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Construction Law/Amount to be estimated if variations exceed or are less than 15%


Dear Madam,

according to fidic 1987 and to clause 52.3 and in case that the overall price of a project exceeding 15% or being less by 15%(+ or -) and under all conditions given in such clause, what will be the sum to be added to or deducted from the contractor in the two cases? is it related to the value of overhead/profit? or new prices to be submitted by the contractor for the 15% extra amount? and what are the basis that the engineer can use to calculate it (overhead and/or net profit or else?). May you give me your point of view in this regard and in the two cases as mentioned (case 1: project price exceeds 1.15, case 2: project price is less than 0.85)

Thank you,

Engr. Khaled

The philosophy behind this Sub-clause 52.3 is, like everywhere in the FIDIC contracts, that the fair price is to be paid for the works done and expenses incurred.
In case the overall price differs with more than 15% of the estimated/foreseen contract price, the overheads and profit took into consideration by the Contractor when issuing his offer cannot be fully recovered/get from the works done and paid. Therefore, FIDIC included this sub-clause, to help the Contractor to recover these costs in the intended profit. The sub-clause 52.3 provides the mechanism for this, i.e. the Engineer to determine a fair amount to be paid to the Contractor, taking into account the actual overhead and the intended profit that is not recovered through the payment of the actual works. The result of the Engineer's calculation can lead, theoretically, to negative amounts, so that the Contractor would pay back a certain amount to the Employer (the sub-clause talks about an amount to be "added or deducted").
The amount to be added or deducted refers to overhead and profit, not to new prices.
Hope it helps.
Best regards,

Construction Law

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Alina Valentina Oprea


I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.


Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on

Dispute Resolution Board Foundation

see ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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