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Comments are given in red fonts below:-

From: Alex Peter [mailto:[email protected]]

Sent: Thursday, May 26, 2011 :!6 PM

To: sam""@eim.ae

Subject: #e: $%A plus Messa&e

'ear (ir,

Tha)* you +or your co)ti)uous support.

am -or*i)& +or a Proect Ma)a&eme)t /ompa)y.

(ir, hae a uestio) i) re&ards to the late payme)ts a)d the impact o+ delayed payme)ts i)

payme)t process mecha)ism.

ur curre)t payme)t ealuatio) is a multi3tier system -hich i)oles 4mployer, ProectMa)a&er, /ost /o)sulta)ts, 'esi&) % (uperisi)& /o)sulta)ts. 'ue to this multi3tier system

some o+ the payme)ts are &ot delayed. 5o- the /o)tractor has claimed +or the i)terest +or

this delayed payme)ts a)d claimed +or the 4T -ith prolo)&atio) costs due to this.

'/ 1"78, repri)ted 1""2 a)d '/ 1""" are adopted as the +orm o+ /o)tract +or di++ere)t

proects 9y our /lie)t.

Please comme)t o) the /o)tractors positio) +or their claim a)d the /lie)t;s positio) i)

re&ards to this to ame)d the payme)t process mecha)ism.

Ma)y Tha)*s.

#e&ards,

Alex Peter

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suspe)d?decelerate?termi)ate +or late payme)t.

A)y claim +or 4T -ould )ot 9e success+ul u)less the /o)tractor has suspe)ded?decelerated

the pro&ress o+ -or* -hich has delayed the proect completio). This is a su9ect that -e

discuss i) detail duri)& the Ada)ced /lass.

#e&ards,

Prof. Sam.

Prof. Indrawansa Samaratunga PhD, DScFRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng/hartered (ureyor, /hartered $(, /hartered Ma)a&er, /hartered uilder

Arbitrator / Mediator - London Court of International Arbitration Arbitrator / Expert - ubai International Arbitration Centre, !AEMiddle East Representative - Australian Inst. of Qty. Surveyors"O Box #$%&', ubai, !AE( ) *+' . %+%+ F *+' % $$&&

33333ri&i)al Messa&e33333

rom: Aay Bumar Tha*ur [mailto:atha*ur@altayerstoc*s.com]

(e)t: Ced)esday, May 2, 2011 11:0 AM

To: sam""@eim.ae

(u9ect: Pe)alty s Diuidated 'ama&es

'ear (ir,

hope my mail +i)ds you i) &ood health.

came across some literature related to Pe)alty % Diuidated 'ama&es -hich has &e)erated

some uestio)s i) my mi)d.

u)dersta)d that, there is )o scie)ti+ic calculatio) do)e to arrie at a Pe)alty Ealue, a)d

pe)alty alue? pe)al payme)t is a) extraa&a)t alue -hich mi&ht )ot match -ith the actual

loss due to 9reach o+ co)tract.

) the other ha)d, Diuidated dama&es are scie)ti+ically calculated pro9a9le loss -hich a

clie)t may su++er due to 9reach o+ co)tract.

(o, i+ a co)tract co)ditio) says,

Pe)alty 3 A4' 10000?3 per day to the max o+ 10F o+ co)tract alue 33333 is this a pe)alty or

liuidated dama&es G

also u)dersta)d that pe)alties are )ot e)+orcea9le 9y Da- = /o)sideri)& 4)&lish Da-, 5o

idea a9out , -here as Diuidated 'ama&es are.

+ -hat u)dersta)d is correct, ca) a co)tractor challe)&e the pe)alty alue =Di*e the o)e

me)tio)ed a9oe> i) the court o+ Da- or Ar9itratio), as*i)& +or detailed calculatio)s. (o that,

co)tractor is char&ed o)ly the actual losses i)curred 9y clie)t su9ect to a maximum alue o+

10F, -hich eer is less.

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)eed your thou&hts o) this sir. Tha)*s.

Hour u)dersta)di)& is correct. .

#e&ards,

Prof. Sam.



Tha*shila

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From: 'arre) ur*e [mailto:d9ur*[email protected]]

Sent: (aturday, Ku)e 0, 2011 11:22 AM

To: sam""@eim.ae

Subject: Le)eral $ueries o) Prese)tatio) !rd Ku)e 2011

Pro+ (am,

Bi)d re&ards +or yesterday ee)i)&s sessio), a lot o+ i)+ormatio) to ta*e i) a)d -ell

prese)ted.

hae a +e- ueries, that -he) you &et time, that you may assist -ith clari+icatio)s

1. The example /o)crete +ramed 9uildi)& example re+erred to,

Hou re+erred to the employer a)d co)tractor co)curre)t delay N -here the

miti&atio) measure adopted -as precast +loors to sae 2 -ee*s o+ the -ee*

delay N -as the co)tractor miti&ati)& his o-) delay # that o+ the 4mployerIe has the o9li&atio) to miti&ate 9oth.

+ the miti&atio) comes -ith additio)al cost, -ould the co)tractor receie

re3im9urseme)t +or this as it could 9e co)sidered I( delayGG Miti&atio) at

additio)al cost to the 4mployer ca))ot 9e do)e u)ilaterally, -ithout +irst

)oti+yi)& a)d arrii)& at a mutual a&reeme)t i+ the /o)tractor expects to &et

reim9urseme)t, -here the delay is 4mployer;s #espo)si9ility.

Chere the delays a9oe occur a)d the co)tractor ca))ot miti&ate the

delays, is he still e)titled to 40T N -ee*sO. Hes

2. Chere a su9co)tractor is i)oledO

+ the Mai) /o)tractor receies a) 4oT +or the -or*s N should he i)+orm

all his su99ies o++iciallyGGG Hes, i+ the su99ies i) tur) hae claimed 4Ts or i+

they are a++ected 9y such 4T.

Mai) /o)tractor &ets 4oT N duri)& the 4oT period the Mai) /o)tractor

has )o- 9ee) negligent a)d +urther delays the proect -here the M/ is )o-

lia9le +or D';s N

+ the Mai) /o)tractor +ails to adise the su99ies o++iciallyQ a+ter the 1st

4oT that the Time for Completion” has 9ee) diste)ded, is Time at Dar&eQ

-ith respect to the su9co)tractorGG 5o

+ so, -here the 4mployer exercises his ri&ht o) the Mai) /o)tractor to

impose D';s +or the Mai) /o)tractos )e&li&e)ce, does the M/ +or+eit his ri&ht

to impose D';s o) the (u93/o)tractor 9ecause he did )ot &ra)t 4oT=1> N ee)thou&h the (u93/o)tractors )e&li&e)ce may hae &ie) rise to the Mi)

/o)tractors )e&li&e)ceGGGGG

!. A) 4oT =1>is a-arded -ithout cost +or co)curre)t delay N ! mo)ths exte)sio)

'uri)& the exte)ded phase the Mai) /o)tractor i)curs +urther delays as a

result o+ the 4mployer a)d su9mits 4oT=2> 9e+ore the elapse o+ the 1 st 4oT

Time for Completion”

The 1st 4oT “Time for Completion“ the) elapses a)d the 4)&i)eer states

that he ca))ot assess the merit o+ 4oT=2> as there is “NO APPO!"#$

updated baseline %rogramme +ollo-i)& a-ard o+ 4oT=1>

The Mai) /o)tractor had preiously su9mitted the #eised aseli)e

Pro&ramme a+ter a-ard o+ 4oT=1> &'T the 4)&i)eer has di++iculty approi)&it as he has ar&ume)ts that the #eised aseli)e does )ot re+lect the mpact o+

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the Cor*s at that &ie) mome)t i) time &ii)& rise to the 4oT=1> a-ard N

They are curre)tly usi)& a completio)s pro&ramme +rom a mo)itori)& purpose

ON()*

s Time at Dar&eQ i) this case as the 4oT=1> Time for Completion” has

elapsedGGG Time does )ot 9ecome at3lar&e i) a co)tract -here a

comprehe)sie 4T clause exist =such as '/ th>, 9ecause i+ the 4)&i)eerdoes )ot determi)e it, the) a su9seue)t ar9itrator ca) determi)e it. Time

-ould 9e set at3lar&e o)ly i) co)tracts -here there are )o 4T proisio)s or

the existi)& proisio)s are poorly dra+ted a)d there+ore ca))ot 9e used to

a-ard 4T i) certai) circumsta)ces.

+ 9oth parties hae di++iculty a&reei)& the #eised aseli)e +ollo-i)&

4oT=1>, ho- does the 4)&i)eer assess the merit o+ 4oT=2> N as the Mai)

/o)tractor ar&ues that his #eised aeli)e is correctGG The matter is li*ely to

proceed to dispute resolutio) at -hich the i)depe)de)t third party -ould

esta9lish -hich pro&ramme -ould 9e used to determi)e 4T =t is uite

commo) at ar9itratio)s +or a) 4xpert to come up -ith a pro&ramme -hich

-ould 9e the ideal o)e i) those circumsta)ces, 9ut uite di++ere)t to -hat theco)tractor prepared a)d?or 4)&i)eer co)se)ted to.>

+ it is )o- co)sidered that “Time is at Large” does the 4mployer )o-

+or+eit his ri&ht to impose D';s as the 4)&i)eer ca))ot assess 4oT=2>GG

. Che) )oti+yi)& o+ a claim

'o you re+ere)ce A(( the clauses that &ae rise to the claim, ie, claim 6.

+or late dra-i)& issue 9y the 4)&i)eer -hilst re+ere)ci)& /lause .1 9, -hilst

re+ere)ci)& /lause 2.1 or 2.2 -here rates ca))ot 9e a&reed There is )o

reuireme)t i) '/ to me)tio) clause )um9ers, 9ut it is &ood practice to

re+er to speci+ic clauses -hich are relea)t to the issue.

+ the /o)tractor does )ot a&ree -ith the +ixed rateQ /lause 1.2 )oti+ied

9y the 4)&i)eer to the /o)tractor i) -riti)& N has he a)y other ae)ue to

pursue as it may hae 9ee) a) impartial ie- 9y the 4)&i)eerGG + the

co)tractor disputes the +ixed rate the) ar9itratio) =-ith the precedi)& amica9le

settleme)t optio)> is the aaila9le ae)ue.

. '/ /ompariso)s

s there a comparsio)s docume)t =spreadsheet +ormat> compari)& li*e +or

li*e +or the arious editio)s o+ '/, ie, compari)& /lause 7.! pro&ramme

='/ 1""">N N /lause 1.1 pro&ramme ='' 1""8 #ed 9oo*>GGGG Ce

do this compariso) i) detail at the /A3A/ class.

Chat are the di++ere)ces 9et-ee) 9oth co)tracts as assume 9oth hae

similar clause 9ut )um9ered di++ere)tlyGG They are so )umerous that ca))ot 9estated i) this short $%A +orum.

#e&ards,

Prof. Sam.



Bi)d re&ards a&ai).

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'arre)

#arren &ur+eContract ,anager

From: Koseph Di&i)

Sent: 28 Ku) 2011 10:12

To: 'r. . (amaratu)&a

Subject: Pili)& Cor*s 3 Measureme)t o+ #ei)+orceme)t

'r. (am,

/ould you please clari+y the 9elo- uery

#e+ere)ce: PM /lause /!.1 The -ei&ht o+ 9ar rei)+orceme)t shall 9e the )et -ei&ht

-ithout additio) +or rolli)& mar&i), supports, spacers or tyi)& -ire.Q

Chat is the mea)i)& o+ )et -ei&ht i) PM /lause /!.1 -hether the lap le)&th is paya9le or

)otG Daps should 9e added -he) calculati)& the -ei&ht o+ the 9ar rei)+orceme)t, 9ecause

there is )o express exclusio) o+ laps. =(ee /!.! -here laps are excluded +or +a9ric

rei)+orceme)t>. Moreoer, i) calculati)& the -ei&ht, the 9ar diameters a)d le)&ths are ta*e)3

o++ +rom 9ar39e)di)& schedules a)d there+ore laps &et added.

#e&ards,

Prof. Sam.



A-ait your alua9le comme)ts

Tha)*s a)d re&ards

D Koseph

From: Mohammad +eroR [mailto:[email protected]]

Sent: Tuesday, Ku)e 1, 2011 :28 PM

To: sam

Subject: #4: (/A $%A plus Messa&e

'ear 'r. (am,

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Io- are u hae o)e co)tarctual uestio) +or you Please comme)t.

My proect at i)ter)atio)al city -hich is comme)ced )o- so uestio) is co)tractator has

&ie) the discou)t 10F o) ala)ce -or*s to 9e do)e. so -hile -e are omitti)& a)y o+ $

item -hich is )ot reuired applyi)& 10F discou)t o) the same.he)ce -e should apply same

discou)t -hile a)y additio)al $ item to 9e i)cludedG

or 4xample:

tem A - Amount A"# ./0///1// is re2uired to omit b3 client so net deletion will be A"#

- 450///1//

tem & - Amount A"# .60///1// is re2uired to add to com%lete t7e wor+s so in t7is case

Net Addition will be A"# -..06//1// 1 s this correct procedure to ealuate the ariatio)sG

calculated as 10F o+ the alue o+ 9ala)ce -or* that -as +oresee) as reuired to 9e

completed, as o+ the day -he) the discou)t -as a&reed.

#e&ards,

Prof. Sam.


Arbitrator / Mediator - London Court of International Arbitration

Arbitrator / Expert - ubai International Arbitration Centre, !AEMiddle East Representative - Australian Inst. of Qty. Surveyors"O Box #$%&', ubai, !AE( ) *+' . %+%+ F *+' % $$&&

#e&ards,

eroR

From: (ilestrece melda (yril [mailto:[email protected]]

Sent: (u)day, Kuly 10, 2011 6:8 PM

To: sam""@eim.ae

Subject: a poi)t o+ i)uiry

'ear Pro+. (am,

Lood dayS am melda (yril (ilestrece 3 #aRRa. -as o)e o+ your atte)dees i) sou)d

/o)tract (emi)ar?-or*shop last Ka)uary 2007 held i) du9ai -he) i -as still -or*i)& i)

#ectio) Proect Ma)a&eme)t as $(. am )o- curre)tly -or*i)& here i) Eiet)am as $ua)tity

(ureyor. am hai)& a di++iculty deali)& -ith employer 9ecause they seemed to hae their

o-) co)tract u)dersta)di)&.

-ould li*e to as* some uestio). hope you could help me clear up this thi)&s.

1> does the employer hae the ri&ht to -ith hold the Payme)t /erti+icate lets say +rom the

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mo)th o+ March 2011 a)d April 2011 -hich -as already 9ee) certi+ied 9y the 4)&i)eer a)d

o) the ta9le o+ the employer =Proect Ma)a&er> +or his si&)ature +or +i)al approalG +or the

reaso) that the Proect Ma)a&er o) employer side does)t -a)t to pay a certai) item i) the

$.. = #ei)+orceme)t (teel ar>

sample:a> ..all costs, i)cludi)& material costs +or mecha)ical splices si)ce accordi)& to him, already

i)cluded i) the u)it price o+ the related pay item u)der the co)tract.

9> $ua)tity, -hich is additio)ally arise) +rom the /o)structio) Method o+ stateme)t o+ the

co)tractor, shall )ot 9e paid.

Actually, i hae 9ee) readi)& the co)tract, its a '/ /o)ditio)s o+ /o)tract, a)d hae)t

+ou)d a)y stipulatio)s that state that the employer hae the ri&ht to -ith hold or stop the

payme)t. Le)eral co)ditio)s a)d Particulars.

4e) i) 4)&i)eers 'uties a)d authority /lause 2.1 o+ the Particular co)ditio), theres o)ly acertai) or speci+ic stipulatio)s that the e)&i)eer )eeds the 4mployers approal, most o+ it is i)

Eariatio) a)d exte)sio) o+ time.

#eally, they hae there o-) )ter)atio)al Eiet)amese (ta)dard.. as -hat my HHH )atio)ality

9oss said..

, -ho is o+ HHH )atio)ality is TI4 45L544#, -a)ts to co)ti)ue to pay the Payme)t

/erti+icate o+ March a)d April a)d ust ma*e the adustme)t or cha)&es +or the )ext i)terim

payme)t si)ce its still a dispute a)d 9oth sides are )ot a&reei)& yet.

Tha)* you +or your time.

Thou&h there is proisio) to correct a certi+icate su9seue)tly pursua)t to 60., i+ those -ho

certi+y are co)+ide)t that payme)t is )ot due exactly as claimed 9y the co)tractor, the) they

should certi+y o)ly that part -hich i) their opi)io) is +airly due to the co)tractor. They should

)ot hold the certi+icatio) o+ the total amou)t ust 9ecause some o+ the +i&ures -ithi) it are

i)correct. The co)tractor;s remedy +or u)ust i)ter+ere)ce i) certi+icatio)s is +ou)d i) (u93

/lause 6".1=9> o+ '/.

#e&ards,

Prof. Sam.



(i)cerely,

melda (yril (ilestrece 3 #aRRa

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33333 Original ,essage 33333

From: Maria Eictoria

To: Usam""@eim.aeU Vsam""@eim.aeW

#ate: Tue, 21 Ku) 2011 10:0":06 X000

Subject: $uestio) o) /o)tract

'ear (ir,

am your stude)t +rom this Ku)e;s class.

hae the +ollo-i)& uestio) a)d appreciate i+ you could e)li&hte) me o) this.

Ce hae a proect -ith a sister compa)y N althou&h te)der docume)ts are complete, the

/o)tract -as )ot si&)ed?)ot executed.

)stead -e receied a P a)d o) that P the re+ere)ce docume)t is the te)der docs a)d the

o++er -e hae.

5o- the proect is completed, there has 9ee) ma)y delays o) this proect some due to

4mployer a)d some due to /o)tractor.

/lie)t i)te)ds to impose D' a)d as*i)& that -e su9mit a letter re&ardi)& delays a)d our

expla)atio) o) this delays.

) the a9se)ce o+ the si&)ed co)tract, ca) the clie)t impose this D'. A)d ho- do -e address

these delays a)d -hat is the implicatio) o+ this o) the +i)ished proectG

The -ordi)& i) the P =especially those o+ small pri)t, a)d especially i+ you si&)ed a copy

ac*)o-led&i)& the co)te)ts>, may hae +ormed a co)tract. Thorou&h i)esti&atio) is reuired

to esta9lish -hether or )ot the co)tract +ormed. + the co)tract exists the) the 4mployer ca)

ley Diuidated 'ama&es, i+ you are i) delay, or ee) other-ise he ca) claim dama&es +or

your 9reach o+ )ot completi)& o) time. t is le+t +or you to demo)strate throu&h a proper

claim a)d a delay impact a)alysis that either the delay -as caused 9y the 4mployer or that

your delay -as co)curre)t -ith that o+ the 4mployer a)d there+ore you should 9e &ie) a)

exte)sio) o+ time i) order to aoid Diuidated 'ama&es.

#e&ards,

Prof. Sam.



Appreciate your time i) a)s-eri)& this uestio).

Tha)*s % #e&ards,

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,aria !ictoria

/o)tracts 4)&i)eer

33333ri&i)al Messa&e33333

rom: (asi Bumar [mailto:sasi.*[email protected]](e)t: Mo)day, Ku)e 20, 2011 2:!! PM

To: sam""@eim.ae

(u9ect: remeasure co)tract

(ir,

) a re3measura9le /o)tract ca) the 4)&i)eer as* +or a )e- rate +or the

#ate )ly itemG 5o, 9ut i+ the scope o+, or the circumsta)ces u)der -hich, the -or* is to 9e

carried out has cha)&ed due to a ariatio), the) the 4)&i)eer ca) sere )otice u)der (u93

/lause 2.2=9> to ary the rate.

#e&ards,

Prof. Sam.



#e&ards,

(asi*umar

From: A#AIAM EA#LI4(4 =alexmo)> [mailto:alexmo)@emirates.)et.ae]

Sent: Thursday, Ku)e 16, 2011 11:1" AM

To: sam""@eim.ae

Subject: $ A

Ii dr sam,

Hour classes are really thou&ht proo*i)& a)d e)coura&es us to thi)* outside the 9ox -hile

ealuati)& the co)tract

This is i) re+ere)ce to the a)s-er &ie) 9y you i) the last $ % A re&ardi)& the possi9le

sai)&s due to omissio) o+ shadi)& system u)der '/ 78. ) you a)s-er, you hae stated

that the co)tractor has to o)ly &ie the curre)t mar*et price a)d )ot the $ amou)t.

ca) you please explai) the Do&ic 9ehi)d your a)s-er si)ce as per 2.1 rates i) the co)tract

are to 9e used i+ they are applica9le. loo*ed i) the last ! sets o+ $%A se)t 9ut could )ot +i)d

the o)e you are re+erri)& to. Please uote the $%A list re+ere)ce )um9er.

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i) this co)text ca) you also restate the ar&ume)t re&ardi)& sai)&s +or deletio) o+ 9ou)dary

-all =200 m actual -hich -as -ro)&ly ua)ti+ied as 0> -hich -as -ro)&ly measured i)

the $. Too complex to state i) this short $%A +orum. Ce do a complete a)alysis o+ this

duri)& (/A (essio) 1. 5ext (/A starts o) (eptem9er "th. Those -ho -ish to re+resh ca)

e)roll )o-.

ca) you please also &ie the Do&ic 9ehi)d your ar&ume)t that stateme)t i) clause 1.1 U 5o

such ariatio) shall itiate or i)alidate the /o)tractU mea)s that 4)&i)eer should )ot issue

ariatio)s -hich are )ot appropriate )correct. said the 4)&i)eer should )ot issue

ariatio)s -hich are o+ a )ature to ma*e the co)tract i)e++ectie or i)alid =examples -ere

cha)&i)& the 9rid&e to a tu))el or oot9all stadium to a) airport termi)al>Q. rece)tly had a)

ar&ume)t that the a9oe stateme)t is to circume)t the doctri)e o+ certai)ty. The o)ly other

t-o mea)i)&s that ca) 9e &ie) are despite -hateer ariatio) i)structed, the co)tract

should remai) alid a)d e++ectieQ, or /o)tractor is o9li&ed to carry out ariatio)sQ. The

latter is already catered +or i) the (u93/lause u)der O/o)tractor shall do OOO..Q a)d

there+ore there is )o )ecessity to repeat, a)d the +ormer -ould allo- the 4)&i)eer to i)struct a

tu))el i)stead o+ the 9rid&e 9ecause it is )ecessary to proide access +rom Poi)t A to poi)t i) the example uoted duri)& the sessio) S 5o court or ar9itral tri9u)al -ould accept that

such a ariatio) ca) 9e alidly i)structed u)der a co)tract. To +acilitate this o)ly o)e

i)terpretatio) is possi9le -hich is to co)sider it as a -ar)i)& to the 4)&i)eer )ot to issue a)y

ariatio) -hich -ould ma*e the co)tract i)e++ectie or i)alid.

also ca) you please clari+y ho- the P/ sum item is re3measured i) the +ollo-i)& sce)ario

1. /o)tract is lump sum -ith employer supplied ua)tities -ith out proisio) to cha)&e the

ua)tities or add additio)al items.

2. ditto -ith proisio) to cha)&e the ua)tities or add additio)al items

) 9oth cases, si)ce the co)tract is lump sum type, the ua)tities to 9e ta*e) +or the

calculatio) are the ua)tities i) the co)tract dra-i)&s a)d )ot those i) the $. There+ore i+,

say P/ 'hs. 100?3 per M2 +or u)speci+ied tiles -ere &ie) a)d the 'ra-i)& ua)tity is 1000

m2, the) the proisio) -ithi) the Dump (um /o)tract Price +or tiles is 'hs. 100,000?3 A)y

cha)&e +rom this -he) the selected tiles are i)structed should 9e adusted =X or 3> a+ter

ma*i)& the I % P allo-a)ce, as explai)ed i) seeral preious $%A Dists, a)d also &ie) i)

o)e o+ the a)s-ers 9elo- i) this list.

#e&ards,

Prof. Sam.



tha)*s

a9raham Ear&hese

8/20/2019 Jun 11-Q&A-1

12/22

From: 5BID [mailto:y2)@redi++mail.com]

Sent: Tuesday, Ku)e 1, 2011 10: PM

To: sam""@eim.ae

Subject: $uery

'ear (ir,

Iope this -ill +i)d you i) &ood health. -as a) alum)i o+ the (/A3

2007, Ku)e (essio). had atte)ded the +ull sessio) a)d it had proe)

+ruit+ul i) arious occasio)s +or me i) my pro+essio)al career. moed

o)to $atar a)d at prese)t am -or*i)& +or a /o)tracti)& /ompa)y am -as

posted as /o)tracts $( +or a 9uildi)& proect. This proect is already

hal+-ay throu&h a)d a lot o+ ariatio)s -ere raised +rom the

/o)tractors side a)d )o)e o+ them -ere a9le to 9e closed out completely

as the method or co)cept o+ ealuatio) o+ the ariatio)s are )ot a9le

to mutually a&reed 9et-ee) the 4)&i)eer a)d the /o)tractor. or your

*i)d i)+ormatio), the proect is a Dumpsum Proect.

The /o)tractors ar&ume)ts are as +ollo-s:

Type A: 'ue to 'esi&) or 'ra-i)& /ha)&e

The /alculatio)s are 9ased o) ssued +or /o)structio) 'ra-i)&s ?s

Te)der 'ra-i)&s a)d he)ce -here the 'esi&) or 'ra-i)& is cha)&ed, the

Actual $ua)tities +rom the Te)der 'ra-i)&s =a)d )ot $ $ua)tities>

-ill &o do-) as omissio)s a)d $ua)tities +rom the ssued +or

/o)structio) 'ra-i)&s -ill 9e co)sidered as additio)s. #ates to 9e

co)sidered shall 9e $ rates i) 9oth cases. Hou do )ot say -hat dra-i)&s -ere used as

co)tract docume)ts. Det us say Te)der dra-i)&s +ormed part o+ the co)tract docume)ts, a)d

the co)structio) dra-i)&s -ere issued a+ter the co)tract -as si&)ed. #e&ardi)& ua)tities, the

co)tractor;s ar&ume)t is correct. (i)ce it is a lump sum co)tract $ ua)tities ca))ot 9e

used. There+ore +or omissio)s, ua)tities +rom Te)der =co)tract> dra-i)&s should 9e used.

or additio)s, ua)tities +rom co)structio) dra-i)&s a)d?or ua)tities actually 9uilt at site

should 9e used. The rates i) the $ -ould ho-eer 9e either applica9le or )ot, depe)di)&

o) a)y i)itial ua)tity errors a)d -hether there -as a place i) the $ to price such errors as

discussed duri)& (/A sessio) 1 N ou)dary -all case. This could either 9e to /o)tractor;s

9e)e+it or to 4mployer;s 9e)e+it.

Type : 'ue to

The /alculatio)s are 9ased o) the co)cept that i+ there is )o cha)&e i)

'esi&) or 'ra-i)& a)d i+ there is a cha)&e i) o)ly the speci+icatio)s

o+ a) item, the) o)ly the aria)ce i) the $ rates a)d #eised

rates=due to up&radatio) o+ specs> must 9e multiplied -ith the

ua)tities o+ the ssued +or /o)structio) 'ra-i)&s i) order to o9tai)

the )et ariatio). This ar&ume)t is correct.

Type /: 'ue to 5e- tem )ot coered i) the $ =e&. Caterproo+i)&

cha)&ed +rom 4P'M to /rystalli)e>

The /alculatio)s are 9ased o) the co)cept that i+ the (peci+icatio) o+a) item is e)ha)ced 9y i)troduci)& a )e- system, the) the 5e- A&reed

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rates is multiplied -ith the ua)tities o+ the ssued +or /o)structio)

'ra-i)&s i) order to o9tai) the )et ariatio). This is i)correct. tem 9ei)& missed +rom $

is at /o)tractor;s ris*. This should 9e alued exactly as Type , 9y calculati)& t-o rates +or

the t-o types o+ -aterproo+i)& a)d the di++ere)ce 9ei)& multiplied 9y the ua)tities o+ the

co)structio) dra-i)&s =or as 9uilt at site>

5o- the /o)sulta)ts ar&ume)ts are as +ollo-s:

Type A: 'ue to 'esi&) or 'ra-i)& /ha)&e

The $ ua)tities -ill &o do-) as omissio)s 5/##4/T a)d $ua)tities +rom the

ssued +or /o)structio) 'ra-i)&s -ill 9e co)sidered as additio)s B =or as39uilt ua)tities>.

#ates to 9e co)sidered shall 9e $ rates i) 9oth cases. (ee my comme)ts i) A a9oe

re&ardi)& rates.

Type : 'ue to

The rates -ill cha)&e, 5o, o)ly the di++ere)ce 9et-ee) the t-o rates should 9e ta*e) 9utua)tities -ill 9e co)sidered o)ly +or $

a)d )ot +rom ssued +or /o)structio) 'ra-i)&s. )correct.

Type /: 'ue to 5e- tem )ot coered i) the $ =e&. Caterproo+i)&

cha)&ed +rom 4P'M to /rystalli)e>

The rates -ill cha)&e, 5o, o)ly the di++ere)ce 9et-ee) the t-o rates should 9e ta*e) 9ut

ua)tities -ill 9e co)sidered o)ly +or $ a)d )ot +rom ssued +or /o)structio) 'ra-i)&s.

)correct.

ts 9ee) some 4i&htee) mo)ths si)ce the comme)ceme)t o+ the Proect a)d

till date )o)e o+ the Eariatio)s are a&reed due to this co)+lict i) the

co)cept. oth parties are ery a++irmatie a9out their sta)d a)d i+

this situatio) persists it may lead to a) ar9itratio) sta&e. (o

hum9ly reuest your &ood seles to shed some li&ht o) this issue as -e

)eed solid docume)ted proo+ to proe our sta)ce =i+ its ri&ht>. Please

)ote that the Proect is i) $atar a)d it;s )ot 9ou)d to a)y '/ +orm

o+ /o)tract. t does )ot matter that the co)tract is )ot '/. A9oe ar&ume)ts apply to a)y

type o+ co)tract i+ it is lump sum. ut at least i+ ca) &et a)y i)+ormatio) re&ardi)& the

/ommo) code o+ practice as per the /o)structio) Da- so that it may 9e

i)terpreted i) a)y -ay -ith the /o)ditio)s o+ /o)tract oer here the)

it mi&ht proe -orthy. The issues appear to 9e so simple, a)d it is a pity that the parties haeto e)d up i) ar9itratio). t may 9e +ully -orth +or your compa)y to spo)sor a)d se)d all your

co)sulta)t;s, 4)&i)eer;s a)d 4mployer;s co)tract admi)istrators to&ether -ith your compa)y

co)tract admi)istrators +or the +ull 10 sessio)s o+ the (ou)d /o)tract Admi)istratio) starti)&

o) "th (eptem9er 2011. 4e) co)sideri)& a &roup o+ a9out 10 spe)di)& ! -ee*3e)ds i) 'u9ai

hotels, the total cost o+ &ai)i)& this alua9le *)o-led&e is i)si&)i+ica)t compared to the cost

o+ a) ar9itratio). Ma)y co)tractors i) 'u9ai o+te) use this course to educate their

cou)terparts i) order to &et their pro9lems soled amica9ly, a)d to aoid other-ise

prohi9itie ar9itratio) costs. (eptem9er class details are attached.

#e&ards,

Prof. Sam.

8/20/2019 Jun 11-Q&A-1

14/22



hope all the i)+ormatio) are i)tact a)d tha)*i)& you i) a)ticipatio)

o+ your *i)d comme)ts, remai),

Hours (i)cerely,

5i*hil (udarsa).

Tha)*s % #e&ards,

5i*hil (udarsa)

From: Dala)i 'oda)&oda [mailto:lala)[email protected]*]

Sent: Tuesday, May !1, 2011 ":8 PM

To: sam""@eim.ae

Subject:

'ear Pro+essor ,

/a) u pls clari+y the +ollo-i)& issue re&ardi)& P/ rates

Dump sum co)tract

i)ishes

P/ rate +or mar9le is 1100 'hs ?m2

Prici)& pream9les descri9es that /o)tractor shall price the item addi)& .I % Pro+it % other

allo-a)ces , i)stallatio) to the P/ #AT4

As per 4mployers i)structio) Mar9le has 9ee) cha)&e to )atural sto)e a)d the P/ rate has

9ee) reduced to 710 'hs? M2

/o)tractor has summariRed the ariatio) as +ollo-s

Additio)

5atural sto)e 3 2018 @ P/ #ate 710 X .I % Pro+it

ther costs =1!7031100 > Y 2018@ 270 'hs? m2

a)d missio)

$ $TH 1078@ 1!70?Y

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/o)tractor is ar&ui)& o) this si)ce the amou)t is +ixed +or the item i) the $ deductio)s

should 9e made as per $ Ealue = co)sideri)& the ris* >i) this case

his rate is lesser tha) the P/ #TA4 proided ,9ecause he has to carry out the actual ty o+

2018 ($.M @.......Y $ EAD:3

Addito)s 2018 x =710 X 20F> Y 1,"60,2?3

2018 x =1!70 N 1100> Y 6,860?3

Y 2,2,27?3

missio) 1078 x 1!70 Y=1,00,060?3>

There+ore Net Additions Y 1,02,22?3

My a)s-er

Additio) 3 2018 @ P/ #AT4 710 X.I % P X other cost @ 2018other cost 3 1100 X .I % P Y

Y 1,"60,2?3

2018 x Z1!70 N =1100X20F>Y 121,020?3

Y 2,071,?3

missio) 2018 x 1!70 Y=2,87!60?3>

There+ore Net Omissions Y =801,"16?3>

mmediately it is appare)t that the /o)tractor;s calculatio) is i)correct, 9ecause it is a Dump

(um /o)tract -ith the ua)tities at /o)tractor;s ris*, a)d there+ore the cha)&e +rom the

expe)sie mar9le to the eco)omical sto)e should yield a sai)& a)d )ot a) additio) S

Hour calculatio), o) the other ha)d sho-s a sai)& 9ut si)ce you dealt -ith the )o)3aria9lecost part =i)stallatio) etc.>, there could 9e o9ectio)s to the -ay you arried at the sai)&,

thou&h the +i)al a)s-er is correct.

The correct calculatio) should 9e as +ollo-s:3

4mployer -a)ted all te)derers to ma*e a) allo-a)ce -ithi) their Dump (um Prices -hich he

ca) spe)d to 9uy a suita9le material @ 1100?3 per M2. There+ore -hat is that allo-a)ce, the

te)derers should hae proided G

t is 2018 m2 x 1100?3 Y 2,217,800?3 =Te)derers should hae proided +or the

correct ua)tity o+ 2018 m2>

8/20/2019 Jun 11-Q&A-1

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Io-eer the 4mployer did )ot spe)d this +ull amou)t. Ie o)ly spe)t 2,018 x 710 Y

1,6!!,880?3 a)d there+ore the 4mployer must hae his sai)& o+ 2,217,800 N 1,6!!,880 Y

7,"!0?3.

+ the i)structed +i)ish -as more expe)sie, the) i)stead o+ a sai)&, the 4mployer -ould

hae paid more a)d should pay the /o)tractor;s I%P perce)ta&e o) that additio).Di*e-ise, the 4mployer ca) )o- &et the same perce)ta&e calculated o) the sai)& -hich

-ould amou)t to a total sai)& o+ 7,"!0?3 X 20F Y 801,"16?3 , -hich is the same a)s-er as

yours, a)d -e did )ot mess arou)d -ith a)y )o)3aria9le costs.

Thou&h used the a9oe to explai) ho- arried there, the more strai&ht +or-ard method is a

simple, si)&le li)e calculatio) as +ollo-s:3

(ai)& Y 2018 x Z=1100 N 710>X20F Y 801,"16?3

#e&ards,

Prof. Sam.



#e&ards

(alani1c1#odangodaSr Project 8uantit3 Surve3or

8/20/2019 Jun 11-Q&A-1

17/22

rom:

(atir

(i)&h

Add

to

/o)ta

cts

(e)t: Ced, Ku) 22, 2011 at ":! am

To: 'r. (am

8/20/2019 Jun 11-Q&A-1

18/22

'ear (ir,

e atte)ded the (ou)d /o)tracts Admi)istratio) pro&ramme co)ducted 9y you duri)& Ku)e3

2011 sessio).

ll 9e ery tha)*+ul to you +or your *i)d clari+icatio) o+ the +ollo-i)&: 3

/o)tract is Dump (um % 9ased o) '/ 1"78 th 4ditio), prior to comme)ce -ith the

/o)structio) -or* the 4)&i)eer;s had o9tai) the approal o) Te)der 'esi&) +rom the Docal

Authorities. 'uri)& the /o)structio) Period the /o)tractor receied additio)al /omme)ts

+rom arious Docal Authorities o) the su9mitted (hop 'ra-i)&s 9ased o) Te)der 'esi&).

1. s this -ill co)stitute Eariatio) to the /o)tract Ealue. + the comme)t o+ the Authorityreuires a)y desi&) aspects to 9e cha)&ed =such as i)creasi)& the diameter o+ a pipe +rom its

preiously desi&)ed diameter> the) it amou)ts to a ariatio). t should immediately 9e

9rou&ht to the 4)&i)eer;s atte)tio) reuesti)& him to issue a reised desi&) or a) i)structio)

to cha)&e the ori&i)al desi&).

2. ) case yes, the) as per '/ 1"78 th 4ditio) /lause 80.2 stated that the /o)tractor shall

9e e)title +or /ost plus I o)ly. Io- -e ca) de+i)e the I. ) )ormal ariatio) /o)tractor

I%P is at 12F. (i)ce it is a ariatio), it -ould 9e alued u)der /lause 2 =)ot u)der 80.2>

-ith I a)d Pro+it. =+ your uestio) is related to a di++ere)t claim u)der 80.2 the) you )eed

to produce head o++ice audited accou)ts to proe -hat your head o++ice oerheads are>

!. /o)tractor also su9mitted the 4oT alo)& -ith the Prolo)&atio) /ost. s that /o)tractor is

e)title +or 4oT a)d Prolo)&atio) /ost. =4T, Prolo)&atio) /osts a)d Pro+it too 9ecause the

delay -as due to a ariatio) as discussed duri)& (/A sessio) 2> As per

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Carm #e&ards,

(atir (i)&h

33333 Original ,essage 33333

From: UA#AIAM EA#LI4(4 =alexmo)>U

To: sam""@eim.ae

#ate: Tue, 18 May 2011 0":0:! X000

Subject:

8/20/2019 Jun 11-Q&A-1

20/22

All i)terim claims are su9ect to a mi)imum claim alue o+ A4' 10millio).

5o 4T has 9ee) &ra)ted yet 9ut -e hae su9mitted a )um9er o+ claims.

The /lie)t has )o- issued a Sto% 9or+s Order for all t7e finis7es from /t7 floor andabove, as they -a)t to issue a redesign of t7ese floors into a ;otel1 T7is redesign ma3

ta+e - < mont7sS The structure is to co)ti)ue as )ormal.

ur uestio) is this:

t is hi&hly li*ely that our claim -ill )ot &o throu&h =9elo- A4' 10millio)> due to the stop

-or*s order a)d it is /(/4/ that -ill su++er -ith cash +lo- -hich may 9e a maor pro9lem

especially payme)t to su9co)tractors a)d suppliers.

s there a)y remedy +or us as co)tractor i) terms o+ easi)& our cash +lo-G Ce hae thou&ht o+

a +e- thi)&s such as

1. ta*i)& our 9ala)ce o+ prelimi)aries +or the proect a)d diidi)& eually u)til the

completio) date. This may help to &et us to A4' 10millio) as -e are )o- 9ei)& paid o) a F

o+ -or* do)e 9asis.

2. Ce could reuest +or the /lie)t to do a-ay -ith the mi)imum A4' 10millio) criteria. This

-ill help us to put i) a claim each mo)th )o matter -hat the alue.

Ce -ould -elcome a)y o+ your thou&hts a)d adice.

This appears to 9e a suspe)sio) o+ pro&ress o+ part o+ the Cor*s, -ithi) the am9it o+ (u93

/lause 0.1. There+ore you are e)titled pursua)t to (u93/lause 0.2 to 4xte)sio) o+ time,

Prolo)&atio) costs a)d a)y other costs that you may i)cur. (uch costs ca) i)clude +i)a)ci)&

char&es +or 9orro-i)& mo)ey to +u)d your )eeds resulti)& +rom i)a9ility to i)oice the

mi)imum mo)thly payme)t due to the suspe)sio). Che) you su9mit the claim +or the +irst

mo)th i)cludi)& such costs, you -ill 9e i) a positio) to )e&otiate -ith the 4mployer to delete

or lo-er the threshold i) retur) +or droppi)& or reduci)& your claims +or such costs i) the

+ollo-i)& mo)ths.

#e&ards,

Prof. Sam.



Ma)y Tha)*s

Bi)d #e&ards

Terence Drummond

Contracts Manager

8/20/2019 Jun 11-Q&A-1

21/22

From: EATTB

8/20/2019 Jun 11-Q&A-1

22/22

The uestio) surrou)ds the 4)&i)eers i)structio)s.

'/ clauses 2., 8.1 a)d 2 deals -ith 4)&i)eers i)structio)s. 9eliee =correct me i+ am

-ro)&> i)structio)s ca) o)ly come +rom the +ollo-i)& sources:

\ issue o+ co)structio) dra-i)&s.\ Critte) 4)&i)eers )structio) =proper 4..>

\ letter stati)& that he i)structs the co)tractor to do somethi)&.

\ reply to a /E =i.e. er9al i)structio)>

The 4)&i)eer o) our proect is sayi)& that i)structio)s ca) also come +rom the +ollo-i)& a)d

that -e should immediately carry this -or* out.

\ his comme)ts ? reply o) our su9mitted shop dra-i)&s

\ his comme)ts o) #s

\ his comme)ts o) a)y other docume)t that he replies to. =other tha) -hat is me)tio)ed

a9oe>

(i)ce ee) er9al orders =telepho)e calls etc> too co)stitute i)structio)s, a)y -ritte)

directio)s i)cludi)& comme)ts too -ould co)stitute i)structio)s. Io-eer, i+ such comme)ts

are li*ely to i)troduce cha)&es =omissio)s, additio)s, modi+icatio)s>, the) the /o)tractor

should immediately -rite 9ac* to the 4)&i)eer stati)& that i) the opi)io) o+ the /o)tractor,

they amou)t to ariatio)s +or -hich the /o)tractor reseres its ri&hts +or additio)al payme)t,

4T a)d costs, a)d -ould proceed -ith the ariatio) u)less i)structio)s to the co)trary are

issued immediately.

#e&ards,

Prof. Sam.



Tha)* you i) ada)ce.

Bi)d #e&ards

Terence Drummond

Contracts Manager

Documents

Jun 11-Q&A-1