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Construction Law/Sub Clause 12.3 of FIDIC 1999

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Question
This sub clause is related to omission of work. In sub clause 12.4(b) says that "the omission of the work will result ( or has resulted)in this sum not forming part of the Contract price".

Please clarify what is the meaning of IN THIS SUM?. Whether this is the value of omitted work or value of overhead component of omitted work ?

Also please clarify whether the contractor is entitled only for cost or cost plus profit for omission of work under this sub clause.

Answer
Since Sub-Clause 13.3 concludes by referring to Variations being valued under Clause 12, and the quantity (for the purposes of Sub-Clause 12.3) of an omitted item is zero. Clause 12 concludes by entitling the Contractor to compensation for the costs reasonably incurred in the expectation of carrying out v/ork subsequently omitted under the Variation.
The Sub-Clause refers to the word "cost" in its usual usage, rather than to "Cost".
The significance of this point is best illustrated by a typical example. If the Contractor had ordered formwork for work which was subsequently omitted by Variation, the Accepted Contract Amount would typically have included direct cost plus profit in respect of this formwork. The Contractor would then be entitled to recover cost and profit. However, if the Employer was thus required to pay for the full cost of an item, he may also be entitled to recover it as his property

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Bogdan Oprea

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I can answer to claims assesments under FIDIC 4 and under FIDIC red book; I can answer to procedural issues under FIDIC rules; DAB implementation DAB procedures, etc

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