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Construction Law/Variation order after substantial completion / taking over certificate.

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Question
Dear Sir.
I am currently work on a ADB project in Pakistan. The contract document is based on FIDIC Multilateral Development Bank Harmonised Edition June 2010. During the execution of the project the scope of the work has been changed and quantities of BOQ Items are abnormally increased / decreased. We have submitting our variation order # 2 with a financial impact of 8.62% above before fifteen days of completion date. During checking of the variation order the project was completed and substantial completion/taking over certificate was issued by the employer.
Now the Resident Engineer of Consultant says that after issuing of taking over certificate, we can not process the case of variation order # 2, and order us to submit an IPC with actual workdone of varied items , and says that they would withheld the quantities of all the increased item and release us the remaining amount of quantities which are within the BOQ , after this we have to submit statement at completion having all detail of wordone and they process the case of statement at completion.
My question is that what is the hindress for not processing a Variation order after issuance of substantial completion certificate, the amount of varied items i.e. 8.62% of contract cost is released after the approval of variation order. so approval of variation order is to much essential for us because now a days we are facing some financial troubles.
What is the actual procedure according to the fidic mentioned above for releasing the amount of varied items after issuance of substantial completion / taking over certificate.
Some guidelines in this regards was highly be appreciated.
Thanks & Regards.

Hamid Naveed Ahmad.

Answer
Dear Hamad,

Thanks for your question.

I can tell you that, there is nothing under the provisions of the FIDIC MDB Harmonised Edition that objects to entertainment of evaluations of variations duly instructed and executed under the Contract after issuance of Taking over certificate. No provision in the conditions also restrained the Engineer from processing such variations provided they are valid. I will refer you to clauses 14.10 and 14.11 of the conditions which you can use to support your case and submit your statement incorporating all the variations for the Engineers' certification.

Hope this clears your doubt?

Femi

Construction Law

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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