Construction Law/Price Adjustment


Dear Sir, I have 02 Qs regarding Price Adjustment Formula i.e Pn=A+b Ln/Lo + c Mn/Mo + d En/Eo+ e Dn/Do+ ....

Q1, when any cost element is not used in any particular month, then what ratio will be used for that element?
Q2, is price adjustment applicable on Lump sum items?

Dear Ahmed,
Thanks for the question
I have following to submit
Q1: Pec has issued some instruction on this by making it unity but i feel that price adjustment formula has no connection or provision for quantities and as such answer is "no"
Q2: No
Regards-liaqat hayat

Construction Law

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Liaqat Hayat


I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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