Page 173 - Civil Engineering Project Management, Fourth Edition

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The resident engineer’s office records
with the engineer. If the decision is not to return them to the contractor, only
one file for them is needed, the RE’s factual findings and comments thereon
being filed with each sheet. If some FRPO sheets are returned to the contractor
after checking, two files will be necessary – FRPO/1 for incoming sheets; and
FRPO/2 for copies of sheets returned.
13.10 Check of materials on site
Most contracts permit the engineer to certify payment on account of materials
delivered to site but not yet incorporated in the works. Section 16.5 sets out
the matters to be taken into consideration when assessing what payment
can be allowed. Usually a contractor will only ask for payment on account of
relatively expensive items, such as steelwork, reinforcement, pipes and valves,
etc. Before agreeing to payment on account the RE will need to inspect the
materials to ensure they conform to specification, and may need to get confirm-
ation the contractor has paid for them or otherwise has ownership of them.

13.11 Price increase records

As mentioned in Sections 3.2(a) and 16.8 contracts extending over a lengthy
period of time may incorporate a price variation clause under which the con-
tractor is entitled to receive reimbursement of extra costs caused to him by
inflation of prices for labour, materials and plant since the date of his tender.
The amount due to him under this clause can be calculated according to a
formula incorporated in the contract conditions, or by direct examination of
the contractor’s wages sheets and invoices received by him for materials or
hire of plant.
If a formula is used, this will be re-calculated each month; hence a file of the
price indices used for such a formula is necessary. However, if – more rarely –
the price increase has to be calculated by reference to the contractor’s wages
sheets and invoices, a separate filing system for the extensive calculations
involved will be necessary.
A file of basic costs at time of tender will be needed; another for wage
increase calculations, and another for materials and hired plant. When invoices
showing price increases are submitted, a check needs to be made to ensure that
the invoiced quantity of materials shown on the invoice has been used on the
job. For materials such as cement, aggregates, reinforcement, or fuel (for plant),
a running total of quantities delivered as shown on the invoices must be kept
to ensure the total does not exceed the possible use on the job. All invoices
must be marked ‘Seen’ and initialled before return to the contractor, who must
be instructed to file and keep them in case the employer’s auditors wish to
check the assessment of the price increases certified.