You are here:

Construction Law/Cost of Plant and Materials (SC 19.6)


Mr. Elliot,
Our Contract is a Yellow FIDIC 1999. The question refers to SC 19.6, letter (b).
When it is stated "Cost of Plant and Materials", is it assumed the contractual cost or the actual (invoiced) cost of the Contractor?
It is obvious, that in works where the Contractor under estimated, the amount paid by him to his suppliers is higher (or, in cases, much higher) than the contractual cost.
Thank you in advance.

Dear George,

Payment5 for payment for plant and materials must be made in the logic of the contract, so that there is sufficient money to pay for4 the remaining works associated with the item. Thus, if the Contractor has under priced the item, he is not paid the invoiced cost, which might be inflated in any case.  So you need a break down of the lump sums so that you can agree payments for plant and materials.  

Construction Law

All Answers

Answers by Expert:

Ask Experts


Peter M. Elliott


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 before submitting a question.


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')

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

B Sc(Hons) in Civil Engineering

©2017 All rights reserved.

[an error occurred while processing this directive]