Construction Law/Provisional sum

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Question
Dear Jonathan,

We have a road project (Fidic 1987 reprinted 1992) we have provisional sum amount specifically dedicated for underground services with an amount say 100,000 AED my questions as below:

1) If the contractor needs to use the P.S (for above mentioned purpose) and agreed by the engineer does he (contractor) have to submit invoice for this unforeseen work as a variation or just invoice to fix the rates?

2) if the total work (for P.S) exceeds the 100,000 AED (the amount of P.S in the contract) in this case how we will deal with that? it will be considered as a variation and it is the employer responsibility to find budget for that or what is the status contractually?

Thanks

Answer
Dear M.dzaie,


The Engineer should instruct the Contractor regarding the use of PS for the execution of any part of the Work or for any supply of goods,materials,Plant etc.

The work shall be valued in accordance with clause 52, and the Contractor shall produce to the Engineer all quotations,invoices, vouchers etc. to account the expenses.


Regards,

Jonathan L. Peralta

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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