Error in pricing
In the Open Standard
Raphael Adeyemi, CCP, MNIQS, RQS, MQSiMember for 19 years 4 months
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I am presently on a water project under FIDIC hybrid contract in which few fitting items were priced say BHD100,000.00 instead of BHD100.00. I guess thi was as a result of coma wrongly. The contract is in operation for over a yr. It was not discover at the tender evaluation process.
The question is The Consultant has issued instruction for the items not to be purchased and intend to varied the item. The Contractor is of the opinion that he is entitled to loss of expected profit as this amount to over 10% of the total contract.
My opinion is that the Consultant is trying to correct the mistake made at the tender evaluation and using Caluse 51.1 to varied the work. But I am in doubt if the Contractor is entitled to loss of expected profit. What do you think?
Awaiting response from u guys
The question is The Consultant has issued instruction for the items not to be purchased and intend to varied the item. The Contractor is of the opinion that he is entitled to loss of expected profit as this amount to over 10% of the total contract.
My opinion is that the Consultant is trying to correct the mistake made at the tender evaluation and using Caluse 51.1 to varied the work. But I am in doubt if the Contractor is entitled to loss of expected profit. What do you think?
Awaiting response from u guys
7 replies
Oldest first- 0Dev Tamboli ·as far as contract is concerned since it is freezed consultant cant say no to pay for the work you have done at the same rate you quoted in you contract. but for the part or whole fo the work you have not done consultant can take off that work from you as per conditions consultant have a right to take of part of the work from contractor.
after taking off this work from you consultant can ask you to give your corrected rate and then he can award you that work again with corrected rate by showing some variation.
so conclusion is that if you have done the work already you are entitled tot he amount but if you have not done the work and consultant knows about the mistake then bowl is in his court. - 0Bolisetti Jogiraju ·Hi Raphael !
Agreed by all that its a mistake at the time of tender evaluation,but when noticed during executing the contract,obviously Consultant will try to vary that particular item.
Unfortunately,Contractor has only one last chance to win his claim for "loss of expected profit(If any arises,later)" under Clause 52.3 (Variations exceeding 15 per cent) of FIDIC.
As you mentioned,its contributing over 10% of contract sum but not yet exceeds 15% .
So,in my openion,the plain answer is NO until it satisfy the above said clause.
Cheers
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