Variation in Estimated Quantity
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.