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Construction Law/BOQ rates negotiation

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Question
Dear sir,

This question regards with building construction under FIDIC 99.The Contractor has made an arithmetical mistake and it was corrected during a negotiation.But he has put a high rate(Assume as rate A) to that item and it was also further reduced after a negotiation.Now the finalized rate is, assume Rate B.But the Contract has signed with that initial arithmetical error.At that time we couldn't find that.I have found this error during interim payments and warn them in several time also.Now at the final payment he is claiming the payment according to the high rate (Rate A). What can be the solution for this kind of situation?

Thank you!

Answer
Dear Fernando,

The Contractor shall be paid as per rate stipulated in the contract for each work items. Please refer to subclauses 12.1,12.2 and 12.3

If there was any negotiation and or adjustment agreed by both Parties and such negotiation and or adjustment was documented and included in the contract then it is in effect. Any ambiguity to the contract documents or any discrepancy, the Engineer shall make clarification or instruction pursuant to suclause 1.5.

Any adjustment and or correction can be made during issuance of Final Payment Certificate.

To simplify,If the Contractor puts rate A for Work Item A in the contract, then he will get paid for the actual quantity of Work Item A he executed,completed and accepted in accordance with the requirement of the contract adopting rate A to determine the final payment for Work Item A.

Regards,

Jonathan L. Peralta

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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