Construction Law/unit price
QUESTION: I am contacting you to inquire about this case : , in this case :
In project there is an item of paving a school yard with an area of 1000M.S with thickness of ( 5cm) in Bill of Quantity of the contract with Unit price of this item .
But in the drawings of this project shows thickness of the Asphalt is 7 cm .
The Question is , in Red book of Fidic/1999
The contractor shall implementation the Asphalt thickness as Bill of Quantity or As Drawings ? and what is the unit price of the item in this case
ANSWER: Dear Shadi,
Thank you for your question I have following submission to make on the question raised by you.
1. To answer your question, I should know type of contract to begin with for example is it a lump sum contract or the re-measured contract type? In both cases the provision of BOQ has different meaning with respect to its reference to drawings and specifications. The next point to consider is what the priority of document clause says to consider which document in the contract has priority over the other while interpreting an ambiguity between the documents. Another important point to add here is that many a times prospective bidders ask questions in the pre bid meeting and many questions are resolved there by issuance of minutes of meeting. At individual level, sometimes contractors clarify there understanding of a particular BOQ item what they have considered in their price in the forwarding letter with the tender. My first suggestion is that you go through all these aspects before the next point that I am explaining in the next para.
2. FIDIC red book 1992 is a re-measure contract based document and in such a case the nomenclature of BOQ item is an important consideration as contractor fills in his rates on the basis of thicknesses etc. specified therein. This would have a different meaning if it was a lump sum contract in which BOQ is only a price list to permit interim payment to the contractor at execution stage. To sum up, the contractor rate is based on asphalt thickness in the BOQ subject to review of my point no.1 above.
I hope this answer your question and if not please come back with specific point that still need clarity.
Regards and best wishes,
---------- FOLLOW-UP ----------
QUESTION: thanks a lot about above , the type of contract is re-measured contract .
the priority of documents clause as shown in fidic 1990 red book
1..5 " Priority of Documents" .
my question is :
how we can determinite the unit price of this item ???
Thank you for coming back.
If i have to do it my way, i will calculate as follows.
a) Base rate of Rs. per sq meter for 5 mm thickness as given in the contract.
b) Add an estimated cost for the quantum per sq. meter for extra material involved due to increase in thickness for 2 inches extra thickness.
c) Add an estimated cost for the quantum per sq. meter for extra labor involved due to increase in thickness for 2 inches extra thickness.
d) The mark-up as agreed on the extra investment for b) & c)
Then we total up all this a) to d) to get new rate.
I hope i have made a clear recommendation. This is my assesment and if there is any other involvement of a small or big activity, its cost impact can be further edit after c).