I (contractor)have been actively working with an owner and his lending
agency on a
Contract, specifically addressed by owner as a T and M contract.
I will go along with this, and do to the nature of the job, the rural
and owner participation.
In my contract I specify :
Pre-Construction Charges. Planning for the efficient progress of the
project before beginning work is essential. Contractor will charge for his
work at the hourly rate set out below and allocate his time as necessary to
meetings with the Owner (on-site or otherwise), reviewing specifications and
plan documents, arranging for sub-contract bids and commitments, securing
cost estimates and placing orders for materials, and related tasks. All
such items will be specified in billing and paid for out of Owner’s first
draw on his construction loan.
Owner replies with:
“Pre-Construction Charges” shown on Pg 1 normally are included in Overhead.
Maybe it’s how it is worded, but I’m a little confused on this one too, as
the items shown there I would classify as overhead too. Now if we talking
trips to the lot to stake the site or oversee container placement or USA
marking, that makes sense. Maybe these charges get itemized and billed in
the first draw?
So, I am also puzzled as the contractor on a T and M contract, that visiting
the site with sub-contractors, getting material estimates, and general
pre-work conditions should be considered as on my time?
How would one address this issue with fairness?