Credit for work not needed as a result of alternate means/methods
Credit for work not needed as a result of alternate means/methods
(OP)
We have a multi-million dollar sanitary sewer extension project that is currently under construction. The soil borings obtained during project design revealed extensive rock excavation would be required. Accordingly, language was incorporated into the specs to address a myriad of blasting concerns (e.g. blasting near watermains/services, gas mains/services, pre- and post blasting inspections of a nearby municipal well, etc.)
By using an excavator-mounted rotary grinder as well as drilling and jack-hammering techniques, the Contractor was able to avoid blasting, thus obviating the need for pre- or post-blasting inspections (and similar activities). While the Contract presupposed that blasting would be used, it also explicitly and exclusively obligates the Contractor to all means and methods. The Contract contains no provision for reimbursement of implicit work associated with an assumed means and methods when alternate means/methods are used. The means/methods chosen by the Contractor for rock excavation was still costly in terms of man hours required and wear and tear on equipment. The Contactor is well ahead of schedule in meeting the project completion date.
Recently, the Owner's Manager directed Staff to contact the Contractor and request a credit for the municipal well inspections NOT performed because of the fact that blasting wasn't used. Staff has no knowledge of what cost arrangements were made (if any) between the Contractor and the well inspection firm.
Question: Is it ethical for Management to demand reimbursement for work not needed as a result of a Contractor employing other means and methods?
By using an excavator-mounted rotary grinder as well as drilling and jack-hammering techniques, the Contractor was able to avoid blasting, thus obviating the need for pre- or post-blasting inspections (and similar activities). While the Contract presupposed that blasting would be used, it also explicitly and exclusively obligates the Contractor to all means and methods. The Contract contains no provision for reimbursement of implicit work associated with an assumed means and methods when alternate means/methods are used. The means/methods chosen by the Contractor for rock excavation was still costly in terms of man hours required and wear and tear on equipment. The Contactor is well ahead of schedule in meeting the project completion date.
Recently, the Owner's Manager directed Staff to contact the Contractor and request a credit for the municipal well inspections NOT performed because of the fact that blasting wasn't used. Staff has no knowledge of what cost arrangements were made (if any) between the Contractor and the well inspection firm.
Question: Is it ethical for Management to demand reimbursement for work not needed as a result of a Contractor employing other means and methods?
RE: Credit for work not needed as a result of alternate means/methods
RE: Credit for work not needed as a result of alternate means/methods
RE: Credit for work not needed as a result of alternate means/methods
RE: Credit for work not needed as a result of alternate means/methods
By going fixed price they put the risk management etc. on the contractor had things gone wrong. If the contractor finds a way to save on a few side items they get to keep that.
What is Engineering anyway: FAQ1088-1484: In layman terms, what is "engineering"?
RE: Credit for work not needed as a result of alternate means/methods
Thanks for the responses and validation.
RE: Credit for work not needed as a result of alternate means/methods
The credit issue should work both ways. If the contractor's chosen means and methods resulted in a higher cost than originally bid, would the owner be willing to pay extra? If the answer is "No", then the contractor should keep any savings he had.
I also disagree that pre-and post-inspections were not necessary. Even drilling in rock transmits vibrations than can damage adjacent structures. Should have been done either way.
RE: Credit for work not needed as a result of alternate means/methods
TTFN
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RE: Credit for work not needed as a result of alternate means/methods
RE: Credit for work not needed as a result of alternate means/methods
TTFN
I can do absolutely anything. I'm an expert!
homework forum: //www.engineering.com/AskForum/aff/32.aspx
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers
RE: Credit for work not needed as a result of alternate means/methods
Oh wait, those guys don't do anything for free - even the free advise is credited for taxes.
RE: Credit for work not needed as a result of alternate means/methods
www.PeirceEngineering.com
RE: Credit for work not needed as a result of alternate means/methods
But we don't know the details of the contract. If there's some reimbursable component to it, there may be some room for negotiation.
Anyone paying attention should notice that if you want innovation, fixed price is more likely to give it to you than a reimbursable contract is. If you're making money on every dollar of material and labour expended, slow and painful wins the race.
RE: Credit for work not needed as a result of alternate means/methods
Cheers
Greg Locock
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RE: Credit for work not needed as a result of alternate means/methods
That's like wanting a refund of your insurance premium since it turned out that you didn't need to collect on it.
RE: Credit for work not needed as a result of alternate means/methods
TTFN
I can do absolutely anything. I'm an expert!
homework forum: //www.engineering.com/AskForum/aff/32.aspx
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers
RE: Credit for work not needed as a result of alternate means/methods
RE: Credit for work not needed as a result of alternate means/methods
TTFN
I can do absolutely anything. I'm an expert!
homework forum: //www.engineering.com/AskForum/aff/32.aspx
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers
RE: Credit for work not needed as a result of alternate means/methods
RE: Credit for work not needed as a result of alternate means/methods
In which case, that owner would balk at paying any of the extra items when they came up.