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? jloomis