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Construction Law/Change Proposal - Floor Drain

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Question
Floor Drain Response Letter
Floor Drain Response L  
Dear Sir,

I am working in a consultant company and handling a commercial and residential tower, my project base on FIDIC 1987 reprinted on 1992 and a lump sum contract. A week before i have sent one change proposal to contractor regarding the floor drain. The contractor priced the item as 360 per piece for all fitting and accessories in bill of quantity. We found recently a new design and quality floor drain which is costing me 266 only for supply.
Accordingly we propose to change the floor drain as per FIDIC condition to use the new one with additional fitting, accessories cost with contractor overhead and profit. Also we requested to provide the justification of the price (360).
Contractor provided the detailed breakup with material cost consider only 70 out of 360. It seems over priced that item. now he don't want to change the proposed material because it's affecting his saving. Whether i have the rights to change the particular item even though it's over priced.

Answer
Dear Velmurugan,

There is only one page in your attachment.  

I am not sure that I have understood your question correctly.  You have the right to change the item, but the cost must be calculated within the logic of the Contract.  Remember if the Contract was awarded to lowest bidder, then some items will have been over priced and some items under priced.  This item may be one of those overpriced to balance the items that were under priced.  I suggest that you reach a compromise.  

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Peter M. Elliott

Expertise

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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