Fair Valuation of Variations under Civil Engineering and Building Contracts in Ireland

John ME Lyden

February 2006

A paper given to a meeting of the Society of Construction Law and the Society of Chartered Surveyors in Cork, Ireland on 8th November 2004.

When variations are ordered under the standard forms common in Ireland, how is the cost payable to the contractor calculated? John Lyden considers the contractual rules - closely similar to those in the ICE forms - and discusses in the light of case law when each possible method of assessment of cost is appropriate, and what is meant by a 'fair valuation'.

Introduction - Contractual provisions (IEI contract) - IEI contract: examples of extra costs entitlements - IEI Clause 52(1): valuation of variations- IEI Clause 52(2): new rates for unvaried works - Valuation of variations under the IAI and GDLA contracts - IAI/GDLA Clause 13(a): new rates for unvaried works - 'Fair valuation' and contractual quantum meruit - Fair valuation under IEI Clause 52(1) - Distinction between 'character' and 'conditions' - So far as may be reasonable - Overview of ules 1, 2 and 3 - Is a fair valuation linked to bill of quantities rates? - The application of a fair valuation in practice - Conclusions.

The author: John ME Lyden FICS, FSCS, MIN, MCIArb, MEWI is an arbitrator, chartered quantity surveyor and conciliator practising in Cork, Ireland.

Text: 17 pages

PDF file size: 135k