Construction Law/cost escalation


QUESTION: dear sir ,
         escalation clause has been deleted from the tender for the construction of building when it was published , and has been omitted in the agreement also, can i claim for cost escalation now as there has been lots of variation in price day by day. And the time period for completion of project is 24 months
         kindly show me the right way to claim for the clause

ANSWER: Dear Riteesh Yadav
Thanks for your query regarding price escalation.In general price escalation clause can not be omitted,if contract period is more than 12 months. In your contract price escalation clause has been omitted,as per agreement you are not eligible to claim price escalation. Now you can claim;and take a chance.
1. If agreement has included the basic prices of materials.
2. You can claim under clause"contractor's claim" as the prices are varied abnormally.
3. If the quantities are changed considerably from the schedule quantities of the contract agreement.
I hope this will help to you.
with best regards
Sanjay Khandelwal

---------- FOLLOW-UP ----------

QUESTION: Dear sir ,
        Thank you for your assistance . my further querry is , as price esclation is not included in the agreement but is it possible they add this clause now , or can I ask them for arbritration as the time period for finishing the contract is 24 months and they deleberatly removed the clause

Dear Reetish Yadav
You are welcome for further query. In this condition both are responsible for the lapse of deletation of escalation clause from contract agreement.The clause can be add on the basis of lapse during the signing of agreement.You can ask for arbitration.
I hope above is in line of your query.
With due regards
Sanjay Khandelwal

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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