1 Project A is an irrigation diversion weir construction project.

The contractor put in a very high rate for

an item of which there were only 5 units in the bills of quantities and it was subsequently found necessary
to instruct over 1,000 units of these items. The Employer has claimed to reduce the unit rate of this item
for the whole quantity. The contractor argued that reducing the unit rate is not acceptable as per relevant
PPA GCC. Is the Employer in order to reduce the unit rate? Why? What is your recommendation in this
issue?

Answer in construction contracts, changes in quantities can lead to disputes regarding unit rates. If the
contract does not specifically address such scenarios, it can be challenging to determine the appropriate
action. However, if the contract contains a clause that allows for adjustments to unit rates due to
significant changes in quantities, the Employer may be within their rights to request a reduction.

My recommendation would be to carefully review the relevant clauses in the PPA GCC (Public
Procurement Authority General Conditions of Contract) to see if there's any provision that covers
adjustments to unit rates in case of significant quantity changes. If there is a clause that allows for such
adjustments, the Employer may have the authority to request a reduction in the unit rate for the increased
quantity.

If the contract doesn't explicitly address this scenario, it might be necessary to negotiate and find a
mutually acceptable solution between the Employer and the contractor. Seeking mediation or arbitration,
if provided for in the contract, could help in resolving this dispute amicably. Consulting legal experts or
contract specialists familiar with construction law could also offer valuable insights and guidance in this
situation.

2 Project A is an irrigation construction project outsourced to a contractor with re-measurement contract.

The technical specification provides an item of work for Rectangular Concrete main canal and the unit of
measurement is in M3. Furthermore, the details are indicated in the drawings. However, in the priced
BOQ this item is not included and hence no rate has been shown. During construction the Engineer has
instructed the Contractor to execute the Rectangular Concrete main canal as specified in the Contract; and
the Contractor requested a new rate to be fixed and proposed same to be ETB 6,500 per M3. If you are
assigned as Engineer, what would be your recommendation to the Employer?

Answer As the assigned Engineer in this scenario, my recommendation to the Employer would be to
carefully consider several factors before making a decision:

1. Review Contract Terms: Evaluate the contract to see if there are clauses or provisions that govern such
situations where specific items are not included in the priced Bill of Quantities (BOQ).

2. Market Rates Analysis: Conduct a market analysis to determine the reasonableness of the proposed rate
of ETB 6,500 per M3 for the Rectangular Concrete main canal. This analysis might involve comparing it
with rates for similar projects in the area or seeking quotes from other contractors.

3. Fairness and Justification: Assess the fairness and justification of the proposed rate by analyzing the
cost breakdown provided by the Contractor. Ensure it covers all aspects such as materials, labor,
equipment, overheads, and profit margin.
4. Negotiation: Engage in negotiations with the Contractor to potentially arrive at a mutually acceptable
rate based on market analysis, cost breakdown, and any contractual provisions that might be relevant.

5. Documentation: Ensure that any agreements or changes to the contract are properly documented
through an addendum or formal change order to avoid misunderstandings in the future.

6. Consider Project Progress: Evaluate the impact of delaying the work due to rate negotiations on the
project schedule and overall completion.

Ultimately, the decision should aim to strike a fair balance between the Contractor's proposal, industry
standards, and the Employer's best interests while ensuring the project's successful and timely completion.

3 Suppose you have outsourced to a contractor the construction of an SSI diversion weir project. In the
specification of the contract, it is indicated that construction materials for masonry work could be
accessed in the radius of 150 km from construction site. However, the appropriate construction material
could be accessed at a location of 300 km far from the project site. Consequently, the contractor has
requested a new rate to be fixed mainly for the concrete works. If you are assigned as Engineer, do you
think the Contractor’s request is acceptable? Why? What happens if the contractor cannot obtain
construction material at all?

Answer As an Engineer overseeing the project, the contractor's request for a new rate due to the
unavailability of appropriate construction materials within the specified radius seems reasonable. This
situation falls under unforeseen circumstances beyond the contractor's control and wasn't explicitly stated
in the contract. Revising the rate for concrete work might be necessary to accommodate the increased
transportation cost and logistical challenges associated with sourcing materials from a greater distance.

If the contractor is unable to obtain the necessary construction materials at all, it can lead to project delays
and cost overruns. The lack of materials might halt construction progress, causing a suspension until
suitable materials are secured. This delay can incur additional expenses, contractual penalties, and impact
the overall project schedule. Communication between the parties involved becomes crucial to find
alternatives or negotiate solutions to minimize the project's setbacks.

4 Project B is an irrigation construction project. The Contractor has not provided rate in the BOQ for
Canal Masonry Works which is having a quantity of 150 cubic meters. However, during construction the
quantity of Canal Masonry Works has increased to 600 cubic meters due to design of change (change of
dimension and geometry of the canal) induced Variation Order instruction. Hence, the Contractor
requested a new rate to be fixed for the whole quantity due to the Variation Order instruction. The
Engineer has approved this request, but the Employer has accepted new rate only for the additional
quantity. If you are assigned as Engineer, what is your recommendation? Why?

Answer As the Engineer overseeing the project, it's crucial to consider fairness and adherence to
contractual obligations. Given the change in quantity due to a Variation Order instruction, I'd recommend
the following:

1. Review Contractual Terms: Firstly, I would carefully review the contract to understand the clauses
related to variations, rates, and additional quantities. This is important to ensure decisions align with the
terms agreed upon by both parties.
2. Negotiate Fairly: Engage in discussions with both the Contractor and the Employer to find a fair
resolution. Present the justification for the Contractor's request to revise the rate for the increased
quantity. Emphasize the necessity of compensating the Contractor for the entire quantity due to the
variation that wasn't originally accounted for in the BOQ.

3. Consider Equitable Solutions: To maintain fairness, propose a compromise solution that balances the
interests of both parties. This could involve negotiating a rate adjustment for the entire increased quantity,
taking into account the circumstances and impact of the design change.

4. Document and Communicate: Document all discussions, agreements, and decisions made during this
process. It's crucial to maintain clear and transparent communication between all involved parties to avoid
future disputes.

Ultimately, the aim is to reach a resolution that is fair and reasonable for both the Contractor and the
Employer while complying with the contractual framework in place.

5 Project C is an SSI construction project. The Agreed Contract Price is ETB 38,135,000.00. According
to the contract a monthly Interim Payment Certificate (IPC) shall be paid to the Contractor within 28 days
of submission of same by the Contractor. While the works is underway, the Contractor has submitted his
IPC 08 for the month of March 2014. This IPC has been certified by the Engineer. The value of the works
under this IPC is ETB 16,700,500.00. The Employer has agreed with the certificate and transferred same
to the financier; but the financier raised comments on the certificate and refused to settle the payment.
This payment has been delayed for 93 days. The Contractor issued notices according to the contract to
slow down the rate of progress. Upon settlement of the payment the Contractor has submitted interest on
late payment and also an extension of time. The Engineer accepted the claim interest payment and
rejected the Contractor’s request for EOT, for the reason that the Contractor should have acquire
equivalent amount from his bankers and proceed with the works as the Contractor has shown a line of
credit for such loans during tendering but such confirmation is not part of the Contract. You are the
person in charge of the Employer. Do you agree with the Engineer’s argument? Why?

Answer The Engineer's argument seems to be based on the stipulations within the contract. The
contract appears to outline that while the Contractor can claim interest on late payments, it does not
explicitly mandate the Employer to grant an extension of time (EOT) solely due to delayed payments.
Additionally, the Engineer is emphasizing that the Contractor had indicated the availability of a line of
credit during the tendering process, but this confirmation was not incorporated into the formal Contract
terms.

Therefore, based on the information provided, the Engineer's reasoning aligns with the contractual
obligations. The absence of a contractual provision for granting an extension of time due to delayed
payments, along with the lack of formal documentation confirming the line of credit as part of the
Contract, supports the Engineer's decision to reject the Contractor's request for an extension of time.

6 A contract was done for the construction of a specific length of irrigation canal. You are the Engineer of
the project representing the Employer/Client. During construction, re-alignment was required which
increased the length by a few kilometers. Should this additional work be included in a variation order as
per PPA GCC or should a separate contract be floated? The contractor is asking for single variation order
with two different re-fixed rates (for the same item of BOQ), one for the variation in the original work
and second for the additional work. The Engineer differ with the contractor’s views. The Engineer feels
that if one variation order is considered for the whole work then only one re-fixed rate for varied quantity
can be given. What is your opinion on this issue?

Answer The situation you've described involves an increase in the length of the irrigation canal
beyond what was initially agreed upon in the contract. According to the standard contract procedures and
the General Conditions of Contract (GCC), this situation typically necessitates a variation order to address
the changes in scope.

However, the disagreement arises concerning the contractor's proposal to handle this as a single variation
order with two re-fixed rates for the same item in the Bill of Quantities (BOQ). The Engineer believes
that if one variation order covers the entire work, then a single re-fixed rate for the varied quantity should
apply.

In this scenario, the Engineer's viewpoint aligns with a common interpretation of contract management
principles. Generally, when a variation order encompasses both the original variation and additional
work, applying separate re-fixed rates for the same item in the BOQ might complicate matters.

To maintain clarity and fairness in cost adjustments, it's often more practical to negotiate and agree upon
a single re-fixed rate that adequately compensates for the entirety of the varied work resulting from the
change in canal length. This approach ensures consistency and avoids potential disputes or confusion
arising from multiple rates for the same work item within a variation order.

Ultimately, it's essential for both parties to consult the contract terms, engage in fair negotiation, and
possibly seek expert advice to reach a mutually acceptable resolution regarding the re-fixed rates for the
variation order.

7 The contract is a lumpsum contract with specifications and drawings; and not subject to re-
measurement. The BoQ was prepared by the Contractor at the tender stage for estimating the tender price.
During the course of project closure, some items listed in the BoQ were omitted. This is because the items
were not included on tender drawings, shop drawing or final as-built drawings. However, the Client
deducted these items as an omission at final account stage. They stated this was because the Contractor
did not complete any of these billed works. The Contractor disagrees with this and asserts that he took the
risk on the lump sum contract and the Bill of Quantities was merely for guidance and valuation only. So,
what are the Contractor and Client’s entitlements under PPA for this kind of a situation? What should be
the position or stand of the Contractor on this matter? Is the Client entitled to omit the value of the BoQ
items not fulfilled by the Contractor despite it being a lump sum contract? On the other hand, if some
items shown on the specifications and drawings, but not listed in the BoQs, would the Engineer/Employer
pay for it as a variation? What is your opinion?

Answer In a lump sum contract with specifications and drawings, the Bill of Quantities (BoQ) serves
as a pricing document for tendering purposes, guiding the estimation of the tender price. However, its
omission during the project's closure could lead to disputes between the Contractor and Client regarding
entitlements.
Typically, in a lump sum contract, the risk of incomplete or omitted items within the BoQ is borne by the
Contractor unless specified otherwise in the contract. If the items were not included in the BoQ due to
their absence from tender drawings, shop drawings, or final as-built drawings, and the Contractor
completed the billed works as per the specifications, they might argue that they fulfilled their obligations
based on the contract's requirements.

The Client's deduction of these omitted items from the final account stage might be disputed by the
Contractor, citing that the lump sum contract didn't bind them explicitly to the BoQ items but to the
specifications and drawings. The Contractor may contend that the BoQ was for guidance and valuation
purposes only, and the lump sum covered all work necessary as per the contract documents.

Regarding items shown on specifications and drawings but not listed in the BoQs, whether the
Engineer/Employer should pay for them as a variation depends on the contract terms. If these items are
considered additional or varied work necessary to fulfill the project's requirements, they might be treated
as variations, subject to the contract's variation clauses and procedures.

Ultimately, the resolution of such disputes would heavily rely on the specific language and clauses
outlined in the contract, governing the obligations, responsibilities, and entitlements of both parties.
Seeking legal or contractual advice to interpret and understand the contractual obligations and terms
would be prudent in resolving this matter.

8 Suppose you are appointed as the Engineer for an irrigation construction project. The contract is a re-
measurement or admeasurement contract. If an item is shown on the specifications and drawings, but not
listed in the Bill of Quantities and not quoted or rated by the contractor during bidding, would the
Employer pay for it as a variation? What is your advice as an Engineer to the Employer?

Answer In a re-measurement or admeasurement contract, items not included in the Bill of Quantities
but present in specifications and drawings typically aren't automatically considered variations. However,
if the contractor is required to carry out the work due to it being necessary for the project's completion, it
might be considered a variation.

As an Engineer, my advice to the Employer would be to carefully review the contract terms and
conditions. If the specifications and drawings indicate the necessity of the item for the project's
functionality or completion, and it was an oversight not to include it in the Bill of Quantities, discussions
with the contractor about pricing and terms for this additional work would be necessary. It's important to
document any agreements reached concerning payment for such items to avoid disputes later. Clear
communication and agreement between both parties based on the contract's terms would be essential in
determining payment for such items not listed in the Bill of Quantities.

9 Suppose you are assigned as an Engineer for the construction of an SSI project from the consulting firm
side. While visiting the site as Employer in the absence of you, the Employer feel that the construction
work is not done as per contract requirements; and give instructions on site directly to the contractor, is it
acceptable? What measures can you do as an Engineer? Please discuss in short and brief.
Answer In such a situation, it's important to adhere to the proper protocols and procedures outlined in
the contract. As the Engineer representing the consulting firm, it's crucial to ensure that all instructions
and modifications adhere to the contract terms and specifications.

Here are the steps you can take:

1. Review the Contract: Examine the contract thoroughly to understand the specifications, terms, and the
chain of command for giving instructions or modifications.

2. Communication: Reach out to the Employer to discuss their observations and concerns about the
construction work. Clarify any potential misunderstandings and explain the proper process for giving
instructions to the contractor.

3. Documentation: Document any deviations from the contract's specifications and any instructions given
by the Employer directly to the contractor. Maintain detailed records of all communications, including
emails, memos, or any official correspondence.

4. Meetings or Mediation: Arrange a meeting involving all relevant parties - the Employer, contractor,
and possibly legal advisors if necessary - to resolve the issue and ensure that modifications align with the
contract terms.

5. Recommendation and Reporting: As the Engineer, provide your professional recommendation based on
the contract terms and project requirements. Report the situation to your firm's management or higher
authorities if the issue persists or if there's a breach of contract.

6. Follow-up: Monitor the construction progress closely to ensure that any modifications made align with
the contract requirements and do not compromise the project's quality or integrity.

Ultimately, the key is to maintain clear communication channels, adhere to the contract terms, document
all actions and modifications, and resolve any conflicts or deviations in a manner that upholds the
project's integrity and contractual obligations.

10 A contractor under a fixed-price construction contract has allowed the electromechanical subcontractor
to install irrigation pump facilities other than those stated in the contract documents. The electrical
subcontractor and the contractor both believe the substituted equipment to be of equal value. The
construction is substantially completed and the Engineer rejects this equipment. What actions must be
taken regarding the substituted equipment/pump facilities? Please Justify.

Answer When a contractor substitutes equipment in a fixed-price construction contract without prior
approval, it generally constitutes a breach of contract, especially if the engineer rejects the substituted
equipment. The actions to be taken in this scenario might include:

1. Assessment of the deviation: First, a thorough assessment should be made to determine the differences
between the specified equipment in the contract documents and the substituted equipment installed. This
includes evaluating functionality, specifications, quality, and whether the substituted equipment meets
project requirements.
2. Evaluation of the Engineer's rejection: Understanding the reasons behind the Engineer's rejection of the
substituted equipment is crucial. If it doesn't meet the project specifications or poses risks to the
functionality and quality of the project, it's essential to consider these concerns seriously.

3. Contractual obligations and repercussions: Review the terms of the contract to determine the stipulated
procedures for making substitutions. If the contractor deviated without following the required approval
process, it could lead to liabilities such as costs for replacement, potential legal actions, or penalties
outlined in the contract.

4. Negotiation and resolution: The contractor, subcontractors, and Engineer might need to negotiate a
resolution. If the substituted equipment indeed matches the quality and functionality of the specified
equipment, discussions could be initiated to demonstrate equivalence and seek approval retroactively.
However, if there's a legitimate discrepancy in performance or specifications, discussions might focus on
replacing the equipment to meet contractual obligations.

5. Documentation: It's crucial to document all correspondence, evaluations, and discussions related to the
substituted equipment. This documentation could be essential if legal disputes arise.

6. Mitigation of damages: If there are costs or delays resulting from the rejection of the substituted
equipment, efforts should be made to mitigate these damages. This might involve promptly finding a
suitable replacement, securing necessary approvals, and taking necessary actions to minimize project
disruptions.

In summary, adherence to the contract's terms, evaluation of the equipment's compliance with project
requirements, negotiation for potential solutions, and proper documentation are key steps to address the
situation of unauthorized equipment substitution in a fixed-price construction contract.

11 The contractor decided not to purchase a specific material for a project near the time of bidding
because there was no enough space on the sore to stock the material. The material would not be needed
until months later after construction had progressed. When the contractor did purchase the material, the
price had risen by 30 percent compared to the price at the time of the bid. Is the contractor entitled to a
change order for the price increase? What would be your opinion if there was no adequate place on site to
construct the construction material store with the required capacity?

Answer The issue of entitlement to a change order due to a price increase can depend on various
factors, including the terms of the contract, any provisions related to material price fluctuations, and the
circumstances surrounding the situation.

If the contract contains clauses addressing price fluctuations in materials or unforeseen price increases,
the contractor may have grounds to request a change order to account for the increased cost of the
material. However, if the contract does not specifically cover such situations, it might be more
challenging for the contractor to claim additional compensation for the price increase.

Regarding the lack of space on site to store the material, this situation might strengthen the contractor's
argument for not purchasing the material earlier. If the inability to store the material was due to
limitations outlined in the contract (such as space constraints) and the contractor acted prudently by
delaying the purchase until it was necessary, this could potentially support the case for a change order.
Ultimately, the resolution of this matter would depend on the specific terms of the contract, any relevant
clauses addressing price fluctuations or unforeseen circumstances, and the agreement reached between the
parties involved. Consulting legal counsel or a contract expert to review the contract terms and advise on
potential options would be advisable in such a situation.

12 Six months after provisional acceptance or provisional take over or final payment, the Employer
notifies the Engineer that an as-built drawings, and operating and maintenance manual for the SSI scheme
was never received. What are the actions that the Engineer should take regarding the missing manual?
What could be the follow up action if the contractor is not willing to provide as-built drawings, and
operating and maintenance manual? Please discuss.

Answer The Engineer's actions regarding the missing manual typically involve the following steps:
1. Notification to Contractor: The Engineer should inform the contractor immediately about the missing
as-built drawings and operating and maintenance manual, requesting their submission as per the contract
requirements.

2. Documentation of Communication: Keep a record of all communication regarding the missing

documents, including dates, emails, or letters exchanged between the Engineer and the contractor.

3. Follow-up and Deadline: Set a reasonable deadline for the contractor to submit the required documents.
Request a plan of action from the contractor outlining how and when they will provide the missing
manual.

If the contractor is not willing to provide the necessary documents:

1. Issue a Formal Notice: Send a formal written notice to the contractor, emphasizing the contractual
obligation to provide the missing documents and the consequences of not fulfilling this obligation.

2. Involve Higher Authorities or Legal Support: If the contractor remains uncooperative, escalate the
matter to higher authorities within the organization or seek legal advice to enforce the contract terms.

3. Withhold Payment or Penalties: Depending on the terms of the contract, the Engineer might have the
right to withhold payment or impose penalties until the required documents are submitted.

4. Alternative Solutions: Explore alternative solutions, such as hiring a third party to create the missing
documentation, with the cost deducted from the contractor's payment or by any other means specified in
the contract.

Always ensure that actions taken align with the terms and conditions of the contract, and consider legal
implications before taking any drastic measures against the contractor.

12 The contract is based on PPA conditions of contract. By his own initiative, the contractor has put more
resources into the SSI construction project in order to accelerate the work and complete on time.
Fortunately, the contractor has finished the construction work of the project before the date for
completion. Can the contractor be entitled to recover the cost of the extra resources spent for early
completion through acceleration? Why?

Answer Entitlement to recover the cost of extra resources spent for early completion through
acceleration typically depends on the specific terms outlined in the PPA (Public-Private Partnership)
conditions of the contract. If the contract explicitly allows for cost recovery related to acceleration or
early completion, then the contractor may have a legitimate claim for reimbursement.

However, if the contract doesn't explicitly address this scenario or lacks provisions for recovering
additional costs incurred due to acceleration, the contractor might face challenges in claiming these costs.
In such cases, the contractor would need to demonstrate that the acceleration was necessary for the timely
completion of the project and that it provided a benefit to the project owner or adhered to terms that
implied an acceleration allowance.

It's crucial to review the contract terms and consult legal counsel or a contract expert to determine the
contractor's entitlement to recover the extra resources' cost spent for early completion through
acceleration under the PPA conditions of the contract.

14 The contract is the construction of an SSI project, and it is based on PPA conditions of contract. The
contract has clearly indicated completion date of an SSI construction project, but the contractor has
submitted a program with a revised completion date - showing a later completion date and approved by
the Engineer. Later the Employer has deducted the liquidated damage as per the original completion date.
However, contractor has claimed that the Engineer has approved the work program including extended
completion date. What is your advice on this issue? Why?

Answer In this scenario, there appears to be a discrepancy between the initially agreed-upon
completion date in the contract and the revised completion date approved by the Engineer in the
contractor's submitted program.

It's crucial to review the contract terms and conditions, specifically regarding extensions of time,
revisions to the completion date, and the Engineer's authority to approve such changes. If the contract
allows for extensions under certain circumstances (e.g., unforeseen delays, variations, or other valid
reasons), and if the Engineer has indeed approved the revised completion date, then the Employer's
deduction of liquidated damages based on the original completion date might be contentious.

However, it's essential to ascertain if the revised completion date was approved in compliance with the
contract's provisions. If the Engineer's approval was within the contract's framework, the Contractor's
claim for the extended completion date might be valid, and the deduction of liquidated damages based on
the original date could potentially be disputable.

Therefore, a thorough examination of the contract terms, including provisions related to extensions, the
Engineer's role, and the procedure for approval of revised completion dates, is necessary to determine the
validity of the Contractor's claim and the Employer's deduction of liquidated damages. Consulting legal
counsel or a construction contract expert might be beneficial to resolve this issue effectively.
15 The contract is based on PPA conditions of contract. Project A is an irrigation diversion weir
construction project. The Particular Conditions of contract restricts the Engineer’s authority to issue
Variation order of more than ETB 0.250 million. While reviewing the design of the diversion weir the
Engineer noticed errors and reviewed the design accordingly. According to the review the volume of
works has been increased by ETB 0.5 million. The Engineer has issued a variation order to the Contractor
in line with the revised design. If you are assigned as the Contractor’s Project Manager on site and noted
that the VO has not been copied to the Employer. What would you do upon receipt of such instruction?

Answer As the Contractor's Project Manager, upon receiving a variation order (VO) that hasn't been
copied to the Employer, I would take the following steps:

1. Review the Contract: Thoroughly examine the contract terms, especially those related to variation
orders, the Engineer's authority, and the communication protocols between the parties involved.

2. Document and Communicate: Document the received variation order and its details accurately. Then,
promptly communicate with the Engineer to confirm whether it was intentional not to copy the Employer
on the VO.

3. Clarify with the Engineer: Seek clarification from the Engineer about the omission of copying the
Employer. Understand the reasoning behind this decision and confirm whether it aligns with the
contractual obligations and procedures.

4. Inform the Employer: If it appears that the omission was an oversight or not in line with contractual
requirements, inform the Employer about the variation order issued by the Engineer. Present the updated
design, increased works volume, and the corresponding variation order for transparency and compliance.

5. Document Everything: Maintain thorough documentation of all correspondence, decisions, and actions
taken regarding the variation order and its communication to both the Engineer and the Employer.

6. Seek Legal Advice if Necessary: If there's ambiguity or disagreement between parties about the proper
procedure, consider seeking legal advice to ensure compliance with the contract and to protect the
Contractor's interests.

Maintaining transparency, following contractual procedures, and ensuring all parties are informed and
involved is crucial to avoid potential disputes or misunderstandings in such situations.

16 Suppose you are managing the construction of an SSI masonry canal construction project. As indicated
in the BOQ the quantity for the masonry work of the irrigation canal was 2,000 cubic meters. During
construction the dimensions were changed, and as a result the quantity became 3,000 cubic meters. The
Engineer has fixed a new rate for masonry work of the irrigation canal from X to Y. A difference of
opinion has arisen on the applicability of new rates fixed by the Engineer on the quantities, i.e., whether
the new rate will be applicable only on the enhanced quantity beyond the original BOQ quantity, OR it
shall apply on the entire quantity. Will Y rate be applicable to only the additional quantity of 1,000 cubic
meters, or should it apply to 3,000 cubic meters? Please discuss based on PPA GCC.

Answer Under the Public-Private Partnership Agreement's (PPA) General Conditions of Contract
(GCC), the determination of whether the new rate (Y) should apply only to the additional quantity of
1,000 cubic meters or to the entire 3,000 cubic meters would typically depend on the specific clauses and
provisions outlined in the contract.

Generally, according to standard contract practices, any changes to the quantity of work agreed upon in
the Bill of Quantities (BOQ) might trigger adjustments to rates. However, the specific terms addressing
variations and adjustments due to changes in quantities must be referenced within the PPA GCC.

Key clauses related to variations, scope changes, and rates should govern how adjustments are made. For
instance, some contracts may specify that new rates only apply to the additional quantities resulting from
variations beyond the original BOQ. Conversely, other contracts might dictate that revised rates apply to
the entire revised quantity, encompassing both the original BOQ quantity and any additional amounts.

To provide a precise answer, it's crucial to refer to the relevant sections or clauses in the PPA GCC that
cover variations, change orders, adjustments to rates, and how they apply to quantities differing from the
original BOQ. Consulting legal counsel or contract experts familiar with the specific terms of the PPA
GCC would be instrumental in interpreting the contractual obligations accurately.

17 A contractor who has been engaged in the construction of SSI project has simply stopped work
because it is not being paid. Do you accept the decision of the contractor? Why?

Answer The decision of the contractor to stop work due to non-payment depends on various factors.
Contractors rely on timely payments to cover expenses such as labor, materials, and equipment. If they're
not paid as per the agreed terms, it can disrupt the project. However, while the contractor might be
justified in stopping work, it's essential to understand the circumstances leading to the non-payment and
ensure both parties follow the terms of their contract. Communication and negotiation are crucial to
resolving such issues and getting the project back on track.

18 The Employer in compliance with the applicable GCC, after giving written notice to the Contractor
upon his breach of provision in the contract, terminated the employment of the Contractor. The Employer
wants to employ another Contractor to complete the works. The questions is: is this procedure in
compliance with the PPA GCC?

Answer The termination of a contractor's employment due to a breach of contract, followed by hiring
another contractor to complete the remaining work, can be compliant with the General Conditions of
Contract (GCC) as long as the termination and subsequent actions are in line with the specific provisions
outlined in the contract itself.

The GCC typically lays out procedures and conditions for termination, breach of contract, and engaging
new contractors. The legality of this action depends on the language and terms specified within the
contract regarding termination, breach remedies, and the employer's rights to engage alternative
contractors.

It's crucial to review the specific clauses and provisions related to termination and the engagement of new
contractors within the GCC of the particular contract in question to determine the compliance of the
employer's actions. If unsure, seeking legal advice or consulting with someone knowledgeable about
contract law can provide clarity on whether the employer's actions align with the GCC.

19 Funding has been stopped; but three approved payment certificates are yet unpaid. To this effect, the
contractor has suspended his obligations. Subsequently, vandalism occurred on site. Whose problem is
that?

Answer The situation seems complex. When funding is stopped and payment certificates remain
unpaid, the contractor may suspend work due to non-payment. However, vandalism on the site generally
falls under the responsibility of the site owner or party in control of the property, unless explicitly
stipulated otherwise in the contract between the parties. It's advisable to refer to the terms of the contract
to determine the liabilities and responsibilities in such situations.

20 You are assigned as an Engineer for executing the construction contract of 10 kilometres length
masonry canal construction project. However, the Employer has increased the length of the canal to 12
km (now there is an addition of 2 km of masonry canal). Shall this additional 2 km be dealt as a variation
or separate contract required? Can you revise the rate and price, since this 2 km addition is less than the
25 percent of the contract value? Please comment this situation.

Answer In construction contracts, alterations or modifications to the original scope are generally
categorized as variations. The addition of 2 km to the canal's length is considered a variation to the
original contract, and it's typically handled as such.

Regarding revising rates and prices due to this additional length, it depends on the terms outlined in the
contract. If the contract specifies a provision for variations that fall below a certain threshold, usually 25
percent of the contract value, then adjusting rates might not be mandatory. However, it's common practice
to renegotiate rates and prices for variations, even if they fall below the specified threshold, to ensure fair
compensation for the additional work undertaken.

It's advisable to consult the contract terms and, if necessary, negotiate with the Employer to reach an
agreement on revised rates and prices for the added 2 km of canal construction, even if it falls below the
25 percent threshold. This helps maintain transparency, avoids disputes, and ensures proper compensation
for the extra work carried out.