Hi All,

Currently reviewing a telecom equipment claim.

The Contractor has supplied additional hours added only (as additional to original contract).

I would expect to see qty's and rates split out for labor and material (not just hours).

Does anyone have a specific methodology on Telecoms?

Dear Anonymous, your expectation is correct.  This is not a telecom industry only issue.  I am assuming your contract must be lump sum, but it does not have to be.  Regardless of the contract type, if a contractor submits a claim for additional labor hours, it should also provide the quantities by craft type and their associated rates.  I am also assuming your contract does not include a listing of labor rates by position, including what portion comprises the rate's direct cost and indirect cost? 

What does your contract say about what the contractor is supposed to submit for change order requests or claims?

Is the contractor requesting additional time to the project schedule?

Does your contract allow the sponsor/owner to audit the contractor's project financials?  If it does, then, typically, you have the right to review the contractor's claim's estimate in detail.  Otherwise, you are at least entitled to receive a breakdown of labor costs for which the contractor is claiming. 

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Stephen Warhoe PhD PE CCP CFCC Hon. Life
SP Warhoe LLC
Maple Valley WA
1 (206) 451-4320
spwarhoe@comcast.net
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Interesting response Stephen.