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FIDIC Red Book: Clause 14.5, what does "additional amount" signify

+1 vote
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We have had materials in country (off site storage), these goods are now being delivered to the site and the ownership passes to the Client.

Clause 14.5 says: The additional amount to be certified shall be equivalent....."

My question is if the term "additional" refers to out of contract value which may not be included in the contract. So I will have my money paid for materials on site and I can then claim an addition percentage of the costs of the materials and plant (out of contract value).
asked Feb 27 in Construction Contract (Red Book) by Ilak  
   

1 Answer

0 votes
14.5 in the 1999 Redbook provides that it is the 80% of the cost, as determined by the Engineer, which is added BUT that account should be taken of the contract value of those items.

So, it has nothing to do with value, just cost and with a cross check to the contract sum so that if they were under-priced (ie at a loss) in the contract you cannot recover more than the contract value for them.

You therefore take 80% of the cost of the plant and material deducting the value of that plant and material which will be incorporated into the works within the next month (14.3(a)).
answered Mar 22 by Rob Horne (9,030 points)