A total order analysis is usually prepared by a contractor as part of their tender for planning and construction projects. It breaks down the contractor`s price into a form that allows the customer to analyze and compare it with other offers, and can then be used as a basis for calculating payments due to the contractor during the work. Upon request, the contractor must prepare a detailed analysis of the contract total highlighting the breakdown of the total offer price. A total order analysis is necessary because it is unlikely that there is a service description for a design and construction project at the time of the conclusion of the contract and, therefore, another way to evaluate offers and evaluate payments is necessary. Another risk for the prime contractor could be the certification of the construction work. In a situation where the employer/QA representative has a particularly strong view of how an element of the work is broken down and the contractor refuses to provide any type of evidence in the application process, the employer/QA representative prepares a payment notice based on their review of the work. In the latter case, an analysis of that lump sum (known as the contract sum analysis) or a list of the costs on which that lump sum is based must also be submitted. The more accurately the employer`s requirements dictate the format and breakdown of the total contract analysis, the easier it will be for the client to directly compare the details of the bids of the different bidders. For example, a return on investment is based on a BoQ provided by a third party and not on the developers issued in the tender documents. The third makes many assumptions within the BoQ, some of which are false.
The contractor then returns a quote based on a pricing system that does not meet the employer`s requirements, and while the bid team may indicate compliance in the quote statement, any changes made at a later date as non-compliance would be at the contractor`s risk. However, the contractor`s BoQ can result in a higher tendering performance than competitors, which would likely exclude it from the outset. An analysis of the sum of the contract (the analysis of the sum of the contract) » An example of what a detailed analysis of the sum of the contract looks like can be found below. The employer`s representative can provide a detailed analysis of the contract total during a tender period. The additional details provided in the contract total analysis compared to the general contract total analysis are obvious. The detailed request for analysis of the contract amount allows the employer representative and the QA to have greater confidence in reviewing the results of the call for tenders. It also provides a clearer and more equitable basis for justifying future evaluations of the work. Another risk for the developer is the evaluation of changes or the development of the design. The contractor can offer a price based on a compliant return, and then months later, modify the design for a design that simply meets the employer`s requirements and meets that “design development.” However, design development is a one-way street and, as mentioned above, can also pose a risk to the contractor. In this case, the employer`s representative could value the masonry at eight percent of the value of the exterior walls, but the actual contract price for the supplier could be twelve percent. This would result in a fair valuation based on the available information, but would put the entrepreneur in a difficult cash position.
This can be manipulated to make the opposite effective if the employer representative evaluates the masonry at a higher rate than the supply chain contractor has to pay. If you compare the general analysis of the contract total with the detailed analysis of the contract total and you examine the substructure, the next high-level contract total analysis simply has a “substructure element” of one line. It is vague and subjective. It is the responsibility of the contractor to request payment and the employer`s representative to review the application and issue a notice of payment. If you request a payment against the substructure in the first month, the employer`s representative may request additional information to secure this request. The contractor is not obliged to do so. However, as you can see in the detailed analysis of the total contracts, the substructure is divided into several elements. It is easier for both parties to agree on the total amount against several items than to disagree on the total value of the works in a package without ventilation. Since a BoQ can be prepared by the contractor for a design and construction project during a tender period, each BoQ prepared by the proponent would be used to reduce the workload of the bidding contractors and ensure that they are all priced on the same basis, as three different contractors can go to three different BoQ suppliers, which all have different assumptions about the defined specification elements. Any deviation from the price document issued in the offer may have a positive or negative effect on the system. The analysis of the contract amount not only provides a standard price receipt for verification by the employer`s agent, but also forms the basis for calculating any interim payment. The total contract analysis can only be divided into a basic format or a more detailed BoQ/SOW format, depending on the documents issued.
This also applies to the fact that the elements missing from the design during the contract phase will evolve and become more complex or expensive to build than the contractor has allowed in the context of a risk or eventuality. If the design develops in such a way that it would be reasonable to accept this work, or if work of a close nature was required to complete the work, the employer/QA representative would reject all changes based on the development of the design and a contract where the contract is responsible for the design and construction. The contract amount analysis can be reviewed and extended prior to the start of construction to ensure that it still adequately reflects the nature of the project and to ensure that it is an appropriate basis of payment (contractors may be tempted to preload the total contract analysis in order to receive more payment at the beginning of the construction process). This may be less than what the contractor has to pay because the analysis of the contract amount between the contractor and the employer and the pricing documents between the contractor and the subcontractor are not done back to back. This is because exterior walls can include masonry, blocks, plaster, and rain siding, and the contractor can, for example, claim twenty percent of the value of the exterior wall for masonry, which is properly finished and covers twenty percent of the exterior walls. However, masonry costs do not represent 20% of the value of the exterior wall, since the prices of the different elements of the facade are different. If the owner and contractor cannot agree on whether anything constitutes a modification of the work originally provided for in the contract documents, or if they cannot agree on an adjustment to the amount of the contract or the contractual period required for a modification of the work that constitutes additional work, the owner may, in its sole discretion, issue a written notice of amendment, which instructs the contractor to carry out the work. B The Contractor has agreed to perform and complete the Contract Work for the amount specified in section 2.07 of the pre-order meeting minutes and further described in the total analysis of the Contract or any other amount that may become due under the Agreement (“Contract Amount”). In each design and works contract of the JCT, Article 4 refers to the analysis of the total contract. The analysis of the contract total is an integral part of the design and construction contract. It is indeed crucial, since the second recital states that the documents showing and describing the contractor`s proposals for the design and construction of the works (contractor`s proposals) and the provisions of this contract may not be amended, modified, modified or cancelled in a way that entails a change in the amount or duration of the contract, except by a change..