6CN011 Contract Law and

Dispute Resolution (Qatar)

Lecture 6
Pricing & Payments,
Variations

Todays lecture to cover:

Valuations of work
Variations
Interim and Final payments

Measurement and Evaluation (clause

12)

Essentially a measure and value contract

with Works subject to remeasurement on
completion (12.1; 14.1C)
Frequency of interim payments to be
specified in the Particular Condition
usually on a monthly basis
Engineer to notify Contractors
Representative of intention to measure
3

Measurement and Evaluation (clause

12)

Contractors Representative to:

Attend or send a representative else,

Valuation is deemed accurate
Supply any particulars requested by the
Engineer

Measurement based on latest approved

Engineers drawings + valued based on
rates in the BofQ (12.2)
Work measured based on MofM rules (i.e.
net quantity) (12.2)
4

Measurement and Evaluation (clause

12)

Evaluation of variations if new rates are

required (12.3):
1.
2.

Adjusted from those in the Contract; or

Reasonable cost + reasonable profit
Engineer to apply provisional rate or price for
interim payments till such rate/price is agreed

Contractor to notify Engineer with

supporting particulars of losses due to
omission(s) of Work (12.4)
Engineer to agree or Determine effective
cost and include in Contract Price (12.4)
5

Variations and adjustments (clause

13)

Right of Engineer to vary the Works prior

to issuing Taking-Over Certificate (13.1)

Contractor can object in writing

giving his own reasons (13.1&13.3)
Engineer to instruct on using
Provisional sums (3.5):

As variations or via Nominated

S/contractor(s)
@ Cost + [%(Overheads + Profit)]
6

Exercise

Answer Question 6 on page 8 of the

notes

Variations and adjustments (clause

13)

Value engineering (13.2):

Contractor can propose enhancements

being responsible for associated
designs
Engineer to determine fee for costsaving as = 0.5[(i) (ii)]; where:

i = reduction in Contract value

ii = reduction of varied works , and
i > ii.
8

Variations and adjustments (clause

13)
Daywork may be used to price
variations (13.6)

Contractor to report on usage of

resources on a daily basis

Contract price may be varied due

to changes in law (13.7) or price
fluctuations (13.8)
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Variations: case law

JDM Accord Ltd v The Secretary of State
for the Environment, Food and Rural
Affairs (DEFRA)

Contract for disposing carcasses during an

outbreak of foot and mouth disease
A DEFRA representative to sign timesheets
on a daily basis for payment via daywork
The outbreak became very severe; placing
a demand on DEFRAs representatives.
The timesheets could not be signed as
agreed
DEFRA challenged the acceptability of the
unsigned timesheets

A good argument?

10

JDM Accord Ltd v The Secretary of State

for the Environment, Food and Rural
Affairs (DEFRA)

Held:

DEFRA could not benefit from its own

breach
The sheets were accepted as reliable
generally, except for mistakes like
arithmetical errors.

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Payments

Re: Engineers role in: Clause 14 Contract

Price and Payment

14.1 The Contract Price

14.3 Application for Interim Payment
Certificates
Etc.

Contractor to build-in taxes, duties and

fees in his price (14.1)
Advanced part-payment may apply (14.2)
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Contract Price and Payments (Clause

14)

Application for interim Payment

Certificates to consider (14.3):

Estimated contract value

Adjustment for changes in legislation and
changes in cost
Deduction of retention
Advanced payments
Plant and materials intended for the works
Claims and disputes
Deductions of other certificates

NB: Contractor to supply 6 copies monthly

13

Sequence of payment
(14.6)

See FIDIC / Printout

14

Certification and Payment

NB: Issue of interim certificate(s) is

not approval of Contractors work
(14.6)
Only the Performance Certificate
shall constitute an acceptance of the
works (11.9)
Contractor entitled to interest on
delayed payments (14.8):

@ [(Central Banks rate + 3%)%]

15

Payments: Closing out

Contractor to
Submit statement at completion
(14.10)
Request to be discharged (14.12)
Apply for final payment certificate
(14.11&14.13)

16

Todays lecture - Summary

Valuations of work
Variations
Interim and Final payments

17

Lecture 6 Tutorial

Identify the different types of certificates

mentioned in the FIDIC form and discuss their
relevance
Define the phrase variation in the
context of a standard form of contract
and explain its advantages and
disadvantages

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