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Question
My project contract is Fidic 1999. We as a contractor submitted a variation,and no boq rate was available ,so we have used the existing subcontract rate.Now Engineer is asking for 3 quotations to assess the variations. Since a subcontractor is already on the board we cannot engage any new one. How we can defend our position on this.

Many thanks

Answer
Dear Ragesh,


I assume you are using FIDIC 1999 for Building and Engineering Works Designed by the Employer.

Please take note that in FIDIC 1999 the Engineer may initiate a variation pursuant to subclause 13.1 and not the Contractor. The procedure is stipulated under subclause 13.3

Is the subcontractor already on site prior to existence of this varied item? And do they have a different subcontract other than this varied item? Take note that prior consent of the Engineer shall be obtained to any proposed subcontractor (ref. subclause 4.4)

Submit a notice of claim pursuant to subclause 20.1 and provide detailed particulars to the Engineer within the time frame stipulated under sc 20.1 and let the Engineer issue his determination on this matter. You can say to the Engineer that since a subcontractor is already on site, cost will be reduce and will accelerate the work (availability and less overhead),of course you need to substantiate this and that depends on available information, resources etc. Good Luck !


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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