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Construction Law/Labour cess claim where there is no subsequent legislation clause in the contract


Dear Sir,
I come across an odd situation, with PWD we entered into an agreement in 2010 in my contract there is no subsequent legislation clause. However we were asked to pay the labour cess @ 1% of the value of work and we are complying with the order. However the labour welfare board was constituted subsequent to our bid submission.

It is a subsequent financial implication to my contract price, however in absence of subsequent legislation clause we are unable to claim for the reimbursement, kindly let me know is there any provision in the law, or contract law to raise such claims?

Dear Srinivas
In the contract absence of legislation clause, it is difficult to claim for change in legilation of the country. But on otherhand you were not aware of this cess at the time of bidding, your claim will be valid ; if in the contract there no binding to follow further change in law or legislation for asking to pay labour cess after the date of submission of bid.
You are welcome for further follow up.

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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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