Construction Law/Foreign Currency Contract
Dear Liaqat Hayat Sb
After a long time I am here again with a case for your valuable response.
In an international bidding, the bidder is required to quote its bid rate in local currency and under other currencies requirement, not more than two, the bidder may indicate the percentage of the total bid price excluding provisional sum, if the bidder intends to incur foreign currencies. Now following are the questions:
i)Is the bidder must justify its foreign currency requirements?
ii)Is the percentage of foreign currency requirement must match the weightages used in the price adjustment formula for foreign currency?
iii)Are both the above also fit for bidder quoting bid rates in different currencies?
Dear Jawaid sahib,
Good to hear from you .Are you back from SA?
My response to your 3 questions is as follows
i)Yes,as it has a cost impact and govenments in particularly developing world has to compensate the contractor for any loses arising from currency fluctuating loses from the base date.
ii)Yes to make your quote in FE more reliable
iii)You will agree that a bid price is checked from all possible perspectives and my answer again is yes.
With best Regards,