R 2017 - 12

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Questions and Answers

What is the Engineer required to do after receiving a Contractor's Notice under Sub-Clause 12.2?

Proceed to agree or determine the measurement (correct)

Immediately issue a Variation by Instruction

Assess a provisional measurement for final payment

Request an extension of time for measurement

What is the date of commencement of the time limit for agreement under Sub-Clause 3.7.3?

The date of the last measurement assessment

The date on which the Engineer receives the Contractor’s Notice (correct)

The date of the next site visit

The date of the final measurement agreement

What is the method of measurement if not stated in the Contract Data?

In accordance with the Bill of Quantities or other applicable Schedule(s) (correct)

Based on the Contractor's preference

As per the most recent measurement records

Per the Engineer's discretion

What quantity is measured for each item of the Permanent Works?

Net actual quantity Signup and view all the answers

When does the Engineer assess a provisional measurement for the purposes of Interim Payment Certificates?

Until the measurement is agreed or determined Signup and view all the answers

What is NOT considered in the measurement of Permanent Works?

Allowance for bulking, shrinkage, or waste Signup and view all the answers

Under what circumstances is the measurement already subject to the last paragraph of Sub-Clause 13.3.1?

When a Variation by Instruction is in progress Signup and view all the answers

In accordance with the text, when can the Engineer instruct the Variation?

After receiving a proposal from the Contractor Signup and view all the answers

What happens if the Engineer does not give consent to the proposal submitted by the Contractor?

The Contractor may be entitled to payment of Cost incurred Signup and view all the answers

How should the Contractor respond if they cannot comply with submitting a proposal for a Variation?

By giving reasons why they cannot comply Signup and view all the answers

When can a Provisional Sum be used, in accordance with the text?

Only in accordance with the Engineer’s instructions Signup and view all the answers

What is included in the Contract Price for each Provisional Sum, according to the text?

Only such amounts for the work, supplies, or services instructed by the Engineer Signup and view all the answers

What may the Engineer instruct for each Provisional Sum?

Work to be executed by the Contractor and/or Plant, Materials, works, or services to be purchased by the Contractor from a nominated Subcontractor Signup and view all the answers

When can the Contract Price be adjusted for a Provisional Sum?

In accordance with the Engineer’s instructions Signup and view all the answers

What should the Contractor do if the Engineer does not give consent to a proposal for a Variation?

Submit any further particulars as required by the Engineer Signup and view all the answers

What is the Engineer's response after receiving a proposal from the Contractor for a Variation?

Giving a Notice to the Contractor stating consent or otherwise Signup and view all the answers

What is the procedure for the Contractor to propose acceleration of completion, cost reduction, or efficiency improvement?

The Contractor can submit a proposal to the Engineer Signup and view all the answers

Under what circumstances can the Contractor claim for an extension of time and/or adjustment to the Contract Price without complying with the claims procedure?

If the Engineer consents to the proposal Signup and view all the answers

When can the Engineer initiate Variations through Variation by Request for Proposal?

After requesting a proposal from the Contractor Signup and view all the answers

What must the Contractor submit within 28 days for Variation by Instruction?

Detailed particulars including a description of the varied work, a programme for execution, and proposal for adjusting the Contract Price Signup and view all the answers

What is the Contractor entitled to if the Engineer consents to the proposal in Variation by Request for Proposal?

An extension of time and/or adjustment to the Contract Price without having to comply with the claims procedure Signup and view all the answers

What action is the Contractor prohibited from taking while awaiting a response from the Engineer?

Delaying any work Signup and view all the answers

Under what circumstances can the Contractor claim for an extension of time and/or adjustment to the Contract Price?

If the Engineer consents to the proposal Signup and view all the answers

If no rate or price is specified for an item of work, what is the default assumption?

It is deemed to be included in other rates and prices in the Bill of Quantities or other Schedule(s). Signup and view all the answers

When can a new rate or price be deemed appropriate for an item of work?

If the item of work is not identified in the Bill of Quantities, or if the measured quantity of the item changes by more than 10% from the quantity in the Bill of Quantities. Signup and view all the answers

What action can the Contractor take if they disagree with the Engineer on the appropriate rate or price for an item of work?

Give a Notice to the Engineer stating the reasons for disagreement. Signup and view all the answers

What is the Engineer's responsibility until an appropriate rate or price is agreed upon?

Assess a provisional rate or price for Interim Payment Certificates. Signup and view all the answers

Under what circumstances can the Contractor be relieved from executing a Variation?

Promptly gives a Notice with detailed supporting particulars stating reasons for inability to execute the Variation. Signup and view all the answers

When can Variations be initiated by the Engineer?

At any time before the issue of the Taking-Over Certificate for the Works. Signup and view all the answers

What is the Contractor's obligation regarding executing a Variation?

The Contractor shall execute the Variation with due expedition and without delay, unless unable to comply due to unforeseeability, unavailability of goods, or adverse effect on health, safety, or environmental obligations. Signup and view all the answers

Study Notes

Contract Valuation and Variation Procedure

The Engineer must value each item of work by applying the agreed measurement and the appropriate rate or price specified in the Bill of Quantities or other Schedule.
If no rate or price is specified for an item of work, it is deemed to be included in other rates and prices in the Bill of Quantities or other Schedule(s).
A new rate or price is appropriate if the item of work is not identified in the Bill of Quantities, or if the measured quantity of the item changes by more than 10% from the quantity in the Bill of Quantities.
If the Engineer and the Contractor cannot agree on the appropriate rate or price for an item of work, the Contractor can give a Notice to the Engineer stating the reasons for disagreement.
Until an appropriate rate or price is agreed, the Engineer shall assess a provisional rate or price for Interim Payment Certificates.
Variations may be initiated by the Engineer at any time before the issue of the Taking-Over Certificate for the Works.
A Variation shall not comprise the omission of any work to be carried out by the Employer or by others, unless agreed by the Parties.
The Contractor is bound by each Variation instructed, unless the Contractor promptly gives a Notice with detailed supporting particulars stating reasons for inability to execute the Variation.
The Engineer must respond promptly to the Contractor's Notice, either cancelling, confirming, or varying the instruction.
Any confirmed or varied instruction shall be taken as an instruction under the Variation by instruction Sub-Clause.
Variations may be initiated by the Engineer under the Variation Procedure at any time before the issue of the Taking-Over Certificate for the Works.
The Contractor shall execute the Variation with due expedition and without delay, unless unable to comply due to unforeseeability, unavailability of goods, or adverse effect on health, safety, or environmental obligations.

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Description

This quiz covers the valuation and variation procedure in engineering contracts, including the engineer's role in valuing work items, dispute resolution for rate disagreements, initiation of variations, and the contractor's obligations regarding variations. Test your understanding of contract valuation and variation procedures!