Question

1. Explain how changes are handled in Qatar construction projects. How is BOQ (Bill of Quantities) related to change order payment?

2. Explain if owner has direct relationship with the subcontractors. What happens if owner interferes into the work of the subcontractors.

Answer 1

1.In construction projects, in many cases it is not feasible to get the work done as per specifications given in the contract due to many reasons like some missing elelments or some new technology or some government instructions which forces owner to change the order. In change order consultants have most important role because they are the persons who are responsible for preparation of specifications and consultation about new technologies. If they do not do their jobs accurately then the change order have more probabilty to come in picture.

Once the owner wants to add some thing new than the specifications given in contract then he have to issue a change order to the contract. Change order is more feasible in case of unit price contracts but there is difficulty in case of lumpsum contract and fixed price contract. Change order has financial implications on project which owner has to pay.

How BOQ related to change order payment:-

Bill of quantity represents the quantity of each material or other resources to be used in project. While issuing change order to the contractor BOQ is also issued to the contractor for pricing purpose.Contractor have to submit his reasonable rates in samd format.Owner after getting check all rates and if reasonable issue change order to the contract. The payment of change order is done on the basis of rates given in this BOQ.

2. There is no direction relation between owner and Subcontractor but subcontractors have to comply with all clauses of the main contract agreement. Subcontractors are hired by contractor and a collateral agreement signed by them is submitted to the owner. This agreement must contain all provisions given im main contract. Owner being the person who is most effected from the success or failure of project must have control on the activities of contractor like hiring of subcontractor and termimation of subcontractor. Contractor must ask owner before hiribg subcontractor and terminating him also. Contractor will give a copy of each correspondence regarding work progress which he made with subcontractors, to the owner of project. Owner must have keen interest in activities of subcontractors to avoid any corruptions and maximize his profit. But he should not interefere with work of contractor and subcontractor

What happens if owner interferes into the work of the subcontractors:-

Owner must have coorporative nature with respect to contractor and vice versa for successful and efficient completion of work. If owner hinder the work and interfer in work of the subcontractor then the work may suffer in respect of time and cost. Since the owner do not have direct relation with subcontractor then interfering tmin their work will cause loss of contractor.