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JCT: Can we use agreed all in daywork rates to value verified standing time.

+1 vote
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We are working for a subcontractor who is contracted to a JCT subcontract with partial design with their conditions stepped down from their subcontract. We are also working to sectional possession and handover. The Client is responsible for provision of Tower Cranes to erect our work. We have suffered late granting of possession to erect our work resulting in our labour standing due to no other work available or the withdrawal of Tower Cranes, again resulting labour standing. We have daywork sheet records of these events verifying the standing time and have submitted these valued at the "all in" contract daywork rates. These costs have been downgraded by our client on the basis that the standing time is not daywork but Loss and Expense and valued at a much lower rate than the agreed daywork rates, reduced by about 40% on the basis that this is the direct cost only, no on-costs or overheads.
We contend that our daywork rates include all costs of employment, overheads and margin and see no reason to reduce our submission as our at risk tender price assumes access to the works at all times stated on the contract programme and all periods of Tower Cranes.stipulated in the contract. Can you please advise your opinion.
asked Jun 18, 2018 in JCT Contracts by John Mallon (130 points)  

1 Answer

0 votes
It is open to the parties, for simplicity, to use daywork rates for standing time and often this is used. However, there is no obligation to use the daywork rate.

Standing time is very likely to be loss and expense and should be valued accordingly complying with the contract rules for valuing such time related cost.
answered Sep 3, 2018 by Rob Horne Panel Members (19,700 points)