ABSTRACT

Variations, Measurement and Payment Procedures are covered in the Federation Internationale des Ingenieurs-Conseils (FIDIC) 2017 Contracts by, Clause 12, Clause 13, and Clause 14. The principle of value engineering is about eliminating or reducing unnecessary costs, while also maintaining or improving function and quality of the finished product, essentially increasing the value of that product. Provisional Sums are used in contracts where there are elements of work which are not designed or cannot be sufficiently defined at the time of tender but may be required to be done by the Contractor, and therefore, a sum of money is included by the Employer within the Bill of Quantities or other pricing document to cover the item. The advance payment is an interest-free loan normally to cover mobilisation, enabling work, placing orders for materials and subcontractors, and also for early design. Sub-Clause 14.6 has been restructured and expanded within the FIDIC 2017 Contracts, which introduce the phrase Interim Payment Certificate.