New Rates for Variations
Forum Sponsor
Top Posters
Julian Pegg
1 posts
Peter Nagy
2 posts
Raymund de Laza
17 posts
Syed_Asad
0 posts
Tony Greyvenstein
0 posts
Ahmed Al-Jubouri
13 posts
Umar Alvi
3 posts
Sibusiso Mahlalela
0 posts
Michael Samanyayi
3 posts
Simon Gumede
0 posts
PL CLARIFY WHAT IS ACTUAL QUANTITY TO UNDERSTAND COPA SUB CLAUSE 52.2 FOR ACCOUNTING 2 % OF CONTRACT PRICE . IS IT VARIED QUANTITY OR BOQ QUANTITY MOST URGENT
S.SRINIVASAN
s.srinivasan,
No need to reply to topics that are 4 years old.
it is mentioned that the actual quantity must be valued with tender rate then amount of such item should be more than 2 % of contract sum then one will have right to negotiate for new rate. under the circumstances can we consider that the actual quantity is the executed quantity of work and in that event the executed quantity of work to valued with tender rate to meet more than 2% of contract price pl clarify
s.srinivasan
Hi Domingo !
Please let me explain you,that your aurgement not exactly correct.
First of all,as you mentioned above,this is not a definite variation.
even,actual quantity of work executed under the item increases or decreases from the quantity set out in the BoQ by more than 25% you are not eligible to vary the rate,unless such item accounts for an amount more than 2% of contract sum.
then,to satisfy the above clause,you actual quantity must be valued with contract rate,then amount of such item should be more than 2% of contract sum,then you will have right to negotiate for new rate.
Hope,you understand the correct interpretation of Sub-Clause 52.2.
Cheers
Dear Brian,
Thank you so much for your views. It is nice to know that I am not alone in my interpretation.
I wonder if any body else in this forum would have any opinion contrary to ours….?
Cheers,
Vic
Vic,
Your Engineer and Employer are not reading the Contract correctly.
If you regard the clauses as a filters through which your problem must pass in order to qualify, it is transparently obvious.
Firstly 52.2 entitles you to a new rate if it has become inapplicable because of a changed amount.
Secondly COPA says the BoQ item must be more than 2% of the Contract Price; LOOK in the sub-clause 1(e)(i) at definition. = the sum stated in the letter of acceptance. \
Thirdly,the reason for the adjustment is the fact that the quantity has changed by more than 25% of the BoQ quantity.
The variation has passed all the above and can then be calculated at a new rate. The answer cannot be seen to have to pass through the process again.
Incidentally, if the item in question is something like an increase in the length of a long retaining wall where an exepnsive shutter has already been paid for in casting the original quantity, an extension in the length of the wall will mean you have a free shutter and the rate should decrease!!
Best of Luck