Construction Law/Price Adjustment under Sub-Clause 13.8
In accordance with Sub-Clause 14.3 of FIDIC MDB Harmonized Conditions of Contract 2010 edition,
“The Contractor shall submit a Statement in six copies to the Engineer after the end of each month”
Is the submission of Statement at the end of each month is binding on the Contractor? Is the Contractor can submit Statement other than one month period?
My second question relates to Sub-Clause 13.8 [Adjustment for changes in Cost], this Sub-Clause states,
“ “Ln”, “En”, “Mn”, … are the current cost indices or reference prices for period “n”, expressed in the relevant currency of payment, each of which is applicable to the relevant tabulated cost element on the date 49 days prior to the last day of the period (to which the particular Payment Certificate relates); and”
If the Contractor submit Statement for the period of 3 months, then is it correct to use indices applicable on 49th from the last day of the period? Or is it necessary to divide the works month wise in order to apply indices separately for each month?
Thanking you in anticipation.
Dear Umer Shabbir
I am taking the opportunity to reply your question.
1. Submission of statement at the end of each month after approval of Engineer as per provisions of sub clause 14.3 is the binding on the contractor rather work done value may be not sufficient for interim payment.
2. If the contractor submitt the statement for three months; when amount of workdone eligible for payment after approval it is necessary to submitt the statement monthwise for calculation of price adjustment accordingly for each month seperately.
I hope this will be helpful to you; otherwise any further clarification in this regard will be welcomed.