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Andy Hewitt Omission of Items Included in the Bill of Quantities, but Andy's Blog
Date not Shown on the Drawings Announcements
July 11, 2016
Category I recently received a request for advice from one of our course Case Studies
Andy's Blog,
Construction attendees. I have been asked for advice about this topic on several Construction
Contracts, FIDIC,
occasions so I thought it worthy of a blog. The situation and query was Claims
Industry Insights
as follows: Construction
The Contract is a lump sum and not subject to re-measurement. The Bill of Quantities (BoQ) Contracts
was prepared by the Contractor at tender stage.
Courses
During the project closure, some items listed in the BoQ were not provided since these items Customer
were not included on the tender drawings, shop drawing or final as-built drawings. Satisfaction
The Client deducted these items as an omission at final account stage as the Contractor did
E-Courses
not complete any of these billed works. The Contractor disagrees with this and asserts that FIDIC
he took the risk on the lump sum contract and the BoQ was merely for guidance and
valuation only. Guest Writer
Industry Insights
So…
Nina's Blog
What is the Contractor and Client’s entitlements under FIDIC for this kind of a Press
situation?
Publications
What should be the stance of the Contractor on this matter? Research
Is the Client entitled to omit the value of the BoQ items not fulfilled by the Contractor Top Tips Papers
despite it been a lump sum contract?
Uncategorized
My reply was as follows:
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This a fairly typical scenario that I have come across on several occasions and arises from
the Employer/Engineer wanting both to have his cake and to eat it too.
You will of course need to check the details of the actual contract, but the following is based
upon a typical contract of this type based on FIDIC, where the Contract is based on a lump Would you like to
sum price: receive an email
notification when
The BoQ is usually stated in the contract to be an estimate, not to be relied upon and
only to be used for evaluating monthly progress and variations.
a new article has
been posted?
The BoQ is usually way down the order of precedence stated under Sub-Clause 1.5
(Priority of Documents) and below the specification and drawings. Sign up now:
This is a lump sum contract, so the lump sum is defined by what is shown on the
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drawings and included in the specification.
If therefore, something is not shown on the drawings/specification, but is listed in the Subscribe
BoQ, it is not part of the Contract or the lump sum price and cannot be deducted.
The best way to illustrate this is by looking at the reverse scenario. If something is shown on
the drawings, but not listed in the BoQ, would the Engineer/Employer pay for it as a
variation? I doubt it very much.
We have two case studies on this topic and would be happy to share them with you. Just
comment below and we’ll be in touch.
See previous blog dealing with the same subject, under a different scenario.
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Michael
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Written by
Nina Hewitt,
on August 30, 2017
Commented by Nina Hewitt, on August 30, 2017
Sending now, thanks for your comment. Nina.
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This is the fundamental aspect of a Lump-sum contract. The Contractor’s obligation is to carry out the
scope of works prescribed in the drawings and specifications. The BOQ is a mere schedule prepared
based on the drawings and specifications. It may or may not truly represent what exactly is required as
per specifications and drawings.
SAJI
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Appreciate if you could share the case studies to know how such situations unfold to a reasonable
conclusion for both parties.
Regards
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Looking at it from another angle, any attempt for client/employer to deduct an unfulfilled BoQ item
contradicts the objective of “lump sum”. It will be as if the contractor is being paid for work executed
only (re-measurement).
I think what the client would have done prior to final account would have been to issue site instruction
for ommission of that item in the form of a variation. In FIDIC, a lump sum can be changed only by
variation which can be addition or ommission. My thought.
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SAJI
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The Contractor can argue and prove that the Lump sum amount included in the tender did allow for his
over head and profit, and also priced this omission item as a risk element to cover the items not shown
on the drawings or specs. Hence the Employer cannot omit this item.
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Accordingly, if the item listed on the BOQ dose not exist then will not be certified and consequently
deducted.
Bashar Albany
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Thank you.
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SAJI
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Written by Commented by Amy Jackson, on August 05, 2016
Amy Jackson, A very clear, easy to understand answer to this problem – thanks!
on August 05, 2016
I would greatly appreciate if you could provide a copy of the case studies referred to.
Amy
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my email: aad.sherif@yahoo.com
Regards
Ahmed Sherif
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With ref. to the above subject, I would be grateful if you could send me the case studies that you are
referring to.
Many thanks.
Best Regards,
Prince James.
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Thanks for your idea and i would like to have the other two case studies.
Best Regards
Marwan Al Ghouthani
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Thank you.
SAEED
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Regards
Firas
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Thanks
Jiju
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Regards,
Edmond
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Sanath Neelawela
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Rolly
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In some instances, Contract states that it is a lump sum contract, however, few bills of the BOQ states
that these are the provisional quantities and it shall be remeasured as per actual execution at site. In
such situation, basic nature of lump sum contract is compromised. Based on the final valuation of these
quantities, can contractor demand for adjustment in General and Preliminaries? for under recovery of
the same in case of deletion of the items from these bills.
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I agree with A Layman and would add that building contracts are not like contracts in other walks of life,
because each project is bespoke and this results in extremely complicated contract documents.
As A Layman states, the contract usually stipulates that the drawing and specification define the scope
of work and in an ideal world, the bills of quantities would be an accurate measurement of this.
Unfortunately we don’t always live in an ideal world and we often see items missed from the bills of
quantities and sometimes items included that are not shown on the drawings. I have to also ask why,
when an item is included in the BoQ but not on the drawings, why would the Contractor price it? Such
things happen however and we have to deal with them equitably.
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!. the Item might be required as a necessary implication of the design. A necessary detail not
shown but to be provided as part of the Contract. No entitlement to extra money.
2. The Item might be an Item included only for pricing a possible addition or a provisional sum.
Entitlement to an extra payment if the contract varied.
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1. Splicing Reinforcement is not shown on the drawings nor quantified by Consultants in BoQ, However,
there is a note in the drawings stating that protection should be provided for the splicing reinforcement
to be extended with the columns floor level to be done by another Contractor. Can the Contractor claim
this reinforcement as variation? The Consultant claims that the note is sufficient and Contractor ought to
have priced it in his BoQ.
2. If the drawings shows 10 items but the Contractor only priced for 7. In case of an omission, is the
Consultant allowed to omit the value of 10 items in the drawings or only the 7 items priced? And does
the profits and overheads omitted in case of lump sum contract?
Thank you.
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Written by Commented by Andy Hewitt, on March 07, 2017
Andy Hewitt, Hi Zait,
on March 07, 2017
Your two comments may be answered by considering what should be considered as forming the basis
of a lump sum contract. You would need to check the actual contract for this, but usually, the lump sum
is defined by what is shown on the drawings and described in the specification.
In your first example, I am not sure what ‘splicing reinforcement’ is, or how or why it should be
protected. The question you need to ask yourself is – is this reasonably shown or inferred on the
drawings or specification as part of your scope of works? If the answer is ‘yes’ then this should not be a
variation.
The second item is slightly more difficult. The drawings show 10 items, so 10 are included in the lump
sum price. The real question is, should the omission be evaluated at 10 x the contract rate, or 7 x the
contract rate as included in the BoQ? Usually the contract says that variations should be evaluated at
the contracts rates and prices so, if I were the contractor, I would argue that the price should be used
rather than the rate.
In other words, the total price included in the BoQ for the items should be the maximum deduction.
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The scope of the work for the Contractor is to construct the building up to the podium level,
which will be completed later up to the roof level by another contractor.
The (drawings & specifications) and BoQ forms part of the Contract document in that order of
priority.
The problem is, the Contract drawings only show the podium plan as there are no elevation
drawings that would have enabled the Contractor quantify the additional columns.
The Contractor considers this a variation as the columns were not included in the BOQ while
Consultant claims that the above note implied the columns should have been quantified.
Thank you
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for the items not shown in the drawings, but available in the BOQ and general Specification, I
believe Drawings should be read in conjunction with specification. So these items can’t be
omitted, as the never existed on Drawings.
Regards,
Vijay Singh
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The FIDIC general conditions have not been amended in case of evaluation of variations.
Kind regards,
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The contractor accepted the argument, although the value was not excessive.
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Written by Commented by Joey Quizzagan, on April 11, 2017
Joey Quizzagan, Hi Andy,
on April 11, 2017
Excellent answer. Could you please share the case studies?
Thank you.
Regards,
Joey
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Best Regards
Manoj
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Regards
Manoj
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Many Thanks
Mohammed
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Regards,
Thameem
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Thank you.
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Best Regards,
Mohamed
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Thank you
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Thanks.
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If the bill of quantities is a contract document, then the contractor has agreed to and is obliged
to provide a car and driver for the duration of the construction period.
If the employer has decided that the car and driver is not required and the contractor has not
provided them, the employer can omit this item from the contract and the lump sum price
should be adjusted accordingly.
As this item is not priced separately, the amount of the adjustment should be calculated based
on the reasonable cost of providing a suitable vehicle and driver. Obviously this will be
subjective, so it will be necessary to use common sense here. The period used for the
calculation would be the duration of the construction period, because this is the period that the
contractor agreed to provide the car and driver for when entering into the contract.
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Written by
Ali Elbanhawy,
on August 07, 2017
Commented by Ali Elbanhawy, on August 07, 2017
Thank you very much Nina.
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Best Regards,
Muhammad
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Written by Commented by Shamilka Pananwala, on August 14, 2017
Shamilka Pananwala, Hi Andy,
on August 14, 2017
This is very common scenario in terms of Lump Sum contract.
Please share your case studies.
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Moreover please can you provide me the above said two case studies which will help me a lot.
Thank you.
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Written by
MOHAMMED IBRAHIM,
on September 02, 2017
Commented by MOHAMMED IBRAHIM, on September 02, 2017
Hi A Layman,
Thanks for your comments. in our case no work has been started.
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The BoQ stipulates a total meterage which is not a true reflection on the site installation. The Client will
not pay for the extra measure, but is wanting to deduct quantities for the design change.
My head is hurting on this miserable Friday morning so would really appreciate some advice please.
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After opening the technical and financial envelopes of the tender of a lump sum contract and during the
negotiations with the Contractor it was agreed to pay part of the contract sum in hard currency and the
Contractor was instructed by the employer to submit a new BOQ reflecting this. In the new BOQ which
was approved by the Employer the Contractor added “additional items”, which was allowed in the
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original BOQ to cover any missing items or low quantities. My questions are:
1- If the Contractor refuses to provide more details of why he added those items and where they are
going to be used, giving a reason that this is a lump sum Contract and not a re-measured Contract. Can
the supervision Consultant insist that the Contractor submit details of those items?
2- Can the Employer omit any item of those additioal items if the quantity in the shop drawings is within
the original BOQ quantities?
3- If the Contractor was required in the tender documents to make a bypass of service lines of a specific
route and the quantities of that bypass were detailed in the BOQ, and it was decided during
construction stage with the supervision consultant agreement to make a much shorter bypass using
existing pipes and cables which will fit the purpose, can the employer omit the unused quantities?
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If I may say so, a Contractor who doesn’t explain or account for unspecified additional items,
the Employer, not knowing about them, might not pay for them. It’s a risk you take.
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Written by
Ali Elbanhaway,
on September 18, 2017
Commented by Ali Elbanhaway, on September 18, 2017
Thank you very much for this clear explanation.
So as a Consultant I will omit the Contractor additional items which I do not have details about
them from the Contractor. Also, the unused lengths of pipes and cables because of making a
shorter bypass will be omitted.
Thanks again
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Regards,
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Sincerely,
Lina
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I would like to receive the case studies in order to understand further on this
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Thanks!
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Hence could you please be kind enough sending me the case studies please? so that I can refer and
look on how to take it forward.
Thank you
Sandeep
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on December 21, 2017 Hi Akila – thanks for your kind comment. I’ll send the case studies to you shortly. Regards,
Nina.
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I need guidance to facilitate my argument. My answer is no.we are not suppose no suffer for the
mistakes in addition beyond the contract drawings and moreover my view is no rate is given for 100mm
sand binding.50mm sand binding is an guideline we suppose to use as per the condition ofcontract
were it is an evaluation guidline. So please mention your comments and how to derive the rate for
100mm.is it that we should substatiate a new rate or derive from 50mm i think it is more
convineant.what is the entitlement in contactors point of view
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Written by
Akila wijesooriya,
on December 22, 2017
Commented by Akila wijesooriya, on December 22, 2017
Yeah true and it is the obligation of contractor to execute in drawings irespective to the boq.no
argument in it. But my question is when client add the scope or expand the scope does the
contractor have to execute under a mistake under taken in tender stage .
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Thank you
Allan
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Case 1: If The item you are going to omit is unique and specifically quantity inserted and you
are changing to Insitu fund allocated to the item should be omitted regardless of the quantity.
Case 2: The item you are going to omit is part of other elements in which BoQ Quantity is
inserted; then All elements can be measured as per Tender drawing and equaled to the BoQ
Quantity and only the proportionate part of the quantity can be omitted as omission.
Check at the same time this changing the item requires any additional work to be required like
waterproofing, if so it should be added to scope to cover the cost.
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If I understand correctly:
Remembering that the lump sum price includes for what is shown on the drawings, the
omission would be for the precast concrete measured from the contract drawings at the BoQ
rate.
The addition would be for insitu concrete measured and evaluated at the appropriate rates
from the BoQ.
What we must remember in situations where the contract BoQ does not accurately reflect the
contract design, is that in most cases, the Employer or his agents prepared the BoQ and thus
had the opportunity to do this accurately. If inaccuracies cause conflicts or ambiguities, the
interpretation must be the one most favourable to the Contractor. Check out the principle of
contra preferentem. Of course, engineers, who are often the parties responsible for preparing
the inaccurate BoQ’s will try to argue against this, but this principle is supported by law.
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Hartwell, @Isam Logically, what has happened is that a part only of the item has been built so that it would be
on January 28, 2018 appropriate to reduce the item accordingly. An alternative, allowing for the different method, would be
for Employer and Contractor to agree on the omission of the entire item and to add the actual value as
a new item.
The contract is to supply the item. Provided the quality is equivalent, the method of manufacture is up to
the Contractor.
But I’m no lawyer.
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Stephen
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Written by
Akila wijesooriya,
on February 06, 2018
Commented by Akila wijesooriya, on February 06, 2018
@Haneefa
Whatsoever the quantity in BOQ the rate is referred to drawing/ specification qty. The
Contractor is obligated to refer drawings and specifications during tender stages and price as
per drawing qty because at the end of the day he has to execute as per drawing. Since
Omission are allowed in Contracts eg. Fidic 99 . Must see the particular conditions
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Written by
M.Haneefa,
on February 06, 2018
Commented by M.Haneefa, on February 06, 2018
Yes I agree that it is correct for one type of contract in Lump sum where BOQ is not part of
Contract. There are cases where BOQ is part of the contract and in that case we have to
approach differently…
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on February 05, 2018 Reply
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1. There are Tender adjustment schedules or similar mechanisms in bidding docs that allow bidder to
price in / adjust BOQ’s in their bid that then become part of the contract, albeit perhaps lower in
precedence that drawings and/or specs;
2. the contract contains in the GTC or STC’s the right of Client to vary the works via Change
instructions e.g. additions and/or deletions.
3. In the case of Omission of Work not performed, as mentioned above, why should the Client pay for
Work that was never done, particularly if clearly shown on drawings and detailed in bills, but for
whatever reason the work was/is not to be executed under the contract.
It seems quite often the Client just exercises his right to vary the works and issues an instruction to omit
that portion of the Works.
I’m not sure I’m seeing anything in the above discussion that would fully counter the Client exercising
this right.”This is a lump sum” doesn’t seem to swing it for me?
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Written by Commented by Nina Hewitt, on February 15, 2018
Nina Hewitt, Hi Ali – thanks for your comment. I’ll ask Andy to provide a response. Regards, Nina.
on February 15, 2018
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Say: the BoQ has an item / items for dewatering and these are priced by the Contractor. However, the
GI details show that dewatering will not be required at all.
Can the Engineer issue an instruction omitting the dewartering item?
The relevant documents are equal in this case.
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Written by Commented by Andy Hewitt, on March 01, 2018
Andy Hewitt, In reply to Ali Elbanhawy’s post of 14 February.
on March 01, 2018 Sorry for the delay, but I was in Norway conducting a training course.
I think I am correct in assuming that you are working on the consultant’s side of the fence and that
therefore, you do not wish to pay what you consider to be an exorbitantly high rate for a variation. I have
a few observations to make on this matter.
Firstly, why did the party responsible for tender evaluations not pick this up before the contract was
entered into? Any half-competent cost consultant would have performed a comparison of at least the
three most competitive tenders to identify things like this. Had this exercise been carried out, the rate
could have been negotiated and replaced by something more realistic. I fear that this is another
example of taking short cuts or saving money when finalising the contract, which come back to bite the
parties during the execution stage and could conceivably cost the Employer a significant amount of
money.
Secondly, if we take the FIDIC Red book as an example of how variations should be evaluated, Sub-
Clause 13.3 (Variation Procedure) directs us to evaluate variations in accordance with Clause 12
(Measurement and Evaluation). Sub-Clause 12.3 (Evaluation) states ‘For each items of work, the
appropriate rate or price for the item shall be the rate or price specified for such item in the Contract’, so
it looks as though you will have to use the rate that ‘is extremely high’ for the evaluation.
Thirdly, FIDIC does provide a get out clause in some circumstances and Sub-Clause 12.3 (Evaluation)
goes on to say ‘However, a new rate or price shall be appropriate for an item of work if: ….’ FIDIC then
provides a list of circumstances that may allow a new rate or price to be used. From the information
provided, I can’t tell which conditions may apply, but on the face of it sub-paragraph (b) seems to
indicate that you cannot change the rate even though although this is a variation, because there is a
rate specified in the Contract and the work is likely to be of similar character and executed under similar
conditions.
Fourthly, as a consultant, please ask yourself how you would react to a contractor who asked for extra
money because he significantly under-priced something.
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Written by
Ali Elbanhawy,
on March 06, 2018
Commented by Ali Elbanhawy, on March 06, 2018
Stainless steel has been used because there is an item for it in the BOQ and to match
adjacent/nearby building façade as explained by the supervision Consultant.
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Thanks in advance
Regards
Ram
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Thank you
Regards
John
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Contract sum in BOQ rate based on lump sum (1 lot) without detail breakdown quantity and Unit Price.
But during additional and omission shall be based on Schedule of Unit Rate:
Due to overall design changes there was addition and omission breakdown to identify and submit the
cost to client.
1) Total contract amount 1M not same with detail breakdown with Schedule of unit rate (markup 50%)
and cost becomes 1.5M
2) The additional cost based on Schedule Unit Rate becomes 3M
3) Cost different based on schedule unit rate is 1.5M
4) But client insists to rationalise the unit rate to ensure tally as per Contract Sum of 1M.
https://www.constructionclaimsclass.com/omission-of-items-included-in-the-bill-of-quantities-but-not-shown-on-the-drawings/ 26/27
4/20/2018 Omission of Items Included in the Bill of Quantities, but not Shown on the Drawings | Claims Class
What is the contractual view on this matter?
Regards,
Shful
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https://www.constructionclaimsclass.com/omission-of-items-included-in-the-bill-of-quantities-but-not-shown-on-the-drawings/ 27/27