Dear Jonathan,
Wishing you a nice weekend and I have a question as follows:
Normally, in BOQ we have Bill No1 for preliminaries works indicated cost for all preliminary items such as site office, site hoarding, water, electric, cleaning rubbish, etc. Based on our standard, we often pay for these items throughout the contract period and adjust when delay happen. Based on the above method, we have paid to the contractor up to 65% of this Bill, however, the workdone value of the contractor only achieve 30%.
The Employer now request us(as a project consultant) to adjust payment of this bill according to value of workdone 30%
Please advise if Employer request is reasonable?
In your opinion, what should we paid?
Please note that we use Fidic 99 redbook for this contract and the contract not clearly mentioned payment method for this Bill. It only mentioned “If in the opinion of the Engineer, after reference to the programme and the actual progress of the Works, delay has occurred in the progress of the Works, the Engineer may adjust the cash flow of and any payments included for Preliminaries in Interim Payment Certificates to reflect the revised anticipated duration”
Many thanks
David