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Provisional Sum v/s Variation Order

3 replies [Last post]
Sat, 2007-07-28 16:11
Pradeep Mendonca
User offline. Last seen 16 years 14 weeks ago. Offline
Joined: 28 Jul 2007
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Hi all !!

Just joined in and found to be a great discussion forum.

I have one question:
The engineer got the quotations from other nominated sub contractors for provisional sum and found to be extremely high as against the amount stated in contract PS. So, the engineer instructed the main contractor to carry out certain works of provisional sum based on the BOQ rates referring to clause 58.2 & 52 of FIDIC 1987. Any works where there is no rates stated in BOQ is to be analysed and agreed.

Does the contractor has any rights to object to carry out such works as these works were priced way back (say 2 years). Also, the contractor would have adjusted his price in BOQ while tendering. For this particular item, the unit rates are much lower compared to the present market prices.

Guys, please advice.
Thanking you all in advance.

Pradeep
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Replies

Mon, 2007-07-30 01:41
#1
Bolisetti Jogiraju
User offline. Last seen 5 years 30 weeks ago. Offline
Joined: 7 Jul 2007
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Pradeep !
You are absolutely right.
You have to substantiate with invoices/vouchers etc added up with your OH&P.

Cheers
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Sun, 2007-07-29 14:49
#2
Pradeep Mendonca
User offline. Last seen 16 years 14 weeks ago. Offline
Joined: 28 Jul 2007
Posts: 15
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Thanx Jogi...

If we read clause 58.2, the PS is instructed by engineer to contractor (a), AND nominated sub contractor (b).

That means...the contractor will coordinate the works ONLY and will be paid as per 59.4. FIDIC doesnt mention that PS has to be carried out by contractor ALONE.

So the engineer cannot instruct the contractor to do PS based on BOQ rates and hence a separate nominated sub contractor has to be appointed where the contractor takes his overheads and profit.

Am I right on these lines??
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Sun, 2007-07-29 00:57
#3
Bolisetti Jogiraju
User offline. Last seen 5 years 30 weeks ago. Offline
Joined: 7 Jul 2007
Posts: 32
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Hi
Pradeep !
Contractor can not object to carry out works which are:

expressly required to complete the said project
affected by price escalation,unless Clause related to "Changes in Cost and Legislation" exists in Contract.

Hope,you got it.

Cheers
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