The Works Contract

Indian contracts for public works often expect prices and dates to move. In a contract of the Delhi Development Authority, quoted by the Delhi High Court in 1998, clause 10CC provides that if the prices of materials “and/or wages of labour required for execution of the work increase the contractor shall be compensated for such increase.” The clause applies to longer contracts.

In the General Conditions of Contract that IIT Hyderabad uses for its works, clause 5 covers delays from force majeure, bad weather, strikes or “any other cause like above, which, in the reasoned opinion of the Engineer-in-Charge is beyond the Contractor’s control.” In such cases the authority “shall, if justified, give a fair and reasonable extension of time.”

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