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Construction Law/Valuation of Variation fidic 1987 4th edition


Dear Sir,
As per fidic 4th edition reprinted in 1992 the sub clause 52.1 says
that for any variation evaluation the rates in the BOQ will be taken for evaluation NOW the question is:

The rates in the BOQ in many cases do not reflect the actual costs that the contractor deemed to price against the tender DWGs,
if you have item A in the BOQ as detailed below;
A QTY=100 Unit rate=10 Price=1000 and this item in the DWGs is QTY=50,

Now if the engineer revised the DWGs and A became 75

correct me if I am wrong,I will take the price in the BOQ 1000 divided by the QTY in the DWGs =50 then 1000/50=20 and the new unit rate which is 20 will be considered to evaluate addition or omission on Item A not the unit rate mentioned in the BOQ which is 10.

Is that correct and if yes ...what about the sub clause 52.1.

Thank you very much

Dear Akram Dzaie,

I assume that you are working with a remeasureable contract, and not a lump sum contract.  If so, you are totally wrong.  The rate is the rate.  The quantities are approximate and will be adjusted during implementation to match actual requirements.  The rate can be adjusted if the actual quantities vary considerably, say by a factor of 10 or more, from the tender quantities, under clause 52.2 or 52.3.  In your example the payment for Item A would be 75 x 10 = 750.  

Please note that the Contractor's actual costs may vary from the Contract rate, but that is his risk.  If you have awarded the Contract to the lowest compliant offer, then any gains on some items will be balanced by losses in other items.  

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Peter M. Elliott


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 before submitting a question.


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.
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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')

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

B Sc(Hons) in Civil Engineering

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