Civil Engineering Work
Civil engineering work encompass a wide range of different types of activities such as mass excavation, embarkment filling, piping schemes, harbor works, roads, canals, tunnels, drains and railway lines etc., mainly concerned with construction methodology and volume of the work which require considerable skills and technical knowledge.
Civil Engineering Contracts – Civil engineering contracts are involving colossal effort both in volume and cost. Under the CESMM, the quantity surveyor preparing the BOQ has to consider not only the substantial completed construction (temporary or permanent) but also the other circumstances under which some of the work may be implemented and to allow the estimator to include in his tender outlining part of the final measured works.
Inserting items in the bill – Contractors are permitted to insert their own items to the bill under general items to cover for method related charges both as filed and time related expenditure.
Method related charges – Method related charges are beneficial to contractors to receive early payments for plant and equipment brought to the site and for avoiding under recovery of fixed costs and sometimes, time related costs in the event of quantity changes. In other words, the contractors have the opportunity to declare the cost of items which they do not wish to be subjected to the measurements process so that their real costs are recovered without being affected by change in quantity.
Rate Valuation of variation – Rate Valuation of variations are easy and efficient when disproportionate and indirect cost are available separately from those which are directly proportional to the quantities whether the method stated is used or not, the contractor should receive the sum inserted as Method Related Charges in full. Time Related Charges should be paid in full irrespective of time taken by the Contractor to complete activity.
European Procurement Law – 10. CE5M/V 1(3) is used principally in conjunction with contracts based on ICE conditions of Contract, 6th edition and European Procurement law.
Public Sector Contracts – Public sector contracts always adopt specified standard forms according to general regulations for contractual works. Knowledge in contract administration for civil projects is becoming an important and crucial topic for quantity surveying practitioners, particularly for those who have always being working on building contracts.
Middle East Sector – This Sector generally it is FDIC tender and contract conditions which amended to suit to locality and requirements in each country. Construction in Middle East region is a complex and important industry. At present, regulatory and contractual frameworks vary significantly throughout the Arab community. In recent years, the construction cost of civil engineering projects such as Palm Islands dominates the overall construction in Dubai. There are also considerable differences in procurement methods.
Method of Measurement – The work included the item is defined in detail by the rules in the method of the measurements (such as POMO) SMM7, CESMM (3 etc.) The item descriptions are therefore, short listed to allow the relevant rules of the methods to be identified.
Bill of Quantities – In the Middle East generally use of Bills of quantities substantially differs between building and civil engineering projects. On building projects, it is common to measure sections as accurate as possible and infrastructure projects the bill will be prepared on estimated basis or provisional basis.
Standard Forms – It was considered that the general intent of standard forms is that quantities should be measured accurately and finally measured in the bill issued for the tender and will only change an architect or engineer issues an instruction to vary the works.
Approach – In civil engineering contracts the approach is quite different the assumption being that the tendered bills of quantities is no more than estimates and actual works carried out entirely will be re-measured.
Estimates – Apart from common items, which can be measured from drawings in most of the projects were log of existing services involved ( such as underground pipe lines, cables and other services ) which needs to be relocated, quantities are estimated or predicted based on available records and previous experience.
Method related charges -Such BOQ’s some items are not correctly related to the quantities tilled which has significant amount of additional costs involving and constant as “Fixed Sum” or “Time Related Sum” depending on the nature of the work or chosen method of execution are “Method Related Charges”
General items – In general items, the tenderer’s estimates are allowed to insert method related charges for off activities (eg: Setting up camps, maintaining, temporary diversions for services, protection etc.) on project costs.
Location – The significant point is the tenderers should have sufficient knowledge about the area, location, site and local authority regulations, other than BOQ drawings and the documents provided along with the documents to judge the expenditure which is not directly linked to permanent service re-locations and betterment works.
BOQ Rates – The BOQ was originally introduced in a labor intensive and did not take into account of plant and temporary works. But as the industry developed, the use of plant increased but the BOQ rates still compounded all the resource costs and relied on the principle that quantity is proportional to cost.
Dr.Martin Barns suggested that “this situation could be tolerated so long as the work was never varied after tenders were accepted”. However, most practitioners would agree that variations, delay and disruption claims are simply inevitable.
It is in the evaluation of changes, delay and disruption that unit rates (compounding all costs) primarily fall down, those BOQ items are not quantity proportional is often evaluated on a totally unsystematic, inaccurate or unrealistic basis.
In 1971 Dr.Ivlorn Barnes found that 70% of all claims required consideration of the distinction between costs. Five years later, in 1976, he introduced the concept of Method Related Charges to the “Civil Engineering Slandered Method of Measurement” (CESMM)
Therefore, it is not possible for contractors to price certain work items that they consider not to be simply quantity proportional.
Changes – Three changes were available to estimators/tenderers;
¬ Proportional Changes,
¬ The Time related changes, and
¬ Fixed Changes
Accordingly it was assumed that the method changes would allow variation and increase the realism of quantifying.
Predetermined items -It was decided that the method related charges were a function of each contractor’s own method of working and therefore, should not be set against predetermined items and the method related charges were not mandatory.
As consequence, in practice method related charges were not commonly used and in 1992 Barnes conceded that the “the price bill does not model value perfectly because it does not model all many variables which can affect cost”.The problems that the method related charges were initially designed to overcome still remain up to now.
Disadvantages – Though the bills of quantities become so successful in saving duplication of efforts while tendering and basis for valuing works as work proceeds. The main disadvantage in some situations, it is quite difficult to analyze method related charges on tender analysis reports, due to different methods/approaches by different tenderers in general items.
Infrastructure Projects – In many situations in infrastructure projects ( Specially Dubai, Abu Dhabi, Doha and Muscat ) majority of the civil contractors are using bills of quantities as a guide to decide their method of execution which will generate method related charges, time related charges where as few are deciding based on tender drawing and other factors.
This is arguably the most important of the introductory sections of CESMM3 as the value of these items prices in Bill of Quantities can be up to 40% of the total of the tender. The major difference between Method-related charges items and all other items is, they are written and priced by tenderer.
Their use is completely optional; tenderers insert whichever items of charges they deem appropriate to the method of execution envisaged when the tender is prepared.
Classification – Descriptions for Method-related charges should follow the order of classification with separate items being inserted to distinguish between Time-related and Fixed charges.
Item descriptions must fully describe the precise nature and extent of work covered in accordance with the requirements.
Priced Bill – The contractor is not bound to adapt the method(s) he enters in the priced Bill but any changes he introduces will not be permitted to increase the cost of the works. However, if the Engineer instructs the contractor to change the method, the contractor will be entitled to be reimbursed for any additional costs incurred.
CESMM3 recognizes that a list of the permanent works does not adequately retie the many variables in the cost of civil engineering construction. Therefore, gives the tenderer the opportunity of pricing any additional items deemed necessary due to the method of construction adopted.
By including a number of blank pages in the Bill, headed ‘Method-related Charges, the tenderer may describe and price these additional items.
As a guide, CES/ViM3 lists some type of items that may appear under heading of Method-related charges. These include accommodation and buildings, services, plant, temporary works and supervision and labor which the contractor requires in order to complete the works.
Uncertainty – Some activities involve certain element of uncertainty, as an example thrust boarding beneath main highway under various site conditions or deep excavation in congested location, or marine works cause more difficult and expensive execution to the contractor, which additionally generating costs not reasonable to distribute through unit rates.
Common Approach – It is required for these reasons to practice a common simple approach such as “Method Related Charges” to avoid complicated contract administration prior to the introduction of CESMM.
Flexibility – Moreover, the system should be flexible to deal with variations/changes affected during execution period, without damaging to both parties.
Interim payments – In theory all services and facilities are not proportional to the quantities of permanent works, separated for pricing purpose. The purpose of Method -related charges is to enable the tenderer to price the total works more easily and to provide a basis for interim payments that reflects more accurately the cash flow of the contractor.
As an example, if the contractor has described temporary works, method related charges, he may claim cost on interim when they are completed instead of citing for permanent works to be completed before being paid both temporary and permanent.
Temporary works – In civil engineering works, where items such as temporary works are a large proportion of the contract sum, the advantages must be obvious; method related charges are not however, quantity related.
As an example, in order to demonstrate one of the practical example, which happened in year 1997, Galfra Engineering was bidding Izki Fahud 276 km single carriageway Sultanate of Oman. While estimating it was considered a installation of mobile asphalt mixing plant, involve some fixed costs in moving to site, off loading, assembling, calibrating, dismantling and subsequently moving back to plant yard. Operational and maintenance cost inserted as time related charges separately.
Positive and negative effects – Therefore, issues of Method Related Charges beneficial to contractors to receive earlypayment for plants brought to site, and for avoiding under recovery of fixed charges in the event of quantity changes, and protects employers by avoiding extra payments in the event of increase of scope. In other words positive and negative effects on early declaration of Method Related Charges make easier to secure additional payment related to actual cost when methods and pace of work are charged as a result of variation.
Re-measurements – While dealing with variations the quantity surveyor may require considerable care before making any recommendations to employer. In contrast most of the civil engineering contracts in this region are subject to re-measurements and quantities in BOQ’s are considered as estimated. Where the ‘General Items’ satisfactorily listed and priced and full use made by the contractor of method related charges, then the pricing of measured work is simpler.
Changes in circumstances – All the services and facilities that are not proportional to the quantities of permanent work will have been separated for pricing purpose in theory. There are situations that the tenderers are reluctant to price Method RelatedCharges comprehensively due to fear that the sums so priced may not be paid in full in the event circumstances changed such sums may not be adjusted to reimburse the contractor’s cost, if variations affected such sums.
Such fear is that now unfounded. Whether the contractor used theproposed method or not, and whether the contractor completed the work within shorter or longer duration than that indicated, all Method Related Charges whether they are Fixed Charges or Time Related Charges, then such charges shall be adjusted to reflect the effect of changes.
To stress the necessity to describe the Method Related Charges comprehensively details of resources, duration and reference to permanent works that are obligatory to be described when inserting a method related charges which are not being observed by the tenderers
Assessment – Assessment of interim valuation is one of the indispensable tasks to the consultant’s employers and quantity surveyors during the post contract stage of construction project. It is not only a contractual requirement for the employers or his representatives to assess and certify the payments in accordance with the contract but also serves as the smooth execution of the contractor’s functions by maintaining his cash flow, in order to balance both the employer’s and main contractor’s rights and interests, a fair and reasonable certification approach should be adapted.
Early payments – There are advantages to contractors of receiving early payments for bringing and mobilizing plants. This is possible, only in the event such costs are inserted separately as method related charges. Early payment of time related charges also possible, In the event it is priced separately and when the contractor increases his rate of progress.
It is necessary to explain the correct method for payment of those charges, because the current practice of dealing with these charges is incorrect. Time related charges are not considered as similar to items provided in traditional bills to facilitate stage payments.
In the fraction used for assessing monthly payment of time related charges, the numerator increases by every month while the denominator is agreed between the Engineer’s quantity Surveyor and the contactor according to the rate of progress.
Discussion is underway, “the employer does not accept the validity of the tenderer’s assumptions” and build ability of the items which are priced under method related charges.
Possible options or techniques to deal with Contractual requirements, specified requirements treating as method Related Charges.
Possibilities of tenderers inflating the method related charges for bringing plants on site, with the cost of removal of the same and detecting such inflating during tender analysis.
In the event the area has been increased the contractor will be benefiting with extra profit on the other hand. If it was priced adhering to CES/AM13 rules. Contractor will not lose any expenditure, in case of omission and employer will not pay extra in case of addition.
Royal Institution of Chartered Surveyors and the Building Employers Confederation – Civil engineering work should be measured in accordance with Engineering Standard Alethod of Measurement prepared by the Institution of Civil Engineers and the Federation of Civil Engineering Contractors. Building works are generally measured in accordance with Standard Method of Measurement of Building works, issued by the Royal Institution of Chartered Surveyors and the Building Employers Confederation.
The information of building works are usually in a far more precise stage at the time of preparing the bill of quantities than in the case with civil engineering works. Furthermore, building work normally Covers more works sections, and is in consequence subject to more detailed measurement.
For instance, in building works backfilling trenches, compacting trench bottoms and earthwork support are each measured separately, whereas in civil engineering work most of these items are included in the excavation rates. In the absence of variations in design, most building work with the exception of sub-structural, drainage and external works, will not be subject to re-measurement and the contractor will be paid for the quantities of work incorporated in the bill of quantities.
Re-measurement – In civil engineering, in contrast, most of the work will be subject to re-measurement and the bill of quantities is merely considered as estimated. The items under CESNIM3 rules are generally quite brief and the bill is much less of a stand-alone document than in the case with building bills, thus, the tendering contractor will require to refer frequently to the drawings and specification in order to amplify the bill items for pricing purposes.
Risk – There is often more locational and method-related information, presented in civil engineering bills arid, contractors require to consider these factors in assessing their rates for the work. Furthermore, as a greater proportion of the work is often below ground level, there is a consequently increased risk in tendering for civil engineering work owing to such variable factors as nature of the ground, ground water and weather.
CESMA1.3 avoids the expression ‘measured extra over’ in the various rules. However, the concept does exist in the method of measurement in some Work classifications, but the arguably ambiguous phrase ‘extra over’ is eliminated. One example of this would be in Class I: Pipe work — Pipes, where measurement rule NI3 states that the measured lengths of pipes in trenches shall include the lengths occupied by fittings and valves. The fittings and valves are measured by number in Class Pipe work — Fittings and Valves but separately identified as within trenches (additional description rules A4). Fittings and valves in trenches are therefore, effectively extra over the pipes in which they occur but not so stated in the Bill of Quantities.
Building works – In some of the larger civil engineering contracts, there is also some building work. With these contracts, the question often arises as to how the works as a whole are to be measured.
Standard Method of Measurement –Take, for example, a large power station contract. The best procedure would appear to be to measure the main superstructure, the ancillary buildings and possibly the chimneys in accordance with Standard Method of Measurement of Building Works. The structural steel frameworks could be measured under either code of measurement. The remainder of the power station contract, comprising heavy foundations, piling, wharves and jetties, railway sidings, cooling towers, circulating water ducts, roads, sewers and water mains, are all essentially civil engineering work, and are best measured in accordance with Civil Engineering Standard Method of Measurement.
Uniformity – When CESMM was published in 1976, it introduced a different approach to measurement and pricing with three divisions of measurement in each work class with consequently greater uniformity in bill descriptions, and the use of method-related charges to permit the separation of items that are not proportional to the quantities of permanent work. SIVIN17 adopted a similar approach for building work and hence, increased the amount of commonality in the approach adopted in the two measuring codes, which was also extended into some of the detailed measuring procedures, such as structural metalwork/steelwork.
It is also stated that the coding system permits estimating, valuation, purchasing and cost control to use the same numerical reference and that these will also simplify computerized data processing.
General Items and Method-Related Charges – Where the general items have been satisfactorily listed and priced and full use made by tile contractor of method-related charges, then the pricing of measured work is simpler. In theory, all services and facilities that are not proportional to the quantities of permanent work will have been separated for pricing purposes. In practice, all sorts of permutations are possible.
Fixed costs – One contractor may not insert any method-related charge items, while another could include for each and every type of plant, as encouraged to do by class which, for instance, lists earth compaction plant and concrete mixing plant. Both of these types of plant involve some fixed costs in transporting plant and offloading together with the subsequent transporting to a depot or another site. In-between, these fixed events the plant is operated and maintained and these can be regarded as time-related charges. On the other hand, they could be considered as essential components of the earth compaction or concrete production, and hence, could be included in the measured work unit rates.
Making recommendations -In approach these possible variations in dealing with the pricing of plant could result in considerable differences in measured rates and general items. Hence, the analysis, checking and comparison of priced bills by quantity surveyors and engineers may require considerable care before making any recommendations to clients regarding acceptance of particular tenders.
However, the majority of contractors, engineers and quantity surveyors now find the detailed rules within the various Work classifications to be excellent, practical and workable requirements both at the pre-tender and post-tender stages of projects.
Different approach – Method-Related Charges were first introduced in CESMM 1 in 1976. It was felt that a different approach was required in the valuation of items where quantities were increased or decreased from those in the tender document. Research had shown that modern construction techniques had substantially increased the proportion of the non-quantity related part of a contractor’s costs to a level where it was becoming inequitable both to the employer and the contractor that changes in the quantities should be valued merely by multiplying the admeasured quantity by the bill rate.
Unit rates – The unit rates are made up of quantity-related costs, the labor, material and that part of the plant and overheads directly related to the item of work being constructed, and the non-quantity related items such as, the transporting to site, erection, maintenance, dismantling of plant, cabins and other consumables which may have no direct link with the quantity of the permanent works being constructed.
Admeasurements process – Therefore, it is sensible, to give the contractor the opportunity to declare the cost of those items which he does not wish to be subject to the admeasurements process so that his real costs are recovered without being affected by changes in quantity.
A Method-Related Charge is the sum inserted in a Bill of Quantities in the space provided (Class A) and is either a Time-Related Charge or a Fixed Charge. A Time-Related Charge is a sum which is directly proportional to the time taken to carry out the work which is described.
A Fixed Charge is a sum which is neither quantity-related nor time related but is a set cost regardless of changes in the admeasured work or the time taken to execute it, e.g: the cost of bringing a botching plant on to site.
The Contractor has the opportunity to insert the cost of Time-Related and Fixed Charges in the Bill of Quantities.
Item description – The Contractor should enter the item description for his Method-Related Charges in the same order as the order of classification in Class A. Contractor must also list the Time-Related Charges separately from the Fixed Charges and insert a sum against each item. Contractor has the freedom, of course, to enter other items which are not listed or do not have a direct counterpart in Class A.
Scope of the work – The Contractor should explicitly describe the scope of the work that is covered by each sum. Contractor should also list the labor, plant and materials involved and, where applicable, state the parts of the Permanent or Temporary Works that are linked to the sum inserted.
The Contractor is not obliged to follow the method he has set out in the tender document when he carries out the work on site.
Apportionment– An unequivocal statement that Method-Related Charges are not to be admeasured seems to sit uneasily. If the items for Time- Related Charges and Fixed Charges have been set out by the contractor in a sensible fashion, it should be a straightforward task of apportionment each month to arrive at the amount outstanding.
Complication – One complication may arise, if the time being expended on a Time-Related Charge looks like increasing or decreasing from that shown in the Bill of Quantities. If, for example, an operation was scheduled to occupy six months, after one month the contractor would rightly ask for 1/6th of the sum. If his progress increased dramatically and the work looked like being completed in only four months, he would be fully entitled to ask for 1/2nd of the sum at the end of the second month.
Therefore, It can be seen, that the numerator in the fraction will increase each month by one but the denominator could vary as the Contractor and the Engineer determine the likely length of time the event will last.
Preface to the bill – It should be noted that a statement must be included in the preface to the Bill of Quantities confirming that payment must be made accordingly. This apparent confliction is explained if one remembers that the charges will be paid in full whether they were incurred tenfold or not at all, providing the risk that the Contractor undertook and priced did not vary.
Adjustment – In the event there is a significant change in quantity or in the time an item of plant is required which was substantially different from that envisaged, when the Contractor prepared his tender, then an adjustment to the Method-Related Charges would be implemented.
Method-Related Charges are to be certified and paid for in exactly the same manner, as other parts of the work and this should be stated in the Preamble.
It may be that the method of working stated by the Contractor is not adopted but in the absence of a variation the sum inserted must be paid in full. It is obviously desirable that the contractor and the Engineer agree a method of apportioning the sum each month for payment.
When the general items have been satisfactorily listed and prices and full use made by the contractor of method-related charges, then the pricing of measured work is simpler.
Linking it to progress of a relevant part of the works or indeed the whole work, if agreement cannot be reached, the sum would then be added to the adjustment Item (which would increase a positive Adjustment Item and decrease a negative one).
Definition —Method-Related Charge in the sum of an item inserted in the Bill of quantities by a tenderer to cover items of work relating to his method of construction, the cost of which are not proportional to the quantities and he has allowed for in the rates and prices for other items.
Each item for a Method Related Charge inserted in the Bill of Quantities shall be fully described so as to define precisely the extent of the Work covered and to identify the resources.
These are costs for items that are required to carry out the contract other than the actual construction costs. May include, for example, travelling costs, the hire of scaffolding or other items of plant such as cement mixers, office and other administrative charges.
Payment when method not adopted – In the event of satisfactory execution of any part of the Works which has been the subject an item for a method-related charge using a method other than that described in the Bill of Quantities, the contractor shall nevertheless be entitled to payment of the method-related charge of the amount of a method-related charge shall be neither increased or decreased by reason only of any change in the method made by the contractor, unless such change has been instructed by the Engineer/SO/PD. Then in which case appropriate variation clauses of the Condition of Contract apply and that are not proportional to the quantities of permanent work will have been separated for pricing purposes.
Checking and comparison – In-between these fixed events the plant is operated and maintained and these can be regarded as time-related charges. On the other hand, they could be considered as essential components of the earth compaction or concrete production, and hence, could be included in the measured work unit rates. These possible variations in approach in dealing with the pricing of plant could result in considerable differences in measured rates and genera! items. Hence, the analysis, checking and comparison of priced bills by quantity surveyors and engineers may require considerable care before making any recommendations to clients regarding acceptance of particular tenders.
All sorts of permutations are possible, in practice. One contractor may not insert any method-related charge items, while another could include for each and every type of plant, which, for instance, lists earth compaction plant and concrete mixing plant. Both of these types of plant involve some fixed costs in transporting plant and offloading together with the subsequent transporting to an another site or a depot.
Detailed rules – However, the majority of contractors, engineers and quantity surveyors now find the detailed rules within the various Work Classifications to be good, practical and workable requirements both at the pre-tender and post-tender stages of projects.
Scope and Context of Civil Engineering Measurements – The scope of most civil engineering projects is large and much of it takes place in or under the ground. Considerable emphasis is therefore, given to earthworks and reinforced in-situ concrete work, pipe work, etc. Examples of civil engineering contracts include reservoirs, railways, tunnels, wharves, jetties and clockwork, power stations, road works and the like. There are also some classes of measured work in CESMM3, such as rail track (Class 5), tunnels (Class T) and sewer and water main renovation (Class Y) which are not covered in SMM7.
Scope – As a result of the extensive nature of most civil engineering projects, a lot of expensive plant is employed in carrying out the works. Obviously the size, scope and location of operations, together with utilization of contractor’s plant, have a considerable effect on costs. CESMM3 acknowledges these factors in its format and application, together with the use of Section 7 and Class A3, Method Related Charges.
Unforeseeable changes – Contrasting the Building Contract, the Civil Engineering Contract is not a ‘lump sum’ contract in which the tender price forms the basis of the final account, with omissions and additions calculated as set out in the contract. Rather it is a ‘measure and value’ contract in which the whole of the work is subject to re- measurement upon completion. This does not, however, mean that original measurements can be made inaccurately or without care, it simply recognizes that the type of contracts covered — road works, harbor works, large excavations, piling and the like — are subject to many unforeseeable changes when the site is actually excavated and work has initiated.
Percentage – This is arguably the most important of the introductory sections of CESIVIM3, as the value of these items priced in a Bill of Quantities can be up to 40% of the tender total. The major difference between Method-Related Charges items and all other items appearing in a priced Bill of Quantities is that they are written and priced by the tenderer. Their use is completely optional, tenderers insert whichever items of charges they deem appropriate to the method of execution envisaged when the tender is arranged.
Method-Related Charge – a sum of money for an item inserted by a tenderer in a Bill of Quantities.
Time-Related Charge – a charge for work of which the cost is considered proportional to the length of time taken to execute the work.
Fixed Charge – Any Method-Related Charge which is not time-related.
Method-Related Charges are inserted into a Bill of Quantities by the tenderer, as mentioned previously.
Item descriptions -Descriptions for Method-Related Charges should follow the order of classification set out in Class A, with separate items being inserted to distinguish between Time-Related and Fixed Charges. Item descriptions must fully describe the precise nature and extent of work covered in accordance with the requirements.
Method – The contractor is not bound to adopt the method(s) he enters in the priced Bill, but any changes he introduces will not be permitted to increase the cost of the works. However, if the Engineer instructs the contractor to change the method, the contractor will be entitled to be reimbursed for any additional costs incurred.
CESMM3 recognizes that a list of the permanent works does not adequately reflect the many variables in the cost of civil engineering construction. Therefore, gives the tenderer the opportunity of pricing any additional items deemed necessary due to the method of construction adopted. By including a number of blank pages in the Bill, headed ‘Method-Related Charges’, the tenderer may describe and price these additional items.
Typical items – The CESMM3 lists in Class A some typical items that may appear under the heading of Method-Related Charges as a guide. These include accommodation and buildings, services, plant, temporary works, and supervision and labor which the contractor requires in order to complete the works.
The purpose of Method-Related Charges is to enable the tenderer to price the total works more easily and to provide a basis for interim payments that reflects more accurately the cash flow of the contractor. For example, if the contractor has described temporary works under Method-Related Charges, contractor may claim for their cost on interim certificates when they are completed, instead of waiting for the permanent works to be completed before being paid for both temporary and permanent works.
Items such as temporary works in civil engineering works are a large proportion of the contract sum, the advantages must be obvious. Method-Related Charges are not, however, quantity-related.
It is not necessary for the tenderer to accept this method. Tenderer may choose to include all these items in his work classification item prices. If he does adopt this method, however, any items inserted must be described as whichever;
· Time-Related Charges – for items of work the cost of which is considered proportional
· Length of time taken to execute the work; or
· Fixed Charges – for items of work the cost of which is considered not proportional to the length of time taken.
The contractor will be generally entitled to the value of Method-Related Charges whether or not he actually executes the work according to his original plan, provided he completes the work satisfactorily. Unless there is a variation to the contract, these Method-Related Charges are not subject to re- measurement or revaluation.
However, if the Engineer requests a change of Method, the contractor is entitled to reimbursement of any additional costs.
In the case of both Specified requirements and Method-Related Charges, Fixed Charges relate to specific operations such as;
· Bringing plant on to site
· Erecting site huts
· Constructing temporary bridges,
And Time-Related Charges related to continuing operations such as;
· Hiring and maintaining plant, huts etc.
If the Engineer issues variations to the contract and the period of time included is altered for a Time- Related Charge, then an addition or omission to the tender price of the charge will be necessary. Such an adjustment will be on the time stated at tender stage and not on the actual time taken.
As an example, if a Time-Related Charge for hiring an excavator is given as for ten months and the excavations are increased by 10 percent, then the Time-Related Charge will be revalued at eleven months, regardless of the actual time the excavator is on the site.
Rates and prices inserted in the rate column of the bill should be in pounds sterling and pence expressed as decimal exactions of one pound. Unless covered by Method-Related Charges, rates are deemed to be fully inclusive. This means they should include all labor, materials, plant, temporary works, transport to, from and about the site — and everything, whether of a temporary or permanent nature, required to complete and maintain as far as necessary, to satisfy that described in or reasonably implied by the contract documents.
The Bill of Quantities by a tenderer
Time Related Charge means a “Ariethod” Related Charge for work the cost of which is to be considered as proportional to the length of time taken to execute the work.
Fixed Charge means a “Method Related Charge” which is not a Time Related Charge.
CESM113, SECTION7.Method Related Charges – Definitions
“A Method Related Charge” is the sum inserted in the Bill of Quantities in the space provided (Class A) and is either a Time.