Construction Law/FIDIC 2010
KINDLY EXPLAIN FOR CLAUSE 12.3 EVALUATION IN DETAIL SPECIALLY PART A(I) TO (IV) AND B (1) TO (III).
SPECIALLY THE CLAUSE 12.3 A PART (III)
Dear Mr. Imran,
Thank you for your question and have following to say to clarify the subject matter as much as is possible.
1. Let us study this with an example with use of clause 12.3 evaluation in general specially Part A (i) to (iv) and then b (i) to (iii). Let us assume that following items are proposed by the contractor for appropriate new rate as per the such a provision in the contract agreement.
BOQ BOQ Executed Percentage Percentage
item QTY. QTY. Change value change of contract value
DBM 16242 9819 39.54 24.51
BC 9148 5619 38.57 17.64
M-15 2065 978 52.61 2.16
2. Now let us see how to evaluate in general under Clause 12.3 for this scenario.
This Sub-Clause opens with a basic statement that the Engineer shall proceed in accordance with Sub-Clause 3.5 (Determination) to agree or determine the Contract Price by evaluating each item of work applying the measurement by the appropriate rate or price specified in the Contract. However, a new rate or price is appropriate for an item of work if:
Each new rate or price shall be derived from
The Engineer shall determine interim rates and prices pending a final agreement.
Recommending the new rate is by paying the actual cost of executing the work using the actual project overheads related to the value of the original scope prior to the omission as indicated by executed quantities in the table shown above. This means that overhead calculated earlier were as per whole quantities as per original schedule of work and have now to be spread it over the reduced re-measured quantities. It then means, the overhead on the project will be calculated per the whole quantities in the original scope and now spread it over the reduced re-measured quantities. The result will then vary the rate per unit of the reduced quantity.
Now if the omitted works or non executed works is as a result of an instruction of the Engineer, in such a case, the provision of clause 12.4 applies. The loss or the cost of incurred sums of 12.4 (a), (b) & (c) would be calculated in part or all from (a) to (c) as may be suffered by the Contractor.
With this I now leave it to you now to raise specific question still requiring clarity.