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Construction Law/Variation - 1999 FIDIC Red Book

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Question
Dear Sir

I have a query about Sub Clause 12.3 [Evaluation], 1999 FIDIC Red Book

Please consider the following example:

Item:          Disposal of unsuitable material

Quantity as per BoQ          1,000 m3

Actual Quantity (as per site situation)          50,000 m3

Unit rate for this item          AED 30 per m3

Accepted Contract Amount          AED 250 million


Above quantity change is comply to the Sub Clause 12.3 (a) (i) & (ii)

If this item is not a fixed rate item and comply to the Sub Clause 12.3 (a) (iv) , then

(a) How we verify the Sub Clause 12.3 (a) (iii), to propose new rate.

(b) How we derive the new rate

Could you show the calculation clearly with any assumptions mention clearly
Br

Sudantha

Answer
Dear sudantha

Are you sure new rate is applicable Contractually?
Please clarify if it is a Lump Sum Contract?

Was any clarification raised during Tender Period with regards to these quantities.

Did all tenderers consider this Qty as 1000m3 only?

Based on your responses the action to deal with item can be considered.

To derive a new rate -- Manhours, Material and Equipment costs are to be considered to carry out 1m3 of quantity and then apply the same rate for 50,000 m3.

However first of all you need t establish if this claim is valid one?

Best Regards

Manish

Construction Law

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Manish Gupta

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I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.

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Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

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