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# Construction Law/Evaluation

Question
General Conditions of Contract for Construction for Building and Engineering Works designed by the Employer
FIDIC March 2006

Country : St. Vincent and the Grenadines

Referring to Sub-clause 12.4, Evaluation of above General Conditions, there are several conditions to follow before using a new rate or price for an item of work.

The condition (a) (iii) "this change in quantity directly changes the Cost per unit quantity of this Item by more than 1%, and"

Can you please expound the above condition as I could not really understand how it is going to be done?

Dear Edito,

Suppose that the BoQ includes an item for concrete for bases 0.5 m by 0.5 m by 0.5 m deep as foundations for wall posts and this item is changed to a trench 20 m long by 0.5 m wide by 0.5 m deep as a wall footing.  In the first instance, hand mixing of the concrete might be needed and the cost might be €100 per cu. m.  In the second instance, it might be possible to fill the trench using ready mix concrete and the cost might be €90 per cu. m. so the cost per cu. m. has varied by more than 1% and thus is meets the requirements of this condition.  It all has to do with the economies of scale.  The unit rate for 500 cu m of concrete is generally lower than that for 50 cu m. The general intention of this clause is to reduce the number of varied rates to major changes only and thus reduce the amount of bureaucracy.  There is no point in varying a rate if the cost effect is minimal.
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#### Peter M. Elliott

##### Expertise

First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

##### Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll