FIDIC

Contract Administration

Can a Contractor Obtain Compensation for a Radical Increase in its Costs if a Construction Contract Contains No Price Escalation Clause?

Christopher R. Seppälä, Elizabeth Lefebvre-Gross

Faced with a drastic increase in the cost of commodities—for example, of steel, or oil—that undermines the economic assumptions of a construction contract, lawyers trained in the common law may believe that, if the contract has no price-escalation clause, the only relief from the contract available is termination on the grounds of frustration, impossibility, or impracticability. In fact, outside the common law countries, it may be possible to obtain other relief, including an increase in the contract price, to take into account changed circumstances after a contract has been signed. Several examples are provided below. …

Contract Administration

Caution: Contracts

by Dennis Brand

Ask a group of industry professionals to state what they believe to be the most important provision in a construction contract and you will probably get as many varied responses as there are people in the group.

Give the same group of people a copy of a standard form contract (e.g. FIDIC, ICE or JCT) to read with a form of Particular Conditions or similar attached, and invariably they will look first at the Particular Conditions and possibly no further. …

Contract Administration

Bespoke choice

by Dennis Brand

A suit made by a bespoke tailor will fulfil all of a customer’s expectations regarding style, cut and fit, but it will be expensive. For this reason, most suits are purchased off-the-peg.

Today for the construction and engineering industry there are numerous off-the-peg or standard form contracts available from the UK and Europe. These are published by professional organisations and bodies including the Joint Contracts Tribunal (JCT); Institution of Civil Engineers (ICE), which publishes both the ICE and the New Engineering Contract (NEC); and the International Federation of Consulting Engineers (FIDIC). …

Scroll to Top