3.
4.
CONFIDENDAY
2=
Second
Should it be necessary to vary the work
for any reason the varied work will be
paid for either at existing rates or
new rates, whichever are appropriate.
It is assumed that in the form of
contract proposed by the Steering
Group
Committee the entire risk of increased
quantities and variations in the work
falls on the Contractor unless the
Client orders some variation in the
scope of the work. This risk is
impossible to quantify and could well
be more significant than the
"Unforeseen Circumstances" risk.
FIDIC contracts always include an "Unforeseen Circumstances" ·
clause (i.e. No. 12 "Adverse Physical Conditions and
Artificial Obstructions) since, by definition, they cannot
be quantified by a Contractor.
On a
Escalation has to be provided for, in all contracts. Nowadays,
the use of formulae based on weighted indices appropriate to
the particular project is becoming the usual method.
short-term contract a Contractor can make an allowance for
escalation and take the risk on whether his provision is
adequate. On a project such as this one the sheer size and
the relatively long construction period makes the risk quite
unacceptable.
5.
In our June 1973 submission we gave the Steering Group the
best indication, based on the information made available to
us at that time as to what we believed they should allow for
.../Continued