Bathroom and Kitchen Pods

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QATAR AIRWAYS CREW ACCOMODATION QATAR AIRWAYS CREW ACCOMODATION Final Cost Valuation No. 1 Final Cost Valuation No. 1 (Prefabricated Bathroom & Kitchen Pods) (Prefabricated Bathroom & Kitchen Pods) May 2014 May 2014

description

Claim

Transcript of Bathroom and Kitchen Pods

QATAR AIRWAYS CREW ACCOMODATION

Final Cost Valuation No. 1(Prefabricated Bathroom & Kitchen Pods) May 2014

Table of Contents

CONTRACT PARTICULARS3SECTION 1 INTRODUCTION & BACKGROUND61.1Introduction:61.2Purpose of this Document:7SECTION 2: Contractors Claim92.1Claim Statement:92.2Entitling Provisions:10SECTION 3: The Facts113.1Pre-Fabricated Bathroom and Kitchen Pods:113.2Central Water Heating System:173.3Kitchen Ventilation System:173.4Kitchen Appliances:173.5Glass Shower Door:183.6Omission of Insulation to Pods:183.7New Provisions of Washing Machine:193.8Conclusions:20SECTION - 4:VALUATION OF VARIED WORKS:224.1An Overview:224.2Approach of Valuation:23List of attachments25

CONTRACT PARTICULARS

The Employer:Qatar Airways, P.O Box 22550, Doha,State of Qatar

Employers Representative:

Vice President Capital ProjectsQatar Airways, P.O Box 22550, Doha,State of Qatar

The Engineer:Arab Engineering BureauBuilding No. 100, Ibn-e-Sina Street 950, Zone-24, Al Muntaza,P.O Box No. 1148, Doha, Qatar.

The Contractor:Redco International Trading and Contracting W.L.L PO Box 16750, Doha,State of Qatar

Contract price:QAR 451,796,152.72. Lump Sum.Construction Phase:QAR 421,900,000.00 Construction PriceQAR 6,208,922.72 Facade Redesign VO No. 1 to xx QARMaintenance Service Phase:QAR 23,687,230.00

Key dates:Commencement Date 01st February 2011Scheduled Completion Date 21st November 2012Time for completion of Construction Phase 660 days

Form of Contract:Public Works Authority Standard Conditions of the Contract (As modified)SECTION 1 INTRODUCTION & BACKGROUND

SECTION 1 INTRODUCTION & BACKGROUND

1.1 Introduction:

1. The Parties to the Contract entered into an agreement for construction of works forming Construction Qatar Airways Crew Accommodation reference QTR-CNT-2011-0087 and Maintenance Services Qatar Airways Crew Accommodation reference QTR-CNT-2011-0091 by the endorsement of the Letter of Acceptance[footnoteRef:1] dated 20th January 2011 with a commencement date of 01st February 2011 for a combined value of QAR 451,796,152.72 with a completion date of 21st November 2012. [1: QA Letter of Acceptance reference QTR-CNT-2001-0088 dated 20th January 2011.]

2. Prior the award of the Project, the Contractor by way of Post tender clarification[footnoteRef:2] dated 6th September 2010 conveyed its consent to be part of the value engineering. [2: The Contractors letter reference no. RT/T/09-23/SRK/AS/L/010 dated: 6th September 2010]

3. The Employer prior award of the Project undertook Design review of the Project through ARUP and developed a review report[footnoteRef:3]. The Employer awarded the Project without incorporating those Design issues. The ARUP Design report was recently handed over to the Contractor unofficially; which reveals that the Employer awarded the Project with Design deficiencies and with the intent that the Scope of Works shall be varied to a significant extent during the execution of the Project. Such intent was never incorporated in the Contract. This report has presented around 92 items. [3: ARUP Peer review report. ]

4. At the time of writing of this document around 56 numbers of variations orders are issued by the Employer/ the Engineer in line with the ARUP Design Report. Out of these 56 variations orders, 7 variation orders are related to the works in Bathroom and Kitchen, which constitutes significant portion of the works such varied works were formalised by way of issuing Variation Orders as detailed hereunder:-Table 1Sr.No.Variation OrderDates

No.DescriptionIssueApproval

109Pre-Fabricated Bathroom & Kitchen Pods31-10-201131-10-2011

218Change from Individual water heaters to Centralized Water Heating System29-03-201211-04-2012

320Kitchen Ventilation System19-04-201215-05-2012

431Kitchen Appliances and Spare parts04-10-201204-11-2012

545Addition of Glass Shower doors20-06-201324-07-2013

651Omission of Insulation to Pods26-01-201411-03-2014

756New Provisions for Washing Machine20-02-201424-04-2014

5. The Contractor is of the opinion that in all the above mentioned Variation Order, procedure laid down in the Contract was not adopted due to lack of Design, Specifications and clear scope of works and hence it was not possible to ascertain pre-performance cost of the above named variations. Since the Design, Specifications and scope of Works are now finalized hence cost reimbursement is requested on the basis of actual after-the-fact basis. 1.2 Purpose of this Document:

The purpose of this document is to:- i. Reimburse actual costs incurred on the varied works related to Bathrooms and Kitchens and to agree on the revised Contract Price. ii. Substantiate that the Contractor is entitled for such reimbursement from the Employer.

SECTION 2Contractors Claim(Facts, Reasons and Justifications)

SECTION 2: Contractors Claim

2.1Claim Statement:1. The Contractor is of the opinion the Engineer/ Employer, for the purpose of varied works tabled at Table-1, exercised their power to amend the Works in accordance with Sub-Clause 51.1 & 51.2 of the General Conditions of Contract. 2. The Engineer/ Employer, for the purpose of interim payment and formalization of the changes to the Works issued Contract Variation Form in accordance with Sub-Clause 2.1 Part-5 of the Supplemental Conditions of Contract with budget price.3. The Contractor has now performed the varied works. 4. For revising the Contract Price, the Engineer/ the Employer did not follow the procedure set out in Sub-Clause 4.1 & 4.2 of Part -5 of Supplemental Conditions of Contract.5. It was impossible for the Employer, the Engineer and the Contractor to follow up the procedure as the Design, Scope of Works and Specifications for varied works were not finalized at the time of issuance of Variation Order Form. 6. The provision of Design, Scope of Works and Specification is the sole responsibility of the Engineer/ Employer. 7. The Design, Scope of Works and Specifications for the varied works is now finalized after issuance of VO 56 on 24th April 2014 and hence the Contractor is now in a position to request for the reimbursement of the actual cost incurred for these varied works on an After-the-fact basis in the sum of QAR _______________________

2.2Entitling Provisions:1. The extent of the Contract, in accordance with Clause-5 of General Conditions of Contract, is limited to Construction only where the Design is the responsibility of the Employer/ the Engineer. The Design of the Works and/or varied works is the Expected Risk in accordance with Sub-Clause 20.2 of the General Conditions of the Contract. 2. The Design of varied works, as is evident from the issued Variation Order Forms[footnoteRef:4], is the responsibility of the Engineer, in accordance with Sub-Clause 4.2 of the Supplemental Conditions of the Contract. [4: Variation Order Forms no. ___________]

3. The procedure for selecting the Subcontractor(s), the revision to the Contract Price and issuance of Contract Variation Form is stipulated in the Sub-clause 4.2 of the Supplemental Conditions of Contract. Such procedure was never adopted by the Engineer/ Employer.4. The Design, Scope of Works and Specifications were never provided by the Engineer/ the Employer at the time of issuance of the Variation Orders as is evident from the records detailed at Section 3 of this document. 5. The As-Built Design is now finalized and final Variation Order No. 56 is issued. 6. In accordance with Second Paragraph of Sub-Clause 51.4, it is not practicable to for the Contractor to claim for the reimbursements of the costs as the Design, Scope and Specifications of the Varied Works is finalized and actual cost is known.

SECTION 3: The FactsAs illustrated in Section - 2 of this document:-i. The Varied Works were ordered with due consultation of the Employer. ii. At the time of issuance of order(s) for undertaking Varied Works the Design, Scope of Works and Specification of varied works were not provided by the Engineer/ Employer. iii. The specialist Subcontractor/ Supplier was selected by the Engineer/ the Employer.iv. In the event of absence of Design, Scope of Works and Specification it was impossible for all the parties involved in the Contract to calculate the projected direct and associated costs with the Varied Works. This Section of the document is therefore put together with the view to substantiate the above statement of the Contractor from the records of the Project as under:- 3.1Pre-Fabricated Bathroom and Kitchen Pods:1. Immediately after award of the Project:-a. The Engineer, through his email[footnoteRef:5] dated: 7th December 2010, introduced Modular to the Contractor for preparing a proposal for the Project. [5: Email dated 7th Dec'2010]

b. M/s Modular (the selected supplier/subcontractor) confirmed to the Contractor by way of email[footnoteRef:6] date: 18th December 2010 that they are in the preliminary discussion directly with the Engineer for introduction of pods into the Project. [6: Email dated 18th Dec'2010]

2. In Design meeting No. 3[footnoteRef:7] on 27th January 2011, the Engineer confirmed that they visited three (3) Pods manufacturers in UAE and wanted the Contractor to get information from them. [7: Design Meeting Minutes No. 3]

3. In the Design meeting No. 8[footnoteRef:8], the Engineer insisted on the use of pre-fabricated bathroom and kitchen pods. It was informed by the Contractor that M/s Modular is ready to present their solution on 29th March 2011. [8: Design Meeting Minutes No. 8]

4. On 5th April 2011, the Engineer instructed AEB (the then Designer and now the current Engineer) to expedite and initiate the layout in view of the parameter wall of the toilets. 5. During Design meeting No 19[footnoteRef:9], The Engineer advised the Contractor to arrange Presentation by M/S Modular for QA on or before 22nd May' 11. [9: Design Meeting Minutes No. 19]

6. During Design meeting No. 24[footnoteRef:10] the Engineer confirmed that the Employer has No Objection with Modular and that they should provide proposal with different options and different colours. [10: Design Meeting Minutes No. 24]

7. During Design meeting No. 27[footnoteRef:11], the Engineer confirmed the receipt of two proposals from the Contractor and its discussions with the Employer. The Contractor during the meeting also informed that planned date for Modular presentation is 7th July'11. [11: Design Meeting Minutes No. 27]

8. The Contractor formally submitted Prefabricated Bathroom pods submission from Modular on 18th July'11.9. The Engineer informed during Design Meeting No. 35[footnoteRef:12] that AEB (Designer) is doing a comprehensive report on Pods and based on this GTI (Cost Consultant) will assess the cost. [12: Design Meeting Minutes No. 35]

10. On 31st Aug'11, the Engineer issued an interim VO[footnoteRef:13] with a Budget savings of QAR 500,000, which principally should have been issued after fulfilling the entire procedure. [13: Variation Order No. 9]

11. The Engineers representative along with Modular finalized the dimensional details of Pods in their Dubai office and Modular Emailed[footnoteRef:14] these layouts to the Contractor on 14th Nov'11. [14: Modular Email]

12. The Engineer Signed off one Type of Bathroom Pod drawing on 14th Nov'11[footnoteRef:15] and instructed the Contractor to proceed with Mock-up of these Pods for Client's inspection. [15: Email dated 14th Nov'11]

13. Meanwhile, the Contractor formalized material submissions[footnoteRef:16] for the different items in the Pods like Sanitary wares, fixtures etc. [16: Material Submittals]

14. On 12th of Dec'11, the Chief Executive of Qatar Airways (the Employer) visited the Pods Mock-up and approved the Pods in principle with a number of changes to the pods as communicated by the Engineer. The following facts shall prove that the Engineer could not finalize the Design of the prefabricated bathroom and kitchen pods even years after issuance of the Variation Order form:-15. During the architecture coordination meeting No. 5[footnoteRef:17] on 14th Dec' 11 detailed discussion happened along with the Engineer his designer and the Contractor on the Design of Bathroom and Kitchen Pods. [17: Arch. Coordination Meeting Minutes No. 5]

16. The Engineer confirmed through letter[footnoteRef:18] dated 15th Dec'11 that Pods have been formally approved by Qatar Airways. [18: 1101-00-OL-CC/SK-0297]

17. On 19th Dec'11, the Engineer issued a detailed report[footnoteRef:19] and highlighted different design changes required on Pods. [19: Arch. Coordination Meeting Minutes No. 06]

18. During architecture coordination meeting No. 9[footnoteRef:20], the Engineer instructed for a full Apartment Mock-up along with Pods as per new design and the Contractor confirmed that such Mock up will be ready by 1st week of Feb'12. [20: Arch. Coordination Meeting Minutes No. 16]

19. On 10th Jan'12, the Engineer issued a Change Order[footnoteRef:21] for the different Specifications and hence requested changes to the Mock up. [21: 1101-00-OL-1710-CC/CV-0358 dated 10th Jan'12]

20. During architectural coordination meeting No.10[footnoteRef:22], the Engineer instructed the Contractor to proceed with the Coordinated Shop drawing for Pods and also informed that Basic design has been finalized by Engineer. [22: Arch. Coordination Meeting Minutes No. 10]

21. During architectural coordination meeting No. 12[footnoteRef:23], the Engineer informed the Contractor that Mock up Shop drawing has been approved and further asked the Contractor to arrange a separate type of Basin (Semi Recess type) for the Employer review and approval. [23: Arch. Coordination Meeting Minutes No. 12]

22. During architectural coordination meeting No. 14[footnoteRef:24], the Engineer confirmed that mirror light in the Pods will be from Astro U.K. [24: Arch. Coordination Meeting Minutes No. 14]

23. On 7th Mar'12, the Contractor submitted[footnoteRef:25] General Arrangement drawings for the Pods. [25: RED-1101-0207-PD-191 dated 7th Mar'12]

24. The Contractor submitted[footnoteRef:26] breakdown for the QAR 500,000 savings for the Interim payments processing upon repeatedly requests of the Engineer. [26: RED-1101-0232-PD-219 dated 25th Mar'12]

25. The Engineer[footnoteRef:27] on 27th Mar'12 instructed the Contractor that the Pods inspection to be done by AEB through their Abu Dhabi office and informed that such costs will be borne by the Contractor. [27: 1101-00-OL-1710-CC/SK-0543 dated 27th Mar' 12 ]

26. The Employers inspection[footnoteRef:28] for the Full Mock up apartment Mock up along with New Pods happened on 4th April'12. [28: 1101-00-OL-1710-CC/SK-0658 dated 04th April' 12]

27. Immediately after Mock up inspection, the Employer instructed[footnoteRef:29] the Contractor to lock the Mock up apartment and not to allow any one enter it till further instructions. [29: RED-1101-290-PD-290 dated 04th April'12]

28. On 11th April'12, the Engineer issued a Variation Order No 18[footnoteRef:30] for the Changes in the Water Heating System in the Pods. [30: Variation Order No. 18]

29. During the Progress Meeting No. 63[footnoteRef:31], the Employer once again confirmed that Mock up done is on Hold. [31: Progress Meeting Minutes No. 63]

30. On 15th May'12, the Engineer issued another Variation Order NO. 20[footnoteRef:32] for the changes in the Kitchen Ventilation System. [32: Variation Order No. 28]

31. On 15th May'12, the Engineer issued[footnoteRef:33] New Design drawing for new Mock up apartment and instructed Redco to proceed with its Shop drawings with immediate effect. [33: 1101-00-OL-1710-CC/MN-0734 dated 15th May' 12]

32. On 23rd May'12, the Engineer through a formal letter[footnoteRef:34] instructed cancellation of Pods concept with immediate effect. [34: 1101-00-OL-1710-CC/SK-0544 dated 23rh May' 12]

33. The Contractor immediately forwarded[footnoteRef:35] the cancellation instructions to Modular upon receipt. [35: RED-1101-0362-MOD-0004-PD-0352 dated 23rd May'12]

34. On 11th June '12, the Engineer instructed[footnoteRef:36] the Contractor to resume works on 1st Mock up and rectify comments raised by the Engineer in order to offer inspection to the Employer. [36: 1101-00-OL-1710-CC/SK-0840 dated 11th June' 12]

35. On 12th June'12, the Engineer instructed[footnoteRef:37] the Contractor to resume the Pods on the Project with immediate effect. [37: 1101-00-OL-1710-CC/SK-0544 dated 12th June' 12]

36. On 13th June '12, the Contractor confirmed[footnoteRef:38] receipt of the Engineer instructions and informed that the varied works have been recommenced on Mock up 1 and informed that Mock up 2 works are also on going. [38: RED-1101-0396-AEB-036-PD-386 dated 13th June' 12]

37. On 20th July'12, the Contractor attached minutes of Design Meeting and requested[footnoteRef:39] the Engineer to finalize the Design of the varied works at earliest in order to proceed with the Production of Pods through selected subcontractor. [39: RED-1101-0524-AEB-017-PD-513 dated 20th July' 12]

38. On 16th Aug'12, the Contractor further updated[footnoteRef:40] on the pending design items related to the varied works and requested the Engineer to finalize the Design at earliest. [40: RED-1101-0520-AEB-014-PD-510 dated 16th Aug' 12]

39. On 22nd Aug'12, the Engineer acknowledged[footnoteRef:41] the Contractors concerns on the pending design items and assured that they will finalize at earliest and further requested that a Mock up should be done reflecting new changes in Modular Dubai Office's. [41: AEB/878/RS/01/L000378/389 dated 22nd Aug'12]

40. On 25th Aug'12, the Contractor further updated[footnoteRef:42] on the design issues and also forwarded design proposal on demountable ceiling and confirmed agreement on Mock up in Dubai upon finalization of current design issues (Ceiling and Shaft). [42: RED-1101-0532-AEB-0024-PD-520 dated 25th Aug' 12]

41. On 4th Nov'12, the Engineer issued VO 31[footnoteRef:43] for the Kitchen Appliances and Spare Parts to be installed in Kitchen Pods. [43: Variation Order No. 31]

42. On 12th Nov'12, the Engineer through letter[footnoteRef:44] confirmed approval of the Logistic Plan of Pods and asked the Contractor to submit the planned delivery/installation dates and also to raise formal request for inspection of Mock up based on agreed Design Changes till date. [44: AEB/878/RS/01/L000621/632 dated 12th Nov' 12]

43. On 6th Aug'13, the Contractor submitted[footnoteRef:45] a Variation Order for the additional Dual Socket outlet and Shaver Socket in Pods. [45: RED-1101-0893-AEB-0293-PD-883 dated 06th Aug' 13]

44. On 24th July'13, the Engineer issued New Variation Order 45[footnoteRef:46] for the Glass Shower door to be installed in the varied works [46: Variation Order No. 42]

45. On 11th Mar'13, the Engineer issued New Variation Order 51[footnoteRef:47] for the omission of Insulation from Bathroom and Kitchen Pods. [47: Variation Order No. 51]

46. On 30th April'13, the Engineer issued New Variation Order 56[footnoteRef:48] for the Washing Machine Provisions to be made in 37 numbers Kitchen Pods and hence finally completed the Design of Bathroom and Kitchen Pods. [48: Variation Order No. 56]

3.2Central Water Heating System:1. Central Water Heating system was introduced as Value Engineering Item[footnoteRef:49]. [49: Design and VE meeting No.31]

2. On 10th January 2012, the Engineer issued Design Drawings[footnoteRef:50] showing solar panels. [50: IFC issuance transmittal 1101/QA/0046]

3. On 29th January 2012, the Engineer issued revised Design showing multifunctional pumps[footnoteRef:51] for central water heating system. [51: IFC issuance transmittal AEB/878/RS/01/LOOO97/108]

4. On 14th April 2012, the Engineer issued Variation Order Form[footnoteRef:52]. [52: The Engineer's letter 1101-00-OL-1710-CC/CV-0591]

5. On 21st May 2012, the Engineer again issued revised Design[footnoteRef:53]. [53: Revised IFC Transmittal . 1101/QA/0056]

3.3Kitchen Ventilation System: 1. The Engineer, through his letter[footnoteRef:54] dated: 26th February 2012, instructed to for the cost impact of the varied works, so that the Engineer may present the case to the Employer. [54: Engineer's letter Ref 1101-00-OL-1710-CL/MCC-0473]

2. On 26th March'12 Redco submitted[footnoteRef:55] revised Commercial Submission as instructed. [55: RED-1101-GEN-MEC-TR-0032_01 dated 26th March'12]

3. On 15th May'12 Variation Order[footnoteRef:56] is finally issued. [56: Variation Order No. 20]

3.4Kitchen Appliances:1. The Engineer, vide his letter dated: 4th January 2012 issued instruction to procure and install Kitchen Appliances[footnoteRef:57]. [57: Engineer's letter Ref 1101-00-OL-1710-CC/CV-0326]

2. The Engineer[footnoteRef:58] forwarded the Employers letter requesting for additional requirements (spare parts etc) of the Employer vide letter dated: 26th April 2012. [58: Engineer's letter Ref 1101-00-OL-1710-CC/CV-0661]

3. Additional requirements were communicated by the Engineer[footnoteRef:59] vide his letter reference no. 9th May 2012. [59: Engineer's letter Ref 1101-00-OL-1710-CC/CV-0716]

4. Proposal was submitted by the Contractor[footnoteRef:60] vide his letter dated: 14th May 2012. [60: Redco's letter Ref RED-1101-350-RPM-350-PD-340]

5. Again the Engineer[footnoteRef:61] forwarded the Employer letter asking some additional details vide his letter dated: 14th June 2012. [61: Engineer's letter Ref 1101-00-OL-1710-np/CV-0875]

6. After a number of discussions the Engineer[footnoteRef:62] issued Variation on 4th October 2012. [62: Engineer's letter Ref AEB/878/RS/01/LOOO555/566]

3.5Glass Shower Door:1. On 15th August 2012, the Engineer[footnoteRef:63] issued instruction to proceed with Glass Shower Doors in Bathrooms without any Design and Specifications. [63: Engineer's letter Ref AEB/878/RS/01/LOOO355/366]

2. The quotation[footnoteRef:64] from the supplier/ the Subcontractor was submitted 30th September 2012. [64: Redco's letter Ref RED-1101-596-AEB-0068-PD-582]

3. After nine months of the submission of the proposal Variation Order[footnoteRef:65] was approved and communicated on 25th June 2013. [65: Variation Order No. 45]

3.6Omission of Insulation to Pods:1. On 02nd Sep'13 Engineer Instructed[footnoteRef:66] the Contractor to analyze cost for the Pods insulation. [66: Commercial meeting No. 70]

2. On 30th Sep'12 Engineer confirmed[footnoteRef:67] that they have received cost from the Contractor and a joint review is on-going. [67: Commercial meeting No. 74]

3. On 10th Nov'12 Engineer has issued VO [footnoteRef:68] which is immediately signed off by the Contractor. [68: Commercial meeting No. 79]

4. On 11th March'14 Variation Order[footnoteRef:69] has been formally issued. [69: Variation Order No. 51]

3.7New Provisions of Washing Machine:1. The Project Manager of M/s RPM (Engineers Representative) requested by way of sending email[footnoteRef:70] dated 1st May 2012 for incorporation of Washing Machines in some pods. [70: Engineers Representative Mr. Claudio's email dated 1st Nov'12]

2. The Contractor requested[footnoteRef:71] on 6th November 2012 that written confirmation of the request is required along with the Design drawings specification. [71: The Contractors letter Ref RED-1101-634-RPM-0094-PD-0620]

3. The Engineer, vide his letter[footnoteRef:72] dated: 24th December 2012 confirm that changes are required. [72: The Engineer's letter Ref AEB/878/RS/01/L000727/738]

4. The Engineer changed his Design of the varied works by considering frame and granite by way of sending letter[footnoteRef:73] dated: 16th June 2013. [73: Email dated 16th June'2013]

5. The Engineer vide his letter[footnoteRef:74] dated: 26th June 2013 requested for the approved drawings to be provided with PPR pipes. [74: The Engineer's letter Ref AEB/878/RS/01/L001026/1037]

6. The Engineer by way of letter[footnoteRef:75] dated: 30th October 2013 forwarded the Employer letter stating the concept approval but certain details were requested from the Employer. [75: The Engineer's letter Ref AEB/878/RS/01/L001181/1246]

7. The Engineer finally issued a Contract Variation Form[footnoteRef:76] on 30th April 2014. [76: Variation Order No 56]

3.8Conclusions:

The Engineer/ Employer instructed the desired changes to the Works in accordance with Sub-Clause 51.1 of the General Conditions of the Contract. The Engineer/ Employer for the purpose of confirmation of his instructions and interim payments confirmed his instructions in compliance with Sub-Clause 2.1 by way of issuing a Variation Order Form. The procedure for processing Variations of this nature is defined in Sub-Clause 4.2 was not adopted due to the fact that the scope of works, specifications and Design was not finalized at the time. The Scope of varied works, its specification and Design is now finalized and hence the costs associated duly incurred by the Contractor is submitted for the final review of the Engineer and release of payment by the Employer.

SECTION - 4.VALUATION OF VARIED WORKS

SECTION - 4:VALUATION OF VARIED WORKS:

4.1An Overview:

The details of the Varied Works which is subject of this document are as under:- Sr.No.Variation OrderDateInterim Budget effect

No.DescriptionIssueApprovalCost(QAR)(Add/Omit)

109Pre-Fabricated Bathroom & Kitchen Pods31-10-201131-10-2011500,000 Omit

218Change from Individual water heaters to Centralized Water Heating System29-03-201211-04-20124,660,407 Add

320Kitchen Ventilation System19-04-201215-05-201279,493 Omit

431Kitchen Appliances and Spare parts04-10-201204-11-20123,273,693.5 Add

545Addition of Glass Shower doors20-06-201324-07-20133,018,074.25Add

651Omission of Insulation to Pods26-01-201411-03-2014413,558.52Omit

756New Provisions for Washing Machine20-02-201424-04-2014126,202.35Add

As described earlier, the cost impact of the above varied works could not be ascertained prior performance due to lack of Design, Specifications and Scope of work as established from the records described in detail in Section-2 of this document. The Contract stipulates that the provision of Design, Specification and Scope of Work is the responsibility of the Employer. The Engineer issued the above named Variation Order in accordance with the provisions of Sub-Clause 51.3 & 51.4 of the General Conditions of the Contract. The process stipulated in the Supplemental Conditions of the Contract (Sub Clause 4.2 of Part-5) was not adopted due to lack of Design, Specification and Scope of works. The Variation Orders were, therefore, issued with budget cost to the Contract Price and agreed by the Contractor as an interim mechanism for the Engineer to recommend the progress payment. Now that the varied works are completed to the satisfaction and requirements of the Engineer/ the Employer and the Design, Specification and scope of works is finalized hence final cost is submitted i.e. after-the-performance for the release of payment and agreement on the revised Contract Price. 4.2Approach of Valuation:

Following approach is adopted for calculating after the perform cost of the Varied Works:- i. Omission: The Works which are varied and/or amended by way of issuing Variation Orders are calculating from the Contract Drawings and its cost is calculating on the basis of Bill of Quantities. ii. Addition: The additional/ varied works actual cost is calculated as under:-a. Direct Cost of the selected Supplier/ Subcontractor, duly substantiated with payments made to respective party (ies).b. The actual costs incurred on the exclusions including but not limited to the works and General and particular attendances, works etc.

ATTACHEMENTS:

List of attachments

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