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Construction Law/fixed unit ( bill of quantity "


, I am contracting you again to clarify my previous questions, firstly, is it allowed to calculate the percentage ratio of the executed works in the interim payments, which relates to fixed units (lump sum) in the unit price tenders according to FIDIC red book of 1999.
The donors of the project rejected any percentage ratio related to any items which relates to fixed unit (lump sum, number). As prominent example;
- the donor rejected calculating any electrical works, such as sockets, lighting units, claiming that these items are related to fixed unit(number), which cannot be calculated unless its fixed and installed.
- the donor rejected to calculate door works, since  they are not fully installed, for example if we have 45 doors to be installed, and 45 frames of these door were fixed, the donor refused to consider part of these doors since contractor did not fix the 45 doors.
- the donor rejected to calculate water tank lump sum, including the following construction activities      “ excavation, foundation, walls, slabs” claiming that contractor accomplished 70%  of the previous mentioned construction activities, and donor confirmed to calculate the water tank lump sum after contractor accomplishes 100% of it.
Best regards,

Dear jubran,

It all depends what is written in the contract.  In the absence of anything to the contrary, the donor's stance is defensible.  

Normally, the Engineer would estimate the work done and certify payment accordingly, but the approach to lump sums can vary.  When I wrote contracts with significant lump sums, then I would specify that stage payments would be made; excavation and base slab x%, walls complete and water tight y%, E&M z%, commissioning 10%.  However, not everybody is so experienced and they do not understand that the contractor has cash flow problems if he is not paid sufficiently and regularly, which leads to bankruptcy and disappointment all round.  Guess that you have to persuade the donor to be realistic.  

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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
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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
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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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