My comments are given in red below :From: Mathen [mailto:mathen@chss.

ae]
Sent: Tuesday, September 06, 2011 4:50 PM
To: 'Prof. Sam'
Subject: RE: Final Call for the September Class - SCA

Dear Prof.
Thank you very much for your valuable Q&A sessions. At present I have a
problem with our Clients auditors;
I have a variation claim for fire fighting works (lump sum) amounting to AED 5.8
million which we the Consultant have agreed upon. One particular item in the
claim is the sprinkler heads, where in the contract we have stipulated
sprinkler heads but now we require 1 sprinkler heads.
The contract rate for sprinkler is AED 195.00 / no. and we the consultant have
pro rated the rate for 1 sprinkler heads to AED 290 /no., cause the rate
quoted by the sub-contractors are too low compared to the contract rates. The
sub-contractors rate for 1/2 is AED 55 / no. and 1 is AED 75 / no.
The auditors are stating the rate for the new 1 sprinkler heads should be AED
75 +OHP( which is much lower than the sprinkler rate in the contract) and
not AED 290.
We have used our Engineering judgement with reference to the contract to fix
the rate based on similar items.
Please advise if we have done this correctly.
The correct method would be to pay the Contractor the additional amount that
he has to pay to the Subcontractor (plus the Contractor OH&P). Therefore the
appropriate rate would be AED {195 + [(75-55) + OH&P]}

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
Visit

www.drsam.zzl.org for details of DRSAM FZE courses

Thank you.
Mathen
From: abdul basit [mailto:abdulbasith77@gmail.com]
Sent: Saturday, September 24, 2011 8:07 PM
To: Prof. Sam
Subject: Re: Congratulations - Q&A attached

Dear Professor,
The last few words put forth by you during the end of the session were more touching. And
now what Mr. Khalid has expressed are the views of most of us. The training provided by you
cannot be compared by any means with the nominal fee charged.
We are proud to be part of your student group and wish you all the best in your future
endeavors.
Thank you for the kind words of all of you who sent similar messages.
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
Visit www.drsam.zzl.org for details of DRSAM FZE courses

Best Regards,
Abdul Basit
From: Sonny Obdin [mailto:smobdin@yahoo.com]
Sent: Thursday, September 29, 2011 12:02 PM
To: Prof. Sam
Subject: Qualification to Tender
Dear Prof Sam,
I was one of your student in SCA (August 2010) class that greatly helps me in performing
my task in our company.
By the way, can you explain the appendix to the form of tender (Qualifications) that
says...
"We confirm that the sum given on the form of Tender is without qualification in any way
whatsoever to the Contract Documents...."
I am confused with the word "qualification"....
Also, what is the term "Unqualified Tender".
Thanks in advance and I hope I can join the Advance Class this coming November.
Your place is confirmed in the November 2011 advanced class (which is the last
advanced class this year) details of which are attached and also can be found at
www.drsam.zzl.org
If a Tenderer adds any condition to his tender, other than information requested by the
Client/Consultant, such condition becomes a qualification (such as the offer of an

alternative to the specified material, expression of inability to accept any of the Clients
stipulated terms and conditions, etc.)
An unqualified tender is one without any such qualifications.
If you submit a Tender with the wording in the Appendix as stated above (see green
fonts), and if such Tender is accepted by the Client, then you are leaving room for him to
later argue that all your qualifications that you my have submitted with your Tender have
no effect ! (This would raise difficulties for you as you will have to counter that, in such
case the contract did not form as the acceptance is not absolute). Discussion of
formation of contracts that we started during the 7th session of SCA would be continued
in the Advanced Class.

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
Visit www.drsam.zzl.org for details of DRSAM FZE courses

Regards,
Sonny Obdin
Quantity Surveyor
From: anngela ong [mailto:anj_ong@yahoo.com]
Sent: Sunday, October 09, 2011 10:48 AM
To: sam99@eim.ae
Cc: John Chavez
Subject: Query
Dear Mr. Sam,
Hope this email finds you well. Anyway, both myself and my husband (copied to this
mail) have attended the PICQS CPD last Wednesday and have also attended Sound
Contracts a couple of years ago (2007?). I was about to ask you a question during the
CPD but we were distracted due to time constraint. Anyway, my question if it is possible
in FIDIC to issue a provisional sum post-contract (e.g. as a variation)? We have been
discussing this for weeks and have looked at FIDIC clause that relates the same, but
until now we are unsuccessful. Appreciate if you can give us some clarification or a
clause that states the same.
The purpose of a provisional sum is to reserve a sum of money within a tender/contract price for the Employer to
either:- (a) get some work done through the Contractor which work is not fully designed at the tender stage, or
- (b) get some work done through a nominated subcontractor, under that Provisional Sum.
Therefore there is no necessity to introduce a Provisional Sum for the purpose of (a) because any additional work
required during the post-contract stage can wait until it is fully designed and then instructed as a variation.
If the Employer wants any additional work to be done by a nominated subcontractor during the Post-Contract
stage (for which there is no existing Provisional Sum), this too can be done without introducing a Provisional
Sum, by including within the instruction of the variation, the requirement of execution by a nominated
subcontractor. However, if it is agreeable to the contractor, then a Provisional Sum could be instructed as a
variation and thereafter the nomination can be done under it. Of course as part of the valuation of this variation
the Contractor would be entitled to have a reasonable Mark-up which would not necessarily be the existing markups in the contract.

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
Visit www.drsam.zzl.org for details of DRSAM FZE courses

Thank you very much.

Best regards
Anngela Chavez
From: Shakkeel Husain [mailto:shakkeelhusain@gmail.com]
Sent: Wednesday, October 19, 2011 11:02 AM
To: sam99@eim.ae
Subject: Clause 14.9 Payment of Retention Money FIDIC 1999

Dear Professor Sam,

First of all Thank you for sharing your Knowledge with us.
I was a student of September 2011 session-Sound Contract
Administration. I would like ask one question related to Clause
14.9 Payment of Retention Money FIDIC 1999 .
(The terminology used in this email is somewhat inaccurate. We
discuss the correct terminology of FIDIC 1999 in detail during
the Advanced Class because they are quite different to those of
FIDIC 4th Edition, giving rise to disputes. It is too detailed and
cannot be given in this short answer)
Contract Amount = 289,500,000.00
Final Work Done Amount = 289,300,000.00
Work Done Amount for Civil Work = 279,500,000.00
Work Done Amount for Electro-Mechanical Work = 9,800,000.00
Retention 5% of the Contract amount
Defects Notification Period for Civil Work = 1.00 Year
Defects Notification Period for Electro-mechanical Work = 3.00
Year
Now Our project completed Before 1 year
My Question is

1. What we call this payment..? ( it is a not interim payment, not

statement at completion and not a final statement as per clause
14.11 )
2. Now can I submit payment to consultant/client
for Retention money for Civil work..?
and
3. How much amount it will come as per the above scenario ..?
( please show me calculation details )
Immediately after issuing the Taking-Over Certificate under Clause 10, the Engineer should
issue a certificate to release the first half of the retention money for both Civil and MEP
works (i.e. one half of the total Retention Money shown in the Interim Payment Certificate
issued by the Engineer prior to the issue of the Taking-Over Certificate). This could be
requested either by a letter or by submitting a monthly payment application to prompt the
Engineer (though there is no requirement for such a request according to the contract and it is
the Engineers duty to certify it even in the absence of such a request). When the Contractor
submits his Statement at Completion he should show the Retention Money reduction as 2.5%
of 289,300,000/At the end of the DNP for the Civil Work the Contractor can make a similar request to release
the second half (i.e. 2.5% of 279,500/-) and at the end of DNP for MEP work another request
for 2.5% of 9,800,000/- (but the Engineer is duty bound to issue certificates for each of them
even without such requests. But without prompting, it is unlikely that the Engineer would
issue them).
Your contract has the special circumstance of 2 DNPs (without 2 partial/sectional TakingOver Certificates) which is not addressed in the contract (This should have been addressed by
amending Sub-Clause 14.9 suitably). It is very likely that one would try to use the reference
to multiple DNPs in 14.9 as an excuse to delay the release of the Retention Money for Civil
Work too until the 3 year period would be over, but Arbitrators or Courts are unlikely to take
such a view.
During the Advanced Class we discuss in detail the differences in Payment Applications /
Certificates under FIDIC 1999 and FIDIC - 4th 1987 in detail. Last advanced class this year is
in November 2011 and the details are attached if you wish to enroll. Details can also be found
at www.drsam.zzl.org
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
Visit

www.drsam.zzl.org for details of DRSAM FZE courses

Thanks & Regards,

Shakkeel Husain | Quantity Surveyor
----- Original Message ----From: jagadeesh kori
To: "sam99@eim.ae" <sam99@eim.ae>
Date: Tue, 11 Oct 2011 10:23:24 +0530 (IST)
Subject: Re: More Q&A for week-end reading

Dear Sir,
I'm Jagadeesh Kori 2010 bach student, I need your valuable sujestion for
our contract dispute with Client.
1) Initially Client awarded contract as a LUMP SUMP Contract and they
call it as " PURCHASE ORDER"
2) Later on Project Management team issued contract documents and
they mentioned as Item Rate contract.
3) Kindly advise us which contract is Valid in this case.
Usually a contract signed subsequently, supersedes a previous contract, if both are for the same scope of work

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
Visit www.drsam.zzl.org for details of DRSAM FZE courses

Thanks & regards,

Jagadeesh. Kori
Bangalore
----- Original Message ----From: Demetrio gr
To: sam99@eim.ae
Date: Thu, 06 Oct 2011 11:44:47 +0400
Subject: as mentioned

Dear Prof. Sam,

Good day!

I was one of the participants of SCA training last month. Just to ask you for the following:

1.

Is it possible to edit accordingly and use the FIDIC version 1987 as a form of Subcontract agreement? Yes you
can. But many amendments are required.

2.

Is there any FIDIC form for Subcontract? Conditions of Subcontract for Works of Civil Engineering Construction
- 1st Edition 1994

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
Visit www.drsam.zzl.org for details of DRSAM FZE courses

Thanks very much.

----- Original Message ----From: Puthenpurayil sugathan

To: "sam99@eim.ae" <sam99@eim.ae>
Date: Sun, 02 Oct 2011 22:58:35 -0700 (PDT)
Subject: Addl.cost incurred due to Promulgation

Dear Sir,
My name is Sugathan working now in Oman with a Consultant as a Sr.QS.( I was a student during the
time when i was in Dubai attending ur classes for QS ).
I need your advise for the following issue of the claim which the contractor intended to get as his
obligation.
After signing the contract for the constn.of harbour in Hilaniyat Island ( near Salalah ) and the letter of
acceptance the contractor started their work as per their programme.But unfortunately the govt.of
oman officially declared and issued an order that in Private as well as in govt.department employees
get an increment in their basic salary.Previously for example, an Omani employ was getting
RO.160.00; now as per this decree he has a right to get RO.200.00 per month.As such the contractor
has put a notice of claim in accordance with the condition of contract Clause 70.1 and submit their
interim monthly claim for total no.of employees. As a consultant QS i went through the contract &
realized that the contractor's claim is genuine..but when it was discussed in the progress meeting the
Client rejected this claim and saying that this issue is not involved in this contract and this matter is a
general issue and the contractor will not claim this in this contract.
i am sure that this claim is a right of contractor..but while the client is objecting the contractor claim..
Can you just advise me the right decesion in this matter.

The Contractor has a valid claim if:1. The wording in your contract is similar to those in Sub-Clause 70.2 of FIDIC - 4th Edition;
2. The Government decree states that it is compulsory (and not optional) for the private sector companies too to
pay their workers the stipulated minimum;
3. The Contractor had to increase the wages from its previous level to the new requirement which is
demonstrated through contemporary records of actual wages being paid and what was paid in the past, the
number of workers engaged for the Works etc.; and
4. If the notice requirement for additional payments in your contract is condition precedent, then the Contractor
has served the notice in a timely manner.
If the Client rejects such a valid claim, resulting in the matter proceeding to arbitration, the Client as the losing
party would have to bear not only the cost of arbitration but also the interest on late payments.

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
Visit www.drsam.zzl.org for details of DRSAM FZE courses

Thank you & regards,

Sugathan