Adjustments for Changes in Cost

Prepared by :- Under supervision :-

Eng / Hatem Shalaby Dr / Reda Sabry

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 What is Red Book
(FIDIC 99)opinion ?

EMAIL US:
sales@slidestore.com
But

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Why sub-clause 13.8 (FIDIC 1999 Red book) ?

Eliminate volume of disputes

Fair Determination for Parties
Reduce Uncertainty
Increase Transparency between Parties

How does it Play ?

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 Case Study << Caesar Project >>

P =a+bM /M +cS /S +dE /E .

n n o n o n o

Also ;

1. Mn .. Materials Cost @ Period of Time (n)

2. Mo .. Materials Cost @ Base Date (o)
3. Sn .. Subcontractors Cost @ Period of time(n)
4. So .. Subcontractors Cost @ Base Date
5. En .. Equipments Cost @ Period of Time (n)
6. Eo .. Equipments Cost @ Base Date.
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 Assumption for Formula

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 Change Analysis

Materials Cost
Increased by 45 %

Subcontractors Cost
Increased by 20 %

Equipment's Cost
increased by 40 %

Overall (Indirect Cost & Profit)

It may be changed but not according
to sub-clause (13.8) ,
Under sub-clause (13.7)

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 Applying for Formula

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 Case for Discussion ?

*** Contractor compensate all available floats of the

project. The owner didn`t use any , but he caused
delay about 50 days up on critical activities And Cost
of Materials , Subcontractors and Equipment is OR NOT ?
decreased within these 50 days (Contractor procured to And Why ?
required resources with high value ) Formula can be
applied ?
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 QUESTIONS !!!

Hatemshalapy@Gmail.com
Hatem.shalaby@ESS.AUC.edu

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