Rate Revision of Varied Quantities.

FIDIC Clause 52.2, Power of The Engineer to Fix the Rate

FIDIC 1987 clause 51 and 52 deals variations of quantites and costs. 
The Engineer shall instruct the varied work under Clause 51, shall valuate it under clause 52.1,
shall review the BOQ rates for the varied works under clause 52.2 and finally shall review the whole variations plus minus 15% on the original contract to add or subtract certain amounts.

Under clause 52.2 The Engineer shall review the rates of varied works are workable and appropriate. The Engineer shall re-rate as per provisions in the contract and if there is more variation in such the work after that revision The Engineer shall review again and can re-rate as many times as required. Then finally re-adjusted/corrected at substantial completion stage under the provision of cl.52.3. This is so as the effective contract price at substantial completion stage includes varied items valued under cl. 52.1 and 52.2.

Application of revised rate if any item rate revised:-
(1) The revised revised shall be applicable on whole quantity  (BOQ+Increased) or ?
(2) shall be applied on increased quantity from BOQ quantity (Beyond BOQ) or ?
(3) shall be applied on increased quantity from BOQ+30 percent quantity ?

(a)If the amount of individual item (based on varied quantity) accounts for less than 2 percent of the contract amount, no change in BOQ rates upto the limit of BOQ plus 30 percent of BOQ original  quantity .
(b)If the referred amount of the individual item is more than 2 percent and varied quantity is also more than BOQ+30 percent of  original BOQ quantity,the newly derived rate will be applicable on the quantity beyond original BOQ multiplied by 1.30  only as before this limit  it is covered by (a) above.
(c)As above.
Hence new derived rate shall apply to the additional quantities in excess of the specified in the BOQ + the 30% .