HOW MANY OF YOU KNOW OR ARE AWARE OF THIS ?
What is an often carried out but dangerous exercise commonly made by Engineering Consultants when compiling the Contract Documents for signing.
CONTRACT ADMINISTRATION TIP : NO 2
I would say it is a very common practise to include tender clarifications as part of the contract documents. This is by virtue that it could be abused subsequently and lead to unnecessary claims. As such it is a dangerous practise to adopt unless it is associated with a price reduction during negotiations.
Tender clarifications which is strictly for the purpose of ascertaining that the tenderer is aware of his work obligations as contained in the tender documents. As such it should not be made part of the contract documents.
The above is a very common and dangerous mistake that Consultants entrusted with handling the procurement process should be warned of and be made aware.
The above tip arise from a recent Case Law : Havant BC v South Coast Shipping (1996).
In that case, the CLAC Programme was inncorporation as a method statement into the contract — Making the method statement a contract document.
The job was a beach replenishment scheme. The contractor was required to provide a “method statement” as to how he was going to carry out the works. He did so and the statement became a “contract document”.
The method involved mechanical screening of the filling material, which was to be carried out on the beach. It was inevitably a noisy operation.
A local resident obtained an injunction preventing the contractor carrying out the screening outside restricted hours (fewer hours than the contractor was planning to work).
The court held that this screening had become “a specified method of working” and, when it proved impossible, the contractor was entitled to a variation order and payment for that variation.
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For those of you who found my weekly musings informative and helpful, I have posted 58+ posts at www.medium.com. You can access them there. You can use this link to find me at :-
https://lhchin.medium.com.
Hope to see you guys signing up as my followers.
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