52.211-18 Variation in Estimated Quantity
Source: FAR 52.211-18 on acquisition.gov
If actual quantities of unit-priced items in a fixed-price construction contract vary by more than 15% from the estimate, either party can demand an equitable price adjustment and, if delayed, the contractor may request a time extension.
Overview
FAR 52.211-18, Variation in Estimated Quantity, applies to fixed-price construction contracts with unit-priced items where estimated quantities are used. This clause addresses situations where the actual quantity of a unit-priced item delivered or performed varies by more than 15% above or below the estimated quantity stated in the contract. When such a variation occurs, either party (the contractor or the government) may demand an equitable adjustment to the contract price, but only for the portion of the variation exceeding 115% or falling below 85% of the estimate. Additionally, if the quantity variation causes a delay in contract completion, the contractor may request a time extension, provided the request is submitted in writing within 10 days of the delay or within a period granted by the Contracting Officer before final settlement. The Contracting Officer is responsible for determining and granting any justified extension of the completion date.
Key Rules
- Equitable Adjustment for Quantity Variations
- If the actual quantity of a unit-priced item varies by more than 15% from the estimate, an equitable price adjustment is allowed for the excess or shortfall beyond the 15% threshold.
- Request for Time Extension
- Contractors may request a time extension if the quantity variation causes a delay, but must do so in writing within 10 days of the delay or as otherwise permitted by the Contracting Officer.
Responsibilities
- Contracting Officers: Must process equitable adjustments and time extension requests, and determine justified completion date changes.
- Contractors: Must monitor quantities, request equitable adjustments and time extensions as required, and submit written requests within specified timeframes.
- Agencies: Ensure proper clause inclusion and oversight of contract modifications due to quantity variations.
Practical Implications
- This clause protects both parties from significant cost impacts due to unforeseen quantity variations in unit-priced construction contracts.
- Contractors must closely track actual quantities and act promptly if thresholds are exceeded.
- Failure to request adjustments or extensions within the required timeframe may result in lost compensation or schedule relief.
As prescribed in 11.703(c), insert the following clause in solicitations and contracts when a fixed-price construction contract is contemplated that authorizes a variation in the estimated quantity of unit-priced items:
Variation in Estimated Quantity (Apr 1984)
If the quantity of a unit-priced item in this contract is an estimated quantity and the actual quantity of the unit-priced item varies more than 15 percent above or below the estimated quantity, an equitable adjustment in the contract price shall be made upon demand of either party. The equitable adjustment shall be based upon any increase or decrease in costs due solely to the variation above 115 percent or below 85 percent of the estimated quantity. If the quantity variation is such as to cause an increase in the time necessary for completion, the Contractor may request, in writing, an extension of time, to be received by the Contracting Officer within 10 days from the beginning of the delay, or within such further period as may be granted by the Contracting Officer before the date of final settlement of the contract. Upon the receipt of a written request for an extension, the Contracting Officer shall ascertain the facts and make an adjustment for extending the completion date as, in the judgement of the Contracting Officer, is justified.
(End of clause)