How do PQS calculate overtime to be paid to the Contractor?

Fellow PQS; thought came to mind; when calculating to pay overtime to the contractor, would the client be obligated to pay only the 0.5 of the 1.5 per hourly rate factor for overtime (2hrs x $9.50 x 0.5 instead of 2hrs x $9.50 x 1.5)? i.e since the hourly rate is already calculated in the rate buildup of an item; exclude dayworks from the discussion. If the answer is NO; this means that the client will have to pay the 1.5 rate factor and imply that the client will be paying 2.5 x the hourly rate towards the labour aspect of the BQ rate
6 days ago

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Suresh Kumar, Faiz Khan and 1 other like this

8 comments

Follow mike

mike everett If the work is within the scope of works for the project then you would pay the overtime rate less the basic rate as this is already included in the buildup, but if it is on a daywork basis for additional works to the contract you would pay the full overtime rates.
you may have to pay additional travelling time and expenses if these are not included in the basic rates ie on a saturday/sunday, during the week these should be included within the basic rates, there is aslso the usual add ons that will have to be taken into account ie tax, NI, OHP
4 days ago Like

Follow Ali

Ali El Hussein Refer to the contract documents & condition of contract specially.
3 days ago Like

Follow Seamus

Seamus Fennessy, MRICS I'm with you. If the scope of work is in the base contract then just the overtime premium needs to be paid, but first you need to establish if the client or his design team did something to create a delay. If the contractor is just trying to keep to his schedule then the owner pays nothing. Tyrone, I have no idea where you work but

what I would give to have labor rates like $9.50/hr. In Boston and in round numbers the all in skilled labor cost on a union project is in the order of $80 - $95/hr Overtime cost mount up when you are dealing with labor rates like this.
3 days ago Like

Follow Roger

Roger Farrow Tyrone, to summarise the comments above - if the contractor is simply making up his own lost time then no additional cost should be paid; if however the overtime is a result of instructions or some other employer cause of additional time then only the non-productive time is paid i.e. the extra part of the overtime rate, the 0.5hr in your example. All subject to the actual conditions of contract of course.
2 days ago Like

Follow Mark

Mark Lynch the hourly rate would be broken down as follow base rate fringes Burden -tax and insurance - fica, medicare, fed unemplyment, workmans comp, GL insurance etc
the premuim portion applies to base rate x 1.5 and is adjusted for taxes, fringes do not change...
2 days ago Like

Follow Oronde'

Oronde' Jones I agree. You would be paying the guy extra if you pay him a factor of 1.5 x his hourly rate since he had already ascertained for himself the time he needs to do the job.
The PQS will agree to pay a lump sum price to the contractor based on the his proposed rate. Provided that the work is done to standard, the contractor is guaranteed that agreed lump sum and nothing more than his non productive overtime to complete the work. Besides the work had already been valued. Good Stuff Tyrone!!

5 hours ago Like

Follow Malesela Ernest

Malesela Ernest Malonkane The first point of departure is to first refer to what the contract says about overtime payment. Usually the contractor and client will agree and incorporate in the contract the rates applicable for normal time and overtime. the second step is to look at the programme; what activities and days in the programme are affected by overtime work. Then you will calculate the overtime portion on those particular days and apply the rate applicable thereof as per agreement in the contract
5 hours ago Like

Follow Waleed

Waleed Elattar i think if the contract mentioned the work hours , you can calculate upon the contract conditions
5 hours ago Like

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