I was recently involved in a scheme wherby the Contractor submitted the Final Account with measured quantities exceeding / less than those included in Tender BoQ.
When questioned, the QS noted that the BoQ is subject to re-measurement, however PM diagreed and noted the works as a Priced Contract, hence variations should be addressed thought CE process.
Could somebody shed some light on the ‘Option B’ remeasurement issue? and if possible direct me to where in the contract this is noted.
I would start with clauses 11.2(28) which, in part states, that the Price for Work Done to Date is the total of:
• the quantity of the work which the Contractor has completed for each item in the Bill of Quantities multiplied by the rate and
• a proportion of each lump sum which is the proportion of the work covered by the item which the Contractor has completed.
Since the PWDD is based on the quantity of completed work, the BoQ is subject to remeasure. Note the quantity of work completed is in respect of the quantity completed to provide the Works Information measured in accordance with the Method of Measurement which may not be the actual physical quantity of work done.
The compensation event provisions deals with “change” and how this is incorporated into the BoQ
Thank you for your response.
Where you have noted… ‘PWDD is based on the quantity of completed work, the BoQ is subject to remeasure’… is the term ‘remeasure’ the correct term to use.
I find it easier to explain my original question regarding ‘remeasurable’ in an example scenario.
For example, the Works Information shows 200m of new kerbing to be installed, which is the quantity given in the BoQ at Tender. Working under an Option B, the Contractor at Tender gives a rate of £10 per lm, hence for that item the Total is £2000.
At the end of the first month, the Contractor has installed 50m, hence a MEASURED quantity, equating to £500.
My understanding in the above scenario,is this is not considered a ‘remeasure’, but that the BoQ is serving as a mechanism to pay the Contractor for work done to date.
Assuming the Works Information were to remain unchanged, the total quantity on completion should be 200m as per the Tender BoQ.
In the event the quantity was mis measured when preparing the Bill, the PM shall correct the anomaly through instruction, hence giving rise to CE.
Or alternatively, if the Contractor were to install a greater length of kerbing than that shown in the WI, this again should be addressed through a CE.
What I find confusing regarding the ‘remeasure’ is Option B is a priced contract. When you refer to it being remeasureable, is that applying bill rates and how does defined cost come into play?
Any assistance would be greatly appreciated
It is easy to understand your confusion/questions around option B. The Contractor is paid for the amount that they have done in accordance with the B of Q rates. If they do a bit more or less than originally envisaged then that is what they are paid. As a Contractor you would not be happy being paid only for 20 widgets as per the bill if actually you had installed 21 widgets.
It is the Employer who is taking the risk in errors in the pricing document for option B - where as it is Contractor risk under option A.
Bigger changes in quantities are addressed in clause 60.4 where there is a chance to readdress the rate based on the actual quantity that has been done.
Sorry if I confused you. As Glenn states, the Contractor should be paid for the work done. Please note that the BoQ is not Works Information and that the quantities should be taken/measured from the Works Information. In your example if the length of kerbing from the Works Information (not adjusted for change) was at variance, up or down, to the BoQ then the rate would apply to the remeasured quantity (clause 60.4 may apply if the criteria was met).
If there was a change to the Works Information that effected the kerbing then the change would be assessed based on Defined Cost or by agreement the bill rates could be used. hope that clarifies,
It is easy to understand your confusion/questions around option B. The Contractor is paid for the amount that they have done in accordance with the B of Q rates. If they do a bit more or less than originally envisaged then that is what they are paid. As a Contractor you would not be happy being paid only for 20 widgets as per the bill if actually you had installed 21 widgets.
It is the Employer who is taking the risk in errors in the pricing document for option B - where as it is Contractor risk under option A.
Bigger changes in quantities are addressed in clause 60.4 where there is a chance to readdress the rate based on the actual quantity that has been done.