Recovery of head office overheads due to prolongation of time

It is a contractor’s obligations to execute the works in accordance with the contract and entitled to be paid for works done including all variations instructed by the employer. The entitlement to claim for other additional payment caused by the employer is generally covered under ‘direct loss and/o...

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Main Author:	Ismail, Ramli
Format:	Thesis
Language:	English
Published:	2015
Subjects:	HD28 Management Industrial Management
Online Access:	http://eprints.utm.my/id/eprint/51413/25/RamliIsmailMFAB2015.pdf
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id	my-utm-ep.51413
record_format	uketd_dc
spelling	my-utm-ep.514132020-07-13T03:57:04Z Recovery of head office overheads due to prolongation of time 2015-01 Ismail, Ramli HD28 Management. Industrial Management It is a contractor’s obligations to execute the works in accordance with the contract and entitled to be paid for works done including all variations instructed by the employer. The entitlement to claim for other additional payment caused by the employer is generally covered under ‘direct loss and/or expense’ claim. The heads of claim to be included under this claim are on-site overheads, loss of productivity, interest and finance charges, etc. The other heads that the contractor usually includes is head office overheads. The objectives of the research are firstly, to determine the requirements to be provided when claiming for head office overheads, and secondly, to determine the most preferable method to be applied when calculating the head office overheads. The approach adopted in this research is by way of case laws analysis collected from countries specifically Malaysia and the United Kingdom. The research shows that the main requirements that the contractor needs to provide when claiming for head office overheads are: to show that because of the resources being locked on the current delayed project, they are unable to tender; to show that a drop in company’s turnover due to the prolongation of time; and to show that ‘an act of prevention’ by the employer has resulted in a delay. The research also shows that there are three common methods when ascertaining the head office overheads namely the tender allowance method, the Formula Method and the Actual Cost Method. The research suggests that the most preferable method to adopt when calculating the head office overheads due to prolongation of time is using the Actual Cost Method based on actual cost incurred on affected delay period. The other methods are not preferred because they are solely based on approximation or projection i.e. Formula Method and Tender Allowance Method respectively. 2015-01 Thesis http://eprints.utm.my/id/eprint/51413/ http://eprints.utm.my/id/eprint/51413/25/RamliIsmailMFAB2015.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:86505 masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HD28 Management Industrial Management
spellingShingle	HD28 Management Industrial Management Ismail, Ramli Recovery of head office overheads due to prolongation of time
description	It is a contractor’s obligations to execute the works in accordance with the contract and entitled to be paid for works done including all variations instructed by the employer. The entitlement to claim for other additional payment caused by the employer is generally covered under ‘direct loss and/or expense’ claim. The heads of claim to be included under this claim are on-site overheads, loss of productivity, interest and finance charges, etc. The other heads that the contractor usually includes is head office overheads. The objectives of the research are firstly, to determine the requirements to be provided when claiming for head office overheads, and secondly, to determine the most preferable method to be applied when calculating the head office overheads. The approach adopted in this research is by way of case laws analysis collected from countries specifically Malaysia and the United Kingdom. The research shows that the main requirements that the contractor needs to provide when claiming for head office overheads are: to show that because of the resources being locked on the current delayed project, they are unable to tender; to show that a drop in company’s turnover due to the prolongation of time; and to show that ‘an act of prevention’ by the employer has resulted in a delay. The research also shows that there are three common methods when ascertaining the head office overheads namely the tender allowance method, the Formula Method and the Actual Cost Method. The research suggests that the most preferable method to adopt when calculating the head office overheads due to prolongation of time is using the Actual Cost Method based on actual cost incurred on affected delay period. The other methods are not preferred because they are solely based on approximation or projection i.e. Formula Method and Tender Allowance Method respectively.
format	Thesis
qualification_level	Master's degree
author	Ismail, Ramli
author_facet	Ismail, Ramli
author_sort	Ismail, Ramli
title	Recovery of head office overheads due to prolongation of time
title_short	Recovery of head office overheads due to prolongation of time
title_full	Recovery of head office overheads due to prolongation of time
title_fullStr	Recovery of head office overheads due to prolongation of time
title_full_unstemmed	Recovery of head office overheads due to prolongation of time
title_sort	recovery of head office overheads due to prolongation of time
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2015
url	http://eprints.utm.my/id/eprint/51413/25/RamliIsmailMFAB2015.pdf
_version_	1747817549372850176

Recovery of head office overheads due to prolongation of time

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