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Construction Law/Evalution under clause 12.3


Tara Nath Spkota wrote at 2013-08-28 15:04:03
The answer looks very clear but the conditions to apply for new rate , 12.3, a (iii) is not clear which states, " this change in quantity directly changes cost per unit quantity of this item by more than 1%. "

The important thing to note is the change in cost depends on market conditions,i.e. change of cost components of the item. More specifically, the cost of an item depends on the cost of materials, manpower, equipment and overhead cost. There is a provision for price adjustment for changes of cost in sub-clause 13.8 of Fidic red book, 1999. The cost of input parameters ( manpower, material and equipment) of an item is a market function. This is addressed by sub-clause 13.8. However, the method of linking change of cost per unit with the change of quantity is not established and there is a tendency of the Engineer (clues 3) not to apply a new rate for sub-clause 12.3: Evaluation of  the quantity of the item with such changes.


Tara Nath Sapkota

Construction Law

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