Payment in Applicable Currencies under FIDIC

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Table of Contents

1️⃣ Purpose of Clause 13.4 (1999) and Sub-Clause 14.15 (2017)

🎯 Why Does “Payment in Applicable Currencies” Even Matter?

Imagine you’re a contractor building a power plant in India, but 40% of your major equipment (say turbines or control panels) are imported from Germany and the UK. You’ve priced your tender accordingly: 60% in Indian Rupees and 40% in EUR/GBP. Now, if you’re paid entirely in INR, you’re at the mercy of exchange rates—which could wipe out your margins overnight.

That’s where these clauses step in like financial bodyguards!

📘 1999 Edition – Clause 13.4: Payment in Applicable Currencies

This clause, although brief, locks in the agreed currency split for the Contract Price. Let’s break down its purpose:

“Where the Contract provides for payment of the Contract Price in more than one currency, the proportion of each currency in which the Contract Price is to be paid shall be specified in the Appendix to Tender, and the payment of each such proportion shall be made in that currency.”

So what’s it really doing?

It acknowledges that contracts often involve multiple currencies—especially in international EPC and design-build projects.
It mandates that each payment must follow the same proportion (e.g., 70% INR, 30% USD) as defined in the Appendix to Tender.
This helps the Contractor secure foreign exchange (FX) coverage, price imported goods in advance, and keep their cash flow predictable.

Why was this important in 1999?

During the 90s and early 2000s, international contracts often saw confusion or delays when it came to currency-specific payments. Employers sometimes paid entirely in local currency, citing ease or banking controls. Clause 13.4 created a firm contractual basis for the Contractor to insist on receiving payments in the proper mix of currencies.

But—here’s the catch—it left too many things unsaid:

Who initiates the currency conversions?
What if the Employer pays late in one currency but on time in another?
How are bank charges or exchange losses handled?

The clause planted the flag but didn’t draw the map.

📗 2017 Edition – Sub-Clause 14.15: Currencies of Payment

Fast forward to 2017. The construction world had become even more globalized. FX volatility was sharper, digital bank transfers became the norm, and contractors demanded more operational precision in payment procedures.

Here’s what FIDIC did: they retained the spirit of Clause 13.4 but beefed it up with clearer obligations and process steps.

“Payment of the amounts due to the Contractor shall be made in the currencies and proportions set out in the Contract. The Contractor shall provide details of the bank accounts into which the payments are to be made… The Employer shall pay the Contractor by direct transfer into these bank accounts.”

Let’s unpack that:

Same foundational idea: Pay in the agreed mix of currencies.
But now there’s process clarity: The Contractor has to provide bank account details, and the Employer must pay directly into those accounts.
There’s no wiggle room for the Employer to say “we’ll pay it all in local currency” or delay part of the payment waiting for conversion approvals.

What’s the big-picture purpose here?

Ensure fast and traceable transfers (think: no paper cheques, no guesswork).
Avoid disputes caused by exchange delays or wrong currency payments.
Reinforce the Employer’s administrative responsibility to execute payments cleanly.

⚖️ The Evolution in Philosophy: 1999 vs. 2017

Year	Focus	What’s Missing	Modernization
1999	Currency entitlements based on tender ratios	No operational details	Leaves interpretation open
2017	Currency entitlements + bank transfer procedures	Very little – nearly complete	Designed for modern banking and global projects

So essentially, Clause 13.4 gave the Contractor a right to receive multi-currency payments.
But Sub-Clause 14.15 gives them the right and the operational guarantee that it’ll be executed correctly.

Imagine the 1999 clause as saying:
“You should get paid in multiple currencies.”
While the 2017 clause says:
“You will get paid in multiple currencies—here’s how, where, and when.”

2️⃣ Breakdown of the Clause – Let’s Get Into the Details!

📘 FIDIC Yellow Book 1999 – Clause 13.4 [Payment in Applicable Currencies]

Verbatim Text:
“Where the Contract provides for payment of the Contract Price in more than one currency, the proportion of each currency in which the Contract Price is to be paid shall be specified in the Appendix to Tender, and the payment of each such proportion shall be made in that currency.”

✅ Step-by-step Breakdown:

Let’s break this short but powerful sentence down:

“Where the Contract provides for payment of the Contract Price in more than one currency…”
➡️ This sets the stage: the clause only applies if multiple currencies are specified in the Contract. For example, if the Contract Price is ₹100 crore, and it’s structured as 70% in INR and 30% in EUR, then Clause 13.4 kicks in.

Interpretative Note:
This is not an automatic clause — it’s conditional. If the Contract is 100% in one currency, this clause essentially has no effect.

“…the proportion of each currency in which the Contract Price is to be paid shall be specified in the Appendix to Tender…”
➡️ This is key. The Appendix to Tender (now called Contract Data in 2017) must define exactly how much is to be paid in each currency — like a pre-agreed FX ratio.

Example:

60% INR

20% USD

20% EUR
These numbers must be nailed down in the Contract, otherwise things could get messy.

“…and the payment of each such proportion shall be made in that currency.”
➡️ This is the obligation part. The Employer must pay each amount in the stated currency — no substitutions, no “we’ll just pay you everything in INR this month.”
If it says “20% in USD,” it means the Employer must actually remit USD, not its INR equivalent on the day of payment.

Simple but Important:
It doesn’t talk about deadlines, method of transfer, or what happens if there’s a bank regulation issue. It just says: “Pay in that currency.”

✏️ Summary in Plain English:

“If we agreed you’d be paid in different currencies, and we wrote those proportions into the tender documents, then you should be paid each part in exactly that currency.”

📗 FIDIC Yellow Book 2017 – Sub-Clause 14.15 [Currencies of Payment]

Verbatim Text:
“Payment of the amounts due to the Contractor shall be made in the currencies and proportions set out in the Contract. The Contractor shall provide details of the bank accounts into which the payments are to be made, in the relevant currencies. The Employer shall pay the Contractor by direct transfer into these bank accounts.”

Now this is where FIDIC stepped up its game. Let’s go line-by-line:

“Payment of the amounts due to the Contractor shall be made in the currencies and proportions set out in the Contract.”
➡️ Sounds familiar? That’s because it mirrors 1999’s logic — if the Contract says 25% in GBP and 75% in INR, then payment must happen that way.

✅ Continuity:
FIDIC maintained the core principle — currency proportions bind the Employer.

“The Contractor shall provide details of the bank accounts into which the payments are to be made, in the relevant currencies.”
➡️ Now we’re getting practical. Unlike the 1999 version, the 2017 clause brings the Contractor into the operational loop.

✨ Real-world touch:
You, the Contractor, must give clear instructions:

Bank name

Currency account type (INR/USD/EUR)

Swift code / IBAN

Exact beneficiary details

This removes ambiguity and avoids the Employer saying, “Oh, we didn’t know where to send the EUR portion.”

“The Employer shall pay the Contractor by direct transfer into these bank accounts.”
➡️ This one’s a power move. The Employer is now explicitly obligated to:

Use direct bank transfer
Into the specified accounts
In the correct currency

This eliminates payment delays, reduces FX errors, and adds accountability.

✏️ Summary in Plain English:

“Tell us where to send the money in each currency, and we’ll make sure it goes directly there — no funny business, no conversions, no excuses.”

✍️ Side-by-Side Visual Summary:

📘 1999 – Clause 13.4	📗 2017 – Sub-Clause 14.15
Focuses only on what currencies to pay	Focuses on what, where, and how
Doesn’t mention bank accounts	Requires Contractor to give account details per currency
Doesn’t say how Employer should pay	Says payment must be by direct bank transfer
Good for basic currency protection	Excellent for real-world execution of payment

✨ Key Observations:

The 1999 clause feels like a handshake agreement: “Sure, we’ll pay you in USD and INR.”
The 2017 clause is a legal checklist: “Where’s the USD going? Which bank? Who’s the beneficiary? Direct transfer, no delays.”

This evolution reflects the shift from trust-based execution to systematic, risk-managed payments in large international contracts.

3️⃣ Key Interpretations and Implications

What These Clauses Really Mean for the Project

Let’s face it: in international projects, money doesn’t flow in just one currency. And when currency management goes wrong, it doesn’t just inconvenience people — it creates disputes, delays, and even contract terminations. That’s why these clauses — though short — carry some serious contractual weight.

Let’s break them down from a practical lens.

✅ Fundamental Interpretation – The Common Ground

At their core, both Clause 13.4 (1999) and Sub-Clause 14.15 (2017):

Require the Contractor to be paid in exactly the same mix of currencies as defined in the Contract.
Place a strict obligation on the Employer to respect this split — it’s not a suggestion, it’s a contractual commandment.
Aim to shield the Contractor from foreign exchange (FX) risks that could arise if the Employer tries to pay only in local currency.

Big Idea: These clauses are a kind of financial insulation — ensuring the Contractor isn’t forced to bear the brunt of currency fluctuations or irregular payment practices.

🔄 Evolution from 1999 to 2017 – What’s New and Why?

Let’s compare the two from a functional perspective:

Feature / Focus	1999 – Clause 13.4	2017 – Sub-Clause 14.15
Currency Proportion Enforcement	Yes	Yes
Reference to Tender Appendix / Contract Data	Yes	Yes
Operational Clarity (bank accounts, transfer method)	❌ Absent	✅ Clearly stated
Direct Transfer Requirement	❌ Not mentioned	✅ Mandatory
Contractor’s Obligation to Provide Account Details	❌ Silent	✅ Explicit
Dispute Avoidance Tools	Minimal	Stronger enforcement language

Interpretation Tip:
The 1999 clause works in principle but leaves gaps. The 2017 update turns the principle into an actionable process — which is a major leap forward in reducing misunderstandings and enforcing accountability.

⚖️ Who Bears the Risk?

Here’s where things get interesting — especially in practical application.

🔹 In the 1999 clause, risk sits in a grey zone:

If the Employer mistakenly (or intentionally) pays the full amount in local currency, the Contractor must chase them down or raise a claim.
There’s no mention of who bears bank charges or how FX fluctuations should be handled if conversions become necessary.
This opens the door to “administrative” excuses from Employers: “Our bank wouldn’t process EUR today, sorry,” or “We’ll pay the USD portion next week.”

🔸 In the 2017 clause, FIDIC shuts that door:

The Employer must pay directly into the designated accounts, in the relevant currency.
If the Contractor hasn’t provided a currency-specific bank account, that’s on the Contractor — and the Employer can legitimately hold payment.
The direct transfer mechanism makes payment traceable, auditable, and less prone to delays or miscommunication.

Implication:
FIDIC 2017 balances the scales by making both parties responsible — the Contractor must give clear instructions, and the Employer must execute clean, currency-specific payments.

🚨 Real-World Implications – What Could Go Wrong?

Here are some not-so-hypothetical risks if these clauses aren’t followed:

⚠️ Scenario 1: The Employer pays everything in local currency

Contractor’s Risk: They have to convert the foreign portion themselves, often at commercial (non-central bank) exchange rates, and may lose money due to unfavorable rates or transfer fees.
1999 Outcome: Contractor can raise a dispute, but it’s harder to enforce since Clause 13.4 is vague on remedial action.
2017 Outcome: Clear breach of Sub-Clause 14.15 → Contractor has grounds to file a Claim under Sub-Clause 20.2, and the Employer has no excuse.

⚠️ Scenario 2: Contractor forgets to give bank account details for USD

1999 Outcome: Not addressed — Employer might use this as a reason to delay or avoid foreign payment.
2017 Outcome: The onus is on the Contractor. Without account details, the Employer’s obligation is on hold. Lesson: Contractors must stay proactive under 2017.

⚠️ Scenario 3: Government currency restrictions (e.g., capital controls)

Both editions are silent on this. If, say, a central bank restricts outward remittances in USD, the Employer might not be able to comply.
Practical Tip: This is where Particular Conditions can help. You could add a clause allowing for payment in alternate currencies at agreed exchange rates if legal restrictions apply.

✍️ Interpretation Nuggets (Stuff Most People Miss)

Here are some fine-print insights you might not hear in a training room:

“Shall be made in that currency” (1999) and “shall pay by direct transfer” (2017) are not soft guidelines — they are hard legal obligations. Failure to comply can lead to claims, interest on delayed payments, or even suspension under other clauses like Sub-Clause 16.1 (2017).
Neither clause defines “proportion”, leaving it to the Contract Data / Appendix to Tender. If that document is ambiguous or inconsistent, the whole payment mechanism can unravel.
The 2017 clause aligns better with modern project finance standards, which often require currency-specific accounts for audit trails and compliance with lender requirements.

⚙️ Contractual Leverage for Contractors and Employers

Party	What They Gain	What They Risk
Contractor	FX protection, predictability in procurement, easier cash flow forecasting	Delay in payments if they forget to nominate accounts (2017)
Employer	Clarity in payment obligations, traceable payment history	Liability for FX losses, claims if they deviate from agreed proportions or methods

4️⃣ Cross-Referencing with Other Clauses

“Who Else Is in the Room When Currency Is on the Table?”

Let’s treat Clause 13.4 and Sub-Clause 14.15 as team players in the FIDIC payment game. Now let’s bring their teammates onto the field — and see how they support (or complicate) the game.

🔁 FIDIC 1999 – Clause 13.4 and Its Siblings

Here’s how Clause 13.4 [Payment in Applicable Currencies] from 1999 interacts with the rest of the Contract:

✅ Clause 14.1 – The Contract Price

“The Contract Price shall be the lump sum accepted in the Letter of Acceptance and shall be subject to adjustments in accordance with the Contract.”

This is where the overall amount and currency structure start.
If the Contract Price includes split currencies, Clause 13.4 gets activated.
Any changes to Contract Price through Variations (Clause 13.1) must respect the currency proportions unless expressly agreed otherwise.

Cross-Link Insight:
If a Variation adds ₹10 million, should it follow the 70/30 INR/USD split? If not specified, Clause 13.4 implies yes, which can create FX exposure.

✅ Clause 14.3 – Application for Interim Payment Certificates

“The Contractor shall submit a Statement… showing the amount which he considers to be due…”

This statement must break down amounts in the respective currencies as per Clause 13.4.
If you’re owed $400,000 and ₹5 crore, they need to be separately stated in the application.

Practical Point:
If the Contractor submits the total in INR equivalent, the Engineer may reject it as non-compliant — that could delay cash flow.

✅ Clause 14.6 – Issue of Interim Payment Certificates

“The Engineer shall, within 28 days… issue to the Employer an Interim Payment Certificate…”

The Engineer must certify the amounts in the correct currency mix — again linking back to Clause 13.4.
If the Engineer issues a single-sum certificate in local currency, it violates the spirit of 13.4.

Key Takeaway:
The Engineer acts like a referee — but must enforce currency proportions just as much as he enforces quantities or rates.

✅ Clause 14.7 – Payment

Specifies that payment must be made within 28 days of the Interim Payment Certificate.
Clause 13.4 indirectly affects this clause — payment within 28 days isn’t compliant unless it’s made in the right currencies.

Hidden Risk:
An Employer might claim “we paid you on time” — but if they paid entirely in INR when USD was due, that’s not valid compliance under 13.4.

📎 FIDIC 2017 – Sub-Clause 14.15 and Its Cross-Functional Family

The 2017 edition has tighter integration between Sub-Clause 14.15 and the rest of the payment process. Let’s look at the key linkages:

✅ Sub-Clause 14.1 – The Contract Price

“The Contract Price shall be the lump sum… expressed in local and/or foreign currencies…”

This clause sets the currency tone for the whole Contract.
It also refers to the Contract Data, which now explicitly defines currency proportions (cleaner than the Appendix to Tender in 1999).
Adjustments to the Contract Price under Sub-Clause 13.5 [Provisional Sums] or 13.3 [Variations] are expected to honor the original currency logic — unless the Parties agree otherwise.

✅ Sub-Clause 14.3 – Application for Interim Payment Certificates

“The Contractor shall submit a Statement with details of the amounts considered due, separated by currency…”

Now it’s official: FIDIC 2017 requires you to break down the application currency-wise.
There’s no room for lumping everything into local currency or choosing a random exchange rate to convert.

Implication:
This cross-reference makes Sub-Clause 14.15 operational — your application is incomplete without honoring the Contract’s currency split.

✅ Sub-Clause 14.6 – Issue of Interim Payment Certificates

The Engineer must certify currency-specific amounts, just like the Contractor claimed them.

Cross-Check Tip:
If the Engineer changes the currency mix during certification, they may be in breach of Sub-Clause 3.7 [Agreement or Determination] — because they failed to determine payment in accordance with the Contract.

✅ Sub-Clause 14.7 – Payment

This is where payment execution happens.
Cross-refers with 14.15 to ensure payment is made:
- On time (within 28 days), and
- In the right currency and bank account as specified under 14.15.

Consequential Link:
If the Employer delays the USD portion but pays INR on time, Sub-Clause 14.8 [Delayed Payment] allows the Contractor to claim financing charges on the delayed portion — and the split currency payment record under 14.15 helps prove that.

✅ Sub-Clause 20.2 – Claims For Payment Breaches

“If the Contractor considers that he is entitled to an extension of time or additional payment…”

This is where things get real.
If the Employer pays in the wrong currency, or fails to pay at all, this is a valid claimable breach.
Sub-Clause 14.15 serves as the foundation to justify such a claim.

Claim Strategy Tip:
Always attach payment breakdowns, bank confirmations, and currency-wise shortfalls when submitting a claim under 20.2 — your Sub-Clause 14.15 rights back it up.

💡 Summary Chart – Who Talks to Who?

Clause	Role in Currency Payment Ecosystem	Links to 13.4 / 14.15
14.1 (Both Editions)	Sets initial currency structure	Directly tied to 13.4 / 14.15
14.3	Contractor’s application must honor currency proportions	Clause 13.4 / 14.15 enforce it
14.6	Engineer must certify payments in those currencies	Relies on accurate application
14.7	Employer must pay in stated currencies	Enforced by 13.4 / 14.15
20.2 (2017)	Enables Contractor to claim if payment isn’t compliant	14.15 becomes claim foundation

✍️ Final Thought on Cross-Referencing

“Clause 13.4 and Sub-Clause 14.15 are the gatekeepers of currency integrity.”
But they don’t work alone — they rely on the Contractor to apply correctly, the Engineer to certify faithfully, and the Employer to pay as agreed.

Miss a step, and the whole payment chain starts to fall apart — which is why understanding these cross-links is essential for contract administration.

5️⃣ What If Scenarios?

💭 “What Could Possibly Go Wrong with Payment in Multiple Currencies?”

In an ideal world, every payment is made on time, in the right currency, to the right account — but construction is not an ideal world. Let’s explore what really happens when payment in applicable currencies goes off script.

⚠️ Scenario 1: The Employer Pays Everything in Local Currency

Contract Context:

Contract Price = ₹70 Cr (INR) + $1.2M (USD)
Clause 13.4 (1999) or Sub-Clause 14.15 (2017) applies
Interim Payment Certificate (IPC) certified for ₹35 Cr + $600,000

What Happens:
Instead of wiring $600,000 in USD, the Employer pays the INR equivalent (say ₹5 Cr) using the day’s exchange rate.

Under FIDIC 1999 (Clause 13.4):

The Contractor may object, but the clause lacks teeth.
Clause 13.4 says payment “shall be made in that currency”, but it doesn’t say what happens if not.
The Contractor would likely need to go through Clause 20.1 [Contractor’s Claims] (if present in your Conditions) and initiate a formal dispute.

Frustration Level: High. The clause supports you, but enforcement is vague.

Under FIDIC 2017 (Sub-Clause 14.15):

The Employer has clearly breached the clause.
Contractor can:
- Notify a Claim under Sub-Clause 20.2.1,
- Seek payment of actual losses due to FX differences under Sub-Clause 20.2.4, and
- Claim financing charges under Sub-Clause 14.8 for the unpaid USD amount.

Power Move: Attach bank exchange slips and procurement invoices to show FX loss. The Contract is solidly on your side.

⚠️ Scenario 2: The Contractor Forgets to Provide Bank Details for the Foreign Currency

Real-life Setup:

You’re awarded the project and ready to go.
Payments are split: 70% INR, 30% EUR.
You submit your payment application but only include INR account details.
The Employer pays the INR but holds back the EUR — waiting for instructions.

Under FIDIC 1999:

Clause 13.4 doesn’t require bank account info.
If the Employer delays foreign currency payment, it’s arguably still a breach.
But without clear instructions in the Contract or PC, you may face pushback: “How were we supposed to know where to pay it?”

Result: You may end up arguing logistics instead of law. Not ideal.

Under FIDIC 2017:

Sub-Clause 14.15 puts the onus explicitly on the Contractor: “The Contractor shall provide details of the bank accounts… in the relevant currencies.”
If you don’t provide account info, the Employer can rightfully delay that portion of payment.

Takeaway:
The 2017 version introduces a balanced risk: the Employer is duty-bound to pay only once you give clear banking instructions.

Pro Tip: Always include account details in the Contract Data or submit them formally with your first application under Sub-Clause 14.3.

⚠️ Scenario 3: Exchange Rate Skyrockets Between Certification and Payment

Example:

IPC certified on June 1st: $500,000 to be paid
Employer delays payment until July 15th
INR depreciates 7% in that time
Contractor incurs a higher cost when converting USD to INR for local wages

Under 1999 FIDIC:

Clause 13.4 doesn’t address exchange rate risks post-certification.
You’d need to lean on interest for delayed payment under Clause 14.8, and even then, it’s unclear if FX losses are recoverable.

Strategy: You’d have to make a creative claim and rely on sympathetic interpretation or custom Particular Conditions.

Under 2017 FIDIC:

Sub-Clause 14.15 protects the currency, not the value.
However, Sub-Clause 14.8 [Delayed Payment] offers financing charges — you can argue that the actual FX loss is part of that cost.

Extra Support: Sub-Clause 20.2 allows for a formal cost claim if you can prove actual financial loss.

Pro Move: Track payment certification dates vs. remittance dates, and keep FX rate screenshots from reliable sources like RBI or ECB.

⚠️ Scenario 4: Government Imposes Currency Transfer Restrictions

Twist in the Tale:

Project is in India; foreign exchange control rules change.
RBI restricts outward USD remittances for government-funded projects.
The Employer says: “We’ll pay everything in INR until the rule is lifted.”

Under 1999 FIDIC:

Clause 13.4 doesn’t account for force majeure, currency controls, or regulatory issues.
Contractor is technically entitled to USD — but if local law blocks it, you’re stuck in legal limbo.

Outcome: Unclear. You’d likely invoke Clause 19 [Force Majeure] and try to negotiate a workaround.

Under 2017 FIDIC:

Sub-Clause 14.15 is strict: “shall be made in the relevant currency.”
However, Sub-Clause 19.2 [Exceptional Events] may apply — if the restriction was unforeseeable and outside the Employer’s control.

Practical Solution:
Amend the Particular Conditions to include an alternate payment clause, such as: “If currency transfer restrictions apply, the Employer shall pay in local currency at the agreed FX rate as published by the Central Bank on the date of IPC issuance.”

⚠️ Scenario 5: Lump Sum Variations Create Ambiguous Currency Allocations

Project Change:

A variation of ₹2 Cr is approved.
The original Contract split is 80% INR / 20% USD.
But the variation involves imported equipment priced in USD — should the new amount follow the same currency split?

Under 1999 FIDIC:

Clause 13.4 suggests that proportions in the Appendix to Tender apply to “Contract Price”, not necessarily Variations.
Unless otherwise agreed, you’d default to the original ratio — which might underpay your FX costs.

Risk: Big gap in clarity. You’d need to negotiate currency allocation per Variation.

Under 2017 FIDIC:

Much better integrated with Sub-Clause 13.3 [Variation Procedure] and 14.15.
You can clarify currency allocation during the valuation of the Variation, and Engineer’s Determination should reflect the proper mix.

Tactical Tip: Always document proposed currency splits when submitting variation proposals under Sub-Clause 13.3.1.

✨ Final Reflection: What These Scenarios Teach Us

These real-world examples show that:

Clause 13.4 (1999) gives you the right currency, but little process or enforcement muscle.
Sub-Clause 14.15 (2017) gives you both the currency right and procedural armor to enforce it.
But in both cases, the outcome often hinges on how carefully the Contract is drafted, especially in the Appendix to Tender / Contract Data and Particular Conditions.

6️⃣ Suggestions for Clarity and Improvement

✨ Let’s Make Clause 13.4 (1999) and Sub-Clause 14.15 (2017) Even Better

📘 Clause 13.4 – FIDIC 1999: Room for Improvement

Let’s start with the original clause:

Clause 13.4
“Where the Contract provides for payment of the Contract Price in more than one currency, the proportion of each currency in which the Contract Price is to be paid shall be specified in the Appendix to Tender, and the payment of each such proportion shall be made in that currency.”

🔍 What’s Missing or Ambiguous?

No mention of payment method
- Direct transfer? Cheque? Bank draft? This opens the door to inconsistent practices.
No mention of banking details
- Where is the Employer supposed to pay? What if the Contractor has accounts in multiple countries?
No clarity on FX regulations
- What if government restrictions prevent payment in a foreign currency?
Silent on bank charges
- Who pays transfer fees or intermediary bank deductions?
No fallback language
- What happens if payment in one currency becomes impossible or illegal?

✏️ Suggested Particular Conditions for 1999

(Following GP2: Clearly state “This replaces Clause 13.4.”)

Replacement of Clause 13.4 – Payment in Applicable Currencies

“This Clause replaces General Conditions Clause 13.4 in its entirety.

Where the Contract Price is stated in more than one currency, the proportions and applicable currencies shall be as stated in the Appendix to Tender. The Employer shall make payments of each currency component by direct bank transfer into the Contractor’s nominated accounts in the respective currencies. The Contractor shall provide bank account details no later than 14 days after the Commencement Date.

All associated banking charges, transfer fees, and intermediary bank deductions shall be borne by the Employer, unless otherwise stated in the Appendix to Tender.

In the event that payment in a specified foreign currency is restricted due to a change in applicable law or exchange control regulations, the Parties shall agree on an alternative payment method or currency at the prevailing central bank exchange rate on the date of certification.

This Clause shall also apply to payments under approved Variations and Adjustments, unless otherwise agreed in writing.”

✅ Why this works:

Follows GP2 by clearly replacing the original clause.

Introduces procedural clarity (banking process, timing).

Allocates cost responsibility (bank charges).

Introduces contingency planning for FX risks.

📗 Sub-Clause 14.15 – FIDIC 2017: Still Great, But Can Be Sharpened

Let’s revisit the base text from the General Conditions:

Sub-Clause 14.15 [Currencies of Payment]
“Payment of the amounts due to the Contractor shall be made in the currencies and proportions set out in the Contract. The Contractor shall provide details of the bank accounts into which the payments are to be made, in the relevant currencies. The Employer shall pay the Contractor by direct transfer into these bank accounts.”

🔍 What’s Still Ambiguous?

What if the Contractor fails to submit account info on time?
- Is the Employer excused from payment?
What if FX regulations prohibit payment in foreign currency?
- No fallback mechanism mentioned.
Are payments for Variations and Adjustments covered?
- Not explicitly stated, but should they follow original currency proportions?
Bank charges not allocated
- Again, this can create disputes over net receipts vs. gross amounts.
Deadline for submitting account info?
- Without a timeline, this can delay payments unnecessarily.

✏️ Suggested Particular Conditions for 2017

(Following GP2: This adds to Sub-Clause 14.15)

Amendment to Sub-Clause 14.15 – Currencies of Payment

“Add the following paragraphs to Sub-Clause 14.15:

The Contractor shall submit the bank account details for each payment currency within 14 days after the Commencement Date, or as otherwise agreed. Failure to provide such details shall entitle the Employer to withhold the corresponding payment without incurring interest liability under Sub-Clause 14.8 until the details are received.

In the event that applicable law or foreign exchange regulations prevent payment in one of the specified currencies, the Parties shall consult in good faith and agree to effect such payment in another freely convertible currency, using the exchange rate published by the Reserve Bank of India (or other agreed source) on the date the Interim Payment Certificate was issued.

Unless otherwise stated in the Contract, the Employer shall bear all bank charges and fees associated with the remittance of each currency.”

✅ Why this works:

Adds clarity without deleting the original clause (GP2 compliant).

Sets a responsible deadline for the Contractor.

Protects the Employer from penalty when they’re waiting on account details.

Handles currency control risk in a fair and pre-agreed way.

Establishes a bank charge allocation rule — simple and enforceable.

🇮🇳 India-Specific Tips for Domestic FIDIC Contracts

If you’re tailoring the contract for Indian projects, especially when the Employer is a PSU or a private entity with offshore procurement, consider these additions:

Refer to RBI Master Circular on Forex Transactions for remittances to foreign contractors.
Clarify that foreign currency payments will comply with FEMA regulations.
Allow for conversion using SBI TT Buying Rate if RBI daily rates are unavailable.

Bonus Draft Clause:

“All foreign currency payments shall be subject to compliance with the Foreign Exchange Management Act (FEMA) and applicable RBI notifications. In case of ambiguity, the exchange rate shall be taken as the SBI TT Buying Rate prevailing on the date of Interim Payment Certificate.”

✨ Closing Thought

“A beautifully worded clause is only as good as the clarity it brings in the middle of a cash-flow crisis.”

By refining these clauses:

You protect both parties from legal gray zones,
Align with FIDIC’s Golden Principles (especially GP1 and GP2),
And create a more robust, bankable, and FX-resilient contract.

✅ Can the Contractor Provide Separate Bank Accounts for Different Currencies?

Short Answer:

Yes, under FIDIC 2017 Sub-Clause 14.15, the Contractor is fully empowered to designate separate bank accounts for each currency, even if:

One account is in the project country (for local currency), and
Another is in the Contractor’s home country (for foreign currency like USD, EUR, etc.).

📗 What Does Sub-Clause 14.15 Say?

“The Contractor shall provide details of the bank accounts into which the payments are to be made, in the relevant currencies. The Employer shall pay the Contractor by direct transfer into these bank accounts.”

✳️ Interpretation:

The wording allows the Contractor to specify different accounts for different currencies.
There is no restriction that all accounts must be in the project country.
What matters is that each currency must have a designated recipient account.

✅ Why Is This Done in Practice?

1. Local currency (e.g., INR) → Local Indian bank account

To pay site wages, local suppliers, utilities, GST, etc.
Reduces conversion charges and keeps cash flow efficient.

2. Foreign currency (e.g., USD, EUR) → Home country or offshore bank account

For repatriating profit, paying overseas suppliers, or servicing debt in foreign markets.
May also be linked to parent company financial systems.

Example:
An Italian contractor working in Mumbai may provide:

An ICICI INR account in India, and

An EUR account with UniCredit Bank in Milan.

🧾 What Should Be Specified in the Contract?

If you’re drafting Particular Conditions or Contract Data, you can add:

“The Contractor shall nominate one or more bank accounts for each currency in which payments are due. Such accounts may be located within or outside the Country, subject to applicable foreign exchange regulations.”

⚖️ Legal & Practical Considerations (India-Specific)

FEMA compliance
- Payments in foreign currency from Indian Employers must follow RBI’s outward remittance norms.
- A Form A2 + supporting documents may be required.
Tax Deducted at Source (TDS)
- The Employer must ensure that withholding taxes are correctly applied before outward remittance.
Clear instructions
- The Contractor must provide:
  - Account name
  - SWIFT code / IBAN
  - Bank address
  - Currency of the account

✍️ Practical Suggestion for Contract Drafting

If you’re customizing the Contract Data or PC, include this template language:

Banking Instructions:
“The Contractor shall, within 14 days of the Commencement Date, submit written details of the bank accounts into which each portion of the Contract Price shall be paid.

The INR portion shall be paid into an account held at an Indian bank.

The USD/EUR portion shall be paid into an account held in the Contractor’s home country.
The Employer shall make direct transfers to the respective accounts, in accordance with Sub-Clause 14.15.”

✨ Final Word

Yes — FIDIC 2017 supports this practice, and it’s smart contract management to do so.

“By separating payment flows, you reduce financial friction, simplify compliance, and keep everyone’s auditors happy.”

📄 Particular Conditions Clause: Multi-Currency Bank Account Instructions

(Addition to Sub-Clause 14.15 – Currencies of Payment)

Amendment to Sub-Clause 14.15 – Banking Arrangements for Multi-Currency Payments

The following text is added to Sub-Clause 14.15:

“The Contractor shall, within 14 days after the Commencement Date, provide written details of one or more bank accounts for the receipt of payments, designated for each currency specified in the Contract. These accounts may be located within the Country or in another jurisdiction, subject to applicable law and any relevant foreign exchange regulations.

The Employer shall pay the amounts due in each currency by direct bank transfer into the relevant designated account, in accordance with the proportions and currencies set out in the Contract Data.

Unless otherwise stated in the Contract Data:

The INR portion shall be paid into a bank account located in the Country (India), and

The foreign currency portion(s) shall be paid into bank account(s) nominated by the Contractor in its country of domicile or other permitted offshore banking locations.

The Contractor shall ensure that the banking instructions include all necessary details, including the account name, account number, SWIFT code or IBAN, bank name and address, and the currency denomination of each account.

In the event that the Contractor fails to provide complete bank account information for any currency, the Employer shall be entitled to withhold payment of that currency portion without liability for delay or financing charges, until such details are provided.

All payments shall be made without deduction, except as required by applicable tax law or withholding requirements, and all bank charges or transfer fees shall be borne by the Employer, unless otherwise stated in the Contract Data.”

✅ Why This Works

Follows GP2: It’s an addition, not a replacement — so you retain the original FIDIC structure.
Protects both parties:
- Employer knows exactly where and how to pay.
- Contractor secures their funds directly in relevant jurisdictions.
RBI/FEMA Ready: If needed, it can be modified to explicitly mention Indian forex compliance.
Claims-Resistant: Avoids friction over delay claims due to incomplete info.

Would you like this formatted as a Word or PDF snippet for easy copy-pasting into your Part A or Part B of Particular Conditions?

Or, shall we also create a matching template clause for FIDIC 1999 Clause 13.4, following the same logic?

✅ Enhanced Particular Conditions Clause

For Use with FIDIC Yellow Book 2017 – Sub-Clause 14.15 [Currencies of Payment]

Title: Multi-Currency Payment and Bank Account Instructions Clause

Addition to Sub-Clause 14.15 – Currencies of Payment
(This clause adds to, but does not replace, Sub-Clause 14.15 of the General Conditions. GP2-compliant)

14.15A – Designation of Currency-Specific Bank Accounts and Remittance Procedure

The Contractor shall, within 14 days after the Commencement Date, provide written notification to the Employer and the Engineer specifying one or more currency-specific bank accounts for the receipt of payments in accordance with the currency proportions and values set out in the Contract. These accounts may be located:

Within the Country for payments in local currency; and

In the Contractor’s country of domicile or any internationally recognized banking jurisdiction for payments in foreign currency.

Each banking instruction shall include:

Account Name

Bank Name and Address

Account Number or IBAN

SWIFT/BIC Code

Currency of the Account

The Employer shall make payments by direct bank transfer into the respective accounts in the respective currencies.

If the Contractor fails to provide any required banking information for a given currency, the Employer shall be entitled to withhold payment of that portion without penalty, until such information is received. The delay in such payment shall not be considered as late payment for the purposes of Sub-Clause 14.8 [Delayed Payment].

Unless stated otherwise in the Contract Data:

All banking fees and intermediary charges related to the transfer shall be borne by the Employer.

Payments shall be made in full, without deductions, except as required by applicable law (e.g., tax withholding).

In the event that exchange control regulations or applicable law prevent payment in one of the specified currencies, the Parties shall consult in good faith to agree on an alternative payment mechanism. In such cases, the payment may be made in a mutually agreed alternative currency, using the central bank’s reference exchange rate on the date of certification of the payment.

✅ How This Clause Complies with the FIDIC Golden Principles

Golden Principle	Compliance Explained
GP1: Recognizable FIDIC Contract Form	Clause builds directly on Sub-Clause 14.15 without altering its framework. Terminology and structure match FIDIC standards.
GP2: Clear identification of modifications	Clearly states: “This clause adds to, but does not replace…” ensuring full transparency of modification to the General Conditions.
GP3: Parties’ roles, obligations, and risks clearly defined	– Contractor must provide account details. – Employer must pay accordingly. – Risk of delay shifted clearly based on each party’s performance.
GP4: Employer’s role through the Engineer maintained	Engineer is copied on banking instructions (per 14.15’s implied payment flow and Sub-Clause 3.7). Engineer can verify compliance.
GP5: Dispute avoidance and amicable resolution encouraged	Introduces a “consultation and agreement” fallback mechanism if currency payments become unlawful — which helps prevent claims escalation.

Bonus: 🇮🇳 India-Ready Add-On (Optional)

[Only for contracts executed in India or where RBI regulations apply]

“All foreign currency payments from the Employer shall be subject to compliance with applicable Indian law, including the Foreign Exchange Management Act (FEMA), and shall be accompanied by the Contractor’s invoice and Form A2 as per RBI remittance norms. The exchange rate used for any required conversion shall be the RBI Reference Rate on the date the Interim Payment Certificate was issued.”

📄 Particular Conditions Clause (FIDIC 1999 Edition)

Clause Title: Multi-Currency Payment and Banking Instructions

Replacement of Clause 13.4 – Payment in Applicable Currencies
(This clause replaces Clause 13.4 of the General Conditions. Compliant with GP2.)

13.4 – Payment in Applicable Currencies and Designated Bank Accounts

Where the Contract provides for payment of the Contract Price in more than one currency, the proportions and applicable currencies shall be as stated in the Appendix to Tender or in the Contract Data, as applicable.

The Contractor shall, within 14 days of the Commencement Date, notify the Engineer and the Employer in writing of the bank account details for each currency. These accounts may be held:

Within the Country for local currency payments; and

Outside the Country for foreign currency payments, in the Contractor’s country of domicile or another internationally recognized jurisdiction, subject to applicable foreign exchange regulations.

The Employer shall make each currency payment by direct bank transfer into the corresponding bank account designated by the Contractor. Each banking instruction shall include the following details:

Account Name

Bank Name and Address

Account Number or IBAN

SWIFT/BIC Code

Currency of the Account

In the event that the Contractor does not provide complete bank account details for any payment currency, the Employer shall be entitled to withhold payment of the corresponding portion until such details are provided. Such delay shall not constitute a default under Clause 14.7 [Time for Payment] and shall not trigger financing charges under Clause 14.8 [Delayed Payment].

Unless otherwise stated in the Appendix to Tender or Particular Conditions:

All bank charges, transfer fees, and intermediary fees incurred for transferring payments in accordance with this clause shall be borne by the Employer.

All payments shall be made in full, without deduction, except where deduction is required under applicable law (e.g., tax withholding).

If at any time after the Commencement Date, a currency transfer restriction or any legal or regulatory change makes it unlawful or impractical for the Employer to remit a specified currency, the Parties shall consult in good faith to determine an acceptable alternative mechanism. Such payment may be made in a mutually agreed alternate currency using the central bank reference rate applicable on the date of certification of the payment.

✅ FIDIC Golden Principle Compliance Checklist (1999 Edition)

Golden Principle	How It’s Applied
GP1: Contract remains recognizable as FIDIC	Uses standard clause numbering, structure, and terminology. Mirrors original Clause 13.4 while expanding functionality.
GP2: Modifications must be clearly stated	Begins with “This clause replaces Clause 13.4…” – full transparency of change.
GP3: Parties’ roles and obligations are clear	Contractor must nominate accounts; Employer must pay correctly. Risks and duties are well-distributed.
GP4: Engineer’s role preserved	Engineer is kept in the loop as per the Contract’s standard information flow.
GP5: Supports dispute avoidance	Introduces fallback mechanism in case of FX restrictions to prevent claim escalation. Encourages negotiation before confrontation.

Optional Add-on: 🇮🇳 India-Specific Language (For Indian Employers or Projects)

“Foreign currency payments shall comply with applicable Indian foreign exchange laws and regulations, including the Foreign Exchange Management Act (FEMA) and the RBI Master Directions on remittances. In such cases, the applicable exchange rate shall be the RBI Reference Rate on the date the relevant payment certificate is issued.”

Final Takeaways

✨ What Clause 13.4 (1999) and Sub-Clause 14.15 (2017) Teach Us About Payment, Risk & Clarity

Let’s face it — money makes the project move, and when money crosses borders, currencies start talking. These clauses — though only a few lines long — hold the keys to whether international projects run smoothly or get stuck in a forex-fueled claim spiral.

Let’s break it all down:

✅ 1. Currency Proportion Is Not a Guideline — It’s a Binding Obligation

Both Clause 13.4 and Sub-Clause 14.15 make it crystal clear:

“If the Contract says 70% INR and 30% EUR, then that’s exactly how you get paid — no exceptions, no substitutions, no shortcuts.”

This protects the Contractor from:

Unwanted foreign exchange risks
Misaligned cash flows
Delays in equipment procurement and supplier payments

It also protects the Employer by providing transparency, especially when loan disbursements or donor funding is involved in specific currencies.

✅ 2. The 2017 Edition Doesn’t Just Modernize — It Operationalizes

The evolution from 1999 Clause 13.4 to 2017 Sub-Clause 14.15 is subtle but powerful.

1999	2017
Conceptual	Procedural
“Pay in multiple currencies”	“Pay in multiple currencies to these accounts in this way”
No mention of bank details or deadlines	Clear rules for account details, deadlines, and transfer methods

Think of 1999 as a solid handshake, and 2017 as a digital bank transfer with an audit trail.

✅ 3. Clarity Prevents Conflict — Precision Prevents Payment Delays

Here’s the contract manager’s reality:

Vague wording → Different interpretations
Different interpretations → Late payments
Late payments → Claims under Clause 20
Claims → Delays, disputes, and sour relationships

What you want instead is:

“Here’s what’s due, in this currency, to this bank, by this date. Simple.”

And that’s exactly what the amended Sub-Clause 14.15 delivers when properly customized with Particular Conditions.

✅ 4. Real-World Scenarios Expose Hidden Risks

Whether it’s:

A late USD payment because of forgotten account details, or
A contractor absorbing FX losses because the Employer paid everything in INR…

…the “what ifs” show us that these clauses are not just technical niceties — they’re part of your cash flow defense strategy.

The best way to avoid claims is to preempt risk with clarity — and both FIDIC clauses give you the structure to do just that (especially when upgraded via smart Particular Conditions).

✅ 5. Golden Principles Are the Compass for Drafting

As we saw in Section 6, when you enhance these clauses using the FIDIC Golden Principles:

You stay aligned with the contract’s original intent (GP1)
You’re honest about what’s changing (GP2)
You clarify duties and allocate risk fairly (GP3)
You respect the Engineer’s oversight role (GP4)
And you encourage cooperation before confrontation (GP5)

This isn’t just about compliance — it’s about contractual craftsmanship.

✅ 6. Good Payment Clauses Respect Local Realities & Global Logic

A smart payment clause works just as well in:

An Indian EPC project backed by ADB,
A European solar project with mixed Euro and USD funding, or
A Gulf-based infrastructure contract with local and offshore supply chains.

When adapted with:

Local currency laws (e.g., RBI, FEMA),
Banking practices, and
Clear procedural steps…

…it becomes a practical tool — not just legal fluff.

✅ 7. A Proactive Approach to Drafting Builds Trust

When you clearly define:

Currency breakdowns
Account instructions
Bank charge responsibilities
Fallback plans for FX restrictions

…you show the other party:

“We’ve thought this through. We’re here to build — not to fight.”

And that mindset goes a long way in building cooperative project environments — which is exactly what FIDIC is all about.

✨ Closing Line

“Clause 13.4 and Sub-Clause 14.15 might look small — but they protect millions. They’re not just about payment; they’re about fairness, predictability, and the professionalism that good contract management demands.”

✅ Payment in Applicable Currencies – Clause Administration Checklist

(Applies to both FIDIC 1999 Clause 13.4 and FIDIC 2017 Sub-Clause 14.15)

#	Checklist Item	Applies To	✔
1	Contract Price is split into two or more currencies (e.g., local + foreign) and stated clearly in Appendix to Tender or Contract Data	1999 & 2017	☐
2	Currency proportions (e.g., 70% INR, 30% USD) are clearly defined and sum up to 100%	1999 & 2017	☐
3	Contractor has submitted separate bank account details for each currency, including SWIFT/IBAN	2017 only (optional for 1999)	☐
4	Bank accounts are located in correct jurisdictions (local for local currency, offshore for foreign)	1999 & 2017	☐
5	Payment applications (under Clause 14.3) are broken down per currency	1999 & 2017	☐
6	Engineer’s Interim Payment Certificate (Clause 14.6) reflects the certified amounts in correct currency mix	1999 & 2017	☐
7	Employer pays each currency into the designated account via direct bank transfer (no currency substitutions)	2017 only	☐
8	If Contractor failed to submit account details, payment for that portion is rightfully withheld (no interest payable)	2017 only	☐
9	Banking charges, intermediary bank fees, and FX deductions are clearly allocated (ideally to Employer) in Particular Conditions	1999 & 2017	☐
10	Fallback mechanism in place if foreign currency payment is blocked due to regulatory change (e.g., FEMA/RBI)	1999 & 2017	☐
11	Variations or adjustments to Contract Price are paid in same currency ratio unless otherwise agreed in writing	1999 & 2017	☐
12	Sub-Clause 20.2 Claim process followed if currency payment is delayed, incorrect, or substituted	2017 only	☐
13	Contractor retains documentation to prove exchange losses or FX impacts for potential claims	1999 & 2017	☐
14	All amendments to Clause 13.4 or 14.15 follow FIDIC GP2 – explicitly stating whether clause is added to, replaced, or modified	1999 & 2017	☐
15	All payment-related clauses (14.1 to 14.8) consistently reflect the same currency logic	1999 & 2017	☐

1. Sample Letter: Submission of Bank Account Details for Multi-Currency Payments

Applicable Clause: Sub-Clause 14.15 (FIDIC 2017)

To: The Employer / The Engineer
From: The Contractor
Subject: Submission of Currency-Specific Bank Account Details – Sub-Clause 14.15
Date: [Insert Date]

Dear Sir/Madam,

Pursuant to Sub-Clause 14.15 [Currencies of Payment] of the Conditions of Contract, we hereby submit the details of our designated bank accounts for each currency as stipulated in the Contract:

Currency Account Name Bank SWIFT/IBAN Country
[INR] [ABC Ltd] [HDFC Bank, Mumbai] [HDFCINBBXXX] India
[USD] [ABC Ltd] [Bank of America] [BOFAUS3NXXX] USA
[EUR] [ABC GmbH] [Deutsche Bank] [DEUTDEFFXXX] Germany

Kindly confirm receipt and advise if further documentation is required. We trust this satisfies the procedural requirement for direct payment under the Contract.

Yours faithfully,
[Contractor’s Name]
Authorized Representative

Currency	Account Name	Bank	SWIFT/IBAN	Country
[INR]	[ABC Ltd]	[HDFC Bank, Mumbai]	[HDFCINBBXXX]	India
[USD]	[ABC Ltd]	[Bank of America]	[BOFAUS3NXXX]	USA
[EUR]	[ABC GmbH]	[Deutsche Bank]	[DEUTDEFFXXX]	Germany

2. Sample Letter: Claim for Non-Payment in Contractually Agreed Currency

Applicable Clause: Sub-Clause 14.15 + Sub-Clause 20.2 (FIDIC 2017)

To: The Employer
From: The Contractor
Subject: Notice of Claim – Non-Payment in Agreed Currency (Sub-Clause 14.15)
Date: [Insert Date]

Dear Sir,

We refer to Interim Payment Certificate No. [XX] issued on [Date], wherein the Engineer certified the following payment:

INR: [Amount]

USD: [Amount]

We acknowledge receipt of the INR portion. However, we note that the USD portion has been remitted in INR, converted at [Exchange Rate], contrary to the agreed proportions under Sub-Clause 14.15 [Currencies of Payment].

Accordingly, we hereby notify a Claim under Sub-Clause 20.2 [Claims For Payment] for the losses incurred due to foreign exchange rate deviations and breach of payment method.

We reserve the right to submit full particulars in accordance with Sub-Clause 20.2.4 within the stipulated 84-day period.

Yours sincerely,
[Contractor’s Name]
Contract Manager

3. Sample Letter: Request for Alternative Currency Due to Regulatory Restrictions

Applicable Clause: Clause 13.4 (FIDIC 1999) or Sub-Clause 14.15 + Exceptional Events (2017)

To: The Engineer / The Employer
From: The Contractor
Subject: Request for Alternative Currency Payment – Currency Restriction in [Country]
Date: [Insert Date]

Dear Sir/Madam,

We write to bring to your attention a recent change in regulatory policy from [Central Bank Name], effective [Date], which restricts outbound remittances in [Currency] for government-funded infrastructure projects.

As this directly affects our ability to receive the agreed payment in [Currency] under Clause 13.4 / Sub-Clause 14.15, we respectfully request a consultation to agree on an alternative payment mechanism or substitute currency.

We propose that, pending resolution, the payment may be made in [INR or other] at the prevailing [RBI or central bank] exchange rate as of the certification date.

We look forward to your urgent response, so as to ensure continuity of our financial operations.

Yours sincerely,
[Contractor’s Name]
Finance Lead

4. Sample Letter: Clarification on Variation Payment Currency Split

Applicable Clause: Clause 13.4 + Clause 13.1/13.3 (1999) or Sub-Clause 14.15 + 13.3 (2017)

To: The Engineer
From: The Contractor
Subject: Clarification on Currency Allocation for Variation [No. XX]
Date: [Insert Date]

Dear Sir,

We refer to the approved Variation No. [XX] valued at [Amount], relating to [describe scope change].

As the Contract provides for payment in multiple currencies per Clause 13.4 / Sub-Clause 14.15, we seek your confirmation on whether the original payment proportions (e.g., 70% INR / 30% USD) will apply to this Variation.

If the Variation involves primarily imported materials, we propose allocating [XX]% to the foreign currency component.

Kindly advise your determination under Clause 3.5 / Sub-Clause 3.7 at your earliest convenience.

Yours faithfully,
[Contractor’s Name]
Commercial Manager