essence of price adjustment in construction contracts in iran and fidic

Severe fluctuations in prices can cause a distortion of the balance of considerations, particularly in long-term contracts, such as construction contracts. One way to reasonably reduce the risk of unforeseen costs due to price fluctuations in raw materials and manpower is to design a contract price adjustment system. Since Iranian law is substantially influenced by the state economy, large-scale economic activities are carried out directly by the state. In general contracts, based on Article 23 of the Program and Budget Act, the general terms of contracts are the basis for drafting governmental contracts of which the standard model is FIDIC contracts. In general contracts in Iran, the government, as a regulatory body, has a direct involvement in the implementation of this type of contracts. Hence, the analysis of the nature and basis of moderation in the general terms of contract is subject to controversy. This article strives to examine the nature and basis of the moderation clause in general terms of the contract and to compare it with FIDIC contracts.