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Received my early education at the Rifle Range Road (2) Primary School, Kuala Lumpur. Attended junior high school at Raja Abdullah Secondary School, Kuala Lumpur and high school at Technical Institute, Kuala Lumpur. Further study at Mara Institute of Technology (ITM), Shah Alam, Selangor and obtained Certificate in Town and Regional Planning and Diploma in Quantity Surveying. Continued study in Mara University of Technology (UiTM) and obtained Bachelor of Quantity Surveying (Honours). I am a skilled commercial manager with extensive background in-and thorough knowledge of- development, construction, maintenance and construction contracts. Also having knowledge and experience in project, facilities and property management. Experienced in developing and implementing competitive cost planning, project budgeting, cost controlling and development appraisal. Exceptional organizational, analytic and managerial skills. Career as Commercial Expert till now.

Saturday, 3 June 2023

What is Included in ‘Lump Sum’?

 Q1: In a lump sum contract, if something is shown on the drawings and/or in the specifications but not included in the bill of quantities, the contractor may face difficulties in claiming additional payment. However, the outcome can vary based on the specific contract provisions and circumstances. Here are a few key considerations:

1.            Contractual Agreement: The terms and conditions outlined in the contract between the client and the contractor will determine the rights and obligations of both parties. The contract should specify how variations, changes, or omissions are to be handled and whether the contractor can claim additional payment for work not included in the bill of quantities.

2.            Scope of Work: The scope of work, as defined in the contract documents, including drawings, specifications, and bill of quantities, is crucial in determining the contractor's obligations. If the contract clearly states that the bill of quantities is the definitive list of items for which the contractor will be paid, the contractor may have limited grounds to claim additional payment for work not included in the bill of quantities.

3.            Contract Interpretation: Interpreting the contract becomes important when discrepancies arise between the drawings, specifications, and bill of quantities. If the contract clearly states that the drawings and specifications take precedence over the bill of quantities or if there are ambiguities in the contract documents, it may support the contractor's claim for additional payment.

4.            Agreement and Communication: If the client and contractor have agreed, either formally or informally, to include certain work that is not listed in the bill of quantities, it may strengthen the contractor's case for claiming additional payment. Any documented agreement, change orders, or correspondence between the parties can be valuable in supporting the claim.

5.            Notice and Documentation: It is crucial for the contractor to provide timely notice to the client regarding any discrepancies or variations encountered during the construction process. The contractor should document the issue, including any additional work performed, its impact on costs and schedule, and any requests made to the client for additional compensation. Clear and comprehensive documentation will strengthen the contractor's position when seeking additional payment.

In a lump sum contract, the contractor typically assumes the risk of pricing the work accurately and accounting for all necessary items within the bill of quantities. However, if the contract provisions and circumstances provide a reasonable basis, such as explicit agreement or ambiguity in the contract documents, the contractor may have grounds to claim additional payment. Consulting legal professionals or contract specialists familiar with the specific contract terms and governing laws is advisable in such situations.

 

Q2: In a lump sum contract, if something is measured in the bill of quantities but not shown on the drawings and/or in the specifications, the employer typically cannot make a deduction from the contract price. Here are some important points to consider:

1.            Contractual Agreement: The terms and conditions specified in the contract between the employer and the contractor will govern their respective rights and obligations. If the bill of quantities is defined as the definitive list of items and quantities for which the contractor will be paid, the employer may not have grounds to make a deduction for items measured in the bill of quantities.

2.            Scope of Work: The scope of work is generally defined by the contract documents, including the drawings, specifications, and bill of quantities. If the bill of quantities includes specific items and quantities, the employer is expected to pay the contract price for those items, even if they are not shown on the drawings or specifications.

3.            Contract Interpretation: The interpretation of the contract is essential in determining the parties' obligations. If the contract language is clear and unambiguous and establishes that the bill of quantities takes precedence over the drawings and specifications, the employer may not have the authority to make deductions for items included in the bill of quantities.

4.            Change Orders: If the employer wishes to deduct or exclude items from the contract price that are measured in the bill of quantities but not shown on the drawings or specifications, they would generally need to follow the appropriate change order process. A change order is a formal agreement between the employer and the contractor that modifies the terms of the contract, including the scope and price. Without a valid change order, the employer may not have the right to make deductions.

It's important to note that contract provisions and local laws can vary, so it is essential to review the specific terms of the contract and seek legal advice if necessary. Consulting legal professionals or contract specialists familiar with the relevant laws and contractual obligations will help ensure a proper understanding of the rights and obligations of both the employer and the contractor in such situations.

  

Q3: In a lump sum contract, if the bill of quantities contains lower quantities than those accurately ascertained from the drawings, the contractor typically cannot claim additional payment solely based on the higher quantities found in the drawings. Here's why:

1.            Contractual Agreement: The terms and conditions specified in the contract govern the rights and obligations of both parties. If the contract explicitly states that the bill of quantities is the definitive basis for payment, the contractor may have limited grounds to claim additional payment based on higher quantities found in the drawings.

2.            Scope of Work: The scope of work is usually defined by the contract documents, including the drawings, specifications, and bill of quantities. If the bill of quantities sets out the agreed-upon quantities, it becomes the basis for determining the contract price. Deviations between the quantities in the bill of quantities and the drawings may not automatically entitle the contractor to additional payment.

3.            Contract Interpretation: Interpreting the contract becomes important in understanding the parties' rights and obligations. If the contract language is clear and unambiguous, and it establishes that the bill of quantities takes precedence over the drawings, the contractor may not have a valid claim for additional payment based on the higher quantities found in the drawings alone.

However, there are some exceptions or circumstances that could potentially support a claim for additional payment:

a. Varying Scope: If the higher quantities in the drawings indicate a change or variation in the scope of work, the contractor may be entitled to additional payment. The contractor would need to follow the appropriate change order process and provide proper documentation to support the claim.

b. Ambiguous Contract Language: If the contract language is unclear or contradictory regarding the precedence of quantities between the bill of quantities and the drawings, it may allow for interpretation in favor of the contractor. In such cases, legal advice and careful review of the contract language become crucial.

It's essential to carefully review the specific terms of the contract and consult with legal professionals or contract specialists familiar with the governing laws and contractual obligations. They can provide guidance on whether the contractor has a valid claim for additional payment based on the higher quantities found in the drawings.

 

Q4: In a lump sum contract, if the bill of quantities contains greater quantities than those accurately ascertained from the drawings, the employer generally cannot make a deduction from the contract price based solely on the lower quantities found in the drawings. Here's why:

1.            Contractual Agreement: The terms and conditions specified in the contract govern the rights and obligations of both parties. If the contract explicitly states that the bill of quantities is the definitive basis for payment, the employer may have limited grounds to make deductions based on lower quantities found in the drawings.

2.            Scope of Work: The scope of work is typically defined by the contract documents, including the drawings, specifications, and bill of quantities. If the bill of quantities sets out the agreed-upon quantities, it becomes the basis for determining the contract price. Deviations between the quantities in the bill of quantities and the drawings may not automatically justify deductions from the contract price.

3.            Contract Interpretation: Interpreting the contract becomes important in understanding the parties' rights and obligations. If the contract language is clear and unambiguous and establishes that the bill of quantities takes precedence over the drawings, the employer may not have a valid basis for making deductions based on the lower quantities found in the drawings alone.

However, there are certain exceptions or circumstances where the employer may be able to make deductions:

a. Varying Scope: If the lower quantities in the drawings indicate a change or variation in the scope of work, the employer may be justified in making deductions. Proper change order procedures would need to be followed, and supporting documentation would be required to demonstrate the variation and its impact on the contract price.

b. Contractual Provisions: The contract may contain specific provisions allowing the employer to make deductions under certain circumstances, such as when there are discrepancies between the bill of quantities and the drawings. These provisions would need to be carefully reviewed and interpreted to determine their applicability.

It's crucial to carefully review the specific terms of the contract and consult with legal professionals or contract specialists familiar with the governing laws and contractual obligations. They can provide guidance on whether the employer has a valid basis for making deductions from the contract price based on the lower quantities found in the drawings.

 

Q5: In a lump sum contract situation where a work item or items are to be omitted entirely, and the bill of quantities includes different quantities than those shown on the drawings, the basis for the omission would depend on the specific provisions in the contract. Here are two possible scenarios:

1.            Contractual Agreement: If the contract clearly defines the hierarchy or precedence between the bill of quantities and the drawings, that provision should be followed. For example, if the contract states that the drawings take precedence over the bill of quantities, the quantities shown on the drawings would be the basis for the omission. In this case, the contractor would be entitled to exclude the entire work item or items as indicated on the drawings, even if the bill of quantities includes different quantities.

2.            Contractual Variation: If the contract allows for variations or changes to the bill of quantities, there may be provisions outlining the process for omitting work items or adjusting quantities. In this case, the contract should be followed, and the appropriate variation procedure should be followed to agree upon the omission and its impact on the contract price.

In both scenarios, it's important to ensure that any omissions or variations are handled in accordance with the contract provisions. This typically involves following proper change order procedures, providing written notice to the relevant parties, and documenting the agreed-upon changes to the scope of work and contract price.

To determine the specific course of action in a given contract, it is recommended to carefully review the contract provisions related to omissions, variations, and the hierarchy between the bill of quantities and the drawings. Seeking advice from legal professionals or contract specialists familiar with the specific contract terms and governing laws will ensure that the correct basis for the omission is followed and the necessary procedures are properly executed.

 

Q6: In a lump sum contract situation where the bill of quantities includes a higher or lower specification for a measured item compared to that included in the contract specification, the contract specification generally takes precedence and is included in the contract price. Here's why:

1.            Contractual Agreement: The terms and conditions specified in the contract govern the rights and obligations of both parties. The contract specification is typically the primary document that outlines the required specifications for the project. If there is a discrepancy between the bill of quantities and the contract specification, the contract specification is considered the authoritative source.

2.            Scope of Work: The scope of work, including the required specifications, is typically defined in the contract specification. The bill of quantities provides the quantities of the items to be measured but does not necessarily dictate the specifications. Therefore, the contract specification is considered the basis for determining the required specifications for the project.

3.            Contract Interpretation: Interpreting the contract becomes important in understanding the parties' rights and obligations. If the contract language is clear and unambiguous, and it establishes that the contract specification takes precedence over the bill of quantities, the specifications included in the contract specification are typically the ones included in the contract price.

In situations where there is a discrepancy between the bill of quantities and the contract specification, it is important to address the issue and reconcile the specifications. This may involve issuing a formal change order to modify the contract specification or bill of quantities to align them. The change order process typically involves documenting the agreed-upon changes and any associated adjustments to the contract price.

It is advisable to carefully review the specific terms of the contract and consult with legal professionals or contract specialists familiar with the governing laws and contractual obligations. They can provide guidance on how to address discrepancies between the bill of quantities and the contract specification and ensure that the correct specifications are followed and included in the contract price.

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