4.

0 Context
FIDIC 1999 g works. Applicability of both FIDIC 1999 Formula and JCT FR 2011
formula to the Sri Lankan
are adoptable in Sri Lan is also which
Red Book kan construction industry.. FIDIC ed 13.8- appropriate to context. There the Sri
Lankan are some Su4Adjus1999.1 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 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/02. The FIDIC 1999 formula and ICTAD/SBD/02 price adjustment
formula are as follows engineerin FIDIC 19 be used in the foreign previous sections.
The FIDIC 1999 price adjustment formula

ICTAD/SBD/02 price adjustment formula


/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
The prices ws how materials are. ICTAD/SBD/02 price adjustment formula have the tax components but
not in FIDIC. Local funded ICTAD
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
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 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 applied to the Sri Lankan context it will be helpful to use in foreign
funds price adjustment construction projects