Construction Law/Price Adjustment


Dear John
In our Contract, Price adjustment is admissible for Labour, Diesel & Miscellaneous expenditure and a total 35% is accounted for that; while balance 65% is fixed.
As an example, formula for adjustment is: W x {0.15 x (Li – Lo)/Lo + 0.05 x (Fi – Fo)/Fo + 0.15 x (MIi – MIo)/MIo }

where W= Total Value of Work done during the month.

Please advise, whether, W should include Over head & Profit and VAT & Tax OR Not.

Dear Praydot,

Thank you for this question.

Please advise which form of contract governs the project and whether any amendment has been made to the standard  terms and conditions. This information may dictate my answer.

Kind regards,
John Dowse

Follow me on Twitter: @CernoOrg

For my weekly industry newsletter e-mail to, stating SUBSCRIBE in the subject line

Training and consulting services are available, bespoke to companies and individuals.

John Dowse can be contacted by e-mail to (When e-mailing, please include “AllExperts” in the subject line.)

Construction Law

All Answers

Answers by Expert:

Ask Experts


John Dowse


Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.


Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Various UK and International construction and legal publications.

LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

©2017 All rights reserved.