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Construction Law/Omission of work Fidic 1987/1992 (Clause 51.1, b, 52.2)

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QUESTION: "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.

Regards

Farooq"

ANSWER: Pls refer to my previous message.

---------- FOLLOW-UP ----------

QUESTION: Sir,
Please help.
Regards

Answer
Dear Farooq,

I was waiting your reply on following as I request before:

Before replying your question, can you provide information that;

a. Do you have any document during prior meetings in writing that Contractor's overheads represented by C12/15 ?

b. You have referred increase in Project cost, what is the affect of overall increase/omission of C12/15 in accordance with Clause 52.3 if the limit is 15% ?

Best Regards

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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