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Each Applicable Currency: Offsetting & Missing Rates

The document outlines the currency management principles in contract data, including the proportions of local and foreign currencies, payment adjustments for variations and damages, and the use of fallback exchange rates. It emphasizes the importance of contract data for clarity and dispute avoidance, as well as the necessity for timely documentation and communication among parties. Key principles include strict adherence to timelines, substantiation of claims, and the importance of guarantees for project security.

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11 views2 pages

Each Applicable Currency: Offsetting & Missing Rates

The document outlines the currency management principles in contract data, including the proportions of local and foreign currencies, payment adjustments for variations and damages, and the use of fallback exchange rates. It emphasizes the importance of contract data for clarity and dispute avoidance, as well as the necessity for timely documentation and communication among parties. Key principles include strict adherence to timelines, substantiation of claims, and the importance of guarantees for project security.

Uploaded by

Donz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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o (i) Proportions/amounts of Local/Foreign currencies & fixed FX rates as

stated in Contract Data (or agreed) [cite: 2, 316(a)(i)].

o (ii) Payments/deductions under 13.4 (Prov Sums) & 13.6 (Law Changes)
made in applicable currencies/proportions [cite: 2, 317(a)(ii)].

o (iii) Other payments/deductions under 14.3(i)-(iv) made per


currencies/proportions in (a)(i) [cite: 2, 318(a)(iii)].

Slide 101: Sub-Clause 14.15(b) - Variations & Value Engineering Currency

• Title: Currency for Variations & VE (14.15(b))

• Content: For adjustments under 13.2 (VE) or 13.3 (Variations), payable amount in
each applicable currency must be specified [cite: 2, 319(b)]. Reference made to
actual/expected currency proportions of varied work Cost and original proportions
from (a)(i) [cite: 2, 320(b)].

Slide 102: Sub-Clause 14.15(c)(d) - Damages & Contractor Payments Currency

• Title: Currency for Damages & Other Payments (14.15(c)(d))

• Content:

o (c) Payment of Delay Damages made in currencies/proportions specified in


Contract Data [cite: 2, 321(c)].

o (d) Other payments TO Employer BY Contractor made in currency Employer


expended sum in, or as agreed [cite: 2, 322(d)].

Slide 103: Sub-Clause 14.15(e)(f) - Offsetting & Missing Rates

• Title: Currency Offsetting & Default FX Rates (14.15(e)(f))

• Content:

o (e) If amount payable BY Contractor TO Employer in one currency exceeds


sum payable BY Employer TO Contractor in that currency, Employer may
recover balance from sums payable in other currencies [cite: 2, 323(e)].

o (f) If NO exchange rates stated in Contract Data, use rates prevailing on Base
Date published by central bank of the Country [cite: 2, 324(f)].

Slide 104: Sub-Clause 14.15 - Key Takeaways

• Title: Module 15 Recap: Currency Management


• Content:

o Contract Data is primary source for currencies, proportions, FX rates [cite: 1,


2, 315-316, 514].

o Specific rules apply for variations, damages, adjustments [cite: 1, 2, 317-


322, 515].

o Offsetting mechanism exists.

o Fallback FX rate provided if missing.

o Clarity avoids disputes.

Slide 105: Overall Conclusion & Key Principles

• Title: Mastering Clause 14: Key Principles

• Content:

o Contract Data: Crucial for thresholds, timelines, currencies, percentages.

o Timeliness: Strict deadlines for submissions & certifications.

o Documentation: Substantiation is key for Statements & Claims.

o Sequence: Follow prescribed order in Statements (14.3).

o Communication: Proactive engagement between Contractor, Engineer,


Employer.

o Security: Guarantees (APG, Performance) are critical prerequisites.

o Finality: Processes designed to lead to definitive closure (SAC, Final


Statement, Discharge, FPC, Cessation).

Slide 106: Questions & Discussion

• Title: Q&A

• Content: Open floor for questions on Clause 14 application.

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