Construction Law/Rate only Item


Dear Sir,
I am the main contractor for a piling job for which FIDIC MDB 2005 is applicable.
There was an Item in the BOQ at the Tender for pile hacking(breaking  pile termination point to reach sound concrete which is normal in the piling contract.).Once we have given our bid Employer has taken off the quantity of this item but keeps the item as “rate only” under same item the BOQ stating that we can use it if it is required. This leads Bid price reduction. Later this item actually was required and they have paid through actual quantities and using rate in the BOQ as “rate only”.
a.   Can we ask EOT for this? Is it necessary to the Contractor to consider the time impact for the item given as “rate only” at his Bidding price?
b.   Project is actually delayed due to this pile hacking Item. What are the financial considerations as a contractor we may able to address and under what clauses those can be referred.
Than you

Dear thusita,

As with all questions dealing with EoT, I suggest that both parties download and study the SCL Protocol on Delay and Disruption, which has been updated recently.  It is the best guide that I know for presenting and reviewing claims based on delay and disruption.  

I would deal with rate only items as I would Provisional Sums and say that the Contractor should have made allowance in his programme for the work, on the basis that an experienced contractor would have expected to do the work.  However, you may have a better argument.

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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.


Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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