FIDIC - Are Contractors Entitled for Variations in Lump Sum Contracts

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7/25/2019 FIDIC - Are Contractors Entitled for Variations in Lump Sum Contracts http://slidepdf.com/reader/full/fidic-are-contractors-entitled-for-variations-in-lump-sum-contracts 1/1  Are contractors entitled for variations in lump sum contracts? Yes. Lump sum contract means the contractor has to execute the works for a specified amount fixed in the contract. In a lump sum contract, the contractor is bound to execute works for the completion of the project as detailed in the contract documents; in some cases a bill of quantities will also be included. In either case if a specific work is not detailed in the contract or if alterations are required, then it can be treated as a variation Examples of variation in lump sum contracts n example of variation in lump sum contract is removal of a buildin! or structure which is not described an"where in drawin!s or contract documents. nother example is alteration to the details mentioned such as replacin! paintin! works with tilin!. variation order is required to be obtained from the owner# En!ineer before executin! the works. $ometimes a provisional sum will be incorporated in the contract for works which cannot be detailed or enou!h information are not available at the time of tender. %lease visit our pa!es on provisional sums, contin!enc" allowanceda" works etc. for more information. &ariation provisions are detailed in 'lause ().) of *I+I' ed -ook)/0 and 'lause )1.) of ) edition.

Transcript of FIDIC - Are Contractors Entitled for Variations in Lump Sum Contracts

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7/25/2019 FIDIC - Are Contractors Entitled for Variations in Lump Sum Contracts

http://slidepdf.com/reader/full/fidic-are-contractors-entitled-for-variations-in-lump-sum-contracts 1/1

 

Are contractors entitled for variations in lump sumcontracts?

Yes. Lump sum contract means the contractor has to execute the works for a specified amount fixed

in the contract. In a lump sum contract, the contractor is bound to execute works for the completion

of the project as detailed in the contract documents; in some cases a bill of quantities will also be

included. In either case if a specific work is not detailed in the contract or if alterations are required,

then it can be treated as a variation

Examples of variation in lump sum contracts

n example of variation in lump sum contract is removal of a buildin! or structure which is not

described an"where in drawin!s or contract documents. nother example is alteration to the details

mentioned such as replacin! paintin! works with tilin!. variation order is required to be obtained

from the owner# En!ineer before executin! the works.

$ometimes a provisional sum will be incorporated in the contract for works which cannot be detailed

or enou!h information are not available at the time of tender. %lease visit our pa!es on provisional

sums, contin!enc" allowance, da" works etc. for more information.

&ariation provisions are detailed in 'lause ().) of *I+I' ed -ook)/0 and 'lause )1.) of )

edition.