(Answered) : Project Procurement Management Case Study Extra Work Lump Sum Contract May Accepted Work E Q34234694

Project Procurement Management Case Study

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

Setia Alam Developer and Contractor A entered into a fix pricelump sum contract to build a house. Contractor A prepared aspecification that included timber to be used for building thehouse. Contractor A