The Court stated that in a lump sum arrangement, the contractor shall not be entitled to demand any increase in the agreed price unless there was a change in design or a variation approved by the employer. Therefore, and in the absence of any contractual provision as to the rates which applied to a variation, the contractor was be entitled to use market rates along with the value of the equipment required to perform the varied works.

n contrast, in a remeasured contract, the contractor was entitled to claim for the additional works based on the agreed unit price.

Recommended by Khalil Mechantaf, Senior Associate, Kennedys