FIDIC Sub-Clause 12.3 New Rate Test
Under sub-clause 12.3 of the FIDIC Red Book 1999, a change in quantity does not earn a new rate on its own. Four conditions have to be satisfied at the same time. This runs all four and tells you which one fails.
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This is the evidence gate, not an arithmetic one. Enter the percentage by which your actual cost per unit moved because the quantity changed — deeper horizon, different plant, lower outputs, fixed costs spread over less work. Use a negative number if it fell. If the quantity simply increased and nothing about the work changed, this is near zero.
This item is identified in the contract as a fixed rate item
What this is not
A screening tool for commercial teams, not legal advice. The thresholds are those of the 1999 Red Book; the 2017 suite restructures this ground and almost every real contract is amended by its particular conditions. Read the four gates explained for the reasoning, including the second limb of 12.3 that applies when there is no comparable rate at all.
A screening tool for commercial teams, not legal advice. The thresholds are those of the 1999 Red Book; the 2017 suite restructures this ground and almost every real contract is amended by its particular conditions. Read the four gates explained for the reasoning, including the second limb of 12.3 that applies when there is no comparable rate at all.