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FIDIC 1999 Books – Commentary on Clause 12

FIDIC 1999 is a re-measurement contract so that the Employer takes the risk of variations to the quantities and, in certain cases, to the rates and prices which may be applied for the work executed. If the Employer wishes to employ a Contractor on a lump-sum or cost plus basis then this clause needs to be deleted. Sub-Clause 12.1 deals with the measurement of the works. Sub-Clause 12.2 does not include a reference to any standard method of measurement but states that the works are to be measured in accordance with the Bill of Quantities or other applicable Schedules. The lack of reference to a particular standard method of measurement has been criticised. Sub-Clause 12.3 deals with evaluating the appropriate rate or price for the works. There are three methods of evaluating the works:- a) The rate or price specified for such item in the Contract; but if there is no such item b) The rate or price specified for similar work. c) However, in certain specified circumstances, a new rate or price shall be appropriate. Sub-Clause 12.4 deals with the valuation of omissions from the Work. As this is a re-measurement contract there is no warranty that the quantities measured in the Bill of Quantities are accurate. Nael Bunni suggests that when quantities within the Bill of Quantities are exceeded then payment should be at the rates set out in the Bill. There have been some cases where the courts have adopted differing approaches; however, in those cases the wording of the remeasurement clause differed to that within FIDIC. These decisions have been described by Dr. Bunni as being controversial.

By |August 11th, 2016|Knowledge Hub|Comments Off on FIDIC 1999 Books – Commentary on Clause 12
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