INCREASE IN THE QUANTITY OF WORKS IN CONSTRUCTION CONTRACTS

Following the execution of construction contracts, an increase in the quantity of work undertaken by the contractor may arise due to circumstances that were unforeseeable at the pre-contractual stage. The method for calculating the price of additional works varies depending on the provisions of the contract and/or the applicable legislation.

In construction works procured pursuant to the provisions of the Public Procurement Law No. 4734 (“PPL”), where an increase in work becomes mandatory due to unforeseen circumstances, the construction contract executed between the contractor and the contracting authority, together with the General Conditions of Construction Works (''GCCW''), which constitute an integral part thereof, shall form the basis for such assessment. The method for calculating additional works is determined under the GCCW depending on whether the contract is concluded on a unit-price basis or as a lump-sum contract. In turnkey lump-sum construction contracts, additional works may be assigned by the contracting authority to the same contractor, excluding any extension of time, up to a limit of ten percent (10%) of the contract price; whereas in construction contracts awarded on the basis of unit-price tenders, such limit shall be twenty percent (20%), within the framework of the provisions set forth in the contract and the tender documentation. According to the precedents of the Court of Cassation, in the event of a dispute, the price of additional works shall be calculated on the basis of the contract price up to the limits of ten percent (10%) for lump-sum contracts and twenty percent (20%) for unit-price contracts; for any portion exceeding these limits, the price shall be determined in accordance with the prevailing market prices applicable in the year in which the works were performed.

With respect to contracts not subject to the PPL, whether the additional works undertaken by the contractor fall within the scope of the contract is of material importance for the calculation of the price. Unless otherwise agreed by the parties, where the additional works fall within the contractual scope, the price shall be determined in accordance with the contractual provisions; where such works fall outside the contractual scope, the price shall be determined based on the local prevailing market rates applicable in the year of performance.

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