
#2
Dayanidhi Dhandapany
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Contract sum or subcontract sum can be measurable or remeasurable? for an example, if you have 40,000m2 area of painting works, you can clearly let this package as subcontract(lumpsum). In case, if you want to let for an example excavation works, the subcontractor will go for unit rate basis, upto 3m rate1, next level rate2(more than the previous one)where you anticipate the estimated quantities may change in actual execution. in that case, during tender stage you can mention that the subcontract is of remeasurable type, but you can fix the unit rate depends on varying depths. during execution you can re-measure the quantities by some means(no of trucks etc.,)and pay the money.
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Sat, 2006-12-16 04:25
#3
Skan Bu
User offline. Last seen 13 years 31 weeks ago. Offline
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Hi,

I was told JCT dom1 explain this but I do not have a dom1.

Could someone else confirm?

Are there any good reference book that explain/guide on sub contract?
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