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Construction Law/earlier advise from you 70% design

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Question
Hi again Irvali,
Thank you for your answer however there is no link on the page you sent to reply.
The lump sum contract says that the rates in the schedules to arrive at the 70% design drawings for A will be used to value the 100% A.
The main contractor issued his own design and construct the new or varied design called O for construction .
We have priced a new lump sum for design O having where applicable used a similar rate to that shown on the original A
however the pipe diameters ,pits ,grades covers et etc have all changed on O.
I am of the thought as we were asked for a reprice (not a variation request )that the new O lump sum 3.1 million and schedules would then replace A 2,4 million in the contract (no % for overhead and profit as not requested as a variation ).Now that the main contractor has received the new lump sum they want to do every individual drain (some 150 drains)as a change to each drain !!!
This is not a reprice whats your valued opinion ?
By doing this they say for example oh its only 200 deeper here and the drain increased 30 meters etc etc this if done is not a lump sum and would become each and every drain an individual variation

regards Graham

Answer
Dear Graham,

I had a similar experience in the past as well. Even for the Lump Sum Projects, the Employers generally not welcoming claims based on design changes. The procedure to be followed shall be in this way ;
You need to provide documentary evidence based on your unit rate analysis that the change of the design causing change of the cost. After proving the change of the cost, you need to claim for each and every item of work. You are right that each drain would become an individual variation. If you base your re-evaluation on unit rates, it has to include site overheads and general expenses of the contractor as a general rule. If the Employer does not accept, it means that you will have a dispute.

Best regards,

IRVALI

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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