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ADDITIONAL WORK TO COMPENSATE DEFECTIVE WORK


Rodolfo

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Contractor had to renovate an existing building under a design/build contract. At the completion of the performance, Contracting Officer notified Contractor that he did not meet the standard required by the Scope of Work (corridors must have outlets ever; 6 meters and rooms/offices every 2.5 meters). Since Government had no longer need for the missing outlets, Contractor was notified that the Contracting Officer will deduct from the contract the cost for each outlet missing (44 outlets). Government estimated that the total amount to be deducted was euro 7.800,00. Contractor concurred with the amount.

Contracting Officer proposed to swap the amount to be deducted with additional electrical work (in scope modification). According to the Contracting Officer the additional work balanced the work that had to be reduced (increase minus decrease = 0).

Contractor rebuted that the additional work was worth more than euro 7,800 and therefore refused to accept the exchange (Contractor has already performed additional work for which is going to submit claim). Contractor stated he was available to perform the additional work but requested an equitable adjustement between the work to be deleted and the work to be added (a few thousands euro). The two parties did not arrive to an agreement.

At this point Contracting Officer has given an ultimatum: or the Contractor accepts to perform the additional work at no additional cost (addition – less deletion = 0) or he will be required to install the missing outlets. Of course to install them after the completion of the work will cost more than to perform the additional work at no cost. So the Contractor will be forced to accept the Contracting Officer proposal.

What are your thoughts?

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Sounds like two seperate issues. Accept the descope of the work, 44 recepticles for $7,800.00. If you already have coordination that the GOV doesnt require them and both parties agree to the amount of the descope the KO will be hard pressed to really push the issue.

Next address the additional work seperatly with a proposal for the change and negotiate the amount like you would any other change.

There are alot of KO's that try to be bullies, just dont allow yourself to be bullied. The KO will likely back down on the demands.

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