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Construction Law/Clause 14.2: FIDIC Yellow Book


Dear Madam,

In the 5th para of Clause 14.2 of FIDIC Yellow Book, does the word 'excluding' used in the phrase 'excluding the advance payment and deductions and repayments of retention' mean 'ignoring' or 'reducing'? For example, if the amount of a Payment Certificate is Euro 100,000 and deduction for retention @ 10% is Euro 10,000 (No repayment of retention is involved in the Payment Application), would the recovery of Advance be calculated at 25% of Euro 100,000 (Gross amount) or 25% of Euro 90,000 (Net amount after deducting retention)?

Thanks in advance.


Dear Alok
I am taking opportunity to reply your question. I understand amount of payment certificate is amount of work done then if payment cerificate of amount Euro 100,000.00 after deduction of retention of 10% recovery of advance will be calculated on Euro 100,000.00 @ 25%. Net payment will be Euro Euro 65,000.00.
I hope this will be in line of your need.  

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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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