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FIDIC 1999 and 2017 Chapter 7

The document summarizes revisions made to provisions around variations and adjustments in a construction contract between 2017 and 1999. Key changes include: 1) The contractor can now object to a variation if it will adversely affect health and safety or environmental compliance. 2) New procedures are outlined for variations instructed by the engineer and those requested through contractor proposals. 3) Daywork provisions now require the contractor to submit quotations for approval before ordering goods. 4) Adjustments for changes in legislation are expanded to include permits and compliance requirements. 5) New provisions address adjustments for changes in cost indices.

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Mohamad Nasar Fana
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131 views8 pages

FIDIC 1999 and 2017 Chapter 7

The document summarizes revisions made to provisions around variations and adjustments in a construction contract between 2017 and 1999. Key changes include: 1) The contractor can now object to a variation if it will adversely affect health and safety or environmental compliance. 2) New procedures are outlined for variations instructed by the engineer and those requested through contractor proposals. 3) Daywork provisions now require the contractor to submit quotations for approval before ordering goods. 4) Adjustments for changes in legislation are expanded to include permits and compliance requirements. 5) New provisions address adjustments for changes in cost indices.

Uploaded by

Mohamad Nasar Fana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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13.

0 Variation and Adjustments

69
13.0 Variation and Adjustment
13.1 Right to Vary
1999

The Contractor shall execute the Variation unless he cannot readily obtain the Goods.

2017
The Contractor shall be bound by each Variation instructed and shall execute the
Variation unless the Contractor promptly gives a Notice stating that:

(a) the varied work was Unforeseeable with regard to the scope and
nature of the original Works;

(b) the Contractor cannot readily obtain the Goods required for the
Variation (1999); or

(c) it will adversely affect the Contractor’s ability to comply with


Health and Safety Obligations and/or Protection of the
Environment.

.
70
13.0 Variation and Adjustment
13.3 Variation Procedure

New provision
13.3.1 – Variation by Instruction

If the Parties have agreed to the omission of any work


which is to be carried out by others, the Contractor’s
proposal may also include the amount of any loss of profit
and other losses and damages suffered as a result of the
omission.

The Engineer shall then proceed under Sub-Clause 3.7


[Agreement or Determination] to agree or determine:
(i) EOT, if any; and/or
(ii) the adjustment to the Contract Price

71
13.0 Variation and Adjustment
13.3 Variation Procedure (Cont.)

13.3.2 - Variation by Request for Proposal

If the Engineer does not give consent to the proposal, and the
Contractor has incurred Cost as a result of submitting a
proposal, the Contractor shall be entitled to payment of such
Cost subject to Sub-Clause 20.2 [Claims For Payment and/or
EOT].

72
13.0 Variation and Adjustment
13.5 Daywork
(New provision)
Before ordering Goods for such work (other than any Goods priced
in the Daywork Schedule), the Contractor shall submit one or more
quotations to the Engineer.

Thereafter, the Engineer may instruct the Contractor to accept one


of these quotations,

If the Engineer does not so instruct the Contractor within 7 days of


receiving the quotations, the Contractor shall be entitled to accept
any of these quotations at the Contractor’s discretion.

If not correct or agreed with the Daywork statement, the Engineer


shall proceed under Sub-Clause 3.7 [Agreement or Determination]
to agree or determine the resources utilized for the Daywork.
73
13.0 Variation and Adjustment
13.6 Adjustment for Changes in Legislation
(New provision)
2107
Change in
1999
(a) the Laws of the Country (including the
introduction of new Laws and the repeal - Changing law in country
or modification of existing Laws); (1999) (including the introduction of
new Laws and the repeal or
(b) the judicial or official governmental
interpretation or implementation of the modification of existing Laws)
Laws referred (1999)

(c) any permit, permission, license or approval - Judicial or governmental


obtained by the Employer or the interpretation of such law
Contractor under sub-paragraph (a) or
(b), respectively, of Sub-Clause 1.13
[Compliance with Laws]; or

(d) the requirements for any permit,


permission, licence and/or approval to be
obtained by the Contractor under sub-
paragraph (b) of Sub-Clause 1.13
[Compliance with Laws],

74
13.0 Variation and Adjustment
13.6 Adjustment for Changes in
Legislation (New provision)

If the Contractor suffers delay and/or incurs Cost as a result of any change
in Laws, the Contractor shall be entitled EOT and/or payment of such Cost
under to Sub-Clause 20.2 [Claims For Payment and/or EOT] – (1999)

If there is a decrease in Cost, the Employer shall be entitled to a


reduction in the Contract Price under Sub-Clause 20.2 [Claims For
Payment and/or EOT].

If any adjustment to the execution of the Works becomes necessary as a


result of any change in Laws:
(i) the Contractor shall promptly give a Notice to the Engineer, or
(ii) the Engineer shall promptly give a Notice to the Contractor

Thereafter, the Engineer shall instruct a Variation.


75
13.0 Variation and Adjustment
13.7 Adjustment for Changes in
Cost (New provision)
If Schedule(s) of “cost indexation” are not included in the Contract, this
Sub-Clause shall not apply.

Until such time as each current cost index is available, the Engineer shall
use a provisional index for the issue of Interim Payment Certificates.

When a current cost index is available, the adjustment shall be recalculated


accordingly.

If the Contractor fails to complete the Works within the Time for
Completion, adjustment of prices thereafter shall be made using either:

(a) each index or price applicable on the date 49 days before the
expiry of the Time for Completion of the Works; or

(b) the current index or price

whichever is more favourable to the Employer. 76

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