Project managment

Payment for extra work, dayworks and claims

When extra work has been ordered then, if any of such extra work has been done by the contractor, there should be some payment for it in the next interim payment certificate even if the rates for such extra work have not been agreed. The reason for this is that the ICE conditions provide that work done shall be measured monthly and paid for within 28 days of the contractor submitting his account for same. Any dispute about the exact rate or amount for some extra should not therefore delay payment of what the engineer considers a reasonable amount. Otherwise the contractor could claim he was not  paid the undisputed portion of his application within 28 days of submitting his account, and so might be entitled to claim interest on it for late payment (see Section 17.13).

Dayworks charges (see Section 13.8) which have been checked and agreed by the resident engineer will also need to be included in the next interim certificate for payment, in so far as the contractor lists them in his account. The contractor’s account may, of course, list other dayworks charge sheets that have not been previously submitted to the resident engineer for checking.
If there is time to check them, the resident engineer should include them for payment. Alternatively he might include a round sum ‘On account of unchecked daywork sheets submitted’, the sum being what he considers will at least be payable under them. However, he does not have to include any payment against a daywork account which provides insufficient information for him to check it.
Similar problems of the need to make partial or ‘on account’ payments can arise in respect of claims submitted by the contractor which may be valid in principle but not sufficiently detailed to support the full claimed figure.
Nothing need be certified in respect of a claim insufficiently detailed for it to receive any consideration (ICE conditions Clause 53) but amounts should be included for payment where sufficient details are provided to justify some payment. All such partial or ‘on account’ payments proposed by the resident engineer should be drawn to the attention of the engineer when the contractor’s account is forwarded to him.
Where the resident engineer has agreed rates for extras with the contractor he should draft an appropriate variation order which he sends to the engineer for checking and issue.

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