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Construction Law/Ammendment in Contract Agreement


Dear Expert,

In one of our Contract which is based on FIDIC MDB 2010 Conditions of Contract, a Variation(amendment) to the Contract Agreement was signed between the Parties  during the currency of the Contract wherein simply the Accepted Contract Amount was amended(reduced) without stating any reasons or repercussions of the this Variation. We, being the Engineer, have used this revised Accepted Contract Amount in order to deduct Advance Payment from Contractor’s Payment Invoices. But the Contractor did not agree with the Engineer’s stance by stating that Accepted Contract Amount means the amount accepted in the letter of Acceptance as per Contract. But the Engineer’s is of the view that Variation (amendment) of Contract Agreement has priority over all Contract Documents, therefore this revised Accepted Contract Amount will prevail as per amendment.

Please advise in this regard.


Umer Shabbir

Dear Umer,

Did the Addendum redefine the Accepted Contract Amount, or merely reduce the rates of some items, or redefine the Contract Price?  The precise words are important.  If not, it remains as defined in clause  If it did then the Accepted Contract Amount is as defined in the Addendum.  Obviously for consistency, you must apply this ruling to all instances where the Accepted Contract Amount is relevant, such as insurance, securities etc.. Problems with FIDIC 4 caused the drafting committee to define both the Accepted Contract Amount and the Contract Price.  

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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.


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

B Sc(Hons) in Civil Engineering

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