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Construction Law/Signed Contract - Reduction in Quantities Post Signature

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Question
QUESTION: Dear Sirs,

We have a signed Contract for a very expensive item having a quantity of 1,600# units. Post signature of the Contract, the quantity of the item has reduced by 63%.

Please let me know my rights under FIDIC as to how to claim & revise the unit rate upwards and to what extent (what percentage)?

Also, would appreciate receiving the various heads under which we can justify the increase in the unit rate.

Appreciate your usual prompt professional response.

Thanks

Tariq Haroon Ahmed

ANSWER: Dear Tariq
If you are using FIDIC 99 then the followings shall apply:
For each item of work, the appropriate rate or price for the item shall be the rate or
price specified for such item in the Contract or, if there is no such item, specified for
similar work. However, a new rate or price shall be appropriate for an item of work if:


(a) (i) the measured quantity of the item is changed by more than 10% from
the quantity of this item in the Bill of Quantities or other Schedule,
(ii) this change in quantity multiplied by such specified rate for this item
exceeds 0.01% of the Accepted Contract Amount,
(iii) this change in quantity directly changes the Cost per unit quantity of
this item by more than 1%, and
(iv) this item is not specified in the Contract as a “fixed rate item”;
Cheers

---------- FOLLOW-UP ----------

QUESTION: Dear Sirs,

Thank you for your prompt response.

I need to know the exact clause according to FIDIC contracts where we can substantiate our claim for revising our unit price based on reduction in quantity of more than 10%.

The contract we have is not related to any FIDIC reference.

Shall appreciate you advice in this regard so that we can approach the Client with a solid justification to revise our unit price.

Thanks

Tariq Haroon Ahmed

Answer
Dear Tariq
if your contract is not based on FIDIC and it Have a clause about 10 % maximum deletion / Addition then this would mean that if the changes amount to more than 10% of the contract price, then you are entitled as a contractor to revise your rates for the quantities that exceed such 10%. it get complicated if you have several items deleted, then which one should you count first. An agreement with the engineer is essential for such issue.
Cheers

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Wael Ghadban

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Will respond to queries related to Engineering Contracts subject to FIDIC or other Conditions, tendering and contracting, project management, residential and commercial construction, and general Civil Engineering questions. Can answer most questions related to aviation and airports as related to the Airports, Facility management.

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