EXPERT WITNESS AND REPORTING:
QUANTUM FOR CLAIMS – VERIFICATION OF CONTRACTOR'S SUBMITTED COST
The Client of a Data Centre developer requested Frans Taljaard from TDS to assess the General Contractor’s Cost submission for Prolongation. The Contractor gave an exuberant amount bases on the Bill of quantities and Rates for Dayworks, out of the Contract.
The Process and Solution:
TDS inspected the submitted costs from the Contractor. The issue with the Cost was that the Contractor,
i. Use Cost for the last 45 days of the Contract, rather than in the middle of the Contractor when the Delay occurred.
ii. The Contractor used rates in the Bill of Quantities, rather than actual Costs occurred as per the SCL protocols (and other widely used delay cost methodologies).
iii. The use of Dayworks rates for items conflicts with the principle to use actual Cost and also include a rate for preliminary and general cost. Only time related Prelimn Cost can be claimed.
TDS contacted the Quantity Surveyor from the Contract and provided it with easy to follow schedules of all the costs that can be claimed for Prolongation. This structured the response and assured the Client that the correct procedures are followed.
The Contractor accepted the help and provided the substantiation required. The Client saved a lot of money and was excellent surprised by how the Contractor and the Claims Consultant worked together in harmony. The Contractor claimed correctly for its Prelimns, Labour, Head office overhead and other relevant prolongation Costs.