Construction Law/Provisional Item

Advertisement


Question
Dear Sir,

We are following FIDIC 1987 4TH EDITION .
Contract is lumpsum. Building Construction project Dubai
there is a provisional item in the Contract BOQ and the unit is item and the contractor has quoted for the item as a lumpsum figure. When we asked him to execute  he is asking for an additional amount as he is not able to do the work within the amount quoted by him. Since it is a provisional item and the lumpsum contract is he eligible for additional amount against the item based on quotations provided by him.

Kindly clarify the above
Thanks and regards,

Answer
Dear Srinath

Thanks for your question.

Since the said item is a Provisional Sum item, it means that the design was not available and a provisional amount was incorporated by the Contractor.

If above statement is correct then the Employer can either award this work to another Contractor or as the current Contractor to submit a bid based on the finalised design. In you case, yes , the contractor is entitled for difference in the amount.

However it is essential to investigate if the said PSum Item is defined or undefined. Please do share the detais with me and I shall be able to advise you in a better way.

Best Regards

Manish Gupta

Construction Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Manish Gupta

Expertise

I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.

Experience

7 Years with Contractors 12 plus Years with Owners & Consultants

Organizations
Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

Education/Credentials
MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

©2016 About.com. All rights reserved.