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Construction Law/Sufficiency of the Accepted Contract Amount

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Question
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.

Br
Sudantha

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.



---------- 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.

Br

Sudantha

Answer
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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Florin NICULESCU

Expertise

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.

Experience

Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Organizations
Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

Education/Credentials
- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

Past/Present Clients
- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

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