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5 replies
960 views
5 replies
What is considered working material in a turnkey contract?
we are hiring a construction company for an extension project and signed a contract with a fixed price for labor. We pay for materials separately according to the agreement, however, he covers the construction machinery. Now the question is, what counts as work material? The first week of work he sends an invoice for protective equipment, rock drill, excavators, gasoline, compressor, skylift, the list never ends. Where is the line drawn? For us, material means lumber, roof tiles, concrete, gravel, plaster, interior materials for painting, tiles, ceramic tiles. By the way, filled out the craftsman form -17 and the Construction Contract ABS 18.
Do you mean that you signed two contracts? The craftsman form is one contract and the Construction Contract according to ABS 18 is another.
The costs he invoices are not materials but aids, and if these are exempted in his fixed price, he has the right to charge for them, as well as consumables such as gas and drills.
The costs he invoices are not materials but aids, and if these are exempted in his fixed price, he has the right to charge for them, as well as consumables such as gas and drills.
Yes, signed 2 contracts. Did a bit of research, you are right it's called aids but they weren't mentioned before, so it's a gray area who should pay for this. We have now agreed on how to proceed. Hopefully no surprises in the journey ahead.H huggan said:Do you mean that you signed two contracts? Because the contractor's agreement form is one contract and the Construction Contract according to ABS 18 is another.
The costs he invoices are not materials but aids, and if these are excluded from his fixed price, he is entitled to charge for it, as well as for consumables such as gasoline and drills.
Thanks for the answer.
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