ABSTRACT
Design and Build Contract is a lump sum contract, which means that all the work described in the contract documents, including completion of the design to meet the employer’s requirements, is to be carried out for the agreed sum, and there is no provision for any remeasurement. Under the supplemental provisions, the contractor is encouraged to propose cost-saving and value-improvement measures, which may also result in a change and, if an amount is agreed following an acceleration quotation, then this is to be added to the contract sum. The contractor would normally provide full details and particulars of all items concerned with the alleged loss and/or expense. An appeal arose on a question of law arising out of an arbitrator’s award regarding the basis for awarding direct loss and expense with respect to additional overheads and hire of small plant, following an instruction to postpone the works.
