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Construction Law/Price Adjustment with ref to PEC guidelines


farukh wrote at 2011-08-11 16:08:01
any further modification/improvement has been made against this contrary portion?  

Y.Y. wrote at 2012-02-16 06:18:28
Good Morning all,

Still something not understood for me especially Part-I Para-C

Item 5 of PEC that states,

"Except Labour and PoL, if any other adjustable item(s) is

not used in a particular billing period then ratio of

current date price and base date price for that particular

adjustable item(s) shall be considered as one."

I have two questions please

1.  PEC the revised one on March 2009 states in page 6 Part1 GUIDELINES – A. APPLICABILITY - “1. The provisions for price adjustment shall be applicable to the projects to be executed” this mean that this guidelines that have revised item “Part-I Para-C Item 5” that is not available in the older version, the question is does this item valid or applicable for ongoing projects?? i.e. shall we consider the ratio of current date price and base date price =1 for an item(s) is not used in a particular billing period???


”If we are in a country not Pakistan and our contract is W.B. Fidics version and didn’t mention anything about PEC neither in Bidding documents nor in the contract. The question is about the Formula for Price Adjustment is to determine a Pn factor for each IPC. The weightages or coefficients of different materials are given in the Appendix-C with a fixed portion also. As per

Fidic document the sum of fixed portion and weightages of all materials (adjustable portions and not adjustable) shall always be one (01). Now the question is that if in any month we have not used a particular material say Bitumen then the Pn value will be

calculated including the Bitumen or without Bitumen.

Please clarify. Regards.  

Inam Ul Haq wrote at 2014-07-27 05:37:40
To my understanding, ratio of unused material will be one and that means only weight age of that item will be added to get On (factor=weightage X ratio). Fixed portion will increase for that IPC meaning that adjustable price will be excluding any increase or decrease for unused item.  

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Liaqat Hayat


I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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