8/10/2019 Construction Claims Basis
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As pre'i"us!+ stated8 the Red B""k re#u!ates the ri#hts and "
!i#ati"ns "f the parties t" thec"ntract. Its pr"'isi"ns specif+
(hat sh"u!d e d"ne + the t(" parties "r their a#ents andser'ants
and the c"nse4uence if (hat "u#ht t" e d"ne is either n"t d"ne8 "r
if d"ne8 is n"t d"ne(ithin the ti%e specified.
C!ai%s (i!! 'er+ "ften arise in a traditi"na! c"nstructi"n
c"ntract ecause it is perhaps the "n!+c"ntract (here the price "f
the end resu!t is defined ef"re the pr"cess "f pr"ducti"n@ e'en
starts.Acc"rdin#!+8 in the c"%petiti'e at%"sphere "f tenderin#
(hich acc"%panies such a c"ntract8 !itt!e"r n" %ar#ins are !eft f"r
future unkn"(ns in a !"n# and c"%p!e/ peri"d "f
c"nstructi"n.)urther%"re8 as the rates and prices ha'e t" e ased "n
certain assu%pti"ns (hich are8 in turn8
ased "n the pr"'isi"ns "f the C"nditi"ns "f C"ntract8 an+ chan#e
et(een (hat (as assu%ed and(hat actua!!+ happens %a+ f"r% a seed
f"r a c!ai%.
As a!read+ stated8 c!ai%s under this cate#"r+ %a+ e di'ided int"
. In "ne part "f the c!ause it %eant 9ph+sica! %eans "f access
since that part a!s" referred t" the c"nditi"n "f the access.
An"ther part "f C!ause >p!aced an " !i#ati"n "n Si%"n Car'es t"
9aff"rd access t" LRE. This %eant that Si%"n Car'esundert""k that
at the re!e'ant ti%e there ("u!d e a ph+sica! %eans "f access and
a!s" that LRE("u!d e #i'en the "pp"rtunit+ t" enter the site +
%eans "f that access. *n this interpretati"n it(as he!d that there
(as n" reach "f c"ntract. Si%"n Car'es had pr"'ided LRE (ith
the"pp"rtunit+ "f enterin# the site + the re4uired %eans "f access.
The fact that the+ (ere
pre'ented fr"% d"in# s" (as n"t a reach "f c"ntract.Standard
)orms
The standard f"r%s #enera!!+ e/press!+ state the resp"nsi
i!ities f"r access t" Site8 in ter%s (hichref!ect the t+pe "f ("rk
en'isa#ed and the e/pected use "f the f"r%s.
)IDIC *++,
The )I-IC Red8 *ran#e and e!!"( )"r%s =HHH p!ace the %ain
resp"nsi i!it+ f"r access "n theC"ntract"r and ref!ect the
internati"na! and ci'i!$%echanica! t+pe "f ("rks en'isa#ed.
C!ause >.> "n!+ re4uires the E%p!"+er t" pr"'ide reas"na
!e assistance8 and then "n!+ at theC"ntract"r@s re4uest8 f"r the
C"ntract"r@s app!icati"n f"r per%its8 !icences "r appr"'a!s
inc!udin#
c!earance thr"u#h cust"%s and e/p"rt "f the C"ntract"r@s
E4uip%ent (hen re%"'ed fr"% Site.C!ause .=? %akes the C"ntract"r
resp"nsi !e f"r specia! and$"r te%p"rar+ ri#hts "f (a+
inc!udin#th"se f"r Access t" the Site.
nder C!ause .= it is f"r the C"ntract"r t" satisf+ hi%se!f as t"
the suita i!it+ and a'ai!a i!it+ "f access t" the Site8 and is
resp"nsi !e f"r " tainin# per%issi"ns t" use the r"ute and si#ns.
C!ause
.= e/press!+ pr"'ides that the E%p!"+er d"es n"t #uarantee the
suita i!it+ "r a'ai!a i!it+ "f particu!ar access r"utes.
The re%ed+ in "th "f these t+pes "f c!ai% is desi#nated in the
c"ntract and the c!ai% %a+ inc!udethe f"!!"(in#.? app!+D
. "%it such ("rk pr"'ided it is n"t t" e carried "ut + the
e%p!"+er "r + an"ther
c"ntract"rD
c. chan#e the character "r 4ua!it+ "r kind "f an+ such ("rkD
d. chan#e the !e'e!s8 !ines8 p"siti"n and di%ensi"ns "f an+ part
"f the ("rksD
e. e/ecute additi"na! ("rk "f an+ kind necessar+ f"r the
c"%p!eti"n "f the ("rksD
f. chan#e an+ specified se4uence "r ti%in# "f c"nstructi"n "f
an+ part "f the ("rks.
ara#raph 6f7 "f su :c!ause =.= (hich is a ne( pr"'isi"n under
the )"urth Editi"n assu%es that
s"%e specified se4uence "r ti%in# "f c"nstructi"n had a!read+
een %ade in the c"ntractd"cu%ents. It adds a ne( di%ensi"n t" the
%eanin# "f a 'ariati"n fr"% pre'i"us editi"ns "f theRed B""k in
that it enc"%passes the ti%in# "f c"nstructi"n and its pr"#ra%%e.
An+ chan#e fr"%the specified se4uence "r ti%in# stated in a
pr"#ra%%e su %itted + the c"ntract"r under c!ause= and instructed +
the en#ineer under c!ause = ("u!d theref"re 4ua!if+ as a 'ariati"n.
Such achan#e %a+ e in the f"r% "f a re4uire%ent t" acce!erate the
("rk "r t" 'ar+ its ti%in#.
Su :c!ause =.= "f the Red B""k a!s" pr"'ides that an+ 'ariati"n
instructed + the en#ineer sh"u!dn"t 'itiate "r in'a!idate the
c"ntract. It has een su##ested that as a %atter "f usiness
efficac+8this pr"'isi"n %ust e su ,ect t" an i%p!ied !i%itati"n "f
reas"na !eness in s" far as instructi"nscann"t stra+ "utside the
C"ntract@. E/tras8 theref"re8 %ust n"t e "f a certain 'a!ue and
t+pe and
%ust n"t e instructed at a ti%e (hich ("u!d render the c"ntract
inapp!ica !e.
&esponsibility for $ariations
The a!!"cati"n "f !ia i!it+ f"r the 'a!ue "f an+ 'ariati"n
instructed + the en#ineer is dependentup"n (hether "r n"t the
necessit+ f"r it is due t" s"%e defau!t "f "r reach "f c"ntract +
thec"ntract"r. Acc"rdin#!+8 an+ additi"na! c"sts attri uta !e t" a
'ariati"n necessitated + s"%edefau!t "f "r reach "f c"ntract + the
c"ntract"r are t" e "rne + hi%D see su :c!ause =.=.
"aluation of $ariations
5a!uati"n "f the 'ariati"ns referred t" a "'e is pr"'ided f"r
under c!ause > "f the Red B""k (hichpr"'ides the ru!es f"r such
'a!uati"n. In essence8 the+ are.=8 unti! such ti%e as rates "r
prices are a#reed "r fi/ed8 the en#ineer sh"u!ddeter%ine
pr"'isi"na! rates "r prices t" ena !e "n:acc"unt pa+%ent t" e
inc!uded in an+certificate issued under c!ause F .
f. The f"urth (a+ in (hich a 'ariati"n %a+ e 'a!ued app!ies
(here it is t" e f"und8 "n the
issue "f the takin#:"'er certificate f"r the (h"!e "f the ("rks8
that the 'a!ue "f 'aried ("rkt"#ether (ith a!! ad,ust%ents up"n
%easure%ent "f the esti%ated 4uantities is in e/cess "f =per cent
"f the Effecti'e C"ntract rice@. The Effecti'e C"ntract rice@ is
defined in su :c!ause
>.? "f the Red B""k as the C"ntract rice8 e/c!udin#
r"'isi"na! Su%s and a!!"(ance f"rda+("rks8 if an+@.
Then8 a su% is re4uired t" e added "r deducted fr"% the c"ntract
price as %a+ e a#reedet(een the en#ineer and the c"ntract"r. There
is n" #uidance in the Red B""k as t" h"( this
su% sh"u!d e ca!cu!ated. It is8 h"(e'er8 apparent that the
tar#et "f such ad,ust%ent is thei!! "f pre!i%inar+ ite%s (hich
f"r%s part "f the c"ntract price.
*n pa#e == "f the Guide8 referred t" in Reference at sr!. n"
=>8 there is reference t" thepurp"se "f this su :c!ause (here it
is e/p!ained that in preparin# a tender8 a c"ntract"r %a+distri ute
his "n:c"sts and pr"fit in 'ari"us (a+s8...@8 and an ad,ust%ent "f
these is necessar+(here the a%"unt "f ("rk under the c"ntract is
'aried e+"nd the specified percenta#e. )"ran accurate ad,ust%ent8
h"(e'er8 it is i%perati'e that the en#ineer sh"u!d " tain detai!s
"f the c"ntract"r@s interna! price %ake:up "f these "n:c"sts and
pr"fit ite%s.
#. Su :c!ause >.?8 (hich dea!s (ith the situati"n (here the
'a!ue "f 'ariati"ns e/ceeds =per cent "f the effecti'e c"ntract
price8 defines the 'a!ue "f 'aried ("rk and a!! ad,ust%entsup"n
%easure%ents "f the esti%ated 4uantities in the f"!!"(in# %anner.=
and >.> sh"u!d e inc!udedD
ii. a!! ad,ust%ents up"n %easure%ent "f the esti%ated 4uantities
is defined inpara#raph 6 7 "f su :c!ause >.? as th"se
ad,ust%ents (hich are set "ut in the Bi!! "f 2uantities8 e/c!udin#
r"'isi"na! Su%s8 da+ ("rks and ad,ust%ents "f price %ade
underC!ause @.
This definiti"n a!s" c!arifies in precise ter%s the 'a!ue "f
additi"ns t" "r deducti"ns fr"%the Effecti'e C"ntract rice@8 "r in
"ther ("rds fr"% the C"ntract rice8 e/c!udin#
r"'isi"na! Su%s and a!!"(ance f"r da+("rks8 if an+@D
iii. a#ree%ent et(een the en#ineer and c"ntract"r is "nce a#ain
ased "n the ne(c"ncept "f due c"nsu!tati"n@ + the en#ineer (ith the
e%p!"+er and the c"ntract"r. Where
n" such a#ree%ent can e reached8 the su% t" e added t" "r
deducted fr"% the c"ntractprice is re4uired t" e deter%ined + the
en#ineer ha'in# re#ard t" the c"ntract"r@s siteand #enera! "'erhead
c"sts "f the c"ntract. The en#ineer8 ha'in# deter%ined such su%8
isre4uired t" n"tif+ the c"ntract"r acc"rdin#!+ (ith a c"p+ t" the
e%p!"+erD
i'. fina!!+8 su :c!ause >.? pr"'ides that the su% t" e added
t" "r deducted fr"% thec"ntract price is t" e ased "n!+ "n the
a%"unt + (hich such additi"ns "r deducti"ns arein e/cess "f = per
cent as fi/ed in su :c!ause >.?. This pr"'isi"n ans(ers the
4uesti"n(hich (as !eft unans(ered in the pre'i"us editi"ns "f the
Red B""k. It is n"( c!ear thatthe ad,ust%ent t" the c"ntract price
sh"u!d e re!ated "n!+ t" the %ar#in e!"( "r a "'ethe = O.
Theref"re8 if f"r e/a%p!e8 there is a reducti"n "f > O in the
c"ntract price due
t" the 'a!uati"n "f 'ariati"ns under su :c!auses >.= and
>.>8 the !"sses@ sustained +the c"ntract"r due t" this
reducti"n sh"u!d "n!+ e re!ated t" the %ar#in et(een > Oand =
per cent8 i.e.8 per cent and n"t the (h"!e "f the > per
cent.
h. Su :c!ause >. dea!s (ith the situati"n (here the en#ineer
re4uires certain 'aried ("rkt" e carried "ut "n a da+("rk asis.
-a+("rk is usua!!+ c"'ered + a pr": 'isi"na! su% in the
i!! "f 4uantities (hich %a+ then e used f"r additi"na! ite%s f"r
(hich n" i!! ite% isapp!ica !e. Where such a pr"'isi"na! su% is
inc!uded in the i!! "f 4uantities8 a da+("rkschedu!e "f rates and
prices is appended t" the i!! f"r pricin# + the c"ntract"r. The
pr"ceduref"r pa+%ent in respect "f da+("rk is set "ut in su :c!ause
>. .
Theref"re8 in settin# "ut c"%prehensi'e!+ the %anner in (hich
'ariati"ns are t" e 'a!ued8 the RedB""k pr"'ides a re%ed+ in the
f"r% "f financia! c"%pensati"n in the anticipated e'ent "f a
chan#et" the ("rks ein# instructed + the en#ineer8 "n eha!f "f the
e%p!"+er.
Conclusions
It is e/pected that the Ar itrat"rs (i!! find the a "'e ana!+sis
usefu! in interpretin# the pr"'isi"nsthan searchin# the %eanin#
fr"% the si%i!ar Standard )"r%s "f C"ntracts.
Th"u#h "ther c!auses "f the c"ntracts are e4ua!!+ i%p"rtant ut
this paper is c"nfined t" "n!+ suchc!auses (hich are "ften a %atter
"f de ate ef"re the Ar itrat"rs and the C"urts.
Bibliography
8/10/2019 Construction Claims Basis
16/16
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-B%C -o$ember /0*0
