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Prepurchase Recovery

1 reply [Last post]
Mon, 2007-03-12 02:31
Mncedisi Matiwaza
User offline. Last seen 18 years 12 weeks ago. Offline
Joined: 12 Mar 2007
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In a supply & fix contract based on the BOQ:
1. how does the client recover the amount of pre-purchase he has done?
2. is it justifiable for the contractor to claim the administration costs on escalations on the pre-purchased materials?

Thanx
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Replies

Mon, 2007-03-12 21:44
#1
Clive Randall
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Joined: 15 Aug 2005
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1) He would generally identify those items in the bills that he was to supply and seek only a storage and installation rate. If he awards a contract and then pre purchases elemnts of materials that are in that contract he places himeself in a digfficult position and will have to issue a variation order. The valuation of the supplied materials will then be open to negotaition unless there was a breakdown of the Bof Q scheduling labour plant and materials.
2) I fail to see how the contractor could claim for admnistering the costs of escalations on materials he did not purchase
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