ABSTRACT
Fluctuations in rates and prices are normally dealt with in the following three ways in a form of contract. The principal contractor is able to claim for increases in the costs of employing labour and the costs of purchasing materials in addition to the other statutory increases. Where the principal contractor does not complete the works by the completion date, the following procedure is to be adopted: the value of work completed after that date is subject to formula adjustment on the basis of the indices applicable at the relevant completion date. The contract sum is based upon the types and rates of contribution, levy and tax payable by a person in the capacity of employer. The prices in the contract bills are based upon those contributions that are current at the base date. The quantity surveyor and the principal contractor have the power to agree any alteration to the methods and procedures for the formula for fluctuations recovery.
