Construction Law/Prime Cost

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Question
Dear Sir,

I am currently working in Dubai and we have a contract with the main contractor for a fixed price lump sum. The contract is FIDIC 87 reissued in 92'.

We have a number of PC items, ceramics, marble, carpet etc which we are now nominating. Based on this we have a BOQ with qty's that has been stamped by all parties that forms part of the contract documents.

My question, is the main contractor allowed to change the quantities? I am fully aware that the price will change as per the clients selection plus or minus. But, if we have always had quantitys against these PC items and not lumps of money then can the qtys be changed?

Regards

Robert

Answer
Hi Robert
If the contract says that the Contractor takes the risk that if the quantities of work executed is different to that included in the BoQ then there will be no change in the Lump Sum Price.
Remember the contractor had the opportunity to check the quantities before submitting his price.
Also the contractor gets paid the Lump Sum even if the quantities are reduced.
So - subject to variations that change the scope of the works the Lump Sum remains unchanged.
Best regards
Mike Testro

Construction Law

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Mike Testro

Expertise

Anything related to extensions of time and delay analysis.

Experience

45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Organizations
Society of Construction Law Adjudication Society ex Planning Engineers Organisation

Publications
6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Education/Credentials
Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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