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Construction Law/Advance payment Guarantee


Dear  Sir,

We are dealing with finishes job in Dubai under FIDIC 1987 .
An Advance payment guarantee was submitted by Contractor and accepted by Employer accordingly. An Additional amount is agreed to be paid by Employer as advance.

Can we accept an amendment to the original guarantee based on the revised cumulative value ( considering the additional advance ). It is contractually valid for the revise amount.

Thanks and regards,

Dear Srinadh

Yes the APG can be amended to revise Original APG. Usually bank issues an amendment whenever the party request bank to either extend date of expiry or revise Amount of the APG.

This is contractually valid as such amendment will be mutually accepted by the Employer and Contractor in formal manner. At times Contractors also request to periodically reduce amount of APG with each amortisation of Advance payment.

Hope this clarifies your query.  

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Manish Gupta


I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.


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Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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