Question: QUESTION ( 3 5 ) Dunne & Co have been appointed under JCT Minor Works on a drawings and specification contract only to build a
QUESTION Dunne & Co have been appointed under JCT Minor Works on a drawings and specification contract only to build a house. Dunne is an experienced house builder but not very scientific in his approach to estimating. He therefore provided an accurate and competitive lump sum price for the project. When he was appointed, however, he was asked for a contract sum analysis for payment purposes. He lacked the analytical skills to do this with any degree of accuracy. As a result the contract sum analysis showed a very low rate for excavation work and a very high rate for tiling. As the project contained a lot of prestigious tiling the employer saw an opportunity to save money by asking the architect to delete the tiling from the contract which he the employer would subsequently have completed by his brotherinlaw. Which following statement is correct? a This is a lump sum contract and so the architect was in error to deduct the tiling from the contract in the first place. Dunne & Co are entitled to recover the profit element which they would have achieved on the tiling b If they cannot agree a reasonable value to deduct for the tiling they must go to adjudication and have the adjudicator decide on the value to be deducted c Dunne & Co are entitlted to terminate their employment under the contract and sue for damages d The schedule of rates was produced for payment purposes only and so Dunne & Co are entitled to have the deduction valued on the basis of fair rates and prices
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