Rank: Forum user
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We have been PC on a CDM project - a full renovation of a residential flat for a client (a residential lettings company). The client did not want to pay for a welfare unit on site, so offered for us to use the flat as welfare during works (there were 2 bathrooms and several rooms, allowing the work to be sectioned off and allow welfare to be kept seperate).
Now the project has ended, the client have asked us to pay all gas and electricity used for the duration of the project. My MD has asked me if we could reasonably request they pay a sum themselves, as the welfare should have been provided with electricity and heat? I havent come across this before. Any thoughts? We have obviously saved them money by not putting in a welfare unit, which would have included these things.
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Rank: Super forum user
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Looks like hindsight is a wonderful thing. A commercial cost like this should have been agreed as part of the financial aspect of the contract / project. Sounds reasonable to me that you pay for the energy that have used,
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1 user thanked Ian Bell2 for this useful post.
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Rank: Forum user
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to me i would have hopefully picked it up on a pre-start inspection and raised it with whover to agree who was providing it.
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Rank: Super forum user
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TBH the client is now taking the proverbial as you state they offered the use of the flat in-lieu of alternative welfare facilities. Your MD has been lax is not having secured agreement as to who would be liable for any associated costs with the arrangement however the client is on a fools folly believing they can now ask you to pay for the provision given the contract is concluded. Even if you had placed a unit at site it would still have required power and water that would have been costed to the project. Tell them you will be happy to pay any amount the HSE judge to be fair for their lack of agreement to your initially quoted welfare provision.....or they can sue you in court for these costs and you will counter sue for the value of the welfare facility they declined as quoted.
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Rank: Super forum user
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TBH the client is now taking the proverbial as you state they offered the use of the flat in-lieu of alternative welfare facilities. Your MD has been lax is not having secured agreement as to who would be liable for any associated costs with the arrangement however the client is on a fools folly believing they can now ask you to pay for the provision given the contract is concluded. Even if you had placed a unit at site it would still have required power and water that would have been costed to the project. Tell them you will be happy to pay any amount the HSE judge to be fair for their lack of agreement to your initially quoted welfare provision.....or they can sue you in court for these costs and you will counter sue for the value of the welfare facility they declined as quoted.
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Rank: Super forum user
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If there was a formal contract, that should spell out who pays for gas and electricity usage. Most standard contracts do unless amended. In my experience it is normal for a contractor to pay for gas and electricity usage as it is a project cost. It allows Client’s to capitalise all costs and allows them to put it against a mortgage. If the contract says nothing then simply submit a claim for the cost. If there is no contract things are much more difficult. I am guessing the sums are small so not worth going to court. If they are a repeat Client it may be worth considering a 50/50 split.
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