I need your valuable advice on Escalation Mechanism
Iam working with Client
We are bound by FIDIC 99 - 1st edition, our contract is based on Lumpsum basis
Location: Dubai
this is the scenario
1. BOQ rate in Tender approved - A dhirams
2. Accepted Escalation rate during the starting of the project (july 08) - B dhirams
(basically increase in the rate of concrete, steel, blockwork etc,..)
3. For Interim Payment Certificate the contractor has to produce the Invoice - C dhirams
(we will pay C, it may be more than B or less, we will pay B, but never less than A)
rate C will be provided when it exceeds 10% of A, otherwise it will be absorbed by the Contractor
we fixed the Escalation mechanism for B, but iam finding difficulty in fixing the rates of C during the interim payment certificate....
whether the contractor has to produce the invoice
***every month or
***15 days once or
*** if there is any abrupt changes in the market or
***based on the BOQ item wise
***sometimes the contractor may ordered materials for rate B and stage by satge, they are receiving the material till the end of the project, eventhough the material price gone down in the market
*** sometimes the contarctor may cheat us by producing fake invoice/LPO
how to setup a standard? i need your valuable advice
you have any format kindly send it to me
Thanking you in Anticipation
Rajeshkumar. R
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