Discussion. Rate Fixing in Civil Engineering Contracts.

Abstract

The Author, in introducing his Paper,? remarked that the treatment of rate fixing and the settling of claims were aspects in civil engineering contracts which did not appear to have been adequately dealt with in recent times by the Institution.62. The first question that came to his mind was why was this not a matter suitably covered in standard publications. An examination of the subject, showed that the answer to this question was relatively simple.63. Until the beginning of the second world war, the power of the engineer appeared to have been substantially greater than it was at the present, particularly in the financial sphere. It was indeed a relatively simple matter for the engineer and the contractor to meet at the conclusion of any project and to settle first the outstanding rates and then to settle the claim all in a short discussion. This was a satisfactory way in which to deal with the matter, the assumption being that the two men as heads of their respective firms representing the engineer and the contractor, were men of substance. It also presupposes that the engineer was a man of integrity and vision: he would have to ensure in these negotiations that the employer and contractor each were fairly treated. In this way a quick and satisfactory form of justice appeared to have been effected. 64. In the last two decades, however, with the advent of large nationalized bodies employing their own engineering staffs, the old fashioned method has been found wanting for a variety of reasons. The employer, on his part was naturally conscious that he was dealing with public money and that everything had to be properly accounted for: just as important it must be seen to be properly accounted for. The contractor, on his part appeared to have a tendency with regard to any difficulty to try and evoke the letter rather than the spirit of the contract conditions in general, and the bill of quantities in particular, As to the engineer, it was perhaps more difficult to comment on him, apart from the remarks the Author had already made regarding his diminished power. The engineer seemed to have moved with the times, rather than try in any way to dictate the change in the state of affairs; this might be considered to be a little regrettable on his part.