Material at site.
When preparing the monthly bill, contractor has to claim under the work items in the boq. But when the construction is done according to the project plan, some materials have to be brought to the site few months earlier. Then contractor can some amount due to the transport by transport all of them in a same time. Also he can reduce the cost by buying goods when they were cheap. When contractor buy such items and bring them to the site, he has to wait cover that cost until the work is done under boq items. Therefore for the safe of the contractor, such items which brings to the site for permanent works in future are examine by the consultants. Then he approve to give 80% of total value of those materials at site.
In our project, stores records are mostly used to assess the value of material at site by the quantity surveyor. Store keeper keeps records of the materials issues for the sub contractors separately. Then it is very easy when preparing sub contractor’s payment also.
Thanks for the article.I would like to add something.
ReplyDeleteEven contractor may paid for the material stored off site. Vesting certificate required for such payments. Contractor should properly stored, labelled and insured the such material.
Does the contractor has to pay back that amount paid to him for materials on site??
ReplyDelete