At one of our recent courses someone asked Andy for some advice on omissions and payments. He writes:
I get asked about this particular issue quite a lot. So I thought it would be helpful to put pen to paper – or finger to keyboard – and share my thoughts. So here is the scenario:
- The Contract is a lump sum and not subject to re-measurement.
- The Bill of Quantities (BoQ) was prepared by the Contractor at tender stage.
- During the project closure, some items listed in the BoQ were not provided since these items were not included on the tender drawings, shop drawing or final as-built drawings.
- The Client deducted these items as an omission at final account stage as the Contractor did not complete any of these billed works. The Contractor disagrees with this and asserts that he took the risk on the lump sum contract and the BoQ was merely for guidance and valuation only.
So…
What is the Contractor and Client’s entitlements under FIDIC for this kind of situation?
What should the Contractor’s stance be on omissions and payments of this nature?
Is the Client entitled to omit the value of the BoQ items not fulfilled by the Contractor despite it been a lump sum contract?
Find out more and continue reading at the Claims Class blog… or sign up here for a webinar on the subject, taking place 22nd June 2022.