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Construction Law/Siginificant Q'ty increase

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Question
Dear Mr. Peter,

In the Re-Measurement Contract, is it available to apply new rate for the item increased significantly.

All the rate is already specified in the Contract BOQ and Contract clauses state that the rate shall not be deemed to be only confined to the original q'ty.

I acknowledge that the cost additional q'ty shall apply same rate, but the cost impact due to the lower rate is too much huge.

Can you please advise something to overcome this difficulties.

Answer
Dear Choi,

My apologies for the delayed response.  

You do not mention the form of contract nor the applicable law, so the following comments will be generic in nature.  The theory is that all rates reflect the actual cost of providing the materials and work plus a bit for overheads and profit.  If you have underpriced a particular item, then you have to live with the effect when the quantities are increased.  When I am awarded a contract, I always check for errors, based on principle that if I had not made a mistake, then I would not be the cheapest.  Once I have found the errors, then I do my best to minimise them.  All you can do is ask the Employer for mercy.  There is a provision in some contracts for the Engineer to vary the contract price, when the taking over certificate is issued, if he considered that the varied quantities had created an injustice. Generally the effect is to reduce the rates due to over recovery of overheads and profit.  Next time I suggest that you price items more carefully.  

I regret that I cannot give you a more hopeful answer and I hope that you survive this experience.  

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Peter M. Elliott

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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
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

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