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9/21/13 Construction Law: Omission Clause in Fidic, dear madam, educational purpose 1/2
Construction Law/Omission Clause in Fidic
Expert: Alina Valentina Oprea - 9/19/2012
"Dear Madam
12.4 Omission
Whenever the omission of any work forms part (or all)
of a Variation, the value of which
has not been agreed, if:
(a) the Contractor will incur (or has incurred) cost
which, if the work had not been
omitted, would have been deemed to be covered by a
sum forming part of the
Accepted Contract Amount;
(b) the omission of the work will result (or has resulted) in this sum not forming part
of the Contract Price; and
(c) this cost is not deemed to be included in the evaluation of any substituted
then the Contractor shall give notice to the Engineer accordingly, with supporting
particulars. Upon receiving this notice, the Engineer shall proceed in accordance with
Sub-Clause 3.5 [Determinations] to agree or determine this cost, which shall be
included in the Contract Price.
I am an undergraduate student in BSc Quantity Surveying. Actually I am confused with this clause as i
find it difficult to understand what it exactly means and when it is used. Please Can u explain this with
some example for these 3 type of incidents. Please kindly do it madam this is for Educational purpose
Thank you"
Get the answer below
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9/21/13 Construction Law: Omission Clause in Fidic, dear madam, educational purpose 2/2
In principle is simple: whenever the Contractor had to do some works according to the Contract, but
the Engineer (or the Employer) tells to him that part of these works are not to be done anymore, the
Contractor shall be compensated for his loss, if any.
Point by point:
(a)the Contractor bought and shipped on the Site beams for a bridge, which is part of his Contract (let's
say that the Contract comprises 30 km of road and 1 bridge to be built#, and after spending money on
the beams, the Contractor is told that the bridge is omitted from the Works #the bridge will be not part
of the Contract anymore#. If the Engineer and the Employer does not agree to pay him the beams,
which cost was incurred, we are in the case (a) of the Sub-clause 12.4;
(b) in case the bridge from the above example is omitted from the Works #let's presume that the
Contractor did not spend any money in relation to this bridge, as yet, and he did not buy the beams or
anything else, to not complicate the matter#, but by omitting it, a road by-pass should be built to avoid
crossing the river. So, omitting part of the works (the bridge) it resulted sums that did not form part of
the Contract Price #the money that the Contractor will spend to build the road by-pass#. If the
Engineer and the Employer do not agree to pay the Contractor the costs incurred when building the
road by-pass, we are in the case #b# of the Sub-clause 12.4;
(c) I will use the FIDIC Guide example for this: If the Contractor had ordered formwork for work which
was subsequently omitted by Variation, the Accepted Contract Amount would typically have included
direct cost plus profit in respect of this formwork. The Contractor would then be entitled to recover cost
and profit. However, if the Employer was thus required to pay for the full cost of an item, he may also
be entitled to recover it as his property.
Hope it helps.
Best regards,