The Claim for Additional Payment - Construction Claims and Responses: Effective Writing and Presentation - page 130

4. The Contractor submits that this is a fair and reasonable means of
establishing the percentage of reasonable profi t to be added to the
net costs of prolongation and has included this in the calculations
contained herein.
5. Appendix I herein contains detailed calculations of the costs incurred
as further described below.
Site Establishment Costs
1. Due to the extended time for completion of the Works, the Contractor
has been obliged to maintain his resources on site for a period in
excess of the time contemplated in the Contract. The Contractor is
therefore entitled to be compensated for the additional costs incurred
in doing so. Such site resources include site staff, site establishment,
transport, plant and equipment.
2. The Contractor ' s site staff includes site management, site supervi-
sion, site administration and non-productive personnel employed on
a time-related basis, such as drivers, storekeepers and security
personnel.
3. The costs included in employing staff include salaries, insurance,
holiday pay, pension contributions and all other costs incurred in
employing such personnel. The actual staff costs are substantiated
and cross-referenced to payroll data which are included within
Appendix J herein.
4. The Contractor ' s site establishment includes toilet and washing
facilities, the Contractor's and Engineer's site offi ces, offi ce equip-
ment, IT equipment, offi ce furniture, offi ce consumables, work-
shops, stores, water, electricity, telephones, internet facilities, survey
equipment, waste disposal and maintenance of the foregoing.
5. In the case of the Contractor ' s own site - establishment equipment,
this may be used on more than one project during its useful life.
Hence, the claimed costs have been based on the monthly deprecia-
tion value of each item over the period of prolongation. This repre-
sents the estimated monthly cost of the item to the Contractor
until the owned piece of equipment is either sold or is no longer
useable.
6. Transport costs include for company vehicles provided for the
Contractor's staff, site-dedicated vehicles for the movement and
collection of materials and the costs of fuel for such vehicles. The
costs incurred for such items are either hire costs or depreciation
costs as described above.
7. Plant and equipment employed on a time - related basis during
the prolongation period include generators, scaffolding, access
equipment, barriers, safety and security equipment, small tools
and equipment, and the cost of fuel and/or maintenance as
appropriate.