Construction Law/ICE 7th BoQ
QUESTION: A contractor failed to provide a rate for a measured item at tender stage even though a quantity was given for the item and a rate was required, but did provide a sum in the amount column agonist the item in his completed BoQ.
The actual quantity of work completed for that item is less than the quantity measured for tender purposes.
Is it permissible to back-calculate a rate for the item from the quantity and amount entered so that the calculated rate can be used to vary the amount payable to the contractor in line with clause 52(1)(a)?
ANSWER: Dear Morgan
I am taking the opportunity to reply your question. First of all please clarify followings;
1. It's OK, contractor has failed to provide to rate the BOQ item at tender stage and tender was accepted by the authority. Now clarify that; sum in the amount column was entered at the stage of tender and what the meaning of completed BOQ?
2. The actual quantity of work measured less than quantity given in BOQ. Therefore, Item can attract for the new rate as per condition of agreement;if sum in the amount column was accepted for the purpose of tender finalization.
3. Obviously it is permissible to back calculate a rate if sum of the item entered in amount column at tender stage and rate may be use to vary the amount payable to the contractor as per provisions of contract agreement.
I hope you will come back with clarifications for further conversation in this matter.
With due regards
---------- FOLLOW-UP ----------
(1) A BOQ item was required to be priced based on a measured Quantity that was inserted by the Client. A Rate was required to be tendered for the item, as well as an Amount, which would be the Quantity multiplied by the Rate.
(2) A sum was entered into the Amount column for the item by the Contractor at tender stage, but not a Rate.
(3) I want to know if I can back-calculate the Rate based on the Quantity and the Amount and use this new Rate to calculate a payment due for a change in the Quantity.
You're welcome for coming back with clarifications;
At tendering stage you have entered sum in amount column but not a rate and your bid was accepted. Yes you can back calculate the rate on the basis of quantity of item entered by the client. You can use this rate of the item for claim of change in quantity for new rate.
I hope this will clear to you.
with due regards