Construction Law/clause 52.3

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Question
does the addition/omission for the variations exceeding 15% of the effective contract sum, includes the preliminaries or only the overhead for site?
because the Contractor is claiming for additional prelims to each variation that he submits.
thank u

Answer
Dear Ruba,
This clause is generally invoked at the time of TOC. If at the end of the project, it is found that the variations amount to more than 15% of the contract price (as adjusted), an addition or omission to the contract sum may be agreed or determined by the Engineer in respect of the Contractor's overheads.The Contractor may claim that his overhead cost has increased due to variations and he has incurred additional cost.In such  case, the Engineer will determine  and adjust the Contract Price accordingly.
Now coming to your specific Q,the Contractor should avoid and  not include the additional Prelims in each variation but he may consider his site overhead and other on cost,if he has brought additional resources for the instructed works.But it is debatable and depends upon the actual scenario at Site in accordance with the additional  work instructed and when it was instructed by the Engineer.
Let me know if you have any further questions or if I can be of any further assistance.

Regards

Engr.Arshad Mahmood

Construction Law

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Arshad Mahmood

Expertise

I may answer to the questions relating to FIDIC 4th as well as FIDIC 2010 MDB Harmonized version,price adjustment ,Variations,Eot and Cost claims,EPC Contract,Bidding Document,consultancy Contracts,certification,Standard Forms, Dispute resolution; and others pertaining to Contract implementation.

Experience

Contract management and Contract Administration, using FIDIC Conditions of 4th Addition as well as Fidic 1999 Red, Yellow and Silver Books including MDB Harmonized Edition 2010. Particularly in the area of Procurement of Contracts, Certification,Price Adjustment, variations,disputes management, EoT and Cost Claims; and other contractual issues arises from time to time during currecy of the Contracts.

Organizations
Member -Pakistan Engineering Council Member -Pakistan Engineering Congress Member -FIDIC Organisation

Publications
Joint Venture and Consortium Agreements for Pakistan Engineering Council,Pakistan

Education/Credentials
BSc Civil Engineering; Basic Management course; Hydro power Projects; and various other on Job Trainings

Awards and Honors
Commendation Certificate for the excellent management qualities and dedication at Ghazi Barotha Hydropower Project; and Certificate of Excellent work performed during Survey Camp.

Past/Present Clients
Water and Power Development Authority (WAPDA),Associate Consulting Engineer(ACE) and National Engineering services Pakistan(Pvt.) Limited (NESPAK)

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