The Client is considering instructing additional works not covered by the original Works Information and has requested quotations from the Contractor before deciding if they will proceed. The additional works are not similar to any Bill Items (option B has been used), and therefore, the quotation is based on defined costs.
His quotation includes for materials, plant and labour all with the applicable percentages added. The rates proposed for the material and plant are as expected. The issue arises for the labour element.
By way of further background, the Schedule of Cost Components (SCC) has been adjusted at tender stage to include a list of people with an hourly rate against each, site manager, foreman … labourer and so on.
It would be beneficial, although not vital, to carry the works out outside of working hours and the Contractor has given two options: to complete the works during normal working hours at the rates as per the schedule, or to complete the works after 17:00 (outside of the given site working hours).
To complete the works outside of working hours he has increased the schedule rate to include overtime (time and a quarter). He employs and pays his labourers according to the Working Rules Agreement and states that overtime payments attract a premium and therefore this would be payable.
This proposal seems reasonable but the Contract appears to be silent on the matter. The Client does not think that overtime is payable as it is not mentioned and considers that his people costs should cover everything at all times; therefore, should overtime be included if the out of hours option is chosen?