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No Daywork Provision

4 replies [Last post]
Fri, 2008-04-11 10:45
Skan Bu
User offline. Last seen 13 years 30 weeks ago. Offline
Joined: 29 May 2006
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Hi,

Reference to the thread "Contract Exist?" too.
Q1) Is it true that if the SC’s quotation did not insert daywork rate for Labour, Plant & Material. When there is a variation, daywork can not be submitted as claim for the variation?

Q2) How to value then especially if it is sort of very messy work?

Q3) Will this different between the different types of contract?
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Replies

Mon, 2008-04-28 10:16
#1
Andrew Flowerdew
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Joined: 14 Dec 2004
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Skan,

If no daywork rates were originally set up it doesn’t stop you agreeing them later and amending the contract to suit.

As long as BOTH parties agree to it, any contract can be amended at a later date.
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Wed, 2008-04-16 08:55
#2
Larry Rino
User offline. Last seen 1 year 23 hours ago. Offline
Joined: 25 Oct 2007
Posts: 64
Groups: Petro-Chem / Oil & Gas
Skan,

2A1) Its up to you or your estimation team to decide. If your prices is still valid (e.g. no price inflation in your cost build up, no additional cost factors to consider, etc.), then you may use.

2A2) No, a subcontract cost is a direct cost for the Contractor (in most cases).
Sometimes, your RFQ (to Subcon) requires direct & indirect to be separate, so Contractor can also allocate them as direct & indirect in your price.
I suggest you consult to you estimation team to determine your pricing structure, since this may be different, depending on Client requirements.

Larry
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Tue, 2008-04-15 08:56
#3
Skan Bu
User offline. Last seen 13 years 30 weeks ago. Offline
Joined: 29 May 2006
Posts: 118
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Hi,

Thanks

Reference to A1:
Can we use the rate in the quotation & establish the qty so price up the variation?

Refernce to A2:
When you said "direct cost of Labour, Eqpt & matl", actual cost paid by the subcontractor to the labour & supplier?
Invoices to prove cost incured?
Then add indirect cost and OH & P?



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Mon, 2008-04-14 21:58
#4
Larry Rino
User offline. Last seen 1 year 23 hours ago. Offline
Joined: 25 Oct 2007
Posts: 64
Groups: Petro-Chem / Oil & Gas
Skan,

My answers are:

A1) Yes. You can not submit a daywork claim, if daywork is not established in you contract.

A2) Use conventional estimation practice. e.g, Direct Cost of Labor, Eqpt, Matls, + Indirect cost Supv & Mngt, Oh, P, etc.

A3) Yes, it can be different in every contract, it can come in Unit Price, LS, Daywork, Cost plus, etc.

Hope these help.

Larry
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