No Daywork Provision

Skan,

My answers are:

A1) Yes. You can not submit a daywork claim, if daywork is not established in you contract.

A2) Use conventional estimation practice. e.g, Direct Cost of Labor, Eqpt, Matls, + Indirect cost Supv & Mngt, Oh, P, etc.

A3) Yes, it can be different in every contract, it can come in Unit Price, LS, Daywork, Cost plus, etc.

Hope these help.

Larry

Hi,

Thanks

Reference to A1:
Can we use the rate in the quotation & establish the qty so price up the variation?

Refernce to A2:
When you said "direct cost of Labour, Eqpt & matl", actual cost paid by the subcontractor to the labour & supplier?
Invoices to prove cost incured?
Then add indirect cost and OH & P?

Skan,

2A1) Its up to you or your estimation team to decide. If your prices is still valid (e.g. no price inflation in your cost build up, no additional cost factors to consider, etc.), then you may use.

2A2) No, a subcontract cost is a direct cost for the Contractor (in most cases).
Sometimes, your RFQ (to Subcon) requires direct & indirect to be separate, so Contractor can also allocate them as direct & indirect in your price.
I suggest you consult to you estimation team to determine your pricing structure, since this may be different, depending on Client requirements.

Larry

Skan,

If no daywork rates were originally set up it doesn’t stop you agreeing them later and amending the contract to suit.

As long as BOTH parties agree to it, any contract can be amended at a later date.