Extra work in lump sum contract may be accepted

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Reference no: EM132271384

Project Procurement Management Case Study

'Extra work' in a lump sum contract may be accepted as the work which is not explicitly included and contemplated by the contracting parties at the of the execution of the contract. However, most construction contracts are lump sum contracts and not subject to re-measurement upon completion of the works. Therefore, it is important that the Contractor understands his entitlement for the 'extra work' under a lump sum contract before executing.

Setia Alam Developer and Contractor A entered into a fix price lump sum contract to build a house. Contractor A prepared a specification that included timber to be used for building the house. Contractor A specified the floor joists but did not mention the flooring itself. Contractor A agreed for a lump sum price of $ 10 million. However, Contractor A refused to fix all floorboards untill paid extra, saying thah they were not part of his contract.

Based on the case above, provide your argument whether Contractor A should be paid extra for fixing the floorboards?

Reference no: EM132271384

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