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Lump Sum Contract

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Pranab Kumar Deb
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Dear All,
I have an query regarding Lump sum contract , can any body advice what should be stand of the main contractor for items not considered and proced in the BOQ during the tender stage in a Lump Sum Contract( Fidic 99)
regards
deb

Replies

Stanley Chan
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Andrew you are right, it really depends on which contract you are using.
Andrew Flowerdew
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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 it’s still a contractor risk in a lump sum contract.
Stanley Chan
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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.

Pranab Kumar Deb
User offline. Last seen 2 years 42 weeks ago. Offline
Joined: 23 Jan 2007
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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
J Venkatesh PMP P...
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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
Pranab Kumar Deb
User offline. Last seen 2 years 42 weeks ago. Offline
Joined: 23 Jan 2007
Posts: 291
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