Construction Law/Variations


Dear Sir,
I am using FIDIC 1987 red book for hydroproject in nepal. Due to several reasons, variation occurred more than 15%. My Question is here; as per this version of FIDIC, if final contract amount is more than 15%, new rate should be applied or how it will be determined or how overhead is recovered for lumpsum Items??

Dear Paudel
I am trying to answer your question; the variation exceeds the limit of 15% . Therefore effective contract price is exceeds by 15% then final contract price may be adjusted with due consultation of Employer and contractor by the Engineer and agreed by the contractor and Employer.
The Engineer shall notify the contractor of any determination made under the such clause with a copy to the  Employer that shall have regard of site and general over head costs of the contract.
The over heads may be calculated by added and deducted from contract price as the case may be as per provisions of contract for new rates of the item under the power of Engineer to fix the price with due consultation with the Employer.
The additional overheads will be for whole contract price as determined by the Engineer by adding or deduction of prices (not for individual items in case of lump sum items).

I hope this will help to you any further clarification; you are welcome with follow up.

With best regards

Construction Law

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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