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Construction Law/Claification on Cl 12.3 FIDIC 1999

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Question
Dear Sir,
kindly advice if cl 12.3 (i)is applicable to both increase and/or decrease in quantity of the BOQ items or re-evaluation is applicable on items with decrease only?
If  many items have increased in quantity and many have decreased what happens in this case? Can the Contractor still ask for re-evaluation of rates?
Thanking you
Abdul

Answer
Dear Abdul,

Clause 12.3 is applicable for both increases and decreases.  Please remember that all four conditions must be fulfilled before a rate is amended.  Considering that all four conditions must be fulfilled, it is unlikely that there will be many items to amend. If the quantity is increased, then the rate is likely to be reduced to prevent over recovery of overheads, or due to the economies of scale.  

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Peter M. Elliott

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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

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B Sc(Hons) in Civil Engineering

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