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

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Question
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

Eng,Wagdy

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 ----------

QUESTION: Dear Sir
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

Eng,Wagdy

Answer
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

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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 www.eotprotocol.com before submitting a question.

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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.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
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')

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

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B Sc(Hons) in Civil Engineering

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