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(CDR-3368) Procedure for Analysis of Time Extensions in Unit Price Contract Quantity Overruns

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Level: Intermediate
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2020 AACE International Conference & Expo

Abstract: Unit price contracts are often used to expedite procurement and shorten the overall duration of a project because a detailed design and final quantity takeoffs are not necessary to enable a contractor and owner to agree on a contract to perform the construction work. Even when the actual quantities are finalized, variations in quantities still occur for a variety of reasons, perhaps late value engineering, requests for information, or simply due to designer’s oversight. Although most contracts include a variation in estimated quantity (VEQ) clause, this clause does not necessarily explain contractor’s entitlement to additional time due to increased quantities. This paper provides guidance to an owner that will facilitate collaborative and effective analysis of delays and resolution of entitlement to extensions of time due to variations in quantities.

The proven approach is aligned with AACE Recommended Practice No. 29R-03 and ensures that the analysis will not create any future pitfalls should the issues require more formal dispute resolution. This process has been successfully implemented on multiple projects, an example of which is included in this paper.