PWC: Adjustments To Contract Sum (Part 2)

Valuation, Fair Pricing, and Practical Takeaways: Legal Issues

The mandatory Clause 10.6 valuation hierarchy governs adjustments to the contract sum, with fair valuation and quantum meruit available only as residual remedies for employers and Employer’s Representatives (ERs).

Introduction

In Part 1 of this series, we examined the conceptual framework for variations, the elements of a valid variation, the valuation starting position, and the claims procedure, which serves as the gateway to valuation. Part 2 examines the mandatory Clause 10.6 valuation hierarchy, cost-based valuation, the residual remedies of fair valuation and quantum meruit, preliminary overheads, and practical takeaways for employers and ERs.