Civil Engineering Reference
In-Depth Information
20.5 The Employer may accept the quotation or request the Contractor to submit
a revised quotation. When the Employer accepts a quotation it shall issue an
instruction identifying the quotation that is being accepted, the agreed value
and any agreed adjustment to the Completion Date.
20.6 Where agreement is not reached under clause 20.5, a fair valuation of any
Change shall be made by the Employer. Such valuation shall have regard to
the following:
20.6
.1
the nature and timing of the Change;
20.6
.2
the effect of the Change on other parts of the Project;
20.6
.3
the prices and principles set out in the Pricing Document, so far as
applicable and,
20.6
.4
any loss and/or expense that will be incurred as a consequence of the
Change, provided always that the fair valuation shall not include any
element of loss and/or expense if that element was contributed to by a
cause other than a Change or a matter set out in clause 21.2.
20.7 Within 14 days of a Change being identified by either party the Contractor
shall provide to the Employer details of its proposed valuation of the
Change together with such information as is reasonably necessary to permit
a fair valuation to be made.
20.8 Within 14 days of receipt of the information referred to by clause 20.7 the
Employer shall notify the Contractor of its valuation of the Change, that
valuation being calculated by reference to the information provided by the
Contractor. The valuation shall be in sufficient detail to permit the Con-
tractor to identify any differences between it and the Contractor's proposed
valuation.
20.9 No later than 42 days after Practical Completion of the Project the Con-
tractor shall provide particulars of any further valuation it considers should
be made in respect of any Change. Within 42 days of the receipt of these
particulars the Employer shall undertake a review of its previous valuations
of each Change to which those particulars relate and notify the Contractor of
such further valuation as it considers appropriate.
13.12.2 Commentary
Three clauses deal with what this contract refers to as 'Changes', but which
are more commonly known as variations. The clauses are 13 (acceleration),
19 (cost savings and value improvements) and 20 (changes). Clause 20 is the
main variation clause and the one under consideration here.
There is just one method of valuing changes: by fair valuation. But there
are two ways of setting about it. The first is if the employer under clause 20.3
provides the contractor with details of the change before issuing an instruc-
tion and asks the contractor to submit a quotation. The contractor has 14
days to do so unless the employer has stated a longer period in his request.
Clause 20.4 states that the quotation must value the change in accordance
