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Variations Exceeding 15 Percent?

5 replies [Last post]
Thu, 2006-12-14 03:59
Weni Samson
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Hi Guys! Can anybody explained to me about Clause 52.3 of FIDIC - Conditions of Contract for Works of Civil Engineering Construction? The content of this clause is so confusing. Thanks.
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Tue, 2006-12-26 01:55
#1
Weni Samson
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Hi!
Is the "decrease or increase" will be based from the Contractor’s Site & Overhead Costs? Needs further opinion on this regard.Thanks.
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Mon, 2006-12-25 18:48
#2
Skan Bu
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Hi

Just a thought.
If it is reduced by 15%, they will deduct the qty x £original rate. -- ok

but can you claim lost due to opportunity forgone and the rate adjusted? This is because say buying power for materials at 15% less than original order could loose the discount or none economic of scale purchase. The material ordered but not use?

Same with plant productivity, could you not claim less economic production too because the rate produced was based on the qty in the original contract and now less qty so rate is affected?

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Sun, 2006-12-24 08:02
#3
Dayanidhi Dhandapany
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If it increases by 15%, you will get the difference(between the original effective contract price and revised(due to variations)effective contract price)conversely if it decreases by 15%, they will deduct that money from the original effective contract price.
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Sun, 2006-12-24 05:14
#4
Weni Samson
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How about if it increase or decrease by 15%, what’s the procedure? Thanks.
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Wed, 2006-12-20 09:56
#5
Dayanidhi Dhandapany
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This clause states that on the issuing of taking over certificate for the whole of the works, including all the variations valued under sub clauses 52.1 and 52.2, if the contract price(excluding provisional items and allowance for day works)changes by 15% (may be an increase or decrease to the original effective contract price), then the engineer after the consultation with employer and contractor, such sum can be added or deducted from the contract price. which means if the variation is not exceeding 15% of the effective contract price, as per my understanding the contract sum may not be altered due to addition or omission of such works. so you will get the same lumpsum price in this case.
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