You are here:

Construction Law/Fidic 1992 - clause 52.1 - instruction to increase qty

Advertisement

Expert: - 2/2/2012


Question
Sir,
Our lump sum contract is under fidic 1992. In the BOQ we have a item having certain quantity where we have put a good selling price with a good profit margin in it during tender. The Engineer is asking to increase the quantity to be executed for an esthetic reason and sent us for that purpose a letter that there is no time impact and that we have to provide him the price of the raw material based on which he will adjust the BOQ item price.

We belive that the clause 52.1 (Valuation of Variation) allows us to get paid the additional quantity at the existing rate. the question is: does the statement including in the clause 52,1 " in the opinion of the Engineer" allows him to ask for price revision in case on increasing of the quantity?

Thank you in advance.

Answer
Dear Sami,

Variations must be priced using the logic of the Contract.  If you have a rate for the particular item then that rate must be used, except that there could be a minor variation in the rate due to the economies of scale.  'In the opinion of the Engineer' applies in cases where there is no similar rate and a new rate is to be agreed.  

Construction Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

Peter M. Elliott

Expertise

First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

©2012 About.com, a part of The New York Times Company. All rights reserved.