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Construction Law/clarification -variation

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Question
Dear Irvali ,
The Contract is Lump Sum -Fixed Price based on FIDIC 1999.
Please clarify -

Aluminium window is changed from fixed to open able type.
The Contractor variation claim is for the difference in the cost and the 10% OHP.
Whereas the Engineer wants to evaluate it as Omission of the original(fixed type) and Addition of new item(open able).
The Engineer wants to do this because the price/rate for the fixed window is higher than the market.
who is justified and why."

Regards

Answer
Dear Girdhar,

This is a Variation which requires an agreement between the Engineer and the Contractor on price diffrence, however the mechanism of fixing price different is not clarified in the Contract, therefore the Contractor has to submit his justification for price difference together with documentary evidence and the Engineer has to verify through their own system. In case of disagreement, the Engineer fix a new rate and the Contractor may claim if he does not like the new rate.

Best Regards

IRVALI

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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