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Forensic Claims Analysis

Material Free Issue

In the Open Standard
Raphael Adeyemi, CCP, MNIQS, RQS, MQSiMember for 19 years 4 months
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Dear Colleaques

Is any one there to help me out on how to treat the issue of material freely issued to contractors which replaced priced items in the original BOQ? I am in a situation of submitting my cost of installation of electrical materials and fittings - material free isuue (builder’s work) but at a loss to what percentage (if applicable)of profit and over head to include in establishing my rate for buildr’s works.

It is good to note here that nothing was mentioned about material free issue in the tender document.

Can I claim for loss of expected profit on the materials?
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2 replies

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  1. 0
    A D ·
    #1
    Yes Raphel,

    Any item which was there in tender, but now removed or issued free, loss of profit can be claimed. Vice-a-versa, you can also ask for additional cost for more efforts if scope is increased, if to be completed in the contact dates.

    Cheers,

    ravi
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  2. 0
    Larry Rino ·
    #2
    Ravs,

    Contractor appreciates the help from Client, mostly when it was done for Contractors benefit (e.g. Contractor’s late delivery of materials).
    When Contractor accepts the materials from Client, whether there’s no issue of free material in the contract, a resposible Contractor is course expecting cost backcharge in return.

    Cost of Material will be A+B.
    A: Cost of Material Delivered to Jobbite (use Sales Invoices)
    B: Admisnitration Cost (use your Administration Charge percentage (%) from your Accounts Department)

    Hope these helps.
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