FIDIC 2017 Red Book Construction contract | Clause 12 - Measurement and Valuation Explained скачать в хорошем качестве

FIDIC 2017 Red Book Construction contract | Clause 12 - Measurement and Valuation Explained

Mastering FIDIC Red Book 2017: Clause 12 - Measurement and Valuation Explained. 🌐 Visit CMC shop for ready made templates: https://ko-fi.com/klinkercontracts/shop Welcome to our comprehensive guide on the FIDIC Red Book 2017, specifically focusing on Clause 12: Measurement and Valuation. If you are a Contract Manager, Quantity Surveyor, Engineer, or Contractor, understanding the mechanics of how work is measured and valued is critical for ensuring fair payment and managing project cash flow. In this video, we break down the four essential sub-clauses that govern the financial heartbeat of a FIDIC-based construction project. 1. Sub-Clause 12.1: The Measurement Process Under the FIDIC Red Book 2017, the Works must be measured and valued for payment in accordance with Clause 12. A key procedural requirement is that whenever the Engineer requires a part of the Works to be measured on-site, they must provide a Notice to the Contractor at least 7 days in advance. This notice specifies the part of the work to be measured and the date and place on-site where the measurement will occur. The Contractor is then expected to either attend personally or send a qualified representative to assist the Engineer and reach an agreement. If the Contractor fails to attend, the measurement made by the Engineer is deemed to have been accepted as accurate. Similar rules apply to measurements made from records; the Engineer prepares these records and provides a 7-day notice for the Contractor to examine and agree on them. If a disagreement arises, the Contractor must provide a Notice to the Engineer within 14 days setting out the reasons for the inaccuracy. Failure to provide this notice within the timeframe results in the measurement being deemed accurate. Until a final agreement is reached, the Engineer is empowered to assess a provisional measurement for Interim Payment Certificates (IPCs). 2. Sub-Clause 12.2: Method of Measurement How is the work actually calculated? Clause 12.2 clarifies that the method of measurement is typically stated in the Contract Data or the Bill of Quantities (BoQ). Unless otherwise specified, measurement is based on the net actual quantity of each item of the Permanent Works. Crucially, the sources state that no allowance is made for bulking, shrinkage, or waste in these measurements. 3. Sub-Clause 12.3: Valuation of the Works Valuation is the process of applying rates or prices to the agreed measurements. Generally, the Engineer uses the rates specified in the BoQ or other schedules for the work item or similar work. If an item is in the BoQ but has no rate, it is deemed to be included in other rates within the contract. However, a new rate or price becomes necessary under specific conditions. A new rate is appropriate if the item is not identified in the BoQ and no similar rate exists, or if a significant change in quantity occurs. Specifically, a new rate is triggered if: • The measured quantity of an item changes by more than 10% from the original BoQ quantity. • The change in quantity, multiplied by the specified rate, exceeds 0.01% of the Accepted Contract Amount. • The change directly impacts the Cost per unit quantity by more than 1%. • The item is not designated as a "fixed rate item". New rates are derived from existing BoQ rates with reasonable adjustments or, if no relevant rates exist, from the reasonable Cost of executing the work plus profit (typically 5% unless stated otherwise in the Contract Data). If the parties cannot agree on the rate, the Engineer proceeds under Sub-Clause 3.7 to determine it, while assessing a provisional rate for interim payments in the meantime. 4. Sub-Clause 12.4: Handling Omissions When work is omitted as part of a Variation, the Contractor may still be entitled to recover costs. If the Contractor has incurred (or will incur) costs that would have been covered by the original contract price had the work not been omitted, they must provide details and supporting particulars in their proposal. This ensures that the Contractor is not unfairly penalized for overheads or mobilization costs tied to work that was later removed from the scope. Key Takeaways for Professionals: • Respect the 7-day notice: Always respond to the Engineer’s measurement notices to avoid "deemed acceptance". • The 14-day Objection Rule: If you disagree with a measurement, you have a strict window to file a notice. • Quantity Fluctuations: Monitor your BoQ quantities; once you hit the 10% threshold and meet the financial criteria, you may be entitled to a new rate. • Net Quantities: Remember that waste and shrinkage are generally not payable under standard measurement methods. #Construction #ContractManagement #ProjectManagement #Contractor #Contracts #Contract #constructionmanagement #engineering #legal #Procurement #Engineering #SupplyChain #FIDIC