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verbal instruction & VO

5 replies [Last post]
abdallah riad
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Hi,


1. How would you deal with a verbal instruction?

2. Contractually, what should you do if a change occurs?

3. Can variations to contract be refused and if so on what basis?


Regards,

Abdalla

Replies

Samer Zawaydeh
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Joined: 3 Aug 2008
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Dear Sai,

For the purpose of Interim Payments (Monhtly Payments), the Engineer will determine how much to pay from the VO.

Please note that the approval of all VOs (work outside the scope of the Contract) is up to the Owner. Hence, you need the Owner approval before closing the payment on a VO.

With kind regards,

Samer
Sai Prasad
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Gentlemen

Can the Contractor request for the Finacial claim to be approved before he start work on the variation
mark fernando
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thanks alot guys.
Samer Zawaydeh
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Joined: 3 Aug 2008
Posts: 1664
Dear Abdullah,

Please find below answers to your questions which are based on the requirement of FIDIC 1999 Red Book:

1. How would you deal with a verbal instruction?
Answer 1: per FIDIC 1999 clause 3/3, the Contractor (you) will have to send a letter confirming the verbal instructions of the Engineer.

2. Contractually, what should you do if a change occurs?
Answer 2: per FIDIC 1999 clause 13/3, the Contractor (you) should answer as soon as possible stating that you can or can not complete the works and the reasons why. If you can then you should submit a detail of the works that is expected to be completed and a program of works to complete it, expected financial consequences and its overall effect of the date of completion.

3. Can variations to contract be refused and if so on what basis?
Answer 3: per FIDIC clause 13/1, the Contractor (you), in case you can not complete the instruction of the Engineer regarding the varitation order, then Contractor must submit ASAP a letter to the Engineer explaining why he/she can not complete the material and resources to complete the variation orders with all necessary details. And the Engineer will determine if they accept or reject the Contractor’s explanation.

I hope that the answers were helpful. Let us know if you need more details.

Best Regards,

Samer
Nestor Principe
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Joined: 23 Oct 2008
Posts: 151
Hi Abdalla,

1. I will write letter to confirm the verval instruction. Normally it is standard letter.

2. If changes occur, I will submit notification of claim.

3. Obviously, if you are doing a building the variation cannot be doing another building. If the variation is related to the works you have obligation to carry out the works. You will be entitled to EOT and additional costs in accordance with the contract.

Cheers..