Claim of Materials

Irfan,

What form of contract are you using?

Whichever the form, procedures for this should be covered by the contract, and you should be on solid ground to claim cost incurred before the reduction in scope was instructed.

One thing to watch out for is if there was a date mentioned in the contract which if the client removed the scope before this, it would be at zero cost. This often happens if the scope in question was listed as a provisional item, or option.

Another thing to watch out for is if the contract required client approval for purchases over a certain value. If you did not get required approvals, you may be in trouble.

Another thing to think about is who is paying for / responsible for storage of the procured items from now on. Aside from additional cost, this can have ramifications in terms of warranty & defects liability, if not stored as per suppleirs instructions.

dear Irfan:

if the owner suffering leakage in money flow so claiming for such variation will be useless and it will be in long term (Amicable Settlement is the best solution), my advice is :

1. prepare claim report with all supporting documentations (bills, logs,….etc), and show ur client the damages from cancelling such parts of works based on the contract conditions .

2. Study with the owner percentage of possibility to recommence such parts of work in near future then let him grantee for u that of giving u again the balance of work (take the advantage of it) and in this case the owner shall be responsible to pay storage fees.

3. Try to discuss the refund policy with the suppliers of such materials and if that possible , the owner shall be hold the responsibility of such but after showing him the report of damages , when he see the difference he will agree to pay the minimum rather to pay the full damages .


Regards.

Mai

thanks...............

Dear Irfan,

How big is your Contract and what is the size of the problem?

Make sure that you send him a notice informing them that you are suffering losses and you are calculating it.

You will need to determine how much it will cost you in legal fees to ask the system to get you your money back.

With kind regards,

Samer

Hi Irfan,

You can claim the associated costs of the abortive materials deleted based on the Employer’s direction to minimize the Scope of Works.

You have to provide the supporting delivery notes of the materials and the relevant BoQ items. It would also be nice if you can provide drawings to show the limits and locations of the deleted scope to highlight where the materials would have been installed. You can claim also for the lost profit.

Of course, you have to prove to the Employer that the material were procured prior to his instruction to minimize the Scope of Work.

Karim