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Construction Law/Lump sum contract & fidic red book 1999

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Question
Dear femi,

we have project with those characteristics,a)form of contract fidic red book (1st edition) 1999,b) type of contract is Lump-Sum

under sub-clause 12.3 Evaluation in the form of contract  

This sub-clause describes the basic method of evaluating the work executed using bill rates and also describes how new rates shall be determined under certain conditions.

My question is as below:
1) In lump sum contract (fixed price contract)  all the items mentioned in the BOQ are fixed nevertheless they have unit rates (unit rates will be guidance for interim payments and evaluation of variation) subsequently the sub-clause is dealing with unit price contract and not applicable for lump sum contract?  ( exception  if there are change orders i.e variation )
Am I Right?

thanks

Answer
Dear MH,

Thanks again for your question.

Yes, under a lump sum contract governed by Fidic red book 1999, all quantities for items described under the contract are fixed and not subject to change unless there a variation instruction that changes the items of the works. Rates for items are also firmed up and not subject to change except when there is a variation  that changes the items in quantity or quality or workmanship and in sequence of execution and the ground for these changes would be properly analysed and evaluated.

Guess this is what you want to know.

Thanks

Femi  

Construction Law

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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