NEC 4 Option B - Recovery for fabricated steel off site

Is a Contractor entitled to recover the BoQ value of fabricated steel bridge beams? The bill includes items for fabricated steel however, the Client is arguing that the Contractor is not entitled to recover any value for materials not on site. Is the Clients approach correct?

Also, to exacerbate matters, the project has been delayed, due to issues which the Client is culpable for, so the delivery of the beams will be much later than originally envisaged.

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Jason,

You would have to look carefully at the description of the item in the BoQ; if it reads “installation of steel bridge beams” it is most likely that the Client is correct.

If the BoQ states fabrication separately, then the steel beams should be marked by the Supervisor, in order for the title to pass to the Client and you get paid for them; see cl. 71.1.

Regarding the delay, you should notify a CE and the quotation could include any costs associated with storage or demurrage etc.

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Peter, the BoQ item is for fabrication only. In relation to Clause 71.1 (Title) The contract identifies them for payment, Bill Item. As regards the marking, the Scope does not include any reference to beam marking, so it is unclear what needs to be done to prepare for the marking by the Supervisor. The Client is advising that as there is no details in the Scope in relation to the marking preparation then we are not entitled to recover the value. Advice please.

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Jason,

If the BoQ states “fabrication” only, and that is competed, then it should be included in the PWDD (see clause 11.2 (30) - 2nd bullet point). Regarding the requirement for delivery to Site in order to get paid for it (which seems to be what the Client contends), this is something you need to check carefully within the Scope and any Z-clauses/amendments.

Regarding marking, cl. 71.1 requires the Supervisor to do so if the contract identifies those materials for payment and the Contractor has prepared them for marking as the Scope requires; if you say that the Scope does not contain such requirement, then there is no such obligation. It follows that the title remains with the Contractor until they are delivered to the Working Areas (NB. check if the Working Areas extend to any fabrication facilities).

That is all I can say without looking at the contract as a whole. It may be worth looking at a vesting certificate option with the Client, in order for them to get some assurance about the materials.

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