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Simplified Evaluation Example of Variation under FIDIC 1999

The document provides a practical example of evaluating variations under Sub-Clause 12.3 of the FIDIC Red Book (1999). It outlines the process for determining contract prices based on changes in work quantity and conditions, specifying criteria for when new rates or prices should be applied. Additionally, it explains how provisional rates or prices are determined for interim payments until an appropriate rate is agreed upon.

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65 views2 pages

Simplified Evaluation Example of Variation under FIDIC 1999

The document provides a practical example of evaluating variations under Sub-Clause 12.3 of the FIDIC Red Book (1999). It outlines the process for determining contract prices based on changes in work quantity and conditions, specifying criteria for when new rates or prices should be applied. Additionally, it explains how provisional rates or prices are determined for interim payments until an appropriate rate is agreed upon.

Uploaded by

JAZPAK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Simplified Evaluation Example of Variation under FIDIC 1999 (Cl. 12.

3)
Here's a practical and straightforward example demonstrating how to evaluate
variations according to Sub-Clause 12.3 of the FIDIC Red Book (1999)
“Except as otherwise stated in the Contract, the Engineer shall proceed in
accordance with Sub-Clause 3.5 [Determinations] to agree or determine the Contract
Price by evaluating each item of work, applying the measurement agreed or
determined in accordance with the above Sub-Clauses 12.1 and 12.2 and the
appropriate rate or price for the item.
For each item of work, the appropriate rate or price for the item shall be the rate or
price specified for such item in the Contract or, if there is no such item, specified for
similar work. However, a new rate or price shall be appropriate for an item of work if:
(a) (i) the measured quantity of the item is changed by more than 10% from the
quantity of this item in the Bill of Quantities or other Schedule, (ii) this change in
quantity multiplied by such specified rate for this item exceeds 0.01% of the
Accepted Contract Amount, (iii) this change in quantity directly changes the Cost per
unit quantity of this item by more than 1%, and (iv) this item is not specified in the
Contract as a "fixed rate item", or (b) (i) the work is instructed under Clause 13
[Variations and Adjustments], (ii) no rate or price is specified in the Contract for this
item, and (iii) no specified rate or price is appropriate because the item of work is not
of similar character, or is not executed under similar conditions, as any item in the
Contract.
Each new rate or price shall be derived from any relevant rates or prices in the
Contract, with reasonable adjustments to take account of the matters described in
sub-paragraph (a) and/or (b), as applicable. If no rates or prices are relevant for the
derivation of a new rate or price, it shall be derived from the reasonable Cost of
executing the work, together with reasonable profit, taking account of any other
relevant matters.
Until such time as an appropriate rate or price is agreed or determined, the Engineer
shall determine a provisional rate or price for the purposes of Interim Payment
Certificates.”

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