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Construction Law/FIDIC 1992, 4th Rev - Rate Revision


I am working for a contractor.

Contract Drawn on COC FIDIC 1992 (4th edition) on re-measurement basis.

Original Project duration 24 months.  Revised duration 48 months as a consequence of the Employer risk events.

EOT not yet finalized or agreed by the Contractor.  The Contractor has already give notices of his intention of claiming costs associated with EOT.

My question is that can the Contractor ask for Rate revised of all BOQ items for the balance quantities to be executed during the extended period.  My rationale is that (a) the Contractor’s offered BOQ rates/prices were valid for the duration of the Contract (2 years) only + any delayed period attributable to the Contractor, if any; (b) the Contractor encountered delay largely due to employer risk events.  During the extended period change in Legislation also occurred which has enhanced the taxes, inflation.  

Please guide me if it is appropriate to make a claim for rate revision and under which clauses.

Thanks for your time and assistance.  Sarwar

Dear Mohammad Sarwar,

The intention of any claim is to return the parties to the state foreseen in the original Contract.  Depending on the Particular Conditions, some EoT are granted with costs and some without costs.  It would appear that you have a claim for reimbursement of extra costs here, which must be justified.  

Changes in legislation are covered by clause 70.2 and thus there could be a valid claim for reimbursement of costs.  Increases in materials is more problematic.  Any increase in the cost of the materials or labour would need detailed justification. I suggest that these costs be part of the claim for the EoT, rather than revising the contract rates.  The Employer could delay payment based on revised rates until those rates had been agreed.  

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Peter M. Elliott


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 before submitting a question.


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

B Sc(Hons) in Civil Engineering

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