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The payment of additional monies in respect of Head Office overheads and profit is the subject of much debate and discussion. The Hudson's formula is generally accepted as a recognized method for calculating the additional cost payable for head office overheads....more>

The most important part of a project is Handing over the Works to the Client. Once ready for hand over the Site Manager should submit his notice in writing to the Engineer with a copy to the Employer. The Engineer must issue a Taking Over Certificate if...more>

In Construction the term PC sum is often confused with Provisional Sum. Whilst both terms are associated to allowances being made for a specific activity or item, there are distinct differences in these two terms. PC Sums are normally associated with an average cost of a specific item whereas Provisional Sums are estimated allowances...more>

Tracking and keeping your contractual notices valid, that is submitted every 28days can become quite a tricky task if many events at various times are registered. A valid notice shall be in writing on a company letterhead addressed to the Engineer with a copy to the Employer..more>

Labour productivity is fundamental to the success of any Construction project. Completing this exercise on a daily basis will be extremely helpful in managing the project delivery and will also provide a good understanding where losses are incurred. This could identify opportunities to recover expenses in a variation claim...more>

Preliminaries and General by virtue of its scope and broad definition can easily contribute or result in huge losses if not correctly understood or determined at the tender stage. Pricing of preliminaries starts with your site establishment, methodology of construction, access restrictions and programme requirements...more>

Pricing these rates can be a complicated exercise. However, by using a well designed template for this purpose will not only ensure correct calculation but also clarify the method of construction and restrictions to be considered... more>

Daywork is work for which the contractor is paid on the basis of actual Cost plus an agreed % Dayworks are bound to come up from time to time since it is impossible working from a Bill of Quantities to cover all eventualities. There two options how Daywork rates can be priced in the bill... more>

The strength of any claim lies in the attention to the detailed substantion. Once a Contractor has secured an extension of time and relief from liquidated damages, thoughts will quickly turn to recovery of the costs incurred due to the delayed completion date... more>

A loss of productivity can be successfully demonstrated and claimed if the causes are clearly identified. It is acknowledged within the construction industry that demonstrating a loss of productivity on a project is one of the most difficult heads of claim to properly articulate...more>

There are many issues affecting productivity that are potentially outside the control of the contractor. There are two industry recognised techniques for demonstrating, to varying degrees, loss of productivity, these being the total cost and the productivity baseline methods, both of ...more>

The conclusion has to be that any case is only as good as the evidence in support of it. It is however one thing for a Contractor to demonstrate that a failing of some sort on the part of the Employer has directly caused it to suffer a loss but quite another thing to prove...more>

According to FIDIC a Contractor shall give or provide all necessary supevision during the execution of the Works. In addition to the constant management and supervision of the Works, all significant types of works must also be under the close control of competent trade supervisors...more>

The establishment and continual monitoring of a detailed, critical path method programme is essential for the management of the Project.This will include a detailed Critical Path Method programme establishing key milestones and completion dates for the various sections of the Contractl...more>

The Contractor is bound by the FIDIC Contract to submit the Clause 14 programme within 28 calendar days after. This programme must cover all aspects of the design, approval, procurement, construction, installation, removal and commissioning of the temporary and permanent works...more>

FIDIC requires that the Contractor submit monthly updates of the Programme demonstrating progress to date. The Contractor is generally required to attend monthly Progress Meetings with the Engineer to report the progress of the design, procurement and construction works...more>

Claims and Delays are commonly associated with construction and its related activities. Most contractors are not legal experts and find themselves all too often in a situation where a delay has occurred whereby they did not have the necessary paperwork or records in place to make such a recovery ...more>

Method Statements describes how the Works are to be designed, procured and constructed. In addition to the above all hazardous work activities should be described by the issue of Detail Method Statement. As a general guideline each Method Statement should be structured and prepared in the following format...more>

Contractors are entitled to be paid for extra work required during the execution of the Contract. It has long been my view that the full cost of variations are generally not recovered by Contractors. When there is doubt as to whether an item is an extra or not...more>

Contractor increasingly required to demonstrate a positive attitude towards Health and Safety through the implementation of a preventive management style.The Health and Safety Plan should detail the following items and provisions to be implemented...more>

The preparation and presentation of a well-prepared O&M manual is therefore an essential part of any building services installation contract. The final format of any O & M manual will be influenced by a number of factors. Generally the format of an Operating and Maintenance manual must be...more>

The key to Good communication starts with Letter Etiquette. A good letter becomes a key element of your overall branding and market image. Learn more on how to create and maintain good construction letter writing principles...more>

At the end of the Defects Liability Period you can apply for the Final Certificate. In order for the Engineer to issue the Final Certificate the Contract requires that he has in possession or have received the following documents, certificates, material or clearances...more>

Costs must always match the revenue that is being claimed. The document is divided into two main sections, namely, VALUE and COST, which enables the Quantity Surveyor to show the measured value to date ...more>