Clause 12 In Fidic 1999 Redbook

Blog / 30 Nov, 2023

FIDIC 1999 Redbook, a widely recognised standard form of construction contract, features a distinctive characteristic in its Clause 12, emphasising the re-measurement nature of the agreement. This clause allocates the risk associated with variations in quantities, rates, and prices for executed work to the Employer. However, a notable provision exists - if the Employer intends to engage the Contractor on a lump-sum or cost-plus basis, the deletion of Clause 12 becomes imperative. This blog delves into the intricacies of Clause 12, dissecting its sub-clauses and shedding light on the criticisms and interpretations surrounding its provisions.

The foundation of Clause 12 lies in Sub-Clause 12.1, which sets the stage for the measurement of works. It establishes the basis for quantifying the executed work, providing a framework that subsequent sub-clauses build upon.

While Sub-Clause 12.2 lacks a reference to a specific standard method of measurement, it mandates adherence to the Bill of Quantities or other applicable schedules. Critics have pointed out this omission, suggesting that clarity on the standard method could enhance consistency and understanding within the construction industry.

Sub-Clause 12.3 introduces the three methods for evaluating rates or prices for the works:

a) The rate or price specified in the Contract for the item.

b) If no such item exists, the rate or price specified for similar work.

c) In specified circumstances, a new rate or price deemed appropriate.

This sub-clause provides flexibility in determining fair compensation for the executed work, accounting for various scenarios that may arise during the construction process.

Addressing the valuation of omissions from the work, Sub-Clause 12.4 ensures a comprehensive approach to quantifying the scope of the project. It is crucial in maintaining transparency and fairness in the valuation process, especially in a re-measurement contract where quantities in the Bill of Quantities lack a warranty of accuracy.

Clause 12 of the FIDIC 1999 Redbook stands as a critical component in the realm of construction contracts, particularly for re-measurement agreements. Its provisions, while comprehensive, have faced criticism and varied interpretations. The complexities surrounding measurement methods, rate evaluations, and omissions valuation necessitate a nuanced understanding of the contractual landscape. As the construction industry evolves, continuous dialogue and potential revisions may be warranted to enhance clarity and mitigate controversies associated with re-measurement contracts.