Podcast
Questions and Answers
What is the Engineer required to do after receiving a Contractor's Notice under Sub-Clause 12.2?
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?
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?
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?
What quantity is measured for each item of the Permanent Works?
When does the Engineer assess a provisional measurement for the purposes of Interim Payment Certificates?
When does the Engineer assess a provisional measurement for the purposes of Interim Payment Certificates?
What is NOT considered in the measurement of Permanent Works?
What is NOT considered in the measurement of Permanent Works?
Under what circumstances is the measurement already subject to the last paragraph of Sub-Clause 13.3.1?
Under what circumstances is the measurement already subject to the last paragraph of Sub-Clause 13.3.1?
In accordance with the text, when can the Engineer instruct the Variation?
In accordance with the text, when can the Engineer instruct the Variation?
What happens if the Engineer does not give consent to the proposal submitted by the Contractor?
What happens if the Engineer does not give consent to the proposal submitted by the Contractor?
How should the Contractor respond if they cannot comply with submitting a proposal for a Variation?
How should the Contractor respond if they cannot comply with submitting a proposal for a Variation?
When can a Provisional Sum be used, in accordance with the text?
When can a Provisional Sum be used, in accordance with the text?
What is included in the Contract Price for each Provisional Sum, according to the text?
What is included in the Contract Price for each Provisional Sum, according to the text?
What may the Engineer instruct for each Provisional Sum?
What may the Engineer instruct for each Provisional Sum?
When can the Contract Price be adjusted for a Provisional Sum?
When can the Contract Price be adjusted for a Provisional Sum?
What should the Contractor do if the Engineer does not give consent to a proposal for a Variation?
What should the Contractor do if the Engineer does not give consent to a proposal for a Variation?
What is the Engineer's response after receiving a proposal from the Contractor for a Variation?
What is the Engineer's response after receiving a proposal from the Contractor for a Variation?
What is the procedure for the Contractor to propose acceleration of completion, cost reduction, or efficiency improvement?
What is the procedure for the Contractor to propose acceleration of completion, cost reduction, or efficiency improvement?
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?
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?
When can the Engineer initiate Variations through Variation by Request for Proposal?
When can the Engineer initiate Variations through Variation by Request for Proposal?
What must the Contractor submit within 28 days for Variation by Instruction?
What must the Contractor submit within 28 days for Variation by Instruction?
What is the Contractor entitled to if the Engineer consents to the proposal in Variation by Request for Proposal?
What is the Contractor entitled to if the Engineer consents to the proposal in Variation by Request for Proposal?
What action is the Contractor prohibited from taking while awaiting a response from the Engineer?
What action is the Contractor prohibited from taking while awaiting a response from the Engineer?
Under what circumstances can the Contractor claim for an extension of time and/or adjustment to the Contract Price?
Under what circumstances can the Contractor claim for an extension of time and/or adjustment to the Contract Price?
If no rate or price is specified for an item of work, what is the default assumption?
If no rate or price is specified for an item of work, what is the default assumption?
When can a new rate or price be deemed appropriate for an item of work?
When can a new rate or price be deemed appropriate for an item of work?
What action can the Contractor take if they disagree with the Engineer on the appropriate rate or price for an item of work?
What action can the Contractor take if they disagree with the Engineer on the appropriate rate or price for an item of work?
What is the Engineer's responsibility until an appropriate rate or price is agreed upon?
What is the Engineer's responsibility until an appropriate rate or price is agreed upon?
Under what circumstances can the Contractor be relieved from executing a Variation?
Under what circumstances can the Contractor be relieved from executing a Variation?
When can Variations be initiated by the Engineer?
When can Variations be initiated by the Engineer?
What is the Contractor's obligation regarding executing a Variation?
What is the Contractor's obligation regarding executing a Variation?
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!
