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Construction Law/Discount & Variation

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Question
1. Is discount (given in the BOQ summary) applicable for Variations?
2. There are some items exceeding the quantity in the contract (BOQ). are those Variations (Exceeded quantities)?

Answer
Hi,
These are my answers to your questions, based on the information provided:
1. Normally, the discount is given for the quantities and conditions known by the Contractor at the tender time or at the time the contract is awarded. Therefore, unless it is specifically mentioned in the document according to which the discount is given, the discount is applicable only to the original quantities.
2. The General Conditions of Contract - see the Sub-clause 13.1 in FIDIC 1999 Red Book or the Sub-clauses 51.1 and 51.2 of FIDIC Red Book 1987 (reprinted 1988 or 1992) - say that a change in quantities can be the object of a variation, but not necessarily. The idea is that if a change in quantities results from performing the works according to the design and Specifications, it is not about a variation. A variation is an instruction made by the Engineer. If there is no such instruction, there is no Variation. Still, some Employers require that variations be issued for quantities being different that those in the initial BoQ, just to have the final quantities=the initial quantities + variations. FIDIC Contracts do not require such approach, but some Employer require to formalize in this way the changes that intervene in Contracts.
Hope this helps.
Best regards,
Alina

Construction Law

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Alina Valentina Oprea

Expertise

I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.

Experience

Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on www.alinaoprea.com

Organizations
Dispute Resolution Board Foundation

Publications
see http://alinaoprea.com/publications/ ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Education/Credentials
Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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