ABSTRACT
In a building or construction contract, the consideration for the performance by the contractor is the employer’s promise to pay. It is also provided that payment on account is to be made from time to time by instalments and on the certificate of the engineer or architect, unless the contract is on a BOT basis. This chapter discusses the provisions made in this regard in the frequently used standard form contracts. It also discusses the legal principles governing such disputes vis-a-vis provisions in the standard form contract. Even in a lump sum contract, measurements are necessary for valuation of change of scope or variations ordered. To avoid disputes in respect of the measurements and quantities, the FIDIC form requires the engineer to give reasonable notice informing the contractor the date and place when the measurements will be taken and further directing the contractor’s representative to remain present for the measurements.
