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The Basis of Quantities

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ashraf alawady
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Dear Planners,

- During the preparation of the base line progam at the begining of the construction period of the project , Do we have to calculate the quantities for each activity based on the contract Bill Of Quantities or based on the quantities calaulated form the contract drawings.

- If there is defernces btween the quanties calculated from both soure(BOQ & Drawings) 15 % more or less and the client representative is insisting to fill the program with the quantities calculated from the contract drawings accordigly the total contract value will be inecreased / decreased by more than 15 % .

contractor refused to prepare the program base on the quantities calculated from the drawings based on the reason that the contract value in the agreement with the client was 100 milions and the contract period was 10 months( for exampe) so how the client can ask him to prepare and summit a program of works for 120 milion in the same peiod ( 10 months) .

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sathis jayaweera
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Hi Ashraf

Absolutly your write
ashraf alawady
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Hi sathis,

you mean that the program has to be prepared based on the accurate quantities calculated from the drawings and the contract price have to amende accordigly in order to get realistic program and cash flow regardless the quantities mentioned in the contract BOQ which has been used for the purpose of pricing the tender only.
sathis jayaweera
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Hi Ashraf,

Presumable If this contract is remeasured under FDIC 4th edition and no variation to the works, the answer shall be described as follows.
The Quantities set out in the BOQ are the estimated quantities (FDIC COC Cls 55.1) and contact price shall be changed on actual measured on work completion. no price adjustment to the contract BoQ even contact price increased or decreed by 15%
Also contactor shall not entitle EOT
Waleed Mahfouz
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Hi Ashraf,
First of all, the main purpose of the time schedule is to control the construction process time which depends on the rates which in turn depend on the quantity.
So it is advisable to use the drawings quantities in the program which will reflect the suitable method statement.
But before that I think it is preferable to send a letter to the consultant to save your rights, if the quantity is increased to the the limit that will affect the completion date.
As you have the right to reprice the items with more quantities, and also to increase execution time.
Clive Randall
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Ashraf


I have read this from the begining and am not really sure what your question is.

However, it would appear that you are working on a remeasurement contract and will be paid at BQ rates unless the quantities in the BQ are +- 15% as expressed on the total tender sum.

My suggestion would be to remeasure the quantities insert them in the bill and find out the total change to the contract value.

If its more than 15% then look at the rates quants that have changed and if required prepare a new rate then run the outurn cost again. It would also appear that this rerating would have a time affect so knowing what quants have changed and by how much should allow you to prorata your original programme and come up with an extension requirement.

As to cash flow that should be arrived at when the above operations are completed.

Am I missing something???
Andrew Flowerdew
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Ashraf,

In an early post you stated:

1- Contract is remeasured contract.
2- the following points are mentioned in the preamble of the contract BOQ:
- Drawings, specifications , BOQ and all other documents are complementary and if any item is included in any of them , it shall be deemed included in all.
- The contractor shall not use these BOQ as a basis for a construction program or for the purpose of ordering materials or arranging sub-contractor.
- The whole of the quantities shall be treated as approximate only and are given to provide common basis for tendering.
We have also in the condition of contract clause 52.3 "Variations Exceedung 15%"that the contractor has the right to claim if if the amount of the contract increased or decreased by more than 155 of the effective contract price.


"The contractor shall not use the BOQ as a basis for a construction program" seems plain enough.

Cl52.3 gives you potentially more money, but does the contract elsewhere give you more time?

You don’t state what version oe edition of FIDIC you’re working under or if it been amended to account for the above.



ashraf alawady
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Dear All,

Still we have not finalized the matter of the difference in quantities between the quntities estimated from the contract drawings and the quantities mentioned in the contract Bill Of Quantities.
In our contracts we are following FIDIC as general codition of contract.
Based on clause 14 in FIDIC the contractor has to prepare and submit the program of works and the program has to be resource loaded and quantity loaded.
David Barker
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Probably, unless the Client organisation could show that the particular clause was introduced by the Contractor
Richard Spedding
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Thanks David

Sorry about my own spelling, but the general onus is still with the client organisation as I believed, (I think)
David Barker
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I wikipedia’ed the term and this is what I found,

"Contra proferentem is a rule of contractual interpretation which provides that a term which is found to be ambiguous should be construed against the party which imposed its inclusion in the contract. That is, the preferred interpretation will be the one most favourable to the party upon whom its inclusion was imposed. Or, more accurately against (the interests of) the party who imposed it. The rule only applies if, and to the extent that, the clause was included at the unilateral insistence of one party without having been subject to negotiation by the counter-party.

It translates from the Latin literally to mean "against (contra) the one bringing forth (the proferens)."

The reasoning behind this rule is to encourage the drafter of a contract to be as clear and explicit as possible and to take into account as many foreseeable situations as he can.

Additionally, the rule reflects the court’s inherent dislike of standard-form take-it-or-leave-it contracts also known as contracts of adhesion (e.g., standard form insurance contracts for individual consumers, residential leases, etc.). The court perceives such contracts to be the product of bargaining between parties in unfair or uneven positions. To mitigate this perceived unfairness, legal systems apply the doctrine of contra proferentem; giving the benefit of any doubt in favour of the party upon whom the contract was foisted. Some courts when seeking a particular result will use contra proferentem to take a strict approach against insurers and other powerful contracting parties and go so far as to interpret terms of the contract in favor of the other party, even where the meaning of a term would appear clear and unambiguous on its face, although this application is disfavored.

Contra proferentem also places the cost of losses on the party who was in the best position to avoid the harm. This is generally the person who drafted the contract. An example of this is the insurance contract, a great example of the contract of adhesion, above. There, the insurance company is the party that is completely in control of the terms of the contract and is generally in a better position to, for example, avoid contractual forfeiture. This is a principle of long standing. See, for example, California Civil Code §1654 (“In cases of uncertainty . . . the language of a contract should be interpreted most strongly against the party who caused the uncertainty to exist.") California enacted this section in 1872. Numerous other states have codified the rule as well.

International legislation such as the European Principles of Contract Law, have also codified this rule of law. Also, in the arbitration procedures of the International Chamber of Commerce there are (a few) cases in which arbitrators recall the principle of contra proferentem in their legal reasoning."



Richard Spedding
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Ashraf

Be careful.

My belief is that your contract will say that if the quantities are outside the +/- 15% band from the BoQ, then the rates in the BoQ will be subject to renegotiation / revision. This will not necessarily be a variation to the Works, as the contract drawings and specification may mean that the quantities in the BoQ are simply incorrect. This is implied by all your posts anyway.

In terms of a cash flow, you need to talk to the contractor’s QS and find out what rates he intends to apply to the elements which fall outside the 15% band. Use those for the initial cash flow, (it can only get better after that). When the firestorm subsides after you present the cash flow forecast, I am sure there will be enough resources applied to agreeing the new rates and you will have to adjust the cash flow(s) to suit the new rates.
ashraf alawady
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Dear ,Nieman

what you are tilling is very confident and correct.

Assume that we calculated the total quantities from the drawings and we found that thequantities have been increased by more than 15% and as per the contract if the quantities will increased or decreased by more than 15% so it is a variation and the contractor is entitel to adjust the rates and to get the over head and profit for the extra works passing 15% of the original quanyiyies in the BOQ.
also in this case how we can prepare the cash floe for the project.

Thanks
Richard Spedding
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Ashraf

Agreed you need to load the quantities and resources, but these MUST relate to the drawings which describe the Works to be built - there is no point in using the BoQ just because they have the quantities someone else believed that it would take. You (the corporate you - probably a quantity surveyor or measurement engineer if they still exist) must take off the quantities from the contract drawings and you should then apply those quantities to the programme to get the necessary activity durations.

Also don’t forget the old latin saying of contra preferendum, where the party that draws up the contract documents has the duty to make them all mutually self descriptive (assuming you are working under English Law). If there is any discrepancy between the documents, then the client is responsible and must hold the contractor harmless from the discrepancy.
David Barker
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Clause 14 Program should be prepared as close as possible to the program that was Tendered and accepted by awarding the Contract.

Afterall a contract has to be what was contemplated at the time of award (offer, acceptance, meeting of minds, possibility of performance, legal, of sound mind, capacity to contract etc).

You should resist the notion that the Engineer can dictate to you how to run your business.

If the Engineer should insist on you programming the work in a manner not consistant with what you offered in your tender then you should insist that an instruction is given varying the work.
ashraf alawady
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Agreed ,but to prepare a realistic program in order to manage the project we have to load the quantities and resources .

so still we have to finalize the matter of the difference in quantities between the quntities estimated from the contract drawings and the quantities mentioned in the contract Bill Of Quantities and which one has to be considered and inserted in the program taking into consideration the cash flow and the original contract value.
Andrew Flowerdew
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A programme is first and foremost a tool for managing the project, the answer therefore should be obvious.
ashraf alawady
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Please ,We need specified answers not a repeated and uncompleted statements.

Bolisetti Jogiraju
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Hi
Ashraf !

If you are a Contractor,just follow first paragraph of what NICOLAS said.

It will be good for you.

Cheers
Nicolas Igersheim
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Ashraf,

You may programme according to contract BOQ AND contract completion time, but this would be of little use,
except maybe in litigation
or
you may programme according to "real" quantities AND
corresponding "real" completion time, and check if the ten month is possible or not: if not -> EOT

hth

Nicolas
Dieter Wambach
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Ashraf
Of course there are common principles how a contract should be - but there is no obligation that it must be.
Important is the content of the contract. Be careful, we planners are no attorneys/lawyers. Transfer this question to the experts.
For us it is diffucult as well because we don’t know in detail the complete contract.
Good luck
Dieter
ashraf alawady
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I agreed with you that the total quatities and total amount
in the contract BOQ are approximate andwill be defferent form the quantuties calculated from the drawing but there is a limitaion should guid and contral these differences other wise the total quantities and total amount may will be double or treeble which is not acceptable and againest the condition of contract .
the condition of contract has limited the incease or decrease in the toatal quantities as well as the toal amount to 15% only and in our case it is more than this and how we can solve the problem of preparing a realistic cash flow in this case.
Richard Spedding
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Ashraf

The tender programme must be based on the tender drawings, not the BoQ. How can you know where a particular amount of a billed rate is to fall within the programme unless you refer to the drawings. The BoQ is merely a vehicle for payment, and a guide only to the amount of work to be done.

Similarly the Contract programme baseline must be based on the Contract drawings issued when the contract is signed. This may (and probaly will) be different to the drawings at tender stage.
Dieter Wambach
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Ashraf

As you mentioned, there are different conditions in that contract: ".. shall not use as a basis .." would mean: you pay. "..Variations exceeding 15%.." would mean: they pay because you exceed by 20%.
The only advice I can give you: consult your lawyer - there is an obvious contradiction in terms of the contract. It is very dangerous if you try to solve this lack of contract - and: This is PM’s responsibility.
Good luck!
Dieter
p.s. I’ll leave now for the rest of the day (German time)
ashraf alawady
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Hi Dieter

Thanks for your kind answer but i would like to high light the following conditions mantioned in our contract:-

1- Contract is remeasured contract.
2- the following points are mentioned in the preamble of the contract BOQ:
- Drawings, specifications , BOQ and all other documents are complementary and if any item is included in any of them , it shall be deemed ancluded in all.
- The contractor shall not use these BOQ as abasis for a construction program or for the purpose of ordering materials or arranging sub-contractor.
- The whole of the quantities shall be treated as approximate only and are given to provide common basis for tendering.
We have also in the condition of contract clause 52.3 "Vaiations Exceedung 15%"that the contractor has the right to clain if if the amount of the contract increased or decreased by more than 155 of the effective contract price.

still we are in opinion to use the quanyitities mentioned in the BOQ only if the deferce between the quantities calculated from the drawings and the quantitiesmentioned in the BOQ was more than 15% taking into consideration that the cash flow will not be realistic.
Dieter Wambach
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Hi Ashraf

The contract said that you’ll work with a certain quantity of steel, cubicmeters of rooms,.... Your offer and the agreed price were based on this quantity. After detaile Engineering it was shown that this assumption was wrong. The BoQ has to be changed. This is a change of scope - a CLAIM.
Now it depends from the contract; e.g.:
- Was the BoQ base of the contract --> claim and more money
- Was the BoQ an assumption to be proved by the contractor before signature --> bad luck for you
Read the contract or better: contact your lawyer.
Good luck
Dieter