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Construction Law/Change Scope of Works

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Question
1. At the commencement of a Contract Client changes the scope of the project just about to issue the LOA. At verge of issuing the LOA Employer wants to change the scope of the project. As a Contractor how to manager this? Under Fidic what are provisions available?
What are the practical methods available to manage this situation?

Answer
Dear Dhanushka,

If the Employer wants to change the scope, then the Contractor should review first the revised requirement/scope and revision of COntractor's offer may be necessary(depends on how big or small the change is). Remember that the Contractor's offer is based on the Tender Documents,should there be any change in the Employer's requirement then both Employer and Contractor should proceed first with negotiation before making any adjustments.

Any change or adjustment shall form an annex to the LOA and if both Parties agree then they may enter into a contract agreement. (sc 1.1.1.3 and sc 1.6).

Such change may affect the Accepted Contract Amount (sc 4.11), Time for Completion (sc 8.2) and the Contractor's Programme (sc 8.3) as well as the Performance Security (sc 4.2) and Advance Payment under SC 14.2, also permits (sc 2.2)

Hope this helps.

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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