Page 3283 - Week 11 - Thursday, 13 September 1990

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(15) It is an unfortunate fact that whenever a contractor goes into liquidation it costs more than the original contract sum to complete the works. Some of the reasons for this are:

a. costs of remeasurement and documentation

b. re-establishment costs for new or old contractors

c. difficulty in taking over work of others

d. costs for others to complete maintenance on existing projects.

e. Fees and costs for project managers to carry out the head contractor role.

f. extra costs associated with accelerating the work to achieve necessary target completion dates in some instances.

While the retention of monies provided for under general conditions of Contract provide for funds to cover some of the additional costs to the Principal it is not usually sufficient to cover all these costs.

3283

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