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ARTICLE · 08 JULY 2016

An Alternative Dispute Resolution For Variations In Construction Contracts

Khaitan & Co.
Khaitan & Co.
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Khaitan & Co.

Khaitan & Co.

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Construction contract variations are often a major source of disputes between principals or owners and contractors.

IndiaReal Estate and Construction

The purpose of this article is to suggest and discuss an alternative method of resolving construction disputes with respect to variations where technical disputes relating to variation get resolved, during the course of the project without recourse to elaborate dispute resolution mechanism, thereby reducing contractor's burden of cash flow issues whilst protecting principal's rights on legal issues of variation to be dealt with other disputes, if any, at the end or termination of the project through dispute resolution mechanism.

Construction contract variations are often a major source of disputes between principals or owners and contractors.

Variations may be required for diverse reasons including, latent site conditions, design defects, changes in law, instructed changes to works and value engineering.

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