Dear Planning Planet Participants,
I have one question in relation to Lump Sum Contracts. The Contract was a Lump Sum type Contract for Design and Construction of a road project. Pursuant to the Contract, three control points were specified in which the envisaged road shall pass through. During the Contractor was carrying out the design of the road, The Employer has changed the intermediate control point which then had resulted in a significant reduction of the total length of the project. Accordingly, the Proect Administrator (the Engineer) determined that the Lump Sum Contract amount to be decreased pro rata with the reduced length of the road in consideration of the fact that the reduction in length has been brough by the Employer and the Contractor has nothing to do with same. Consequent to that, the Design-Builder has disputed the Engineer's determination and requested for the payment of the total Lump Sum Contract amount regradless of the length reduction. Please comment on the Engineer's deternination and Contractor's objection thereof.
Regards,
Solomon