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This document outlines various contingencies and risks that contractors should allow for in lump sum tenders without providing qualifications. These include:
1) Allowances for delays in completion, absent soil reports, underground service diversions if not included, approvals from authorities, and difficult site access.
2) Additional costs for insurance, disturbances, seasonal effects, financial charges if payments are delayed or materials not paid for.
3) Risk allowances for incorrect quantities, ambiguous documents, insufficient specifications, demanding material approvals, inflation, importing goods, exchange rates, complex equipment, and accessing remote sites.
This document outlines various contingencies and risks that contractors should allow for in lump sum tenders without providing qualifications. These include:
1) Allowances for delays in completion, absent soil reports, underground service diversions if not included, approvals from authorities, and difficult site access.
2) Additional costs for insurance, disturbances, seasonal effects, financial charges if payments are delayed or materials not paid for.
3) Risk allowances for incorrect quantities, ambiguous documents, insufficient specifications, demanding material approvals, inflation, importing goods, exchange rates, complex equipment, and accessing remote sites.
This document outlines various contingencies and risks that contractors should allow for in lump sum tenders without providing qualifications. These include:
1) Allowances for delays in completion, absent soil reports, underground service diversions if not included, approvals from authorities, and difficult site access.
2) Additional costs for insurance, disturbances, seasonal effects, financial charges if payments are delayed or materials not paid for.
3) Risk allowances for incorrect quantities, ambiguous documents, insufficient specifications, demanding material approvals, inflation, importing goods, exchange rates, complex equipment, and accessing remote sites.
Planning, Design, Up to tender date and Constructional contingencies are not considered since
those fall to employer.
Followings are in accordance with Lump sum nature Tenders. CONTINGENCIES are allowed without providing qualification to Tender 1. Allow for LD charges when the Completion for Works is short. 2. Allow for the earthworks whenever the Soil investigation report is absent. 3. Allow for diversion / protection of underground services when no PS sum allowed or absence of details. 4. Allow for NOC / Approval by Local Authorities (if contractor is responsible) 5. Allow in site establishment and setting up other temporary facilities, services whereas site is not in easily accessible location such as high altitude, physically impossible, harsh environmental, etc. 6. Allow for extra charges on CAR policy in above type of tenders due to high Risk. 7. Allow for the unforeseen disturbance and circumstance while progressing the permanent Works in above nature of locations. 8. Allow for whereas seasonal climatic condition would have the effect on Works progress. (Ex- Masirah Island where sea transport is difficult in monsoon time) 9. Allow for financial charges (Bank interest) in case of followings. No Advance payment No compensation for delay payment No payment for material at site Minimum payment amount is applicable. 7. Allow for the instance where no extra claims for legislation changes promulgate by government (under clause 70) after the letter of acceptance. 8. Allow for catch up the work progress disturb by summer restriction, Ramdan holidays and other applicable national holidays. 9. Allow for employers facilities are not clearly defined 10. Allow for Work restriction due to VVIP visit (Royal family Works) and security reasons. 11. Allow due to less flexibility on claims concerning the previous experience with employer and engineer. 12. Allow for restriction of labour Visa and Ban rule for joining with new employer.
RISK allowed in Rate without providing qualification to Tender
1. When the Quantities in BOQ are incorrect and no provision given to make the error in BOQ. 2. Allow for discrepancies or ambiguity among tender documents which are not clarified by the Employer till tender due date. 3. Allow when an item is provided with partly specification or insufficient detailed. 4. When Engineer expects strictly 3 alternative material submissions for approval even the one expected to price is fully comply with the provided spec. 5. Allowed for inflation in case of completion for the Works runs more than 1 1/2 years. 6. Allow for direct important goods where no local agents available. (due to shipment, clearance, insurance, on time delivery, warranty, after service issues). 7. Allow for exchange rate variability. ( very common while direct importing from UK due to GBP is much vary with OMR or USD) 8. Allow for pricing special / sophisticated Items such as military related equipment, Medical equipment , installing RF shielding, Radome, etc. since more chances to miss the required operational cost or due to small spec changes (default of tenderer) lead to high cost implications. 9. Allow for the logistic where site is not easily accessible. 10. Allow when Specified items are custom made or long lead. 11. Allow in Water and Electricity for site / off site works at harsh locations. 12. Allow for items where no fresh quotations are available. 13. Allow for Items which expect shortage of supply. 14. Allow for Items where suppliers or sub contractors prices are not fully compliance with spec. 15. Allow for method of works where alternative processes are expected to carry out other than specified. 16. Allow for non productive local national deployment to site due to public policy. 17. Allow Negative risk in sake of obtaining projects.