Credits in construction

T|his article is all about credits in construction.

What are credits in construction ?

If a Client is hiring a contractor to refurbish their existing property or demolish the existing property, it might be fair for this Client to expect a credit in return for any materials that the Contractor can resell.

For example, if the existing building has a lot of scrap metal, this metal will have a value and therefore the Client may want some monies credited back for these materials.

Credits are normally only applicable where the building project comprises the refurbishment or rehabilitation of an existing building, or demolition works.

Provision for such provides the employer an opportunity to seek credits for old building materials; components and items; mechanical and electrical plant; and fittings, furnishings and equipment which arise from the stripping out or demolition works and for which the employer is content to pass ownership to the contractor for reuse.

Credits can be based on a pre-prepared list of items, which is incorporated in the BQ and the contractor invited to insert the amount of credit he will give for each item.

Alternatively, the contractor can be invited to list items for which he is willing to offer a credit and the amount of credit he will give for each item.

A template for ‘credits’ is provided in Appendix F of the New Rules of Measurement.