Clause 12 — Measurement and Valuation (Red Book)

The heart of a remeasurement contract: actual executed quantities are paid at BoQ rates.

Applies in: Red Book

In the Red Book the Bill of Quantities is only an estimate: payment is due for the actual net quantities of executed work, measured by the agreed method. The Engineer gives notice of measurement and the Contractor attends; disagreements go through 3.7. Valuation uses BoQ rates, and a new rate may be determined where quantities or the character of work change materially. Do not confuse the books: in Yellow and Silver, Clause 12 is Tests after Completion and the price is a lump sum.

Key points

Red Book only: a remeasurement contract.
Actual net quantities are paid; the BoQ is an estimate.
A material change in quantities may justify a new rate.
In Yellow/Silver, Clause 12 is different (Tests after Completion).

How this works in practice

In the Red Book payment follows the quantities actually executed, and the whole structure rests on discipline in joint measurement. Practice is consistent: where measurement is not taken jointly and signed while the work is still open to inspection, the later dispute is decided not in favour of the better argument but in favour of whoever holds a signed record. Second, the Bill of Quantities is not a description of the scope: the quantities are estimates, and a divergence between actual and BoQ is not in itself a Variation but the re-measurement mechanism working normally.

Common traps

Measurement is taken unilaterally after the works are closed up — proving the quantity of buried elements becomes near impossible.
The method of measurement (the measurement standard) is not agreed, so the parties compute the same thing differently.
Particular Conditions turn the BoQ into a lump sum while leaving Red Book wording in place — an internal contradiction in the contract.

Versions: 1999 → 2017 → 2022

1999
Clause 12 “Measurement and Evaluation” with similar principles.
2017
The measurement procedure, attendance and the 3.7 link were clarified.
2022
No substantive change in the 2022 reprint.

Clause FAQ

Which FIDIC books use Sub-Clause 12?

The clause applies in Red Book. Particular Conditions may change the standard risk allocation, so always check the project contract.

Is a divergence between actual quantity and the BoQ a Variation?

Not in itself — that is the re-measurement mechanism working, and payment simply follows the actual quantity. But where the deviation exceeds the thresholds set in the contract and, in addition, renders the original rate inappropriate, grounds arise to revisit the rate under Clause 12 or 13. The key is both conditions together: threshold exceeded and a demonstrated effect on unit cost.

What if the Employer does not attend a joint measurement?

The contract normally provides that, on non-attendance after proper notice, the Contractor’s measurement is treated as accepted. The practical sequence is: written notice of date and place in advance, record of non-attendance, measurement taken with photographs and video, result sent to the other party. Without the first step — notice in the prescribed form — the whole structure fails.

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Reference material, not legal advice. Always check your contract and the Particular Conditions.