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Construction Law/Rates to be used for variations


Mr. Peter,

I have a query about the rates to be used for variations (additions). I noticed there are many questions regarding this subject, but are mainly related to omissions. Request your guidance.

Contract type : Lump Sum (quantities shall not be remeasured)
Form of Contract : modified FIDIC 1999 Red book
Applicable law : United Arab Emirates law

The quantity of an item in the BOQ is 100 and the rate per item is 1000. Total BOQ amount for this item is 100,000.

Actual quantity as per IFC drawing is 200.

Client issued a Variation Instruction which caused the quantity of the item to increase to 300.

Please advise if the following calculation is conceptually ok:

Option 1
Revised rate based on IFC drawing : 100,000/200 = 500 per item
Additional quantity : 300-200 : 100 (new quantity - IFC quantity)
Additional amount : 500 x 100 = 50,000

Option 2
Revised rate based on IFC drawing : 100,000/200 = 500 per item
Additional quantity : 300-100 : 200 (new quantity - BOQ quantity)
Additional amount : 500 x 200 = 100,000

Option 3
Revised rate based on IFC drawing : 100,000/200 = 500 per item
Overall quantity : 300
Overall amount : 500 x 300 = 150,000
Deletion of BOQ amount : 1000 x 100 = 100,000
Net additional amount : 150,000-100,000 = 50,000

Please advise if any of the above options is valid or if there is some other concept to evaluate this variation.

Thanks & regards,

Dear Krishna,

To include a BoQ in a lump sum contract is dangerous, without very detailed instruction on how the BoQ is to be used. Option 1 would normally be considered valid, on the assumption that the bidder noted the discrepancy between the BoQ and the drawings at bid time and adjusted his rates accordingly.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


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