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4.

0 Context
1999 g works. Applicability of both FIDIC 1999 Formula and JCT FR 2011 formula
to the Sri Lankan FIDIC
is also which are adoptable in Sri Lan
Adjus1999 Red Book kan construction industry.. FIDIC ed 13.8- appropriate to context. There
the Sri Lankan are some Su4.1 Applicability of FIDIC 1999 Formula for const b Clauses
ruction contracts which contains some globally accepted conditions related to building and the SubR in
ICTAD/SBD/02. The FIDIC 1999 formula and ICTAD/SBD/02 price adjustment formula are as follows
engineerin FIDIC 19 be used in the foreign Clause of FIDIC 1999 price adjustment formula, it will be
compare with locally practicing formula can be entirely used for the Sri Lankan construction industry.
But the formul To evaluate tments for Changes in Cost the applicab99 Red Book, it does not indicate that
FIDIC 1999 fund project ility Book as can Anyway in as mentioned previous sections.
The FIDIC 1999 price adjustment formula


ICTAD/SBD/02 price adjustment formula



The prices ws how materials are. ICTAD/SBD/02 price adjustment formula have the tax components but
not in FIDIC. Local funded ICTAD/SBD/02 price adjustment formula has included the tax component. of
affected 1999. Following sho, labour and plants are price adjustment formula highly flexible in the
current Sri Lankan market conditions by those fluctuations and those fluctuations are given by the
ICTAD/SBD/02construction projects
Value of work done = (V V
na
)
Cost of labour, machinery, material and fuel = [(V V
na
) / (1+ P/100)]

90% (0.9) of the cost significant items are taken.
Cost significant items = [(V V
na
) / (1+ P/100)] x [1/0.9]
0.966
100
P
x
(Ixc - I
xb)

I
xb

(V V
na)

F =
All
Inputs
The fluctuation index = P
X
[(I
xc
- I
xb
) / I
xb
] /100
Therefore the Contractors payment =


The contractor has to pay the Goods and Services Tax (G.S.T) on the above payment.
Therefore the amount has to be paid to the contractor shall be the net amount as follows.


When deriving this formula P has been taken as 35.3% and Goods and Services Tax to
15%. Therefore,







In be stated in that are used in the FIDIC formula shall price adjustment FIDIC ished cost indices are
much accurate than adjustment cost the table of adjustment data included in the Appendix to Tender. The
monthly publ the economic situation addition Book the in the country.
Even though CTAD/ data included in the Appendix to Tender so the procedure stated I stated that the
SBDindices
1999 formula.
formula impact on sensitivity to/02 the input percentages which are published monthly by ICTAD. In
FIDIC 1999 Red in FIDIC considered 1999 Red Book has adverse Sub Clause 13.8 - Adjustments for
Changes in Cost can be applied to the Sri Lankan context it will be helpful to use in foreign funds price
adjustment construction projects