Download Contract Indian vs. Fidic PDF

TitleContract Indian vs. Fidic
TagsBreach Of Contract Arbitration General Contractor Employment Specification (Technical Standard)
File Size109.6 KB
Total Pages12
Document Text Contents
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Study a contract executed under the Indian Contact Act and a Contract executed under
FIDIC condition of Contract and prepares a report giving a measure Difference
between the two contract conditions

Following are the measure differences between Indian and FIDIC conditions of

S.NO. Indian Condition of Contract FIDIC Condition of Contract

1. Priority of contract Document

The various Indian contract Condition have
similar or slightly varying conditions
regarding the priority of document. Each of
these clauses of different Indian contract.
these are explained below:

1. Agreement
2. Letter of acceptance, notice to

proceed with the works
3. Contractor’s Bid
4. Contract Data
5. Conditions of Contract including

Special Conditions of Contract
6. Specifications
7. Drawings
8. Bill of quantities and
9. Any other documents listed in the

Contract Data as forming part of the

Priority of contract Document

As per FIDIC Red Book “Clause no.5.2”
the condition is as follows :
The Several Documents forming the
Contract are to be taken as mutually
explanatory of one another, but in case of
ambiguities or discrepancies the same
shall be explained and adjusted by the
Engineer who shall thereupon issues to
the Contractor Instructions thereon and in
such event, unless otherwise provided in
the contract, the priority in the contract,
the priority of the documents forming the
contract shall be as follows:

1. The contract Agreement.
2. The Letter of Acceptance.
3. The Tender
4. Part II of these Conditions.
5. Part I of these Conditions.
6. Any other document forming part

of the contract.

2. Performance Security

The Performance Security (including
additional security for unbalanced bids)
shall be provided to the Employer no later
than date specified in the Letter of
Acceptance and shall be issued in an
amount and form and by a bank or surety
acceptable to the Employer, and
denominated in Indian Rupee.

Performance Security

If the contract requires the contractor to
obtain security for his proper
performance of the contract, he shall
obtain and provide to the Employer such
security within 28 days after the receipt
of the letter of acceptance, in the sum
stated in the appendix to tender.

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The Engineer shall not adjust rates from
changes in quantities if thereby the Initial
Contract Price is excepted by more than 15
percent, except with the Prior approval of
the Employer.

If requested by the Engineer, the Contractor
shall provide the Engineer with a detailed
cost breakdown of any rate in the Bill of

All Variations shall be included in updated
Programmes produced by the Contractor.

2. Omit any such work (but not if
the omitted work is to be carried
out by the Employer or by another

3. change the character or quality or
kind of any such work

4. change the levels lines, position
and dimensions of any part of the
Works, or

5. execute additional work of any
kind necessary for the completion
of the Works, or

6. Change any specified sequence or
timing of construction of any part
of the Works.

No such variation shall in any way vitiate
or invalidate the Construct, but the effect,
if any, of all such variations shall be
valued in accordance with Clause 52.
Provided that where the issue of an
instruction to vary the Works is
necessitated by some default of or breach
of contract by the Contractor or for which
he is responsible any additional cost
attributable to such default shall be borne
by the Contractor.

6. Valuation of Variation

The Contractor shall provide the Engineer
with a quotation (with breakdown of unit
rates) for carrying out the Variation when
requested to do so by the Engineer. The
Engineer shall asses the quotation, which
shall be given within seven days of the
request or within any longer period stated
by the Engineer and before the Variation is

If the work in the Variation corresponds
with an item description in the Bill of
Quantities and if, in the opinion of the
Engineer, the quantity of work above the

Valuation of Variation

All variations referred to in Clause 51
and any additions to the Contract Price
which are required to be determined in
accordance with Clause 52 (for the
purposes of this Clause referred to as
“varied work”) shall be valued at the
rates and prices set out in the Contract if,
in the opinion of the Engineer the same
shall be applicable. If the Contract does
not domain any rates or price applicable
to the varied work-the rates and prices in
the Contract shall be used as the basis for
valuation so far as may be reasonable,
failing which after due consultation by

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Limit stated in Sub Clause 38.1 or the
timing of its execution do not cause the cost
per unit of quantity to change, the rate in
the Bill of Quantities shall be used to
calculate the value of the Variation. If the
cost per unit of quantity changes, or if the
nature or timing of the work in the Variation
does not correspond with items in the Bill
of Quantities, the quotation by the
Contractor shall be in the form of new rates
for the relevant items of work.

If the Contractor’s quotation is
unreasonable, the Engineer may order the
Variation and make a change to the Contract
Price which shall be based on Engineer’s
own forecast of the effects of the Variation
on the Contractor’s costs.

If the Engineer decides that urgency of
varying the work would prevent a quotation
being given and considered without
delaying the work, no quotation shall be
given and the Variation shall be treated as a
Compensation Event.
The Contractor shall not be entitled to
additional payment for costs which could
have been avoided by giving early warning.

The Engineer with the Employer and the
Contractor. Suitable or prices shall be
agreed upon between the Engineer and
the Contractor. In the event of
disagreement the Engineer shall fix such
rates or prices as are in his opinion,
appropriate and shall notify the
Contractor accordingly with a copy to the
employer. Until such time as rates or
prices agreed or fixed; the Engineer shall
determine provisional rates or prices to
enable on-account payments to be
included in certificates issued in
accordance with Clause 60.

7. Claims

Payments shall be adjusted for deductions
for advance payments, retention, other
recoveries in terms of the contract and taxes
at source, as applicable under the law. The
Employer shall pay the Contractor the
amounts certified by the Engineer within 28
days of the date of each certificate. If the
Employer makes a late payment, the
Contractor shall be paid interest on the late
payment in the next payment. Interest shall
be calculated from the date by which the
payment should have been up to the date
when the late payment is made at 12% per


Not with standing any other provision of
the Contract if the Contractor intend, to
claim any additional payment pursuant to
any Clause of these Condition, or
otherwise, he shall give notice of his
intention to the Engineer with a copy to
the Employer within 28 days after the
event giving rise to the claim has first

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