Construction Law/Rate

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Question
Dear Sir

For the lump sum contract assume that the 200 nr of light fittings are shown in the drawings. However the BOQ only have 150 nr and rate is QAR 25 (amount is 150 x 25 = 3750).

Later the engineer instructed to omit the particular type of light fittings in some area (qty 50 nr). There is a provision in BOQ to include missing items, and however the Contractor not corrected the qty.

Then correct rate for the omission is either 25 or 18.75 (3750/200).

Could you explain with reasons.

Br

Sudantha

Answer
Dear Sudantha

You have again sent a similar question but some of the details are still missing in your letter. For my answer, I will assume that certain provisions as under are mentioned in the Contract which is a normal practice:

i) The lump sum amount agreed in the Contract is the total sum quoted by the bidder in his bid and is full compensation for carrying out all the works mentioned anywhere in the Bidding Documents.

ii) The rates and prices mentioned in the BOQ is just for comparison of bids and for reaching the total Price of the Contract. After agreement on the total Lump Sum Price, the BOQ rates will only be used for the purpose of Variations.


Now the answer is:

i) the Contractor will execute 200 light fixtures along with other works for the total Lump Sum Price.

ii) the deletion of 50 light fixtures will be evaluated at the rate mentioned in the BOQ ie 25.

However if the above mentioned clauses or clauses similar to these are not mentioned in the Contract, then though the contractor is still bound to execute the number of light fixtures mentioned in the drawing ie 200 but with an additional cost for 50 light fixtures that are in excess of the numbers mentioned in the BOQ. The deletion of Light fixtures will also be valued at the same rate.

Hope your question is answered.

Regards  

Construction Law

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Volunteer


Abdul Majid Khan

Expertise

I volunteer for questions related to FIDIC Conditions of Contract 1992, EPC Contracts and Contracts based on FIDIC Harmonized Edition 2010 etc.

Experience

After graduation in Civil Engineering in 1970, I have experience in construction Management and Contract Management on projects in Pakistan and Middle East. I retired in 2009 as Vice President Construction Management and Contracts Divisions of NESPAK, Pakistan Premier Consultancy Organisation. Since then I am working as Free Lance Expert on Contracts and remained Chairman/Member Dispute Boards under FIDIC (Harmonized Edition) 2010 and as Arbitrator/ Member of Arbitration Tribunals.

Organizations
Currently Free Lance Contract Expert and am on the panel of Engineering Consultancy Services Punjab (ECSP) and Quaid e Azam Solar Power Company.

Education/Credentials
I have graduated in Civil Engineering in 1970.

Awards and Honors
Various Honorariums, special awards, promotions and many appreciation letters etc during my service in NESPAK. Remained Member, Board of Management of NESPAK, the highest forum in the Organization, to assist the Managing Director.

Past/Present Clients
Government as well as private clients dealing with engineering related Contracts.

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