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My comments are given in red below:----- Original Message ----From: Gopal

To: "'Prof. Sam'" <sam99@eim.ae>


Date: Wed, 26 May 2010 14:37:42 +0400
Subject: Extended Prelims Cost

Dear Prof Sam:


I would definitely be interested in attending the next CA-AC class, and
hopefully the timings will fit in with my otherwise tight schedule. With you

there are only 4 in the list so far and let us hope the list will grow soon.
I refer to your recommendation for adjustments of prelims during extended
contract duration for items that are not proportional to items/quantities. I
note that you recommend increasing the denominator to the anticipated total
duration while claiming for the month by increasing the numerator by 1 for
cumulative payments. Basing on your example at the end of the period we
would have recovered the full amount of supervision as per the contract.
However, we would not be able to recover additional costs incurred due to
extended time. If the Contractor is responsible for the delay, then he is not
entitled to additional costs. If the Employer is responsible for the delay, then
any additional costs (to the extent that the Contractor can prove) should be
claimed separately as a prolongation cost claim and not as monthly
payments of the Preliminaries (extended or otherwise). For example in your
example at the end of the project, in 13 months, we would have recovered
Dhs 1,000,000 towards supervision. But in actual fact we would have incurred
an expense of 1,083,333.33 due to the extended month of supervision. (a)
Wouldnt it therefore be logical to claim per month cost in such cases, and (b)
We similarly price cost of portacabins provided on site on the basis of
depreciation over time and therefore would like to be compensated for any
extra duration of deployment. Prolongation costs are not claimed based on
the Preliminaries in the BOQ but on the actual costs incurred on site and as a
separate claim. The only items that we consider fixed costs are foundations
for offices, cranes etc. Even costs of bonds and insurances are linked to
durations and will vary with extended time. The amount for bonds in the
Preliminaries derived for a month could be much higher (or lower) than the
actual cost of renewing them for a month. That is why only the actual
additional amount paid by the Contractor, if any, can be claimed. Please
advise how would these be treated? Would my above explanation of
depreciation be accepted? No, unless the 2 parties agree to it.

Regards,

Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Surveyor, Chartered QS, Chartered Manager, Chartered Builder

Arbitrator / Mediator - London Court of International Arbitration


Arbitrator / Expert - Dubai International Arbitration Centre, UAE
Middle East Representative - Australian Inst. of Qty. Surveyors

PO Box 23461, Dubai, UAE. T +971 50 4588949 F +971 4 3378668

Regards,
Gopal K Parmeswar
Senior Vice President
Sobha Contracting LLC

-----Original Message----From: Nicolas Mendoza Manalo [mailto:nmanalo@altayer.com]


Sent: Monday, May 24, 2010 9:35 PM
To: Prof. Sam
Subject: RE: Q&A
Hi Dr. Sam,
I have a question regarding Head Office Overhead claim. The consultant
insisted that the Head office Overhead is already incorporated in
OVERHEADS & PROFITS and MARK UP lets say 15% on top of the cost. Your
comments are highly appreciated. A short answer is not possible. We
discuss in detail during the 5th & 6th Sessions of SCA, the difference
between the two sets of Head Office Overheads, those contained within
the OH&P mark-up of say value of variations and those that the
Contractor is unable to earn from other jobs because his resources are
tied up for an unexpectedly long period due to no fault of the
Contractor. They are two different things. Therefore the Contractor can
recover the latter using an appropriate formula. There are lot of
misconceptions and incorrect practices in this part of the world
regarding this subject. If your consultant can attend the forthcoming
SCA class (June 11th, 18th & 25th, 2010), he could gain valuable knowledge
on this and many other topics.

Regards,

Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Surveyor, Chartered QS, Chartered Manager, Chartered Builder

Arbitrator / Mediator - London Court of International Arbitration


Arbitrator / Expert - Dubai International Arbitration Centre, UAE
Middle East Representative - Australian Inst. of Qty. Surveyors
PO Box 23461, Dubai, UAE. T +971 50 4588949 F +971 4 3378668

Thanks & Regards,


Nicolas M. Manalo
----- Original Message ----From: "Modak, Rauf"
To: sam99@eim.ae
Date: Thu, 27 May 2010 11:26:16 +0300
Subject: RE: Q&A

Dear Sir,
I am a student of your SCA programme, I am regularly receiving your Q&A mails, and saving them
in my desk top. I hope that nothing is missed till now, becoz my email address is still the same as
when I was ur student. Alumni can ensure that the Q&A do not go to their spam / junk

folders

by adding to the address book my email addresses of sam99@eim.ae and


sam99@emirates.net.ae
I have started making those Q&A attachments as a BOOK, its a big task but when this will be
ready, it will be very useful in our future life. We can refere these Q&A for our daily work and
to solve our problems, and if any dispute we can discussed with the references in the Q&A and
can sort this out. I will use heading with your name, nothing mine, because what you r taking pain
for us has no replacement, only we can pray for your good health and long life. We need you. You r
next to God for us QS team, not only in UAE but all over the WORLD, where ever we r, we need your
help.
Once my book is complete I will send u one soft Copy, so if anyone missed any Q&A u can pass to
them. You can use the Q&A for academic purpose but they (and therefore the book you

are compiling) should not be used for any business / commercial purpose. Sharing is OK
only among the Alumni. Also please ensure that any project names or identity of
stakeholders are not apparent.
Sir one trouble I want to give at this time, I never asked u any Question before, but when I was
going through the Q&A I found some questions are sent without answering, I have attached the
same Questions sheet, if u can answer those, I will b thankful. Cannot open the attachment.

re-send, and I will answer them and circulate among the Alumni.
Regards,

Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Surveyor, Chartered QS, Chartered Manager, Chartered Builder

Arbitrator / Mediator - London Court of International Arbitration


Arbitrator / Expert - Dubai International Arbitration Centre, UAE
Middle East Representative - Australian Inst. of Qty. Surveyors
PO Box 23461, Dubai, UAE. T +971 50 4588949 F +971 4 3378668

Sorry, I have written a long story, I know u r very busy in making our future. But I wanted to
express my feelings.
Thanks a lot.
Kind Regards,
Rauf Modak
Senior Quantity Surveyor
Atkins Middle East
Faithful & Gould
WS Atkins & Partners Overseas, Doha, Qatar
----- Original Message ----From: Ranjith Arachchige
To: sam99@emirates.net.ae
Date: Thu, 27 May 2010 11:25:06 +0300
Subject: Claim in loss and profit

Dear sir,

Please

I have confused regarding the, can contractor claim Loss and profit as per FIDIC ?, I
knew the clause 52.3 for changes 15% of contract sum the rate can be changed [due to
markup change] , however is it Client liable to the Contractor anticipate profit ?,
As per my knowledge in Law, Loss of profit cannot be compensate, because of the loss of
profit fail in the remoteness test in delict and tort and cannot be reasonable foreseen.
But in some contractors still claim Loss of profit, can you please clarify
Under 52.3, only the under-recovery of overheads can be claimed. However loss of profit can be claimed as
damages for breach of contract, if the reduction in the Effective Contract Price is the result of any Omissions
instructed by the Engineer which are neither necessary nor appropriate. We deal with this topic in detail
during the CA-AC, and also look at how the local courts deal with it.

Regards,

Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Surveyor, Chartered QS, Chartered Manager, Chartered Builder

Arbitrator / Mediator - London Court of International Arbitration


Arbitrator / Expert - Dubai International Arbitration Centre, UAE
Middle East Representative - Australian Inst. of Qty. Surveyors
PO Box 23461, Dubai, UAE. T +971 50 4588949 F +971 4 3378668

Ranjith Priyanga
Quantity Surveyor,
Education City Project, Doha, Qatar.
KEO International Consultants

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