Even if the client compiles the B of Q, any ommission or mistake is the responsibility of the client ONLY if the contract says it is. Otherwise its still a contractor risk in a lump sum contract.
Member for
19 years
Member for19 years
Submitted by Stanley Chan on Fri, 2007-06-29 04:45
What a lump sum contract means is the contractor has to complete the contract work for a fixed sum of money. The fixed contract sum cannot be adjusted unless there are variations of the work.
If there is a BQ included, the BQ serves as a basis for the contractor to build up (or break down) his contract sum. If the BQ is prepared by the contractor, the contractor has to be responsible for the accuracy of the quantities and completeness of the BQ work items. If the BQ is prepared by the client or its consultants (like QS or engineer), the client/consultants shall be responsible for the accuracy of the BQ and normally those error are treated as deemed variations allowable in the contract, so that the contract sum can be adjusted.
As in your case, the unpriced items in the BQ are normally treated as included elsewhere in the lump sum contract price, and therefore there will be no compensation to the contractor.
Member for
18 years 9 months
Member for18 years9 months
Submitted by Pranab Kumar Deb on Sun, 2007-06-17 23:49
Thanks for your excellant explanation, but here we have some issues with the contract , while initally the contract was not lumpsum during the value engineering stage post tender the Total sum was frozen project and the project transformed into a lumpsum contract , hence there is no " Basis of Proposal" for the Project. But i believe there should be some redressal to the issue , lets see what other specialist comment on the issue.
regards
deb
Member for
19 years 2 months
Member for19 years2 months
Submitted by J Venkatesh PM… on Sun, 2007-06-17 07:28
In my opinin, most of the LS contracts, it wud be mentioned all the quantities mentioned in the BOQ is indicative only and the contractor should cross check the quantities and price accordingly. And there wud be a provision in the contract to allow the contractor to add the items which are not covered under the contract and pricing accordingly.
Normally during the tender submission, along with the pricing summary, we are attaching a sheet called " Basis of proposal" clearly mentioning the basis/scope of work considered for pricing of the tender and will mention the "Basis of proposal" will form a part of the contract.
If any variations been noticed during the execution stage comparing with the Basis of proposal, then the contractor has the right to claim for the variations.
If you have priced without mentioning those details, then the contractor has to execute the project without any additional cost, irrespective to the quantity change.(Since being a LS, contractor has to recheck the BOQ from the available dwgs and details)
Venkat
Member for
18 years 9 months
Member for18 years9 months
Submitted by Pranab Kumar Deb on Sat, 2007-06-16 00:30
I have an query regarding Lump sum contract , can any body advice me as to what should be the stand of the main contractor for items not considered and priced in the BOQ during the tender stage in a Lump Sum Contract( Fidic 99).
I would also like to have your expert advice on a variation of quantity for the items priced considering the fact that the clause 12. is deleted from the original contract.
Member for
19 yearsRE: Lump Sum Contract
Andrew you are right, it really depends on which contract you are using.
Member for
20 years 10 monthsRE: Lump Sum Contract
Stanley has it pretty spot on except one point.
Even if the client compiles the B of Q, any ommission or mistake is the responsibility of the client ONLY if the contract says it is. Otherwise its still a contractor risk in a lump sum contract.
Member for
19 yearsRE: Lump Sum Contract
What a lump sum contract means is the contractor has to complete the contract work for a fixed sum of money. The fixed contract sum cannot be adjusted unless there are variations of the work.
If there is a BQ included, the BQ serves as a basis for the contractor to build up (or break down) his contract sum. If the BQ is prepared by the contractor, the contractor has to be responsible for the accuracy of the quantities and completeness of the BQ work items. If the BQ is prepared by the client or its consultants (like QS or engineer), the client/consultants shall be responsible for the accuracy of the BQ and normally those error are treated as deemed variations allowable in the contract, so that the contract sum can be adjusted.
As in your case, the unpriced items in the BQ are normally treated as included elsewhere in the lump sum contract price, and therefore there will be no compensation to the contractor.
Member for
18 years 9 monthsRE: Lump Sum Contract
Hello Venkat ,
Thanks for your excellant explanation, but here we have some issues with the contract , while initally the contract was not lumpsum during the value engineering stage post tender the Total sum was frozen project and the project transformed into a lumpsum contract , hence there is no " Basis of Proposal" for the Project. But i believe there should be some redressal to the issue , lets see what other specialist comment on the issue.
regards
deb
Member for
19 years 2 monthsRE: Lump Sum Contract
Dear Deb,
In my opinin, most of the LS contracts, it wud be mentioned all the quantities mentioned in the BOQ is indicative only and the contractor should cross check the quantities and price accordingly. And there wud be a provision in the contract to allow the contractor to add the items which are not covered under the contract and pricing accordingly.
Normally during the tender submission, along with the pricing summary, we are attaching a sheet called " Basis of proposal" clearly mentioning the basis/scope of work considered for pricing of the tender and will mention the "Basis of proposal" will form a part of the contract.
If any variations been noticed during the execution stage comparing with the Basis of proposal, then the contractor has the right to claim for the variations.
If you have priced without mentioning those details, then the contractor has to execute the project without any additional cost, irrespective to the quantity change.(Since being a LS, contractor has to recheck the BOQ from the available dwgs and details)
Venkat
Member for
18 years 9 monthsRE: Lump Sum Contract
sorry the below query should be read as
Dear All,
I have an query regarding Lump sum contract , can any body advice me as to what should be the stand of the main contractor for items not considered and priced in the BOQ during the tender stage in a Lump Sum Contract( Fidic 99).
I would also like to have your expert advice on a variation of quantity for the items priced considering the fact that the clause 12. is deleted from the original contract.
regards
deb