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Remeasurement modified to Lump Sum


Question

The following query is in relation to a situation which has occurred in the context of the execution of a Lump Sum
contract, regulated by a standard FIDIC (Red Book) terms and conditions. The Specifications call for "Cast Iron"
pipes, while the BOQ calls for "UPVC" pipes. The Contractor and upon the approval of the Engineer, and without
having any instructions to do so, executed the Works in UPVC. Does this entitle the Employer to request cost
saving on this item? And on what basis? Your response to the above is highly appreciated.

Answer

You say that you have a Lump Sum Contract. The FIDIC Construction Contract Book is a remeasurement
contract so the payment provisions must have been changed to provide for the Lump Sum. The answer to your
question will depend on the wording of these Lump Sum provisions. I regret that FIDIC can only comment on
questions which on the interpretation of the FIDIC General Conditions, so we are unable to answer your
question. We fear that this is an indication of what happens if General Conditions are modified by Special
Provisions without due care.

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