Scribd Logo
Upload

Welcome to Scribd!

  • 3.3 Contract Price Information To Facilitate Evaluation of Changes

    Uploaded by

    Lava Sat
    37 views1 page
    The document discusses including time-related cost information in construction contracts to facilitate evaluating the cost impacts of changes and disruptions. It recommends including weekly cost breakdowns for work crews, site overheads, and management overheads, as well as costs for work crews on standby. This information allows project managers to promptly assess how changes might extend duration and require additional resources. The time-related cost data should be incorporated into bill of quantities, activity schedules, or appendices depending on the contract type.

    Original Description:

    Road to Success

    Original Title

    3.3

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses including time-related cost information in construction contracts to facilitate evaluating the cost impacts of changes and disruptions. It recommends including weekly cost breakdowns for work crews, site overheads, and management overheads, as well as costs for work crews on standby. This information allows project managers to promptly assess how changes might extend duration and require additional resources. The time-related cost data should be incorporated into bill of quantities, activity schedules, or appendices depending on the contract type.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    37 views1 page

    3.3 Contract Price Information To Facilitate Evaluation of Changes

    Uploaded by

    Lava Sat
    The document discusses including time-related cost information in construction contracts to facilitate evaluating the cost impacts of changes and disruptions. It recommends including weekly cost breakdowns for work crews, site overheads, and management overheads, as well as costs for work crews on standby. This information allows project managers to promptly assess how changes might extend duration and require additional resources. The time-related cost data should be incorporated into bill of quantities, activity schedules, or appendices depending on the contract type.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    5/9/2016

    3.3 Contract Price Information to Facilitate Evaluation of Changes - Road to Success - IPLOCA WIKI Collaboration Platform

    3.3ContractPriceInformationtoFacilitateEvaluation
    ofChanges
    CreatedbyGuyHenley,lastmodifiedbyMustafaAbusalahonNov20,2014

    Experienceshowsthatthemajorcostimpactofchangesonprojectsistheadditionalcostofteamsandresources
    relatedtotheadditionaltimetheyspendonsiteeitherworkingwithfullrunningcostsorinstandbywithreduced
    runningcosts.
    Changestothebaseline/disruptions/stoppageshaveingeneraltwoconsequencesforaproject:
    Thedurationofcertainactivitieswillbeextended
    Theremightbeaneedformobilisingadditionalresourcestomitigateanoverallextensionofproject
    duration
    Inthissectionandinsection4thewordcostisunderstoodfromaclientspointofview:itmeansthepricepaid
    bytheclienttothecontractorwhichincludesthecontractorsdirectandindirectcosts,itsoverheadsandprofit.
    Therefore,inordertoallowbothclientandcontractorprojectmanagementteamstopromptlyevaluatethecost
    impactsofchangesand/ordisruptionstoaproject,thecontractpriceshouldincludethebreakdownoftheweekly
    costsofthemainworkingcrewsinoperation(includingenergy,sparepartsandconsumablesfortheequipment
    andmachinesusedaswellaslabourandstaffcostsincludingfood,lodgingandtransport)andtheweeklycosts
    ofthesiteoverheads(offices,stores,yardsetc.),aswellasthatofthemanagementoverheads,combinedwitha
    scheduleofthecostsofthesameworkincrewsinstandby(whennoenergyandconsumablesformajor
    equipmentisused),andofthecostsofpotentialmitigationmeasures(suchascostofmovingdifferentcrewsin
    relationwithdistance).Allweeklycostswouldexcludethecostofincorporatedmaterialssincetheircostimpactis
    quantityrelatedinsteadoftimerelated.
    Examplesoftimerelatedcosts(weeklycosts)forapipelinecontracttogetherwithexamplesofevaluationoftime
    andcostimpactsofstoppagesareattachedinAppendix4.2.1ExamplesofEvaluationofTimeandCostImpacts
    ofFullStoppagesorofSlowdowns.
    Inthecaseofcostplustypecontracts,theactualcostsplusfeesarecomparedatgivenintervalstoabillof
    quantitiesoranactivityschedule,whichshouldincludesuchtimerelatedcostinformationasdescribedabove.
    Inthecaseofbillofquantitiesoractivityscheduletypecontracts,thesetimerelatedcostsshouldbeincorporated
    asbillitemsoractivityitemsinthepricingdocument.
    Inthecaseoflumpsumcontracts,abreakdownofthesetimerelatedcostsshouldbeinanappendixattachedto
    thetender.
    Thistimerelatedcostinformation,togetherwiththefixedcostsformobilisationofteams,equipmentandfacilities
    (whichgenerallyformpartofmostcontractsbutshouldalsobeincludedinthelumpsumtenders),areessential
    managementtoolstoassesschanges.

    Continuewith3.4ConsiderationsinDevelopingtheConditionsofContract
    Backto3.2ProgrammingtheWork
    Backto3.TheBaselineofaConstructionContract

    http://wiki.iploca.com/display/rtswiki/3.3+Contract+Price+Information+to+Facilitate+Evaluation+of+Changes

    1/1

    You might also like