Construction Law/Clause 51.1(b) Omission of Work - Fidic 1988/1992
In a Construction Project, The Engineer has issued instructions to omit an item(C12/15) from work scope in persuant to Clause 51.1 (b), also propose an alternate option and asking for its rate submission.
The facts at the Contractors end are :-
1. There are 3 types of concrete being supplied in the Project by the contractor, C12/15, C30/37 & C 40/45
2. Contractor, while quotaing the rates at bidding stage had added all the concrete suplly's overheads in one item i.e. C12/15 with increased rate, hence rest of concrete items are quotated without any overhead.
3. In clarification meetings of bid acceptance stage, rate analysis for C12/15 and C30/37 were called by the employer, accordingly submitted by the contractor clearly depicting all the overheads in C12/15. Same rates were agreed/accepted and Project awarded to the Contractor.
4. Now in mid of the Project, to overcome the unusual increase in Project cost due to design/BOQ errors, the Employer has instructed Engineer to omit/delete the C12/15. Accordingly The Engineer has issued instruction to omit the C12/15 as per Clause 51.1 (b)and propose some alternate options to continue rest of construction(which itself is non-practical approach)
5. Due to this omission, Contractor is facing a huge loss and the Project is becoming commercially unfeasible for the Contractor.
In this context, your kind support and guidance is requested to deal with the situation under FIDIC provisions to safe the Project.
I am trying to answer your question.
In the contract as per provisions of agreement the Engineer shall make any variation of the form, quality or quantity of the works. It is clearly mentioned in sub clause 51.1 (b) omit any such work (but not if the omitted work is to be carried out by the Employer or by another contractor) means omitted work can not be completed in the other form. but Engineer can change the character or quality or kind of such work.
For valuation of varied work it is also mentioned that refer sub clause the valuation of variation shall be carried out by the Engineer in consultation of Employer and the Contractor.
In last it is clear that work can not be omitted only to reduce the cost of the work otherwise an agreement shall reach to compensate to the contractor for such work to complete the work.
I hope this will help to you.