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Construction Law/The Contractor bears the cost of a Work without increasing the Contract Price


Dear Sir;

Hope you are OK.
I am the Engineer's CA and the Contract between our governmental Employer and the Contractor is a bespoke one which includes the following sub-article in its Particular Conditions:"The Contractor shall bear the cost of conducting soil tests and inspections and carrying out the approved recommendations related which may include the soil improvement works without any consequent increase in the Contract Price"

My question is; what is the entitlement of the Contractor in the following cases in view of the statement "... shall bear the cost of.... without consequent increase in the Contract Price":
1- The BOQ contains an express item for Soil Improvement Works (either Lumpsum item or remeasured)
2- The BOQ doesn't contain any item for Soil Improvement.
3- The BOQ contains an item which is similar to Soil Improvement Works recommended in the soil report (such as cut & fill for site grading item)

Please note that the contract is re-measured one and meanwhile it is Design & Build and the soil report is to prepared by the Contractor (a specialist assigned by him)

Thank you

Dear khaled,
thanks for the question.
In a designbuild, all aspects of design include all soil tests relating to soil studies on the basis of which the contractor submitted his design.This case if becomes a dispute needs to be referred to adjudication board which can appropriately decide such issues after going through the obligation of both parties as per contract. Hope this is helpful.
Regards-liaqat hayat  

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Liaqat Hayat


I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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