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Construction Law/Sufficiency of the Accepted Contract Amount


QUESTION: Dear Florin

Refer to the 1999 Red Book, Sub-Clause 4.11, for the re-measurement contract, what is the purpose of the Contractor to satisfy the correctness and sufficiency of the Accepted Contract Amount?

Because he will get payment, according to the actual work done. Any change to the given data/information shall be considered as a variation.

Could you explain how to apply this Sub-Clause both the Client's & Contractor's sides.


ANSWER: Dear Sudantha,

Thank you for your new question.

That Sub-Clause indicates that Contractor undertakes the responsibility of having properly assessed the information available in the Tender Dossier/ Bidding Documents, that he has properly investigated the Site (giving due regard to costs and time), that he has properly scrutinised the law of the country, etc. and that he has made a proper interpretation of all such data.

And then, Contractor undertakes that Accepted Contract Amount is sufficient for hi to execute the Works, as described in the Contract.

It has nothing to do with Clause 12 - MEASUREMENT AND EVALUATION.

Trust that clarifies the matter.

[an error occurred while processing this directive]---------- FOLLOW-UP ----------

QUESTION: Dear Florin

What is mean by "giving due regard to cost and time"

What is the advantage of this Sub-Clause to the client.



Hello again,

Thank you for coming back.

As you well know, Tenderers must visit the Site and familiarise themselves with the ground conditions.

If there are obvious aspects, e.g. a marsh, or clear signs of land slide, etc, the Contractor is fully responsible for observing them and to take such conditions into consideration when preparing his tender and calculating his financial offer.

But if there are underground aspects, not visible, Tenderers can not be expected to carry out detailed topographic surveys, geotechnical tests/ surveys, archaeological surveys, etc, during the tender preparation period, as these would take too much time and cost a lot.

Such information should be provided by the Employer, otherwise if discovered, later on, would fall under Sub-Clause 4.12 [Unforeseeable Physical Conditions].

Hope that is clear now.

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Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.


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