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Bill of quantities provisions

+1 vote
For an ECS Option B, is it acceptable to inlude daywork provisions (priced contingency) and provisional sums in the Bill of Quantities, to be expended as compensation events at a later date.
asked Jun 7, 2014 in Main options by anonymous   7 39 57

1 Answer

+1 vote
Best answer
It is certainly not the intention ! Putting, within the contract Prices, a sum for a vaguely defined piece of work that will then need to be modified as detail emerges seems to me a recipe for an argument in terms of what the Contractor should have allowed for in the the vaguely specified original sum, compared with the (hopefully) now precisely defined bit of work.

Here are two alternatives which I think match wehat you are looking for, but please say if not :
1. you do ask for - and evaluate as part of the tender submission - input rates for labour in particular. Consequently, when they are needed for a compensation event there is no argument of what the rates should be in accordance with 1. People of the Shorter Schedule of Cost Components.
2. the Employer should have a contingency for the undefined work which is within their total budget and OUTSIDE of the contractual Prices. When the work is properly defined, then it is added in as a compensation event under clause 60.1(1) and hopefully the amount covers the change in Defined Costs + Fee. This was you are pricing the defined works up from scratch as opposed to contrasting it with what you think the Contractor should have priced for. Some Employers have specified in the Works Information the expected amount of time the Contractor should allow in his programme for the works, so that the Contractor is pricing up the direct costs, not the indirect time realted costs which he should have already allowed for (unless he can justify in his forecat the new works taking longer than the time he was told to allow).

Hope this helps.
answered Jun 8, 2014 by Jon Broome (52,410 points)