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Construction Law/FIDIC 1999 FIRST EDITION

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Question
Dear Femi,
Please clarify the under mention clause in FIDIC 1999 first edition cond. of con. for construction for building & engineering works designed by the employer,

   Cl.12.3 (a) (iii) this change in quantity directly changes the Cost per unit quantity of this item by more than 1% .

If an example can be given it will be very helpful.
Thank you,
Buddi

Answer
Dear Buddidasa,

Thank you for your question and i am happy to respond that the clause 12.3 (a) (iii) of FIDIC 199 - Red Book is interpreted in this manner:

1. The clause provides that a new rate can be used to evaluate any variation that occurs which changes the percentage cost per unit of the item of the work concerned. Example is done in the following for concrete works (for example):

Example 1:          
Original quantity          200   m3       20.00     4,000.00
Additional quantity          20   m3    20.00         400.00
Total Cost of the total quantity          4,400.00
The new additional quantity changed the Total cost per m3 by
(i.e. 20 divided $4,400.00) expressed in percentages as          0.455%

In this case (above example 1), new rate is not to be used since the percentage is 0.455% which is not more than 1% but in the below (Example 2), new rate will be applicable because the % change is more than 1%:

Example 2:          
Original quantity          200   m3    20.00     4,000.00
Additional quantity          60   m3    20.00     1,200.00
Total Cost of the total quantity          5,200.00
The new additional quantity changed the Total cost per
m3 by (i.e. 60 divided $5,200.00) expressed in percentages     1.154%


Hope this clears your doubts:

Regards.

Femi

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Femi Alofe

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I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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