Why Civil Contractor geting loose money in work?
By Quantity Surveyor •
During these days Cements and steel price rising more and more so what are you thinking about this cost.
During these days Cements and steel price rising more and more so what are you thinking about this cost.
Contractors usually have a risk coverage till a certain extent.. beyond which they may lose...
the increasing of cement prices as i heard was becuase the Saudi gov reduced the export of cement out to cover their own market first.
I think that civil contractors don't loose money instead they earn more because of the way they do things, they don't have proper planning...for example in the area where i live, the civil contractor there excavated the area, it took them more than 1 month to finish the job and after that they started excavating the place again, they told us that they forgot to interconnect drainage pipe to the main connection, so it took them another three weeks to finish the job and after a few days, they dug up the place again and these time they laid electrical cables and they finish the job after two weeks and after a few days, again they dug up the place and now they left it open, so civil contractors don't loose money because every time they excavate roads or street, they are paid and they earn more...the more they dig, the more civil works the more money.
Mr. Salaammk... partly your answer could be right... that's if the owner or its representives delayed the approval and the increase of the materials took place..
But what if the approval was already awarded then the materials soar high? The lost will now depend on the relationship of the Client and Contractor... Generally the contracts being issued for construction jobs are under a "Lump sum agreement"
On a Lump sum contract claims to variation does not cover Material Price Escalation, thus it is not claimable as a valid Variation Order... all claimable variations would include alteration of Tender plans versus construction plans, government implimented cost add up (for example, in GCC countries there is no tax, but once tax is implemented, this percentage will be claimable for variation), labor/wage escalation etc.
But some Clients grant this request for Variation to protect the interest and welfare of his Contractor (due to a good working relationship)
The good news in Qatar's scenario, the government has ordered the pause in the increase of Construction Materials, therefore, lesser headache for us QS... hehehe...
Good Luck to us all!
the works are completed on the scheduled time, there is no loss,,if the client delayed any selection/approval of things,,the contractor has rights to claim additional money showing the variation amounts ie, Variation Order.
Civil Contractors Loose...
You Must be Joking...
Sorry it is not part of a logical issue to except your question as a True Statment
You are wrong, Qatari Government has fixed the price of Steel and Cement for the next 3 years. The increase until this was caused by an overheated building industry in Qatar