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Construction Law/New Contract or Addendum to Contract

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Question
Dear Peter,

Im a client using the Fidic 1999, we are currently working with a contractor and after we signed the contract many variations to the contract have occurred.As per our agreed conditions of contract,  variations can only exceed 25% of the total contract.

Hence, my question is, should i proceed with issuing a new contract to the contractor taking into consideration that the time of completion will change due to the numerous variations or should i proceed with an addendum to the original contract and also adjust the contract amount as well as the duration? My concern is if i issue a new contract the original contract will no longer exist due to the new contract duration and amount. Please note that this is a remeasured contract.

thank you and awaiting your prompt feedback.

Answer
Dear Nelly,

I'm not sure that I understand your question. 'variations can only exceed 25% of the total contract' Do you mean 'variations canNOT only exceed 25% of the total contract.'  I do understand why it should be written that variations can only exceed 25% of the total contract.

It all depends on the reason for the limitation on the variations.  If it is internal procedures of the employer or funder, then you must get approval for the addendum.  In any case, for me it is better to issue an addendum with everyone's agreement, rather than start a new contract. A new contract, for the varied work only, will not cancel the original contract, unless it is written thus in the new contract.  

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Peter M. Elliott

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First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

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