Must the QS Take into Account Signed Daywork Sheets by the Architect/Engineer and Can He then<br>Alter the Daywork Quantities on Reasonable Basis?
Most standard form contracts provide for valuing of variation work which cannot be properly measured and valued using daywork rates stated in the Contract Bills. Where no such rates are stipulated, it is common to use actual prime cost of Contractor’s materials, transport and labour for the variation work plus a percentage (usually 15%), for […]
Is The Contractor Bound by His Tendered Rates if the Quantities Changed Substantially
In principal, tendered rates once contracted, shall hold firm for all variations, unless the contract provisions allow for its adjustment due to difference in quantities, character, conditions, etc. Any adjustment will depend very much upon the QS/SO valuing the varied work under its circumstances. In this series, Entrusty Group will provide the answer to the […]
Can the Contractor Insist on Agreeing to the Cost of Variation Work Before He Proceeds With It?
Most standard forms of building contract provide for written instruction by the Architect/Engineer/SO prior to ordering any variation works.The Contractor is obliged to carry out any variation works instructed (incl. those deemed variations such as statutory compliance), unless its validity is in question. The appointed QS (if any) is then responsible for valuation of variations […]
Set-Offs – A Revisit and Update
The Malaysian construction industry is notorious for set-off practices, both at main and subcontract levels, often imposed unilaterally and unfairly by the Employer on the Contractor and/or the Contractor on its subcontractors, respectively. Consequently disputes often arise when monetary claims are set-off by withholding any payment due or extinguished through counterclaim arising from unfinished defective […]
Time at Large – Issues and Implications
In almost all construction projects, the common project objectives are to complete on time, within budget, meet quality and standard/statutory requirements. In addressingtime to complete the construction works, most employers would require the contractor of their project to complete on time or within the extended time under the construction contract. Likewise, under subcontracts, subcontractors are […]
Coronavirus or Covid-19 ~ A Force Majeure Event?
On 30 Jan 2020, World Health Organization (‘WHO’) has declared the Coronavirus outbreak or COVID-19 in Wuhan, China a Public Health Emergency of International Concern (‘PHEIC’) following the rampant spreading and rising confirmed cases and death tolls reported in many countries. The term PHEIC is defined in the International Health Regulations (2005) as “an extraordinary […]
Subcontracting – Issues and Implications
Subcontracting is a practice prevalent in many industries, both local and international, but most widespread and common in the construction industry. Historically, subcontracting practice in the construction industry had existed since time immemorial, and it formed an integral part of building or construction projects. In Malaysia, subcontracting in its construction industry is no different, in […]