We currently have a planned completion of mid March 22 against a contract completion of late April 22.
We intend to agree a CE for a further tranche of works (beginning Dec 21), taking contract completion to late August 22.
The contractor believes they are entitled to the full agreed prelims for the time between planned and contract completion, plus the new prelims allowances for the new tranche of works. Given the Pm has already ‘paid’ for the prelims during this 6 week period, we do not believe there is justification for further uplift of costs?
Thoughts?
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Ask the Contractor to demonstrate what “additional” staff are required for these new prelims. In essence the Contractor is entitles to price as they see fit, it is a forecast of Defines Cost. If you feel they are doubling up and using the same staff have the discussion with them and request a revised quotation be submitted. They can price through to “Completion” via risk in the CE quote, it is after all their assessment of how much/how long the additional work will take.