Q QA AT TA AR R A AI IR RW WA AY YS S C CR RE EW W A AC CC CO OM MO OD DA AT TI IO ON N

F Fi in na al l C Co os st t V Va al lu ua at ti io on n N No o. . 1 1
( (P Pr re ef fa ab br ri ic ca at te ed d B Ba at th hr ro oo om m & & K Ki it tc ch he en n P Po od ds s) )
M Ma ay y 2 20 01 14 4







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Table of Contents

CONTRACT PARTICULARS ........................................................................................................................ 3
SECTION 1 INTRODUCTION & BACKGROUND ............................................................................... 5
1.1 Introduction: ........................................................................................................................... 5
1.2 Purpose of this Document: ..................................................................................................... 6
SECTION 2: Contractors Claim ....................................................................................................... 8
2.1 Claim Statement: .................................................................................................................... 8
2.2 Entitling Provisions: ................................................................................................................. 9
SECTION 3: The Facts ................................................................................................................... 10
3.1 Pre-Fabricated Bathroom and Kitchen Pods: ........................................................................ 10
3.2 Central Water Heating System:............................................................................................. 16
3.3 Kitchen Ventilation System: .................................................................................................. 16
3.4 Kitchen Appliances: ............................................................................................................... 16
3.5 Glass Shower Door: ............................................................................................................... 17
3.6 Omission of Insulation to Pods: ............................................................................................ 17
3.7 New Provisions of Washing Machine:................................................................................... 18
3.8 Conclusions: .......................................................................................................................... 19
SECTION - 4: VALUATION OF VARIED WORKS: ........................................................................... 21
4.1 An Overview: ......................................................................................................................... 21
4.2 Approach of Valuation: ......................................................................................................... 22
List of attachments ............................................................................................................................... 24







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CONTRACT PARTICULARS
The Employer:

Qatar Airways,
P.O Box 22550, Doha,
State of Qatar

Employers Representative:

Vice President Capital Projects
Qatar Airways,
P.O Box 22550, Doha,
State of Qatar

The Engineer:

Arab Engineering Bureau
Building No. 100, Ibn-e-Sina Street 950, Zone-24, Al Muntaza,
P.O Box No. 1148,
Doha, Qatar.

The Contractor:

Redco International Trading and Contracting W.L.L
PO Box 16750, Doha,
State of Qatar

Contract price:

QAR 451,796,152.72. Lump Sum.
Construction Phase:
QAR 421,900,000.00 Construction Price
QAR 6,208,922.72 Facade Redesign
VO No. 1 to xx QAR
Maintenance Service Phase:
QAR 23,687,230.00

Key dates:

Commencement Date 01st February 2011
Scheduled Completion Date 21st November 2012
Time for completion of Construction Phase 660 days

Form of Contract:
Public Works Authority Standard Conditions of the Contract (As modified)




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SECTION 1 INTRODUCTION & BACKGROUND





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SECTION 1 INTRODUCTION & BACKGROUND

1.1 Introduction:

1. The Parties to the Contract entered into an agreement for construction of works
forming Construction Qatar Airways Crew Accommodation reference QTR-
CNT-2011-0087 and Maintenance Services Qatar Airways Crew
Accommodation reference QTR-CNT-2011-0091 by the endorsement of the
Letter of Acceptance
1
dated 20th January 2011 with a commencement date of
01
st
February 2011 for a combined value of QAR 451,796,152.72 with a
completion date of 21
st
November 2012.
2. Prior the award of the Project, the Contractor by way of Post tender
clarification
2
dated 6
th
September 2010 conveyed its consent to be part of the
value engineering.
3. The Employer prior award of the Project undertook Design review of the
Project through ARUP and developed a review report
3
. The Employer awarded
the Project without incorporating those Design issues. The ARUP Design report
was recently handed over to the Contractor unofficially; which reveals that the
Employer awarded the Project with Design deficiencies and with the intent that
the Scope of Works shall be varied to a significant extent during the execution
of the Project. Such intent was never incorporated in the Contract. This report
has presented around 92 items.
4. At the time of writing of this document around 56 numbers of variations orders
are issued by the Employer/ the Engineer in line with the ARUP Design Report.
Out of these 56 variations orders, 7 variation orders are related to the works in
Bathroom and Kitchen, which constitutes significant portion of the works such
varied works were formalised by way of issuing Variation Orders as detailed
hereunder:-

1
QA Letter of Acceptance reference QTR-CNT-2001-0088 dated 20
th
January 2011.
2
The Contractors letter reference no. RT/T/09-23/SRK/AS/L/010 dated: 6
th
September 2010
3
ARUP Peer review report.




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Table 1
Sr.N
o.
Variation Order Dates
No. Description Issue Approval
1 09 Pre-Fabricated Bathroom & Kitchen Pods 31-10-2011 31-10-2011
2 18
Change from Individual water heaters to
Centralized Water Heating System
29-03-2012 11-04-2012
3 20 Kitchen Ventilation System 19-04-2012 15-05-2012
4 31 Kitchen Appliances and Spare parts 04-10-2012 04-11-2012
5 45 Addition of Glass Shower doors 20-06-2013 24-07-2013
6 51 Omission of Insulation to Pods 26-01-2014 11-03-2014
7 56 New Provisions for Washing Machine 20-02-2014 24-04-2014

5. The Contractor is of the opinion that in all the above mentioned Variation
Order, procedure laid down in the Contract was not adopted due to lack of
Design, Specifications and clear scope of works and hence it was not possible
to ascertain pre-performance cost of the above named variations. Since the
Design, Specifications and scope of Works are now finalized hence cost
reimbursement is requested on the basis of actual after-the-fact basis.
1.2 Purpose of this Document:

The purpose of this document is to:-
i. Reimburse actual costs incurred on the varied works related to Bathrooms
and Kitchens and to agree on the revised Contract Price.
ii. Substantiate that the Contractor is entitled for such reimbursement from the
Employer.






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SECTION 2 Contractors Claim
(Facts, Reasons and Justifications)





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SECTION 2: Contractors Claim

2.1 Claim Statement:
1. The Contractor is of the opinion the Engineer/ Employer, for the purpose of
varied works tabled at Table-1, exercised their power to amend the Works in
accordance with Sub-Clause 51.1 & 51.2 of the General Conditions of
Contract.
2. The Engineer/ Employer, for the purpose of interim payment and formalization
of the changes to the Works issued Contract Variation Form in accordance with
Sub-Clause 2.1 Part-5 of the Supplemental Conditions of Contract with budget
price.
3. The Contractor has now performed the varied works.
4. For revising the Contract Price, the Engineer/ the Employer did not follow the
procedure set out in Sub-Clause 4.1 & 4.2 of Part -5 of Supplemental
Conditions of Contract.
5. It was impossible for the Employer, the Engineer and the Contractor to follow
up the procedure as the Design, Scope of Works and Specifications for varied
works were not finalized at the time of issuance of Variation Order Form.
6. The provision of Design, Scope of Works and Specification is the sole
responsibility of the Engineer/ Employer.
7. The Design, Scope of Works and Specifications for the varied works is now
finalized after issuance of VO 56 on 24
th
April 2014 and hence the Contractor
is now in a position to request for the reimbursement of the actual cost incurred
for these varied works on an After-the-fact basis in the sum of QAR
_______________________





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2.2 Entitling Provisions:
1. The extent of the Contract, in accordance with Clause-5 of General
Conditions of Contract, is limited to Construction only where the Design is
the responsibility of the Employer/ the Engineer. The Design of the Works
and/or varied works is the Expected Risk in accordance with Sub-Clause
20.2 of the General Conditions of the Contract.
2. The Design of varied works, as is evident from the issued Variation Order
Forms
4
, is the responsibility of the Engineer, in accordance with Sub-Clause
4.2 of the Supplemental Conditions of the Contract.
3. The procedure for selecting the Subcontractor(s), the revision to the
Contract Price and issuance of Contract Variation Form is stipulated in the
Sub-clause 4.2 of the Supplemental Conditions of Contract. Such procedure
was never adopted by the Engineer/ Employer.
4. The Design, Scope of Works and Specifications were never provided by the
Engineer/ the Employer at the time of issuance of the Variation Orders as is
evident from the records detailed at Section 3 of this document.
5. The As-Built Design is now finalized and final Variation Order No. 56 is
issued.
6. In accordance with Second Paragraph of Sub-Clause 51.4, it is not
practicable to for the Contractor to claim for the reimbursements of the
costs as the Design, Scope and Specifications of the Varied Works is
finalized and actual cost is known.



4
Variation Order Forms no. ___________




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SECTION 3: The Facts
As illustrated in Section - 2 of this document:-
i. The Varied Works were ordered with due consultation of the Employer.
ii. At the time of issuance of order(s) for undertaking Varied Works the
Design, Scope of Works and Specification of varied works were not
provided by the Engineer/ Employer.
iii. The specialist Subcontractor/ Supplier was selected by the Engineer/ the
Employer.
iv. In the event of absence of Design, Scope of Works and Specification it was
impossible for all the parties involved in the Contract to calculate the
projected direct and associated costs with the Varied Works.
This Section of the document is therefore put together with the view to substantiate the
above statement of the Contractor from the records of the Project as under:-
3.1 Pre-Fabricated Bathroom and Kitchen Pods:
1. Immediately after award of the Project:-
a. The Engineer, through his email
5
dated: 7
th
December 2010, introduced
Modular to the Contractor for preparing a proposal for the Project.
b. M/s Modular (the selected supplier/subcontractor) confirmed to the
Contractor by way of email
6
date: 18
th
December 2010 that they are in
the preliminary discussion directly with the Engineer for introduction of
pods into the Project.
2. In Design meeting No. 3
7
on 27
th
January 2011, the Engineer confirmed that
they visited three (3) Pods manufacturers in UAE and wanted the Contractor to
get information from them.

5
Email dated 7
th
Dec'2010
6
Email dated 18
th
Dec'2010
7
Design Meeting Minutes No. 3




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3. In the Design meeting No. 8
8
, the Engineer insisted on the use of pre-fabricated
bathroom and kitchen pods. It was informed by the Contractor that M/s
Modular is ready to present their solution on 29
th
March 2011.
4. On 5
th
April 2011, the Engineer instructed AEB (the then Designer and now the
current Engineer) to expedite and initiate the layout in view of the parameter
wall of the toilets.
5. During Design meeting No 19
9
, The Engineer advised the Contractor to arrange
Presentation by M/S Modular for QA on or before 22nd May' 11.
6. During Design meeting No. 24
10
the Engineer confirmed that the Employer has
No Objection with Modular and that they should provide proposal with
different options and different colours.
7. During Design meeting No. 27
11
, the Engineer confirmed the receipt of two
proposals from the Contractor and its discussions with the Employer. The
Contractor during the meeting also informed that planned date for Modular
presentation is 7
th
July'11.
8. The Contractor formally submitted Prefabricated Bathroom pods submission
from Modular on 18
th
July'11.
9. The Engineer informed during Design Meeting No. 35
12
that AEB (Designer) is
doing a comprehensive report on Pods and based on this GTI (Cost Consultant)
will assess the cost.
10. On 31
st
Aug'11, the Engineer issued an interim VO
13
with a Budget savings of
QAR 500,000, which principally should have been issued after fulfilling the
entire procedure.
11. The Engineers representative along with Modular finalized the dimensional
details of Pods in their Dubai office and Modular Emailed
14
these layouts to the
Contractor on 14
th
Nov'11.

8
Design Meeting Minutes No. 8
9
Design Meeting Minutes No. 19
10
Design Meeting Minutes No. 24
11
Design Meeting Minutes No. 27
12
Design Meeting Minutes No. 35
13
Variation Order No. 9




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12. The Engineer Signed off one Type of Bathroom Pod drawing on 14
th
Nov'11
15

and instructed the Contractor to proceed with Mock-up of these Pods for
Client's inspection.
13. Meanwhile, the Contractor formalized material submissions
16
for the different
items in the Pods like Sanitary wares, fixtures etc.
14. On 12
th
of Dec'11, the Chief Executive of Qatar Airways (the Employer) visited
the Pods Mock-up and approved the Pods in principle with a number of
changes to the pods as communicated by the Engineer.
The following facts shall prove that the Engineer could not finalize the Design of
the prefabricated bathroom and kitchen pods even years after issuance of the
Variation Order form:-
15. During the architecture coordination meeting No. 5
17
on 14
th
Dec' 11 detailed
discussion happened along with the Engineer his designer and the Contractor
on the Design of Bathroom and Kitchen Pods.
16. The Engineer confirmed through letter
18
dated 15
th
Dec'11 that Pods have been
formally approved by Qatar Airways.
17. On 19
th
Dec'11, the Engineer issued a detailed report
19
and highlighted different
design changes required on Pods.
18. During architecture coordination meeting No. 9
20
, the Engineer instructed for a
full Apartment Mock-up along with Pods as per new design and the Contractor
confirmed that such Mock up will be ready by 1
st
week of Feb'12.
19. On 10
th
Jan'12, the Engineer issued a Change Order
21
for the different
Specifications and hence requested changes to the Mock up.

14
Modular Email
15
Email dated 14th Nov'11
16
Material Submittals
17
Arch. Coordination Meeting Minutes No. 5
18
1101-00-OL-CC/SK-0297
19
Arch. Coordination Meeting Minutes No. 06
20
Arch. Coordination Meeting Minutes No. 16
21
1101-00-OL-1710-CC/CV-0358 dated 10
th
Jan'12




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20. During architectural coordination meeting No.10
22
, the Engineer instructed the
Contractor to proceed with the Coordinated Shop drawing for Pods and also
informed that Basic design has been finalized by Engineer.
21. During architectural coordination meeting No. 12
23
, the Engineer informed the
Contractor that Mock up Shop drawing has been approved and further asked
the Contractor to arrange a separate type of Basin (Semi Recess type) for the
Employer review and approval.
22. During architectural coordination meeting No. 14
24
, the Engineer confirmed
that mirror light in the Pods will be from Astro U.K.
23. On 7
th
Mar'12, the Contractor submitted
25
General Arrangement drawings for
the Pods.
24. The Contractor submitted
26
breakdown for the QAR 500,000 savings for the
Interim payments processing upon repeatedly requests of the Engineer.
25. The Engineer
27
on 27
th
Mar'12 instructed the Contractor that the Pods
inspection to be done by AEB through their Abu Dhabi office and informed
that such costs will be borne by the Contractor.
26. The Employers inspection
28
for the Full Mock up apartment Mock up along
with New Pods happened on 4
th
April'12.
27. Immediately after Mock up inspection, the Employer instructed
29
the
Contractor to lock the Mock up apartment and not to allow any one enter it till
further instructions.
28. On 11
th
April'12, the Engineer issued a Variation Order No 18
30
for the
Changes in the Water Heating System in the Pods.

22
Arch. Coordination Meeting Minutes No. 10
23
Arch. Coordination Meeting Minutes No. 12
24
Arch. Coordination Meeting Minutes No. 14
25
RED-1101-0207-PD-191 dated 7
th
Mar'12
26
RED-1101-0232-PD-219 dated 25
th
Mar'12
27
1101-00-OL-1710-CC/SK-0543 dated 27
th
Mar' 12
28
1101-00-OL-1710-CC/SK-0658 dated 04
th
April' 12
29
RED-1101-290-PD-290 dated 04
th
April'12
30
Variation Order No. 18




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29. During the Progress Meeting No. 63
31
, the Employer once again confirmed that
Mock up done is on Hold.
30. On 15
th
May'12, the Engineer issued another Variation Order NO. 20
32
for the
changes in the Kitchen Ventilation System.
31. On 15
th
May'12, the Engineer issued
33
New Design drawing for new Mock up
apartment and instructed Redco to proceed with its Shop drawings with
immediate effect.
32. On 23
rd
May'12, the Engineer through a formal letter
34
instructed cancellation
of Pods concept with immediate effect.
33. The Contractor immediately forwarded
35
the cancellation instructions to
Modular upon receipt.
34. On 11
th
June '12, the Engineer instructed
36
the Contractor to resume works on
1
st
Mock up and rectify comments raised by the Engineer in order to offer
inspection to the Employer.
35. On 12
th
June'12, the Engineer instructed
37
the Contractor to resume the Pods on
the Project with immediate effect.
36. On 13
th
June '12, the Contractor confirmed
38
receipt of the Engineer
instructions and informed that the varied works have been recommenced on
Mock up 1 and informed that Mock up 2 works are also on going.
37. On 20
th
July'12, the Contractor attached minutes of Design Meeting and
requested
39
the Engineer to finalize the Design of the varied works at earliest in
order to proceed with the Production of Pods through selected subcontractor.

31
Progress Meeting Minutes No. 63
32
Variation Order No. 28
33
1101-00-OL-1710-CC/MN-0734 dated 15
th
May' 12
34
1101-00-OL-1710-CC/SK-0544 dated 23
rh
May' 12
35
RED-1101-0362-MOD-0004-PD-0352 dated 23
rd
May'12
36
1101-00-OL-1710-CC/SK-0840 dated 11
th
June' 12
37
1101-00-OL-1710-CC/SK-0544 dated 12
th
June' 12
38
RED-1101-0396-AEB-036-PD-386 dated 13
th
June' 12
39
RED-1101-0524-AEB-017-PD-513 dated 20
th
July' 12




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38. On 16
th
Aug'12, the Contractor further updated
40
on the pending design items
related to the varied works and requested the Engineer to finalize the Design at
earliest.
39. On 22
nd
Aug'12, the Engineer acknowledged
41
the Contractors concerns on the
pending design items and assured that they will finalize at earliest and further
requested that a Mock up should be done reflecting new changes in Modular
Dubai Office's.
40. On 25
th
Aug'12, the Contractor further updated
42
on the design issues and also
forwarded design proposal on demountable ceiling and confirmed agreement on
Mock up in Dubai upon finalization of current design issues (Ceiling and
Shaft).
41. On 4
th
Nov'12, the Engineer issued VO 31
43
for the Kitchen Appliances and
Spare Parts to be installed in Kitchen Pods.
42. On 12
th
Nov'12, the Engineer through letter
44
confirmed approval of the
Logistic Plan of Pods and asked the Contractor to submit the planned
delivery/installation dates and also to raise formal request for inspection of
Mock up based on agreed Design Changes till date.
43. On 6
th
Aug'13, the Contractor submitted
45
a Variation Order for the additional
Dual Socket outlet and Shaver Socket in Pods.
44. On 24
th
July'13, the Engineer issued New Variation Order 45
46
for the Glass
Shower door to be installed in the varied works
45. On 11
th
Mar'13, the Engineer issued New Variation Order 51
47
for the omission
of Insulation from Bathroom and Kitchen Pods.

40
RED-1101-0520-AEB-014-PD-510 dated 16
th
Aug' 12
41
AEB/878/RS/01/L000378/389 dated 22
nd
Aug'12
42
RED-1101-0532-AEB-0024-PD-520 dated 25
th
Aug' 12
43
Variation Order No. 31
44
AEB/878/RS/01/L000621/632 dated 12
th
Nov' 12
45
RED-1101-0893-AEB-0293-PD-883 dated 06
th
Aug' 13
46
Variation Order No. 42
47
Variation Order No. 51




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46. On 30
th
April'13, the Engineer issued New Variation Order 56
48
for the
Washing Machine Provisions to be made in 37 numbers Kitchen Pods and
hence finally completed the Design of Bathroom and Kitchen Pods.
3.2 Central Water Heating System:
1. Central Water Heating system was introduced as Value Engineering Item
49
.
2. On 10
th
January 2012, the Engineer issued Design Drawings
50
showing solar
panels.
3. On 29
th
January 2012, the Engineer issued revised Design showing
multifunctional pumps
51
for central water heating system.
4. On 14
th
April 2012, the Engineer issued Variation Order Form
52
.
5. On 21
st
May 2012, the Engineer again issued revised Design
53
.
3.3 Kitchen Ventilation System:
1. The Engineer, through his letter
54
dated: 26
th
February 2012, instructed to
for the cost impact of the varied works, so that the Engineer may present the
case to the Employer.
2. On 26
th
March'12 Redco submitted
55
revised Commercial Submission as
instructed.
3. On 15
th
May'12 Variation Order
56
is finally issued.

3.4 Kitchen Appliances:
1. The Engineer, vide his letter dated: 4
th
January 2012 issued instruction to
procure and install Kitchen Appliances
57
.

48
Variation Order No. 56
49
Design and VE meeting No.31
50
IFC issuance transmittal 1101/QA/0046
51
IFC issuance transmittal AEB/878/RS/01/LOOO97/108
52
The Engineer's letter 1101-00-OL-1710-CC/CV-0591
53
Revised IFC Transmittal . 1101/QA/0056
54
Engineer's letter Ref 1101-00-OL-1710-CL/MCC-0473
55
RED-1101-GEN-MEC-TR-0032_01 dated 26
th
March'12
56
Variation Order No. 20




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2. The Engineer
58
forwarded the Employers letter requesting for additional
requirements (spare parts etc) of the Employer vide letter dated: 26
th
April
2012.
3. Additional requirements were communicated by the Engineer
59
vide his
letter reference no. 9
th
May 2012.
4. Proposal was submitted by the Contractor
60
vide his letter dated: 14
th
May
2012.
5. Again the Engineer
61
forwarded the Employer letter asking some additional
details vide his letter dated: 14
th
June 2012.
6. After a number of discussions the Engineer
62
issued Variation on 4
th

October 2012.
3.5 Glass Shower Door:
1. On 15
th
August 2012, the Engineer
63
issued instruction to proceed with
Glass Shower Doors in Bathrooms without any Design and Specifications.
2. The quotation
64
from the supplier/ the Subcontractor was submitted 30
th

September 2012.
3. After nine months of the submission of the proposal Variation Order
65
was
approved and communicated on 25
th
June 2013.
3.6 Omission of Insulation to Pods:
1. On 02
nd
Sep'13 Engineer Instructed
66
the Contractor to analyze cost for the
Pods insulation.

57
Engineer's letter Ref 1101-00-OL-1710-CC/CV-0326
58
Engineer's letter Ref 1101-00-OL-1710-CC/CV-0661
59
Engineer's letter Ref 1101-00-OL-1710-CC/CV-0716
60
Redco's letter Ref RED-1101-350-RPM-350-PD-340
61
Engineer's letter Ref 1101-00-OL-1710-np/CV-0875
62
Engineer's letter Ref AEB/878/RS/01/LOOO555/566
63
Engineer's letter Ref AEB/878/RS/01/LOOO355/366
64
Redco's letter Ref RED-1101-596-AEB-0068-PD-582
65
Variation Order No. 45
66
Commercial meeting No. 70




P a g e | 18

2. On 30
th
Sep'12 Engineer confirmed
67
that they have received cost from the
Contractor and a joint review is on-going.
3. On 10
th
Nov'12 Engineer has issued VO
68
which is immediately signed off
by the Contractor.
4. On 11
th
March'14 Variation Order
69
has been formally issued.
3.7 New Provisions of Washing Machine:
1. The Project Manager of M/s RPM (Engineers Representative) requested by
way of sending email
70
dated 1
st
May 2012 for incorporation of Washing
Machines in some pods.
2. The Contractor requested
71
on 6
th
November 2012 that written confirmation
of the request is required along with the Design drawings specification.
3. The Engineer, vide his letter
72
dated: 24
th
December 2012 confirm that
changes are required.
4. The Engineer changed his Design of the varied works by considering frame
and granite by way of sending letter
73
dated: 16
th
June 2013.
5. The Engineer vide his letter
74
dated: 26
th
June 2013 requested for the
approved drawings to be provided with PPR pipes.
6. The Engineer by way of letter
75
dated: 30
th
October 2013 forwarded the
Employer letter stating the concept approval but certain details were
requested from the Employer.
7. The Engineer finally issued a Contract Variation Form
76
on 30
th
April 2014.


67
Commercial meeting No. 74
68
Commercial meeting No. 79
69
Variation Order No. 51
70
Engineers Representative Mr. Claudio's email dated 1st Nov'12
71
The Contractors letter Ref RED-1101-634-RPM-0094-PD-0620
72
The Engineer's letter Ref AEB/878/RS/01/L000727/738
73
Email dated 16th June'2013
74
The Engineer's letter Ref AEB/878/RS/01/L001026/1037
75
The Engineer's letter Ref AEB/878/RS/01/L001181/1246
76
Variation Order No 56




P a g e | 19

3.8 Conclusions:

- The Engineer/ Employer instructed the desired changes to the Works in
accordance with Sub-Clause 51.1 of the General Conditions of the Contract.
- The Engineer/ Employer for the purpose of confirmation of his instructions
and interim payments confirmed his instructions in compliance with Sub-
Clause 2.1 by way of issuing a Variation Order Form.
- The procedure for processing Variations of this nature is defined in Sub-
Clause 4.2 was not adopted due to the fact that the scope of works,
specifications and Design was not finalized at the time.
- The Scope of varied works, its specification and Design is now finalized
and hence the costs associated duly incurred by the Contractor is submitted
for the final review of the Engineer and release of payment by the
Employer.




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SECTION - 4. VALUATION OF VARIED WORKS





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SECTION - 4: VALUATION OF VARIED WORKS:

4.1 An Overview:

The details of the Varied Works which is subject of this document are as under:-

As described earlier, the cost impact of the above varied works could not be
ascertained prior performance due to lack of Design, Specifications and Scope of work
as established from the records described in detail in Section-2 of this document. The
Contract stipulates that the provision of Design, Specification and Scope of Work is
the responsibility of the Employer. The Engineer issued the above named Variation
Order in accordance with the provisions of Sub-Clause 51.3 & 51.4 of the General
Conditions of the Contract. The process stipulated in the Supplemental Conditions of
the Contract (Sub Clause 4.2 of Part-5) was not adopted due to lack of Design,
Specification and Scope of works. The Variation Orders were, therefore, issued with
budget cost to the Contract Price and agreed by the Contractor as an interim
mechanism for the Engineer to recommend the progress payment.

Now that the varied works are completed to the satisfaction and requirements of the
Engineer/ the Employer and the Design, Specification and scope of works is finalized
Sr.
No.
Variation Order Date
Interim Budget
effect
No. Description Issue Approval
Cost
(QAR)
(Add/Omit)
1 09
Pre-Fabricated Bathroom & Kitchen
Pods
31-10-2011 31-10-2011 500,000 Omit
2 18
Change from Individual water heaters
to Centralized Water Heating System
29-03-2012 11-04-2012 4,660,407 Add
3 20 Kitchen Ventilation System 19-04-2012 15-05-2012 79,493 Omit
4 31 Kitchen Appliances and Spare parts 04-10-2012 04-11-2012 3,273,693.5 Add
5 45 Addition of Glass Shower doors 20-06-2013 24-07-2013
3,018,074.2
5
Add
6 51 Omission of Insulation to Pods 26-01-2014 11-03-2014 413,558.52 Omit
7 56 New Provisions for Washing Machine 20-02-2014 24-04-2014 126,202.35 Add




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hence final cost is submitted i.e. after-the-performance for the release of payment
and agreement on the revised Contract Price.
4.2 Approach of Valuation:

Following approach is adopted for calculating after the perform cost of the Varied
Works:-
i. Omission: The Works which are varied and/or amended by way of issuing
Variation Orders are calculating from the Contract Drawings and its cost is
calculating on the basis of Bill of Quantities.
ii. Addition: The additional/ varied works actual cost is calculated as under:-
a. Direct Cost of the selected Supplier/ Subcontractor, duly substantiated
with payments made to respective party (ies).
b. The actual costs incurred on the exclusions including but not limited to
the works and General and particular attendances, works etc.








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ATTACHEMENTS:




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List of attachments