Civil Engineering Project Management (4th Edition)

Interim monthly payments 201
into dispute with the contractor, or goes into liquidation, the materials he
supplied might be reclaimed by him or his receiver. Before certifying any
payment for materials the engineer will need to be reasonably certain that the
contractor does own them.
In deciding what should be certified for materials on site, the resident
engineer needs to check they comply with the specification, are properly stored
or protected, and will not deteriorate before use. The amount certified will
depend on the nature of the material and also the circumstances of the contractor.
If the contractor appears to be running into financial difficulties or
shows signs of being unable to complete the contract, what should be certified
for materials on site needs careful consideration by the engineer. The prospective
value to the employer of the materials paid for, needs then to be assessed in
the light of the situation, allowance being made for any deterioration that might
occur if there is a delay in their incorporation into the works. Reinforcement
or structural steel left out too long in the open may rust to the point of scaling;
improperly secured items may get stolen; pipes left too long on verges to roads
may sustain damage to their protective coatings; valves can be damaged by
frost and so on.
16.6 Payment for materials manufactured off site
The ICE conditions also permit payment on account to be made for items
which are manufactured off site (Clauses 54 and 60(1)(c)). This provision is
intended primarily to cover mechanical or electrical equipment or prefabricated
steelwork which the contractor has to supply for incorporation in the
works. He will usually use a specialist manufacturer to supply such items.
It is advantageous to the progress of the job for all such items to be manufactured
and made ready for delivery in advance of the date planned for their
incorporation in the works, hence payment for items manufactured off site
encourages this.
However, only items listed in an appendix to the tender documents are to
rank for on-account payment, that is, the contract pre-determines the equipment
or plant to which the provision relates. Also two further conditions have
to be complied with: (a) the equipment or plant must be ready for dispatch;
(b) the ownership of it must be transferred from manufacturer to contractor,
and then from contractor to employer. Clause 54 of the ICE conditions sets out
the details of the procedure required.
Clearly before any payment on account can be made, the engineer or resident
engineer will need to arrange for the manufacturer to be visited so that
the plant to be supplied can be inspected to ensure it conforms satisfactorily
to specification and all necessary tests before delivery. Evidence of the proper
transfer of ownership, and sundry arrangements for storage, insurance, etc.
will also be required.