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Question
Our Project is a Lumpsum, FIDIC 1999 Contract. In the tender drawings blinding is shown only for the footings. for the slab on grade blinding is not shown. but in one tender addendum it was instructed that blinding is required for Slab on Grade. The BOQ quantity is only calculated for Footings. Our Bid also didn't include the blinding for Slab on Grade. Now new Engineer appointed and we were discussing with him the possibility of removing the scope of blinding to Slab on Grade and they insisted to have a cost saving or negative variation for the same. Now my question is how the will be the negative variation to be calculated?

Answer
Dear Oviyan,
         I hope your contract is lump sum and following some fundamental FIDIC 1999; but obviously I hope your form of contract is bespoke. Now your question is "how the negative variation to be calculated".

MY answer is, if your contract is design and build lump sum contract then you need not give any omission and you can not claim any addition.If it is a traditional and lump sum contract please check your contract conditions.

The engineer asked you a cost savings,then follow your GCoC,check the variations and claims clauses in your contract.If it is not there then actual cost which substantiating your cost estimate+contractor's uplift.

For example; the total quantity =1000 sq.m and the rate per mē of blinding=AED xxx (provide rate analysis or your BOQ rate whichever is less based on your contract conditions)
The total amount = 1000 mē x AED xxx x 1.15 and this amount will be the cost saving;
this 1.15 refers 15% of contractor's uplift,check your case;if it is your BOQ rate then you need not multiply by 1.15, because the BOQ rates are generally included contractor's uplift

I hope this will help to you.

regards,
Raja

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Raja,MSc

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