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Construction Law/Fixed rate items as FIDIC 1999 Clause 12.3 of red book

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Question
Greeting of Peace,
Dear Sir,
This is in continuation of already replied answer,
Q1 is quoted rate by the Contractor for an BoQ item can called be "Fixed Rate"?
Q2 can the rate of an item be reduced if the quantities increased as per the provision of clause 12.3 of FIDIC red book?

Early reply will be highly appreciated.
Regards
Tahir

Answer
Mr Tahir,
Answer for Q1 - all rates in the BOQ cannot be called as fixed rate items unless otherwise specifically mentioned so in the particular conditions. this means, the rate for that item is fixed for entire duration of the contract irrespective of quantity variation and market rate fluctuation.
Answer for Q2 - IF IT IS NOT EXEMPTED in particular conditions (ie..this contract is a fixed item rate contract), the FIDIC clause 12.3 sub section (a) allows for adjusting the unit rate under four situations.
hope this clarifies
regards,
r sivaraman  

Construction Law

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R.Sivaraman

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