Construction Law/Revision in Rates


Dear Sir,

My project is governed by RED Book published by FIDIC.

The question is based on following scenarios:
1) Original construction schedule as per the contract has been passed.
2) New works are added to our scope but the line items remains same as the original contract.
3) There has been significant hike in the fuel prices from the time of finalization of rates ( original contract, 19 months back)

Now if we wish to revise our rates for the said new works ( not in original scope), what are the governing laws for the same?

Dear Shailesh

Thanks for the question.

Based on your question, I understand that your Contract has been delayed due to the additional quantities per se. Also you intend to claim escalation costs for fuel etc. Therefore if Conditions of Contract allows rate revision and have escalation clause unaltered, you may claim such additional costs.

In order to advise you further, please clarify following items and I will be able to answer you in much better way:

1. Are their any particular conditions inserted into your Contract?
2. Have you been granted Extension of Time?
3. Were you paid the additional quantities arising out of such "new works"?
4. Why you are mentioning "Governing Law"? Have your contractual rights been frustrated and you are already in Dispute!!!



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Manish Gupta


I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.


7 Years with Contractors 12 plus Years with Owners & Consultants

Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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