Construction Law/Contract Ammendment
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.
Dear Umer Shabbar sh.
Thanks for your question and like to offer following brief comment.
The "contract price" is defined in fidic as price defined in sub-clause14.1 and includes adjustments in accordance with the contract .An agreed amended contract amount for any reason is enforceable as long as both parties agree to it for whatever or no reason at all.Also action agreed subsequently has priority over earlier date action in the contract document.Some may even think of issuing an amendment also but i do not consider it necessary as long as it is an agreed amendment.Also any interpretation has to be made reading the contract as a whole.Is this your question? and if not please come back with more clarity or on cell 0333-5610760