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Construction Law/fidic-clause 12-3 !!!


QUESTION: Dear sir

Incase of the actual quantity decreased by 20% how i calculate
the new rate?
BOQ quantity=20000000m3
Revised quantity =15000000m3
BOQ Price=9.16 SR
Is there any equation to obtain the new rate ?

Best Regard


ANSWER: Dear Wagdy,

The detailed answer to your question is too long for this service.  Basically you find the overhead recovery and profit included in the rate for the original quantity and then spread that value over the new quantity.  Thus the rate for the lower quantity is likely to be higher than for the original quantity.  You might have to include a factor for uneconomic use of resources.

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

Thanks for your answer so please check my calculation
is it right?

12.3 (a) (iii) this change in quantity directly changes the coast per unit quantity of this item by more than 5 percent (5%)

1.   Unit price for Railway Embankment item          = 9.16  SR.
 2. Measured quantity according to the revised drawing        = 15,268,013.153 m
 3. Value of Railway Embankment item          = 189287955.840 SR
 4. New Unit price for Railway Embankment item          =
         (189287955.840 15,268,013.153) =  12.398 = 12.4  SR
 5. Changes the coast per unit quantity of Railway Embankment item
         =  ((12.40 9.16 ) 9.16) % = (3.24 9.16) % = 35.37% > 5.0%

Best Regard


Dear Wagdy,

At first glance, I doubt it. The new unit price should be made up of the costs of resources, labour, plant and materials and supervision, plus offsite overheads and profit.  It appears as if you have treated the total cost as a lump sum.  

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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 . . .
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