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Construction Law/PINK BOOK FIDIC 2010


dear sir,

kindly expalin in detail with example fixed rate item.

Dear Imran

Thank you and welcome again. You have asked about the fixed rate item. Frankly speaking there is no such term in the Fidic documents. I understand that the term is generally referred to those items which are not subject to any type of adjustment during the currency of the contract and are described as such.

For example, the drafter of the Conditions of particular Conditions may mention certain item which are not affected by any adjustment allowed under the Contract. Such items may include items like Performance Guarantee, facilities to be provided by the contractor, Contractor's and Employer's camps, various insurances, if any of these are paid items. there may be other items which are supposed to be carried out during the very stages of construction and Employer may term such items as fixed rate.

Another example of such items can be supply of certain plant and equipment which the Employer may decide not be subject to any adjustment due to change in legislation or subsequent legislation. Similarly most of the EPC / turn key and Design- Build Contracts comprise wholly of fixed rate items.

I hope this explains the question asked. However I would request others readers if they can add to my answer.

Abdul Majid Khan  

Construction Law

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Abdul Majid Khan


I am interested in questions related to time Extension, Liquidated Damages,variations, price adjustments,payments, disputes and Dispute Board under FIDIC IV, FIDIC 1999 and FIDIC 2006 Harmonized Documents.


I have been heading the Construction Management Division and Contract Divisions of National Engineering Services Pakistan (PVT) Limited, NESPAK, the largest Consulting Engineering Firm in Pakistan, for more than seven years and two years respectively. I have also worked as "The Engineer" on a number of projects. I have been working in Saudi Arabia for about seven years on a road projects. Additionally I worked as Arbitrator and am member of few Dispute Boards in individual capacity on Asian Development Bank funded projects.

Inland and in Middle East. I have worked with National Engineering Services Pakistan (Pvt) Limited (NESPAK)as my Employer for more than 27 years in Pakistan. In Saudi Arabia I worked for Rashid Engineering, Consulting Engineers during 80s. After retirement I provided advisory services to NESPAK on technical and contractual matters to its various divisions and lately I was appointed as Advisor to Managing Director NESPAK on Technical and Contractual matters. Currently I work as Free Lance Contract Specialist on Fidic Form of Contracts.

I am a graduate with a B.E (Civil Engineering) degree. My year of graduation is 1970.

Awards and Honors
A few appreciation Letters and Honorariums during my service in NESPAK. I remained member of Administrative Committee and Board of Management of NESPAK. I had been part of the Management Committee in the absence of Managing Director.

Past/Present Clients
Most of the Clients used to be Government Departments, Corporations and Authorities. In Saudi Arabia the Client was Ministry of Communications. As Arbitrator and Dispute Board (DB) member, I provide services to various Government Departments and Contractors.

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