About Experts Sitemap - Group 15 - Page 2 2016-09-20

Construction Law: construction - extension of time, adjudicator, completion date
adjudicator, completion date, clauses: Dear Ben, For answering this question, we need to know the dispute resolution clauses as well as the LD clause of your contract. Prima Facie, if the architect has rejected your claim for extension, then it becomes a dispute which needs to be referred...

Construction Law: Construction law, material specifications, value engineering
material specifications, value engineering, contract period: The Employer in the BOQ put the quantities and the Contractor put his rates, therefore it is his risk. In this type of contract the Contractor is obliged to do the works in accordance with the BOQ rates or appropriate rates (Sub-clause 12.3) however...

Construction Law: Construction Law, subcontract agreement, fidic
subcontract agreement, fidic, main contractor: Dear Mututantree, Thank you for your question. I apologize for the delayed response due to having been outside the city. As I could understand your question, it appear that aggregate supplier was nominated without your knowledge and consent specially with...

Construction Law: Construction tenders evaluation, construction tenders, pdf docs
construction tenders, pdf docs, financial evaluation: Dear Emad Al-Jaouni, There are several ways of evaluation and they differ from contract type and also client intent. I may copy you some links from net for your reference. http://www.wakefield.gov.uk/NR/rdonlyres/F275C524-0302-477A-BE8E-DFDD688B80A3/0/06_Guide_to_tender_evaluation.pdf...

Construction Law: Contract Claim Period, FIDIC 99, Claims procedures
FIDIC 99, Claims procedures: Dear Bryan, Unfortunately, this situation was quite common under FIDIC 4, but now FIDIC 99 has moved to avoid delays in settling claims. Clause 20.1 of FIDIC 99 is quite clear about the timing and procedures for submitting and deciding claims. The...

Construction Law: Contract forms and procurement, project management services, contract procurement
project management services, contract procurement, procurement procedure: Hi Georgeey, Can I advise that you visit the following links for explanation of procurements routes and the relates standard form. Obviously the forms will depend greatly on your location which is not stated. http://simplymalaysia.wordpress.com/articles/choice-of-contract/alliancing-in-construction/...

Construction Law: Contract Termination, contractor bids, open tender
contractor bids, open tender, fidic: Hi, I am not aware of such international law, that would oblige the employer to invite the original contractor to the new bid. If the applicable law or the law of the country where the tender is held does not contradict this, every contractor is free to...

Construction Law: Cost Control, contracting company in uae, cost estimation
contracting company in uae, cost estimation, initial budget: Please prepare an excel sheet in the following format. These are columns titles. COST CODE BRIEF DESCRIPTION BoQ REFERENCE INITIAL BUDGET ADDITIONS OMMISIONS REVISED BUDGET VARIATIONS AGREED VARIATIONS PENDING TOTAL VARIANCE(Initial Budget - Total)...

Construction Law: delay damages, electricity department, contract duration
electricity department, contract duration, project scope: Dear Junaidi, In my previous reply, I was mentioning that if there is a delay on completion, and if there is a reason for that, it is not Contractually right to apply delay damages by the Employer. The Contract refers Taking Over Certificate for such application....

Construction Law: Delay penalties, delayed period, core test
delayed period, core test, conditions of contract: Dear Ibrahim, Thanks for this interesting question. Please let me know which Form of Contract you are using and also advise related Particular Conditions of Contract, if any. If you are using FIDIC 99, Sub-Clause 8.8 states, If and to the extent that...

Construction Law: Delay Penalty, contractual documents, loan facilities
contractual documents, loan facilities, residential space: When deciding on the amount of damages or as you refer the penalty to be applied in the event that the contractor is late in his obligation to complete the works in the time for completion the person or persons tasked with this should consider the financial...

Construction Law: Design Coordination., design coordination, main contractor
design coordination, main contractor, close proximity: Dear Marc, Thank you for this question. Good management of a construction project requires co-operation at all levels; however someone must have a greater degree of control. As main contractor, appointing several sub-contractors, to work in relatively...

Construction Law: Design Coordination, FIDIC 4, Subcontractors
FIDIC 4, Subcontractors: Hi Marc, Normally, it is the job of the main contractor to coordinate his subcontractors; basically because he has the over view of the project and its priorities, whereas the subcontractors have a view of their part only. Often subcontractors will share...

Construction Law: design by nominated subcontractor, collateral warranty, collateral warranties
collateral warranty, collateral warranties, design liability: Dear Soomun, Thank you for this further question. There are a number of issues raised here. Firstly, the Main Contractor s obligations in relation to a nominated sub-contract/sub-contractor are not very different from those he has to his domestic sub-contracts/sub-contractors;...

Construction Law: Discrepancies in Sub-Contract Agreement j, subcontract agreement, contract works
subcontract agreement, contract works, main contractor: Hi Mike You have set a number of different questions which are of a hypothetical nature. Almost as if they are some sort of exam questions. If your queries relate to real situations then some background information would be helpfull. Best regards Mike...

Construction Law: Discrepancies in Sub-Contract Agreement m, subcontract agreement, contract works
subcontract agreement, contract works, main contractor: Hi Mike 1.The Subcontract agreement states that “the Contractor shall have no liability to the Sub-Contractor in respect of any condition, obstruction or circumstance that may affect the execution of the Sub-Contract Works and the Sub-Contractor shall be...

Construction Law: Discrepancies in Sub-Contract Agreement, contractual clauses, contract provision
contractual clauses, contract provision, subcontract agreement: Dear Mike, Thank you for your question. I have following comments on your 4 questions on the basis of info provided. 1. The contract provision of no liability by the main contractor for the sub contractor is a general provision whereas sub contract reference...

Construction Law: Discrepancies in Sub-Contract Agreement c, FIDIC 4, Subcontracts
FIDIC 4, Subcontracts: Hi, 1. I suggest that the first paragraph refers to pricing the offer, so that you cannot claim that you misunderstood or were ignorant of something about the requirements of the site conditions. For example if it were a rail contract, then access might...

Construction Law: Discrepancies in Sub-Contract Agreement o, subcontract, agreement
subcontract, agreement, Fidic: Dear Mike 1. If the contractor was the root cause of the delay, then he has no right to impose a delay penalty of his subcontractor, in fact the subcontractor has the right for claims under the general conditions for the cost and reasonable profit in respect...

Construction Law: Discrepancies in Sub-Contract Agreement h, subcontract agreement, contract works
subcontract agreement, contract works, main contractor: Dear Mike, 1. It is clear that if the MC is the cause of any delay SC has right to claim for this delay. First statement you mentioned is not including the delay of MC that SC has to include in their prices. And in second statement you mentioned it is...

Construction Law: Discrepancies in Sub-Contract Agreement n, subcontract agreement, main contractor
subcontract agreement, main contractor, contract works: Dear Mike, Thank you for this question. 1. There are several reasons why I consider the noted catch-all provision will not fully protect the Main Contractor. Firstly, the wording of the clause and the time at which it was issued may dictate that some...

Construction Law: Discrepancies in Sub-Contract Agreement p, main contractor, subcontract agreement
main contractor, subcontract agreement, contract works: Dear Mike, I shall answer the questions point-wise. Q.1 - Even if there is a general disclaimer as you have mentioned, if the Main Contractor has defaulted, then the disclaimer will have no effect and the Subcontractor can claim delay under the Law of...

Construction Law: Discrepancies in Sub-Contract Agreement e, subcontract agreement, contract works
subcontract agreement, contract works, main contractor: Dear Mike, These are my answers to your questions...: 1. It is my understanding that the Sub-Contractor can claim if it is about a disruption or delay or some costs are incurred because of the Contractor, but not because of other reasons, that are not generated...

Construction Law: Discrepancies in Sub-Contract Agreement k, subcontract agreement, main contractor
subcontract agreement, main contractor, contract works: Dear Mike, Sorry for late reply, because I was travelling and out of my office. I understand, that the Sub-Contractor is nominated to the Employer and the Main Contract also referred in the contract between main contractor and sub contractor. For Sub-Contractor,...

Construction Law: Discrepancies in Sub-Contract Agreement i, subcontract agreement, contract works
subcontract agreement, contract works, main contractor: Dear Mike, Thanks for the question. The excerpts from the Sub-Contract Agreement being provided by you enlighten me with one part of the story. Since I am not aware of entire contents of this agreement; my reply will be limited to the information provided...

Construction Law: Calander Days or Working Days extension
Construction Law: Calander Days or Working Days extension

Construction Law: delay damages, maximum limit, lds
Construction Law: delay damages, maximum limit, lds, completion date

Construction Law: time at large, contact number, regard
Construction Law: time at large, contact number, regard

Construction Law: Variation Claim, lump sum contract, boq
Construction Law: Variation Claim, lump sum contract, boq, contract value

Construction Law: FIDIC 1987 Fourth Addition, eot, fidic
eot, fidic, change: Dear Imran To answer your question, I am afraid I must say no. No Construction law would say Change orders should include EOT. Actually, EOT is granted when the variation affects the critical path of the project. In your case, if you have given notices regarding...

Construction Law: Fidic 1999, fidic contract, e mail
fidic contract, e mail, maximum time: Dear Wael, Thank you for this question. The FIDIC contract sets specific timetables where they are needed and expects that the contracting Parties will agree them otherwise. For general submittals there is no fixed or maximum time allowed within the...

Construction Law: Fidic Clause 70.1, fidic, price
fidic, price, escallation: Dear Raja The provision of FIDIC price escalation is related to the tender submission date. On such date the contractor should submit the index price of all items he want to be included in calculating the contract price according to the formula stated in...

Construction Law: FIDIC Omission and New Rate Calulation, road alignment, new bridge
road alignment, new bridge, guard rails: Dear Alper Bey, I understand that you are using Red Book or MDB version of FIDIC. I will try to refer various versions. Sub Clause 12.4, Omissions stipulates that, Whenever the omission of any work forms part (or all) of a Variation, the value...

Construction Law: Fidic red book, piping materials, design responsibility
piping materials, design responsibility, design engineer: Dear Jaco, Extensions can be awarded due to Employer s risks, such as late issuing of information, but the Contractor can be delayed by his own actions or inaction, such as insufficient resources. If you do not complete the project within the contractual...

Construction Law: FIDIC Redbook 1999 Clause 12 and 13 Applicability of Contract BoQ Rates, FIDIC 99, Valuation of variations
FIDIC 99, Valuation of variations: Dear Keith, When considering the valuation of variations, my preference is for Henry Boot Construction Ltd v Alstom Combined Cycles Ltd [2000]CA BLR247 and [1999]TCC BLR123 - you can find a commentary on this case at http://www.atkinson-law.com/library/article.php?id=292...

Construction Law: Interest on Retention, relevant clauses, contract c
relevant clauses, contract c, interim payment: Dear Jana, Thank you for coming back and for provided details. Yes, I think I was right in the first time. Retention Money are becoming due as per 16.4, and are to be applied for Under 16.3 and if not paid within stated deadline, under same Sub-Clause,...

Construction Law: Interim Payment Application after Completion Date of Project., interim payment, payment application
interim payment, payment application, fidic: Thank you for this question. If by your position as Supervision Consultant you have authority to issue interim payment certificates then you should evaluate this certificate in the usual way and in line with the contract. You indicate that completion...

Construction Law: Interim Payment Certificate after Completion Date of Project., first impulse, interim payment
first impulse, interim payment, payment application: Dear Ninan, Thank you for your question. Based on provided information I understand that: - time for completion expired on 26 Dec 2011; - Contractor issued an EoT claim prior that date; - Employer/ Engineer did not apply delay damages yet,...

Construction Law: IPC after Completion Date of Project., FIDIC 4, Payment of IPC
FIDIC 4, Payment of IPC: Dear NinanMM, You are obliged to evaluate and certify the Contractors application, provided that it exceeds the minimum value specified in the Appendix to Tender, and that you make appropriate provision for any potential liquidated damages. You may...

Construction Law: Liquidated Damages, countries in the middle east, sole discretion
countries in the middle east, sole discretion, legal document: Dear Marc, My reply will be limited to the UAE and I work here and am not aware if the similar law prevails elsewhere in the ME. In order to reply you specifically I would quote the following excerpts from a web link. You may visit this link for further...

Construction Law: Liquidated Damages, penalty clauses, countries in the middle east
penalty clauses, countries in the middle east, gulf times: Dear Mr. Marc, Thanks for your Questions. As per the Middle east Local Laws the Liquidated Damages are not illegal. But, many defensive points are applicable. 1. If, the main contractor do not have LD s in his contract he can impose LD s to his sub...

Construction Law: Contractor maintaining Engineer's facilities and accomodations, fidic contract, consultant engineer
fidic contract, consultant engineer, tender prices: Dear Rex, Thank you for this question. If outstanding works are allowed to be done in the defects liability period, that is a concession allowed under Sub-Clause 11.1(a). As stated under sub-clause 11.2, all work defined under sub-clause 11.1(b)...

Construction Law: Negative change order, Change, order
Change, order, negative: Dear Moin You can issue a normal Change order but with a negative value. If you have used certain forms, then continue using the same or you can use the below. Please note that Design and Build Contracts allows this change when based on FIDIC. Just make...

Construction Law: Nominated subcontractor, nominated, subcontractor
nominated, subcontractor, advance: Dear Shady It is standard to nominate a subcontractor based on a tender or an offer that stipulate the same conditions applicable to main contractor. In such case, all the conditions shall apply to the nominated subcontractor including his right for an advance...

Construction Law: Omission/ FIDIC 1999 YELLOW BOOK, FIDIC 99, Yellow Book
FIDIC 99, Yellow Book, Omissions: Dear Bhathiya, There are always problems with hybrid contracts. I presume that you do not have the equivalent of clause 12.4 as per the Red Book to cover omissions. Then your only option is clause 20.1 If the Contractor considers himself to be entitled...

Construction Law: omission for an item unavailble in tender drawings, internal stairs, fidic yellow book
internal stairs, fidic yellow book, s a design: Dear Ferdinand, There may be varios ways to do so. You can make your own analysis, you can also ask from contractor to do so or you may search the cost of the similar items in local market. Sub Clause 3.5 (Red Book) gives a power to the Engineer to determine...

Construction Law: Payment of materials offsite, stainless steel units, bank guarantee
stainless steel units, bank guarantee, kitchens: Dear Georgeey, If the contract under which the Contractor is to fit out the kitchens to the hospital is a FIDIC 1999 contract, then the Sub-clause 14.5 is to be applied and the stainless steel units are to be paid when delivered and properly stored on site,...

Construction Law: Performance Bond, FIDIC 99, Performance Security
FIDIC 99, Performance Security, Expiry: Dear Navin, It all depends on your relationship with the Contractor. Clause 4.2 a deals specifically with the Contractor s failure to extend his Performance Security. If it has expired, then it is probably too late. Clause 18 refers to insurance rather...

Construction Law: Performance Bond - Fidic (1999) - Red Book, worse case scenario, defects liability period
worse case scenario, defects liability period, performance bonds: Dear Navin, For the reasons of delay, attributable to the Employer, it is very clear that the Contractor may request Extension of Time and prolongation costs (time related costs), including the premium payments of bonds and insurances for the extended time....

Construction Law: Pn, boq, contract documents
boq, contract documents, detail report: Dear Mr. Raja, Prepare the detail report for using Current Price list of used Bitumen Items of BOQ. If, the +/- adjustment already applied in your previous items means there is no harms to apply in this current event. If, the engineer not aware or not...

Construction Law: Price adjustment clause 70.1, question thanks, billing period
question thanks, billing period, ipcs: Dear Raja Sahib, Thank you for the suplementry question. The formula only works out a multiplying factor for the boq rate based amounts of IPCs to update them to today s value under consideration with the help of indices published by a nominated body in...

Construction Law: Price Adjustment Under FIDIC, FIDIC 99, Inflation
FIDIC 99, Inflation, Base Date: Hi Prianka, Anything is possible, provided it is done before the deadline for submitting the tender but I would not advise it. If you do it after tender submission, be ready for claims. The purpose, of defining the base date, is to introduce certainty...

Construction Law: professional fees, private question, dear peter
private question, dear peter, conflict of interest: Dear Darren, Normally the fees would be paid through the Employer to avoid any suggestion of Conflict of Interest. I do not give my private email on open sites, but if you wish to ask a private question, which is visible only to me and the sysop, then...

Construction Law: Question on variation works, conditions of contract, settlement agreement
conditions of contract, settlement agreement, quotation: Dear Ivy, The Contractor has no right to refuse or delay execution of a VO. Firstly, draw their attention they may be liable for eventual delays. Secondly, to speed up the process, proceed with agreeing some temporary unit rates, so that you have...

Construction Law: Re-measurement under FIDIC 99 Red Book, FIDIC 99, Inconsistent documents
FIDIC 99, Inconsistent documents: Dear Muhammad, It is not included in the Accepted Contract Sum and should be paid as a separate item. The case is similar to that of a discrepancy between the BoQ and the drawings. If the quantities on the drawings differ from those in the BoQ, then...

Construction Law: Remeasured Contract, re measured, wroung quote
re measured, wroung quote: Dear Mujtaba I understand that you are a subcontractor who quoted wrongly on cut and fill price in a re-measured contract. Your best bet is to convince the main contractor that your original quote for that item is wrong and it is intended to be for the embankment...

Construction Law: RENTENTION IN CONSTRUCTION INDUSTRY, main contractor, contract terms
main contractor, contract terms, e mail: Dear William, Thank you for this question. Without knowledge of the contract terms I can give only general guidance. Assuming that the main contractor has received the certificate at the end of the defects period and final payment I can see no reason...

Construction Law: Response to RFI, straight forward design, answe
straight forward design, answe, response form: Hi KK, In my opinion yes but it would depend on the wording of the question asked and the context. If you get RFI response in such a manner always respond saying what you will do as a result of the response and give architect/Engineer/SO chance to clarify,...

Construction Law: Retention, piling contractor, defects liability period
piling contractor, defects liability period, quantity surveyor: Dear Rob, Thank you for your question and I will do my best to provide you with an answer. Based on common law and assuming the contractor is domestic I would state the following: Retention is only due for release to Subcontractor when and if the...

Construction Law: about silver book, turnkey projects, silver book
turnkey projects, silver book, conditions of contract: Hi, The Silver Book is called also Conditions of Contract for EPC/Turnkey Projects . EPC stands from Engineering, Procurement and Construction that should be carried by the Contractor under this kind of contract, to provide a fully-equiped facility, ready...

Construction Law: Suspension costs, skilled resources, resource plan
skilled resources, resource plan, eot: Dear Jamie, Thank you for this question. The issue is a difficult one. I appreciate that you will suffer some increased costs due to the suspension of part of the planned work programme; however it will take a careful reading of the contract for me to...

Construction Law: Taking over cert., FIDIC 99, Taking Over
FIDIC 99, Taking Over: Dear Jaco, You do not define what is meant by taken over by the client . Normally, taking over requires the issuing of a Taking Over Certificate. How was the taking over shown? Sub-clause 10.2 (a) is relevant to this question. However, if the...

Construction Law: Termination of Consultant contracr, fidic, similar project
fidic, similar project, shoaib: To clarify you employ identical consultant to run three projects for You. He has engaged three teams and is willing to demobilise two for you and let the third team remain to complete all three project so you can save money. Who are you if you are not client?...

Construction Law: termination by employer and no return of performance bond, FIDIC 99, Perfromance Security
FIDIC 99, Perfromance Security, Return: Dear John, It would seem that there is no reason to withhold the Performance Security and that it should be returned. Perhaps the Employer has lost it and will issue an indemnity to cover the loss. If it is not valid, then it is unlikely that there will...

Construction Law: time at large, construction law journal, dear mr
construction law journal, dear mr: Dear Mr. Mullai, Thanks for your Questions. I think you are very New to the field. Your senior friend Mr. Yasodharan also contacted me on last week and We know each other very well. Regarding the Time at Large , you would read one article published...

Construction Law: Time at Large: Consequences, project completion time, fidic
project completion time, fidic, payment deadlines: Hi there, By KSA i assume you mean Saudi. As you have no connection with project i will not attempt to qualify my answer and seek further information. Currently i don t have access to computer and will respond within next 48 hours as now I m at airport...

Construction Law: Turnover, cash flow analysis, won contracts
cash flow analysis, won contracts, aacei: Dear Mr. Mullai, Sorry for the delay response. I was very busy to submit my monthly reports. In your above case, I can not get advise very exactly your requirement. I can give only the guidelines. Because, you are not having more details. For the Turnover...

Construction Law: Variation Claim, FIDIC 4, Lump Sum
FIDIC 4, Lump Sum, Variations: Dear Mohd, Obviously, the Employer or his advisers has made a mistake. If you make a mistake then you must pay for your error. He says the external works will be remeasured and then omits items from the BoQ. The Bidder does not know if these works are...

Construction Law: Variation and new contract sum, contract sum, contract implementation
contract sum, contract implementation, additional works: Dear Beerachee, Thank you for your question. Based on provided information, it seems the Employer definitely, reserved the right, from the very beginning, to reduce 6.6 M$ component. You can not complain about that. 1. no nullifying, just omitting...

Construction Law: Variation Order, lump sum contract, milestone payments
lump sum contract, milestone payments, boq: Dear Mohd Razali, Greetings and thanks for your question. As I can assess from the information provided, it appears that the contract is basically lump sum but in some informal discussions at the time of contract signing/award it was agreed for certain...

Construction Law: variation order, interim evaluation, contract changes
interim evaluation, contract changes, e mail: Dear Bala, Thank you for these questions. 1. Provided that the contract is a measure and value contract changes in quantities would not require variations unless the contract states otherwise; however if it is a lump sum proce contract, where the BoQ...

Construction Law: Adverse Ground Conditions, cooperative insurance society ltd, cooperative insurance society
cooperative insurance society ltd, cooperative insurance society, perco engineering: Dear Lawrence, Please note that your case seems genuine and should be put-up for further client s review . Since the data provided in the Terms of Reference during the Tender Stage differs with the actual site conditions; you need to establish various...

Construction Law: Adverse Ground Conditions, adverse, conditions
adverse, conditions, fidic: Dear Lawrence The contractor shall give notice to the Engineer immediately when such conditios are discovered. please note that the said conditions should be adverse ( ie. affecting the works) and they should be unforseen at the time of tendering. In my experience...

Construction Law: The best percentage for the penalty for delay of completion, extended engineering, actual damages
extended engineering, actual damages, contract sum: Dear Rafat, Thanks for your question. The LDs are normally imposed at uniform rate irrespective of the type of delay period and are normally 0.1 percent of the contract value per day with an upper maximum limit of 10 percent. I am not clear why in your...

Construction Law: best percentage of penalty for delay of completion, extended engineering, yellow book
extended engineering, yellow book, contract sum: Hello Rafat, Thank you for coming back. No problem about the name, this kind of gender mistakes are quite often. 1. In respect of supervision costs, Employer can not know that at the beginning. The Employer shall simply pay Engineer s invoices and...

Construction Law: best percentage for the penalty for delay of completion, extended engineering, contract sum
extended engineering, contract sum, mechanical works: Dear Rafat, Thank you for this question. The amount of the damages for delay should reflect your genuine pre-estimate of the loss likely to be suffered if completion is delayed. In that respect it is not simply linked to the contract sum. Nor is it realistic...

Construction Law: The best percentage for the penalty for delay of completion, Penalty, LAD's
Penalty, LAD's, Time at Large: Hi Rafat You say the word penalty but you have to be careful how you use this word because in some countries - UK and Commonwealth - penalties are not allowed. You have to use Liquidated and Ascertained Damages (LAD s) so get that point settled first. ...

Construction Law: Cl 4.12 Unforeseeable Physical conditions- clarification, minimum efforts, climatic condition
minimum efforts, climatic condition, fidic: Dear Saravanan, Unforeseeable physical conditions have a wide ambit under FIDIC and cover subsurface, hydrological, physical and man-made obstructions but do not include any climatic conditions and their consequences unless they are so adverse that it cannot...

Construction Law: Clause 20.1 FIDIC 1999 Red Book - Principles of Claim, disapproval, e mail
disapproval, e mail, assists: Dear Tommy, Thank you for this question. Essentially no difference is intended. The wording is in the same paragraph. Where the contractor provides sufficient detail of its claim the Engineer should respond in full, to all elements. Where the Engineer...

Construction Law: commencement without notice from Engineer, FIDIC 4, Suspension
FIDIC 4, Suspension: Dear Heyford, It depends on what was work was done before the suspension. As there was no Order to Commence, the Contractor should not have started the Works. However he would have had some expenses in mobilising the resources for the Contract in the...

Construction Law: communication process, implementation office, implementation contract
implementation office, implementation contract, monitoring office: Dear Shadi, Welcome to the real world. Clause 1.3 controls communications and states that notices between the parties must be copied to the Engineer. Only the Engineer can give instructions, variations or certificates, such as Interim Payment Certificates....

Construction Law: contract interpretation FIDIC 1999, interim payment, contract clause
interim payment, contract clause, book contract: Dear Brian, Thank you for this question. Under the FIDIC 1999 (Red book) contract, clause 8.7 requires that the Employer makes a claim, pursuant to sub-clause 2.5 (Employer s Claims), for delay damages. That clause expressly states that the Employer...

Construction Law: Delay by employer, delay payment, payment period
delay payment, payment period, e mail: Dear Raja, Thank you for this question. Unfortunately the calculation only begins from the first day after the payment was due; it does not include the stipulated payment period. I hope that this assists you. Kind regards, John Dowse Follow...

Construction Law: Delay Penalty, fidic conditions of contract, civil engineering construction
fidic conditions of contract, civil engineering construction, fidic 1999 conditions of contract: Dear Shadi, Thank you for this question. The matter of damages for delay should be clearly defined by the contract governing the project. If the contract does not make provision, you would have to look at the law governing the contract. You have not...

Construction Law: Employer's claim, FIDIC 99, Revised Programme
FIDIC 99, Revised Programme: Dear Ahimes, I have been searching for something for which I could not remember the appropriate legal term. Now I have found it. Your case is probably covered by the idea of temporary disconformity . There have been several papers on the subject published...

Construction Law: EOT claim under fidic, novation agreement, main contractor
novation agreement, main contractor, contract conditions: Dear Mr. Piumal, Thanks for your Questions and very sorry for the delay reply. I was little busy. I have doubt about 1994 Fidic. There is no Fidic1994, it may be 1992 (Re printed version). 1. You are the Nominated sub contractor, so you can refer all...

Construction Law: Escalation, escalation during the extension of time
escalation during the extension of time: Dear Niranjan, Your question is interesting and I know that many Parties encounter such situation, when extension of time is granted for the Contractor to complete the works when the delay is because of the Contractor... First, we talk about provisional...

Construction Law: Prime cost sum, prime cost, principal agent
Construction Law: Prime cost sum, prime cost, principal agent, attendance

Construction Law: Variations after submission of bid, schedule document, plea
Construction Law: Variations after submission of bid, schedule document, plea, variation

Construction Law: Faxed or E-mailed Lien Waiver Valid???, check mail, mail copy
check mail, mail copy, legal jurisdiction: Dear Sandra, Thank you for this question. You have not mentioned the legal jurisdiction this is occurring in, which will be of significance. A further issue is whether the contract you have with the GC (if a formal contract exists) permits transmission...

Construction Law: FIDIC 4th ADDITION REPRINTED 1992, FIDIC 4, Guide
FIDIC 4, Guide: Dear Mona, There is the powerdoc version of Edward Corbett s book FIDIC 4th: A Practical Legal Guide which is available from FIDIC www.fidic.org and also there is Nael G. Bunni s book The FIDIC Form of Contract. The latter book deals with both 1992...

Construction Law: fidic 60.10, delay payment, rate of interest
delay payment, rate of interest, 28 days: Hi Raja Sub-Clause 60.10 of Condition of Contract (FIDIC Red Book 4th Edition) The clause states (unamended version) Employer to pay within 28 days in the case of any interim certificate and 56 days in the case of the final certificate. If the Employer...

Construction Law: Fidic Clause 13.1 Right to Vary, scope of works, question with regard
scope of works, question with regard, main dam: Dear Frank, If the Engineer is insisting on a specific construction method, then he must pay all the costs, including extra supervision, lower production rates etc. As the environment is different, river bed versus dry area, he cannot insist on the same...

Construction Law: FIDIC - ELECTRICAL AND MECHANICAL WORKS 1987- RELEASE OF RETENTION, defect notification, performance guarantee
defect notification, performance guarantee, mechanical works: Dear Sir, The performance guarantee has been claimed correctly since the Contractor could not extend it. Probably this contract will be terminated and if it will be due to the Contractor’s fault the Employer may ask additional losses and damages. Regarding...

Construction Law: FIDIC - ELECTRICAL AND MECHANICAL WORKS 1987- RELEASE OF RETENTION, performance guarantee, mechanical works
performance guarantee, mechanical works, john dear: Dear John, I need you to be more specific on that : I understand that as contractor, the Works have not been finished on time. The Employer has not made payment of some money due to Contractor and also call the 100% performance guarantee for encashment....

Construction Law: FIDIC EPC 1999, variation ii, performance guarantees
variation ii, performance guarantees, initial solution: Dear Sir, The variation procedure in the FIDIC EPC contract, as applicable to your case, is as per the Sub-clauze 13.1 [Right to Vary]: Variations may be initiated by the Employer at any time prior to issuing the Taking-Over Certificate for the Works,...

Construction Law: FIDIC Red Book 1999 - Certifcation of Interest of Late Payment, fidic contract, formal certificate
fidic contract, formal certificate, employer organisation: Dear John, Thank you for this question. As I am based in Trinidad, I think that I am aware of the Employer organisation and the Engineer concerned; however there is no conflict of interest. I assume that the contract is the FIDIC 1999 Red Book form...

Construction Law: Increase of Cost, FIDIC 4, Indexation
FIDIC 4, Indexation: Dear Ahmed, I assume that you are using FIDIC 4 as the form of contract. Generally indexation is applied to the net value of the IPC, which included overheads, charges and profit, rather than individual resources, such as labour or fuel. It all depends...

Construction Law: Back to Back Issue, project completion time, fidic yellow book
project completion time, fidic yellow book, liable party: Dear Mohamed, The principle - in the contracts and in law - is that one is responsible and liable for his/her/its own actions. The liability can be delegated , but this, unless it is not specifically stated this in your sub-contract, this is not done,...

Construction Law: Liquidated Damages, ashish, moneys
ashish, moneys, clauses: Dear Niranjan, Your query can be answered only after looking at the clauses granting extension of time and clauses regarding the deduction and reimbursement of liquidated damages. Generally speaking, the Employer does have a right to deduct moneys due...

Construction Law: lum sum, FIDIC 99, Lump Sum
FIDIC 99, Lump Sum, variations: Dear Narendran, Generally there are definitions in the tender dossier stating that all the work shown on the drawings or required by the technical specifications must be included in the offer. Thus the bidder must include for an item if it is shown on...

Construction Law: Lump sum contract, lump sum contract, contract sum
lump sum contract, contract sum, boundary wall: Dear Ahmed, You do not state the form of contract, nor the applicable law, so the following comments are generic. You probably have the right to delete the item, provided that you do not award the work to another contractor, and to ask for a reduction...

Construction Law: Lump Sum item, bill of quantity, proposal request
bill of quantity, proposal request, contractor supply: Dear Shadi, Thank you for your question. Firstly, if you (engineer) approved something less than required in the Contract, you ll have to make use of provisions of Sub-Clause 3.1 c#, which reads: any approval, check, certificate, consent, examination,...

Construction Law: Mobilisation advance, bank guarantees, civil contractors
bank guarantees, civil contractors, contract document: Dear Niranjan, Mobilisation advance misuse can be checked by properly putting the terms of monitoring the usage in the contract document. For instance, advance can be given in stages after the contractor has mobilized unto a certain extent, or you can state...

Construction Law: NSC's Legal Notice To Contractor and Owner, privity of contract, question owner
privity of contract, question owner, adequate provisions: Hi Okay from the additional information you have provided it would seem that the NSC has no reason to serve legal notice on either Contractor or Employer if the Contractor has made all payments on time and in accordance with the subcontract agreement....

Construction Law: NSC 's Notice to Contractor and Owner, privity of contract, question owner
privity of contract, question owner, chandrashekhar: Dear Chandrashekhar, 1. It is breach of the Contract to remove an item from the Contractor s scope and give it to a sub-contractor. 2. It is the right of the Contractor to define terms of sub-contract agreement. 3. For the keeping relations with...

Construction Law: Payment of General Items, FIDIC 99, Delayed completion
FIDIC 99, Delayed completion, Costs: Dear Glyn, In this situation the Contractor is responsible for all costs incurred after the end of the contractual time for completion, including those stated. If an EoT has been requested, care is needed, because the Contractor would be entitled to recompense...

Construction Law: Payment for Materials on Site, interim payment, contract clause
interim payment, contract clause, conditions of contract: Dear Abdul, Thank you for this question. Sub-Clause 14.5 begins If this Sub-Clause applies, Interim Payment Certificates shall include (...) The obverse position is that if the Sub-Clause does not apply you are not able to claim for materials on site....

Construction Law: Prime cost sum, marble tiles, prime cost
marble tiles, prime cost, wastage: Dear Cenk, We need to see the Technical Specifications for the treatment of wastages in this contract. It is always a point of debate whether wastage is included or not included in such items. The norm is that in case of Free-Issue items, the wastage...

Construction Law: Provisional Sum in Contract, contract risks, contract question
contract risks, contract question, unit pr: Dear Seshu, Such situations are normal when Contracts are not prepared in professional manner. FIDIC clearly instruction the user that a reasonable percentage as a markup for the PSums shall be agreed by all the parties. My further comments are hereunder:...

Construction Law: Relationship Between Nominated Sub-contractor and Owner, privity of contract, legal relationship
privity of contract, legal relationship, chandrashekhar: Dear Chandrashekhar, A nominated subcontractor is only different from a normal subcontractor in the fact that he is appointed by the Owner himself. However, it depends on the contract document clauses as to the relationship between Owner and Nominated Subcontractor....

Construction Law: Right of access to site, contract documents, eot
contract documents, eot, clauses: Dear Abdul, Thank you for this question. Your remedy may exist in the law of the country which governs the project. As this is not stated I can give only general guidance. Although the possession date was not fixed, the site should have been made...

Construction Law: Site Instruction, implementation aspects, fidic
implementation aspects, fidic, contract type: Dear Hassan, Thank you for your question. A reference to clause 2.5 in FIDIC 4 (assuming this as your contract type) provide clearly that instructions can be oral as well as in writing but oral has to be got confirmed in seven days from the Engineer or else...

Construction Law: Subcontractors, unskilled labour, conditions of contract
unskilled labour, conditions of contract, subcontractors: Dear Richard, The aim of this clause is for preventing Contractor to subcontract whole responsibility of work to a sub-contractor. Even there is 5 elements and contractor sub-contract whole of that , the Contractor still have to do the management and...

Construction Law: Suspended work, precise terms, e mail
precise terms, e mail, assists: Dear Shadi, Thank you for this question. I doubt that the contractor has the right to exclude the Employer from the site; however this will depend upon the precise terms of the governing contract. By extension it is unlikely that the contractor can exclude...

Construction Law: Suspension of works, interim payments, law suits
interim payments, law suits, fidic red book: Dear Maher, Thank you for your question. Firstly, I would like to know what Red FIDIC are you using, 87/ 92, or 99? 1. In respect of access to your office, you need to check what are the exact arrangements, as if they are the owners, although unlikely,...

Construction Law: Suspension of Works, management staffs, land clearance
management staffs, land clearance, eot: Dear John W. Thank you for your question. May I respond on your four questions as follows: Q1: The at-large concept is not defined in FIDIC but is in Vogue in common law countries such as UK and is based on court cases in the past by superior judiciary...

Construction Law: time for payment, Libor, rate
Libor, rate, payment: Dear Raja I don’t understand the 28 day rate but I suspect that the period to study the interim certificate should be 28 days . Most probably your statement should be corrected to read The Employer shall pay to the contractor compensation at the rate of...

Construction Law: Valuation of variation, Clause 52.1 (FIDIC-IV), islamabad pakistan, contract engineer
islamabad pakistan, contract engineer, boq: Dear Haroon, I am sorry for late reply because I was in remote location. Regarding your question, the Contract allow new rates in accordance with Sub clause 52.2, which stipulates : Provided that if the nature or amount of any varied work relative to the...

Construction Law: valuation of variation as per clause 52.1 (FIDIC 4), escalation clause, islamabad pakistan
escalation clause, islamabad pakistan, contract engineer: Dear Haroon, Thanks for your further clarification. My response to such a situation will be to first check what provision in contract exist for the cost increase due to market fluctuation. Normally contract with more then one year duration has escalation...

Construction Law: Variation Claim in Lumpsum Contract, BOQ Variation
BOQ Variation: Dear Nitin This statement Clearly contradicts you previous statement in the previous email. In any case, it is clear that this statement allows variation in quantities while keeping the price quoted for the said item as fixed price. See if you have agreed...

Construction Law: Variation Clause / Verbal instructions, fidic conditions, oral instruction
fidic conditions, oral instruction, conditions of contract: Dear Abhishek Vats, I would like to refer to the Form of Conditions of Contract,FIDIC fourth edition, 1987, (reprinted in 1992 with further amendments), which is widely used for many contracts in region. The duties under the FIDIC Conditions which are...

Construction Law: Variation of Nominated subcontractor, main contractor, conditions of contract
main contractor, conditions of contract, niculescu: Dear Viet do, Thank you for your question and sorry for the late reply, for some unknown reasons, your question only reached me today. If I understand correctly, you have a Main Contractor (MC, which was supposed to execute a certain item. That...

Construction Law: Variations and adjustments as per cl.13.1, FIDIC 99, Valuation of variations
FIDIC 99, Valuation of variations: Dear Saravanan, I am not sure if I have understood your situation correctly. Was the lump sum a provisional sum or a straight lump sum? Was the description in the BoQ of the work relocation or provision of new services? Was the actual work relocation...

Construction Law: Variations after submission of bid, coordination matters, design coordination
coordination matters, design coordination, design responsibility: Dear Abdul, Thank you for this question. This is a difficult issue and there is insufficient information here to give a reliable answer; however I will give some pointers to guide you. If the revised schedule was discussed prior to signing the contract,...

Construction Law: Back-to-back, Back to Back, Mutatis Mutandis
Back to Back, Mutatis Mutandis: Hi Marc The term Back to Back although a common term in the construction industry is not clearly defined so can be open to any number of interpretations. The actual terms and conditions regarding the sub-contract should be stated clearly and agreed. In...

Construction Law: Advance payment recovery, contract value, main contractor
contract value, main contractor, advance payment: Dear Cenk, What is the exact clause of recovery of advance paid? If it states a time limit by which the advance has to be recovered, such as by 85% of the Contract Progress and in pro-rata installments, then the Engineer may be justified in doing so. In...

Construction Law: advance payment recovery, advance, payment
advance, payment, recovery: Dear Yasser This question is so difficult to answer but, you can try to make a list of all deducted monies from the interim payments and add them up to show that the total is equal to the advance payment. I hope this method can convince the client that the...

Construction Law: advance payment recovery, advance payment, total value
advance payment, total value, yasser: Dear Yasser, I have met this one before. The Employer is looking for a single sum equivalent to the advance payment as a receipt into his bank. You need an accountant to explain the idea of set off, where existing debts are set off against payments due...

Construction Law: Advance Repayment Calculation, FIDIC 99, Advance Repayment
FIDIC 99, Advance Repayment: Dear Alex, I am not sure that I understand your question. Normally the first IPC will be for the Advance Payment only. The next payment will be for the value of work since the start of the Contract and thereafter, hopefully, at monthly intervals. ...

Construction Law: Appointment of The Engineer, public sector organization, resident engineer
public sector organization, resident engineer, conflict of interest: Dear Ijaz, Firstly there is a big difference between the duties and responsibilities of the Engineer under the two forms of contract. FIDIC 4 assumes and requires that the Engineer should be impartial and independent in his actions and decisions, whereas...

Construction Law: Arbitration, kind advice, contract period
kind advice, contract period, counterclaim: Hi, Izzaddin, welcome back! Your assignment as Engineer is over, and any opinion/reccommendation/determination you will give will be only consultative, and will not have the power of such a document issued by the Engineer . Plus, you, as company, has no...

Construction Law: Claim for late payment, FIDIC 99, IPC
FIDIC 99, IPC, Late payment: Dear Khoa, The last paragraph of clause 14.8 is relevant. The Contractor has an absolute right to the payment, which means that he can take the Employer to court if he fails to pay the money. However as a matter of courtesy, I would submit a claim under...

Construction Law: Company qualifier, subcontractor agreement, field supervision
subcontractor agreement, field supervision, contractor licensing: Dear Roger C, What i can understand from your question is that, you want to know what recourse does the qualifying party has in this circumstance that he is not allowed to have complete control of field supervision, quality control, finances and decision-making...

Construction Law: construction law, bill of quantities, contract question
bill of quantities, contract question, letters of acceptance: Dear Sir, We hat to remind that FIDIC pink book is a re-measurement Contract and the Bill of Quantities are only estimates of the works to be executed (see sub-clause 14.1) For the evaluation of new rates the provisions of the Sub-clause 12.3 are applicable....

Construction Law: Contractor do not follows employers written instruction, hilly area, safe guard
hilly area, safe guard, heed: Dear Abdul Waheed, Thank you for your question. Please clarify if the design and drawings provided to the contractor show the proposed breast wall or not. If not, it has to be considered as variation under clause 51/52 and you have to issue a variation...

Construction Law: contrary to design, wood paneling, cost effective solution
wood paneling, cost effective solution, three walls: Dear Shadi, The contractual answer is that the Contractor has to build in accordance with the design and correct any errors or omissions at his own cost. It might be possible to minimise the damage to the panelling by feeding the socket from the rear...

Construction Law: Dayworks, principle method, first principle
principle method, first principle, fidic: Dear Mr. Venu, Thanks for your Questions. Normally, the Day works schedule rates are not incl. in OH & Profit. But, Some times the consultant / main contractors are mentioned in their General preambles like all the day works rates are incl. in OH & Profit...

Construction Law: Delay in possession of site, management staffs, land clearance
management staffs, land clearance, eot: Hello John W., Based on what you provided, there was a delay in the possession of the Site (full possession) and therefore some part of the works were suspended by the Engineer and that would be 30% of the Contract Amount. Q1. The Engineer should have...

Construction Law: Employer withholding Interim Payment Certificate, hanoi vietnam, quantity surveyor
hanoi vietnam, quantity surveyor, cable bridge: Dear Syril, Thank you for this question. If the matter is just that the Employer does not understand the calculation and cannot give any specific detail of where it considers the calculation is flawed, it is unreasonable to withhold payment. Furthermore,...

Construction Law: EOT, Float, delay
Float, delay, critical.eot: Dear Sabeena it is a standard practice that all agreements don t address your question. In fact, the contractor schedule is submitted to the Engineer following the commencement date of the project. In such case, the contractor should own all the float and...

Construction Law: EOT preparation, mr jonathan, delay analysis
mr jonathan, delay analysis, claims submission: Dear Faye, Thank you for your question. You mentioned that you are preparing an EOT claim, I hope you already made and submitted a notice of your claim to the Engineer on time. FIDIC 1999 is very strict in claims submission, particularly in EOT claims....

Construction Law: Escalation, pakistan engineering council, project duration
pakistan engineering council, project duration, year one: Dear Abdul Waheed, Thank you for your question, Please note that escalation consideration for both Consultancy and Contractors are different in PEC issued Standard contract documents and possibly above confusion is coming on account of this aspect by the...

Construction Law: Extention in Time, defects liability period, completion facility
defects liability period, completion facility, hidayatullah: Dear Hidatyatullah Sahib, Thank you for your supplementary question. Here if you have agreed to amend the contractual requirement of 5 sections with separate date of completions, it has to be dealt with as separate sections as per clause 48.2(a). i presume...

Construction Law: Extention in Time, notice provisions, arbitrators
notice provisions, arbitrators, 28 days: Dear Hidayatullah, As per FIDIC 1987, if the claim is not made within the stipulated time, i.e. 28 days, the Engineer is not obliged to consider and determine the claim. However, the Arbitrators - when the dispute is referred to them - can waive the lapse...

Construction Law: Extention in Time, eot, prolongation
Construction Law: Extention in Time, eot, prolongation, acceleration

Construction Law: Extention in Time, contemporaneous records, fidic
Construction Law: Extention in Time, contemporaneous records, fidic, available records

Construction Law: Price Adjustment, majid khan, pec
Construction Law: Price Adjustment, majid khan, pec

Construction Law: Termination of NSC Contract by Main Contractor due to poor performance, domestic contract, main contractor
Construction Law: Termination of NSC Contract by Main Contractor due to poor performance, domestic contract, main contractor, subcontract agreement

Construction Law: Fidic 1999 Lump Sum - Variation., variation, deletion
variation, deletion, addition: Dear Hicham I could not figure out exactly the difference between the 2 stated methods and if you have one item or more that one item involved, so I will try to answer your question as follows: The Engineer shall delete the unwanted items or parts of them...

Construction Law: FIDIC Red Book 87 Sub-Clause 51.1 (b), eot, recourse
eot, recourse, e mail: Dear Charles, Thank you for this question. You are correct that the 1987 form of contract is silent on the matter; accordingly any remedy will be determined by the law of the contract or the jurisdiction in which the contract is performed. Under...

Construction Law: FIDIC in southeast Asian, southeast asian countries, turnkey contract
southeast asian countries, turnkey contract, scope of works: Dear Peng, Sorry for the delayed response as I was travelling. I am not sure particularly about southeast Asia but in general you should ensure that Employer s requirements are not ambiguous and are clearly understood by the tenderer both in terms of...

Construction Law: Head Office Overhead Cost (HOOHC) on Claim of Prolongation Costs, annual turnover, generic response
annual turnover, generic response, main contractor: Dear RONILO, Thank you for your question. You have not mentioned the type of contract form for the subcontract or main contract nor if these two documents are back-to-back arrangement? I therefore, giving a generic response as follows regarding applicability...

Construction Law: Head Office Overhead Costc (HOOHC) as part of the Claim for Prolongation Costs, main contractor, prolongation
main contractor, prolongation, indirect costs: Dear Ronilo, If i could understand your question, you are asking the basis in the Contract which you would use to support your claim for HOOC. Firstly, i would say, it depends upon the form of contract condition your contract is based upon. Additionally,...

Construction Law: Interim Payment Certificate, FIDIC 99, Differences in IPC
FIDIC 99, Differences in IPC: Dear Haytham, 1. I guess that we have a failure to communicate here between the Engineer and yourself. The Engineer may have sent letters refusing certain payments or advising of non-payment for non-compliant items. He may consider that further notice...

Construction Law: Loss of Profit, FIDIC 4, loss of profit
FIDIC 4, loss of profit: Dear Damien, 1. unlikely as it it will be a very small part of the works. Generally loss of profit only applies if the final price is more than - 15% of the original agreed price. Also you have to prove your expected profit which is not the value included...

Construction Law: Lump Sum Contracts, lump sum contract, land surveying services
lump sum contract, land surveying services, financial proposal: Dear Helen, Your question is one of the type which are commonly asked under a Lump Sum Contract. Firstly, you have to look at the provision of the Contract conditions and terms under which the land surveying services agreement has been drawn. Check if there...

Construction Law: materials on site, fidic, e mail
fidic, e mail, appendix: Dear Rado, Thank you for this question. You are correct; the Employer should instruct you accordingly and agree with the Contractor on amendment of the Appendix to Tender. I hope that this assists you. Kind regards, John Dowse Follow me...

Construction Law: PC Rate, fidic, boq
fidic, boq, florin: Dear MBT, Thank you for your question. I am not sure I got your point, firstly, what is PC rate ? Are you using Red FIDIC 99, or other colour? Red FIDIC is based on re-measurement of quantities, which means, if the BoQ shows for a certain item...

Construction Law: Performance security and Insurance covers for extended period, initial duration, delayed period
initial duration, delayed period, measurement units: Dear Jawaid, Very interesting question. The risk of the Contractor (including for performance guarantee and insurances) is linked with the initial duration of the contract plus the delayed period(s) because of him. For whatever costs related to a prolonged...

Construction Law: Possession of Site in stages, completion period, fidic
completion period, fidic, contract states: Dear Abdul Moid, Thank you for this question. Your entitlement to extension of time for completion will depend upon how the contract is drafted. As a basic premise, if the Employer commits an act of prevention (that is prevents the contractor from progressing...

Construction Law: prebid meeting minutes, contract document, fidic
contract document, fidic, minutes of meeting: Dear Ziad, Thank you for this question. Unless the minutes of the meeting are detailed as being incorporated as contract document they will have no force or effect. The minutes may have been incorporated directly (that is by direct reference to them...

Construction Law: Price Adjustment, financial repercussions, officaly
financial repercussions, officaly, basic principle: DDear Hidatyatullah Sahib, Thank you for your supplementary question. While answering your comment in general regarding the provision of price adjustment in contracts, you have to evolve a mechanism to compensate the contractor for specified and costlier...

Construction Law: priority for contract documents, bill of quantities, wall painting
bill of quantities, wall painting, contract documents: Dear Shadi, I am not sure that I have all the information for this question, but I shall do my best. Provided that the recesses and protrusions are less than, say, 25 mm, I see no conflict between the two definitions and thus no conflict. I presume...

Construction Law: Procurement - Museum of Liverpool, client time, time design
client time, time design, design verification: Dear Mr. Andrew, Thanks for your Questions. Your Questions are very narrow without any details. The risks will be shared by follows, 1. Client - Time, Cost and Government Authority approvals and Escalation. 2. Design Consultant - Design, Co-Ordination...

Construction Law: Reduction in Contract Value, fidic, contract sum
fidic, contract sum, reji: Dear Mr. Reji, Thanks for your Question. Check your contracts what it is mentioned about the +/- Variation % from the contract sum. As per Fidic 1987, Clause 52.3 (Refer this clause and follow as per the explanations) is 15% and Fidic 1999, Clause 12.3...

Construction Law: Response on the Principles of Claim - Clause 20.1 of the FIDIC (Red Book) 1999, contractor claims, unequivocal statement
contractor claims, unequivocal statement, inexistence: Welcome with another interesting question, Tommy! In my opinion, you re right, the response of the Engineer should state if the claim is valid or not. More than that, within the principle stage , the Engineer should say if the Contractor is entitled to EOT,...

Construction Law: Rights of the Employer withholding Payment Certificate, FIDIC 4, Non-payment of IPC
FIDIC 4, Non-payment of IPC: Dear Syril, The reason for withholding payment is immaterial and irrelevant. The Engineer has certified payment and thus payment is due. If the Employer has a problem with the Engineer s calculations then he should penalise the Engineer, not the Contractor,...

Construction Law: the scope of performance and retention bond, conditions of contract, performance bond
conditions of contract, performance bond, xavier: Dear Xavier, Thank you for your question. You did not indicate what type of Conditions of Contract are you using, nor if you re the Employer of the Contractor. Suggest you check the precise provisions laid in the Contract in respect of release of...

Construction Law: Staged Possession of Site, claim notification, contractual period
claim notification, contractual period, availability dates: Dear Abdul, Thank you for this question. I apologise if my earlier response left you uncertain on the matter. The contract period begins on the commencement date as defined by the Contract, and time runs from that date. If the site is not available at...

Construction Law: Suspension, FIDIC 4, EoT & ToC
FIDIC 4, EoT & ToC: Dear Venu, Not an easy question, but some thoughts for you. Q1. EoT and variations are judged in the logic of the contract not reality. If the logic says that 110 days are due then you give that extension. However, it would be better to consider reality...

Construction Law: Suspension of Work, FIDIC 99, MDB
FIDIC 99, MDB, Termination: Dear widyapraja, It is not a case of force majeure as the solution lies with the Employer. I do not think that you have a case to suspend the work and suspension would not help you but you might terminate under clause 16.2.d. It could be that the Employer...

Construction Law: Temporary works, civil engineering project, temporary works
civil engineering project, temporary works, contract conditions: Dear Liu, Thank you for this question. If the need for temporary works constitutes a variation, or is part of works that have varied from the original scope of definition, it is likely that the contractor will be able to claim payment. If you can provide...

Construction Law: Tender Submission, submission stage, financial capability
submission stage, financial capability, bid bond: Dear Kamal Kopty, Thank you for this question. If the tender documents require that you submit a compliant bid and state that a bid would be deemed non-compliant if it was a conditional bid, you may be at risk and any bid bond you submit might also be...

Construction Law: Termination of NSC Contract by Main Contractor due to poor performance, FIDIC 4, NSC
FIDIC 4, NSC: Dear Jay, I am not sure that I understand you question fully. I would argue that the Employer took the risk of using a nominated subcontractor so all costs, which are associated with this item, are to the risk of the Employer. If the new subcontractor...

Construction Law: Time barred claims under UAE civil code, united arab emirates, book contract
united arab emirates, book contract, time bar: Dear Craig, Thank you for this question. Thank you for the question. I assume that when you are talking of time bars and the FIDIC Red Book contract you are referring to the 1999 Edition of the contract form. I am unsure whether or not the issue...

Construction Law: Time at large, time at large, suspension of works
time at large, suspension of works, loss of recovery: Hi John I doubt if there are grounds to set time at large with the scenario that you have described. When the works are suspended by the Engineer under 40.1 and permission to resume the works is then given under 40.3 If the permission to resume is not given...

Construction Law: Units of Payments, FIDIC 4, EoT costs
FIDIC 4, EoT costs: Dear Jaiwad, I support your position. The lump sum was for a specified number of months. If the number of months changes, then the lump sum is not valid any more. The Contractor could claim the actual charges for extending the bonds and insurances plus...

Construction Law: Variation: Authority approval of Tenderdrawins whill post contract, tender, drawings
tender, drawings: dear Khadar It is the responsibility of the contractor to get the final building completion certificate and that would require the contractor to complete the works as per the authorities notes and restrictions. It is clear that the contractor has seen the...

Construction Law: Variations, procurement officer, procurement guidelines
procurement officer, procurement guidelines, resident engineer: Dear Million, Thank you for your question. As I could understand your Q,I feel VO should be signed as per provision in the contract unless amended otherwise in favour of procurement officer through issuance of an Amendment to the contract to be signed by...

Construction Law: Additional Costs Claim due to non-performance of a supplier, cash flow problems, fidic contracts
cash flow problems, fidic contracts, client representatives: Dear Thuso, Thank you for your question. During the Tender stage, the requirements of the Work are already available to the tenderers, documents and information are given to the tenderers for them to provide their best offer in accordance to the requirements...

Construction Law: Adjustment in Weightages, pakistan engineering council, leaa
pakistan engineering council, leaa, weightage: Dear Moin Sahib, As i can understand from your supplementary question, the quantity of items is not relevant to the formula but to its indices and weight-ages at tender stage only. in case there is some consumption of the item, the formula can be applied...

Construction Law: Advance Payment delay, advance payment, time extension
advance payment, time extension, critical path: Dear Naglaa, Thank you for your question I am of the opinion that as long as a contractor can prove and substantiate properly with contemporary record that due payments has been delayed and certain activities on critical path has been affected, he has established...

Construction Law: BOQ, australian standard method of measurement, standard method of measurement
australian standard method of measurement, standard method of measurement, bill of quantities: Hello Noor, I am not familiar with the book to which you are referring, nor the country in which you operate. However, you should acquaint yourself with books which relay information that is applicable to the Standard Method of Measurement used in your...

Construction Law: Can we claim prelims for variations, doha qatar, contract clauses
doha qatar, contract clauses, tender rates: Dear Mr. Ahmed, Thanks for your Questions. Check with your contract regarding the Variation clauses. If, the Variations are exceeding 20% (Should be mentioned in the conditions of contracts)you can apply for Prelims otherwise you can eligible only for the...

Construction Law: Construction Law, notice of claim, eot
notice of claim, eot, 28 days: Dear Sir, 28 days are crucial for the contractor. There are a lot of cases in which the contractor lost his rights due to the 28 days notice. In your case apparently you missed the 28 days notice and I am proposing the following solution for you. You do...

Construction Law: construction material scarcity vs cluase 12.2 (fidic 1987), FIDIC4, Unforeseen Circumstances
FIDIC4, Unforeseen Circumstances: dear roberts.manyathelo, I would ask What has changed since the Contract was signed? Do these changed circumstances, if any, provide a contractual basis for an EoT or varied rates? I think, from the facts above, that the answer is no to both questions...

Construction Law: Cost Claim for Non-critical delays, mega dam, fccm
mega dam, fccm, delay period: Dear Syed Khalid, I would say yes, subject to a study of the supporting details. Even if the activities were non-critical, the Contractor lost the opportunity to use the resources on other projects. There is a good paper published by the Society for Construction...

Construction Law: Daily Cost., actual damages, boq
actual damages, boq, fidic: Dear Raul, It is not clear from whose angle you are asking this question. I will try to answer it from both viewpoints i.e. the Employer and the Contractor. If you are from the Employer s side, you can levy liquidated damages if the same are specified...

Construction Law: Daywork Rates, FIDIC 99, Dayworks
FIDIC 99, Dayworks: Dear Jesper, As always the devil is in the detail. It depends what is stated in your contract documents. Normally, dayworks activities are based on the time when a worker leaves his normal duties to start the daywork item until he returns to his normal...

Construction Law: Can I deduct the Cnsultant Overtime from the IPC., overtime charges, quantity surveyor
overtime charges, quantity surveyor, construction supervision: Dear Mr. Kaleem, Thanks for your Questions and very sorry for the delay response. You are having amazing situation. I never heard this type of contractor attitudes. In this above case, you are the Engineer (Consultant) and you have the full power of...

Construction Law: Can I deduct the Consultant Overtime from the IPC, FIDIC 99, Employer's Claims
FIDIC 99, Employer's Claims: Dear Mohammed Abdul Kaleem, For clarity and certainty, I would treat this as an Employer s claim under clause 2.5, and get the Engineer to certify the deduction from the IPC. However, I would check the Contract of the Supervision Engineer to be sure that...

Construction Law: Defects Liability Period, defects liability period, fidic
defects liability period, fidic, necessary tests: Hello Achu Raj, Thank you for your question. Under FIDIC 99, the Defects Notification Period is a period wherein the Contractor should complete any outstanding works, remedy any defects or damage in order that the Works meet the requirements of the...

Construction Law: Delayed Commencement, fidic contract, proper notifications
fidic contract, proper notifications, advance payments: Hi, First of all, please make sure that you, the Contractor, gave the necessary notifications according to the contract - the sub-clause 20.1 in case of FIDIC 1999, which refers to notifications to be given within 28 days from when you knew or you should...

Construction Law: Delayed Payments, financial crunch, climatic condition
financial crunch, climatic condition, rain fall: dear Hidayatullah Khan sahib, Thank you for your question and have following comments to offer pointwise. 1. The non payments of contractor s valid dues is equivalent to an act of prevention by the Employer and hence contractor not only needs to be compensated...

Construction Law: delete work, FIDIC 99, Yellow Book
FIDIC 99, Yellow Book, Omissions: Dear Apsara, Unless you have the equivalent of clauses 12.3 and 12.4 of the red book in the PCC, then you have some problems, because there is nothing in the yellow book that deals with valuation of omissions or variations exceeding a specific percentage....

Construction Law: Drawings and BOQ Quantities, unstable internet connection, lump sum contract
unstable internet connection, lump sum contract, mr jonathan: Hello Faye, Thank you for coming back with a question and I apologize for the delay since I have unstable internet connection maybe because of the typhoon. In FIDIC 1999, we have what we called Priority of Documents , subclause 1.5 stipulates the...

Construction Law: Who is the "Engineer"?, employer, engineer
employer, engineer: Dear Bertie The Engineer is the Employer representative and he should be considered as part of the Employer staff. When the Employer interferes in the details of his representative/staff that is his business and it should be accepted by the contractor as...

Construction Law: EOT & Critical Path, neutral events, path projects
neutral events, path projects, fidic: Dear Danilo, Thank you for this follow up. On the basis of the information provided it is not correct for the Engineer to reject the Contractor s claim. The effect of the suspension was to cause a critical delay in the completion of the relevant work....

Construction Law: EOT entitlement, water pipe line, manish gupta
water pipe line, manish gupta, road rehabilitation: Dear Uday, Thanks for sending the detailed explanation of your project. What I understood is that you are getting paid in terms of additional money but not for the additional time (and may be the associated prolongation cost). Lets analyse your situation...

Construction Law: EOT scenario, Concurrency, LADs
Concurrency, LADs: Hi Craig My questions; 1. Do you think the 70 days for the variation should reduce the exposure of LADs to the Contractor? I do. If the Contractor is awarded 70 days on the milestone that carries the LAD s then yes - it would reduce the liability. If...

Construction Law: EOT under FIDIC 20.1, fidic contract, eot
fidic contract, eot, e mail: Dear Abdul, Thank you for this question. Under sub-clause 20.1 of the FIDIC contract it is only a failure to meet the 28 day deadline for notification of a claim that negates the Contractor s entitlement. Nowhere else in this sub-clause are the timescales...

Construction Law: Extended warranty in lieu of Liquidated damages, turnkey contract, warranty period
turnkey contract, warranty period, completion period: Dear Mr Shoaib, It is a more strategical decision than contractual one. First of all if Contractor agree with the Employer through recommendation by Engineer, warranty period may be extended and Employer may ignore delay damages. Contractually it is not...

Construction Law: FIDIC Yellow Book, employer contractor, water treatment plant
employer contractor, water treatment plant, yellow book: Dear Wayne, If you read the following excerpts from FIDIC Guide, you will understand the intention of Author, while drafting this condition. Under CONS or P&DB, the Employer grants the Contractor possession of the Site in accordance with Sub-Clause...

Construction Law: Interest Claim on Priceadjustment, delay payment, fidic
delay payment, fidic, certificates: Dear Raja, The clause 60.10 applies to any payments which are due and payable by the Employer to the Contractor. Price Adjustment Bill is also part of the payments which are due and payable. If the Bill is certified for payment and is then delayed by the...

Construction Law: Interest under FIDIC, e mail address, fidic contract
e mail address, fidic contract, balance of probabilities: Dear Shalini, Thank you for this question. As I too have an 868 telephone number it may be convenient for us to meet or chat by phone to discuss further. Feel free to drop a note to me at the e-mail address given below. If the FIDIC clause that allowed...

Construction Law: Late Submission of Invoices, FIDIC 4, Late presentation of invoices
FIDIC 4, Late presentation of invoices: Dear Mastt, 1. There is no time bar in FIDIC 4, only a requirement for the Engineer to decide in accordance with the available documents. It could be that the Main contractor has already agreed the variations with the Engineer and thus cannot increase...

Construction Law: Lump sum contract, lump sum contract, scope of works
lump sum contract, scope of works, engineer: Dear Penny, Thank you for your question. Based on provided information, it seems to me that Engineer shall issue a Variation Order for reducing the scope of works, respectively the price. You will have to somehow agree the price reduction for the...

Construction Law: Ommission of Provisional Sum, FIDIC 99, Provsional Sum
FIDIC 99, Provsional Sum: Dear John, 1. Looks as if you have the dirty end of the stick and you cannot claim, but then OHP for the relevant work are part of the Provisional Sum, so not included in your normal calculations - clause 13.5 B0 (ii) refers. 2. Possibly under clause...

Construction Law: When does the period of completion start, fidic, completion period
fidic, completion period, letter of acceptance: Dear Abdul, Thank you for this question. In this case void for uncertainty means that the period for completion of the Works was uncertain;; if it was uncertain it cannot be enforced and is therefore void. If you did not know the date of handover,...

Construction Law: permits, FIDIC 99, Responsiblity for permits and fees
FIDIC 99, Responsiblity for permits and fees: Dear Sem, Clause 1.13 (a) mentions the planning permit and clause 1.13 (b) mentions all other permits as being the responsibility of the Contractor. Unless there is a specific item in the BoQ or in the PCC, I guess that you have to pay for building permit...

Construction Law: Provisional sum, fidic conditions of contract, mr maher
fidic conditions of contract, mr maher, main contractor: Dear Mr. Maher, Thanks for your Questions. I didn t get you what you are looking. What is the payment conditions for you and your PS Contractor (MEP Works) and BMS (Nominated Sub Contractor)? As per Fidic Conditions of Contract, The PS contractor are...

Construction Law: provisional sum, boq, scope of work
boq, scope of work, project budget: Dear Radoslav, Thank you for this question. Based upon the information provided my opinion is that you should not certify payment for increased quantities via the provisional sum item in the circumstances where there is a contract requiring measurement...

Construction Law: Question about FIDIC 2006, sub-clause 12.3, FIDIC 99, Clause 12.3
FIDIC 99, Clause 12.3, Varied rates: Dear Jae, I am not sure that I understand your question, especially the introduction of 125, when it was not mentioned earlier. The logic behind clause 12.3 is that the economies of scale should be applied if relevant. If the quantity varies so that...

Construction Law: Scope interpotation, fidic conditions, commercial proposal
fidic conditions, commercial proposal, cladding materials: Dear Sir, Thank you for your question. However, due to absence of some details, my reply will be in general in nature. Depending on what is written in the Contract (if there s any conditions applicable & written), the Employer can make a claim if there...

Construction Law: stopping work, fidic conditions, contractor id
fidic conditions, contractor id, work question: Dear Mario, Thank you for submitting a follow-up question. Still you have not confirmed and mentioned the form of contract you are using. Thus my answer will be based on FIDIC Conditions of Subcontract for Works of Civil and Engineering Construction...

Construction Law: Time for completion from Commencement date, FIDIC 99, Time for Completion
FIDIC 99, Time for Completion: Dear Abdul Moid, I noted carefully the relevant clauses in my previous answer, but perhaps I was insufficiently clear in my answer. One interpretation could be that you have to finish each section with 25 months of handover. Another interpretation...

Construction Law: Time at Large, proper consultation, fidic
proper consultation, fidic, completion date: Ms Ryan, Firstly i must say that your QS is correct in indicating to you that in your scenario time is at large in the contract. What this means is that the contract has passed the official completion date without either party re-establishing a...

Construction Law: Variation, variation and preliminaries or general items
variation and preliminaries or general items: Dear Hisham, The preliminaries can be, from my experience, of different kinds, some of them being time related items or quantities/units to be built related items. In case your variation determine the modification of the time for execution, too, or modification...

Construction Law: Variation on Contengancy, two different things, approved contract
two different things, approved contract, boq: Dear Sir, Thank you for sending in your question. Contingency and Variation are two different things. You have mentioned that there s a need for an extra scope to be executed,meaning there s an additional work item. Should this extra scope ...

Construction Law: Variation Order, construction management consultant, rehab project
construction management consultant, rehab project, contract scope: Dear Raymond, It is my pleasure to answer your question regarding deletion of some items in the contract scope of works. Since your contract is based on FIDIC form (though the specific form and edition is unknown)which refer to such deletion as constituting...

Construction Law: Window Analysis, window contractor, delay analysis
window contractor, delay analysis, critical activity: Hi Essam, If at the end of the project the situation is as you indicated, the process of proper contract administration should be established. Firstly If the project has reached the completion date without completing the works, the Contractor must...

Construction Law: Advance payment & repayment, quantity surveyor, payment periods
quantity surveyor, payment periods, interim payment: Dear Richard, As I understood, Employer made an advance payment to the Contractor and want to deduct full amount from the first interim payment. On the other hand Contractors Interim payment amount is not enough to deduct the full amount. In this case...

Construction Law: Builder suing us for breach of contract???, breach of contract, separate ways
breach of contract, separate ways, predicament: Dear Glen, Thank you for this question. This is an unfortunate predicament to be in; sadly it is more common than you might consider. In brief it might be that the builder has grounds for suing if you did not put in writing any of your complaints....

Construction Law: Building Contract, house, contractor
house, contractor, agreemnt: Dear Karen The contractor is obliged to perform as per the terms and conditions of the signed agreement between you and him. I don t understand why you have paid most of the funds for 80% of the works while you have paid extra for the upgrades. It is clear...

Construction Law: charging for delay, subcontract agreement, subcontractor
subcontract agreement, subcontractor, quick response: Dear Mario, Since the current Contractor either in default or terminating the project, he may not able to consider your request on recovery of your Overheads and General Expenses. Therefore,as I already advised, immediately notify the Employer, copy to...

Construction Law: claim for EOT, FIDIC 99, EoT
FIDIC 99, EoT, Costs: Dear Mazin, 1. Your entitlement is based on the logic of the contract. Rates, which are based on time, are generally extended pro rata. The fact that you gave a discount and your actual costs are higher is unfortunate. Your only chance is through the...

Construction Law: claim procedure, realistic determination, relevant circumstances
realistic determination, relevant circumstances, due regard: Dear Radoslav, Thank you for this question. Unless amended by the Particular Conditions, the time bar in sub-clause 20.1 of the FIDIC 1999 Red Book form of contract relates only to the submission of notification within 28 days after the Contractor became...

Construction Law: Claims under fidic subcontract, scope of works, construction drawings
scope of works, construction drawings, sequence changes: Dear Mohammad, Thank you for your question. You said in you question that you have been working based upon the AFC drawings. I believe these drawings were issued to you officially by the Engineer and you documented the receipt thereof. I also believed...

Construction Law: Construction Contract-Scope Of Work, scope of work document, contract scope
scope of work document, contract scope, additional works: Dear Mike, Thanks for your question. I do not know if you are a Main / General Contractor or you are the subcontractor. I do not also know from your question if the subcontractor status is Nominated or domestic. Notwithstanding, I can confidently tell you...

Construction Law: Contract Variations Signing Off, contract variations, fidic
contract variations, fidic, formal manner: Dear Antonio, I am not aware of the contents of the conditions of contract between the main contractor and the sub contractor. Notwithstanding this, in general, change order procedures are not typical. Some organizations require all the formalities to be...

Construction Law: De Scoping, main contractor, jumeirah
main contractor, jumeirah, contract agreement: Dear Maads, Sorry for the late reply. Could you please calrify what form of sub-contract agreement you have with the Main Contractor? If you as a subcontractor have delayed the works; the Main Contractor may have the right to deploy in own manpower...

Construction Law: delay charges, management charges, boq
management charges, boq, termination payments: Dear Mr. Mario, Thanks for your Questions. The above situation, the main contractor will get compensation from client. At the same time you have the eligible for OH and Profit for non completed items also. But, prier to proceed the claims please refer your...

Construction Law: delay charges, testro, main contractor
testro, main contractor, contract price: Hi Mano Your claim for delay costs lies with the original main contractor because there is no direct contract between you and the client. The chances of you getting paid by the main contractor is remote unless you take the dispute to court or arbitration....

Construction Law: Delete Some Items in the contract, google search, legal jurisdictions
google search, legal jurisdictions, contract question: Dear Shadi, I think that 25% overhead and profit would seem rather high and that you would have to prove it. Most construction companies make less than 3% profit per year. You prove the profit through actual audited accounts. 10-15% off site overheads...

Construction Law: Design Error related to Plant & design Build, sohail khan, defects liability period
sohail khan, defects liability period, shop drawing: Dear Sohail Khan Sahib, Thank you very much for your detailed question. I have already answered almost a similar question for EPC contracts about 8 months back and request you to refer the same at http://en.allexperts.com/q/Construction-Law-914/2011/1/EPC-Contract-1.htm...

Construction Law: Design Errors or Omissions, responsibility re design in FIDIC 1999 Yellow Book
responsibility re design in FIDIC 1999 Yellow Book: Dear Sohail, The Sub-clause 5.2 [Contractor s Documents] says that Any such approval or consent, or any review (under this Sub-Clause or otherwise), shall not relieve the Contractor from any obligation or responsibility , therefore vetting of design by the...

Construction Law: Diff. between FIDIC 1987 and 1999, FIDIC 99, Differences with FIDIC 4
FIDIC 99, Differences with FIDIC 4: Dear Paul, Simple question that needs a longer answer than space or time allows here, but here are some ideas. 1. Engineer is employee of the Employer 2. Engineer is not required to be impartial 3. Clause 20.1 time bars and condition precedent for...

Construction Law: Drawing Conflicts, gas regulators, landfill gas
gas regulators, landfill gas, stop valve: Dear Jeremy, Thank you for your question The liability of a design provision varies with form of design build contract used and there are numerous. Also the terminology used such as MFR s drawings is not very clear to me. I therefore intend to answer your...

Construction Law: Drawings issue, and management, internal partitions, domestic contract
internal partitions, domestic contract, structural engineer: Hi Dawid, I do not have all the details on what type of contract you had with your employer. I also do not have information on which drawings formed the contract for actual construction. However, in absence of this information, my assessment of the situation...

Construction Law: Employer remedies, fidic, construction contracts
fidic, construction contracts, performance security: Dear Sham, My reply is in general and limited to FIDIC form of contract. Lets presume that the said delay in achieving the completion date is due to the Contractor. In such scenario the Employer can: 1. Discuss with the Contractor any chances to...

Construction Law: EoT claim, delay analysis, contract conditions
delay analysis, contract conditions, project contract: Dear Patricia, Thank you for sending a follow-up question. You need to check your contract or if the Engineer made any instruction regarding prefered delay analysis method. If nothing is mentioned neither the Engineer provide his prefered method,...

Construction Law: EOT and Compensation inder FIDIC 1999, FIDIC 99, EoT
FIDIC 99, EoT, Costs: Dear Abdul, The simple answer is NO. It all depends on the reason for the EoT; some times you get nothing, others allow costs, and rarely you get costs and profits. You have to read the Conditions of Contract to see which is applicable and make a separate...

Construction Law: EOT - Incliment Weather, inclement weather, hazardous weather
inclement weather, hazardous weather, weather condition: Amarnath, In order to answer your question properly i would need to know what form of contract is used to administer the project. Most contracts usually allow for inclement weather as an excusable delay but not a compensable delay . This is because...

Construction Law: EoT Notification, FIDIC 4, EoT Engineer's reasoning
FIDIC 4, EoT Engineer's reasoning: Dear Syed Khalid, Clause 44.1 does not require the Engineer to send details of his determination to either the Employer or the Contractor, only his determination. However, the Contractor can ask for an Engineer s Decision and then proceed to arbitration,...

Construction Law: Exchange Rate Issue, FIDIC 99, Claims
FIDIC 99, Claims: Dear Shahbaz, You need a good claims consultant to prepare and submit your claim, because it will be rather complicated. 1. Notice to the Engineer for increased costs 2. Notice to the Engineer with copy to the Employer 3. submit to the Engineer a claim...

Construction Law: extension of time possibilities for action, time at large
time at large: Hi Enoch It is necessary to show cause and effect of the employer s delay events on your progress of work. The late issue of the drawings is an employers default so the easiest way to show the delay effect is to put a task bar on your programme that represents...

Construction Law: Exchange Rate Issue, exchange rate, e mail
Construction Law: Exchange Rate Issue, exchange rate, e mail, sudan

Construction Law: Provisional sum, majid khan, abdul majid
Construction Law: Provisional sum, majid khan, abdul majid, nespak

Construction Law: FIDIC Clause 51.1 (b), scope of works, indirect losses
scope of works, indirect losses, breach of contract: Hi Najeeb, There is no provision in FIDIC 1987 for the Employer to omit part of the works under the contract and give it to another contractor for personal gain to the Employer. This would be a breach of the contract by the Employer. remedies for this...

Construction Law: FIDIC clauses, FIDIC 99, YB
FIDIC 99, YB, Employer's Requirements - Errors: Dear Zhang, A difficult, but not uncommon, problem for both parties. I guess that you have not had much experience with FIDIC YB. I am not sure that I have sufficient information yet, so here are some thoughts for you. Do you agree with the new RE...

Construction Law: FIDIC Contracts, FIDIC 99, Deletion of clauses
FIDIC 99, Deletion of clauses: Dear Johann, Deletion or amendment of clauses is absolutely normal. You do not mention which clauses have been deleted so I cannot give you detailed advice. Except for clauses 13.8 for contracts less than two years, it is also a warning sign for the Contractor...

Construction Law: How to handle provisional sums in lump sum contracts, lump sum contract, marble and granite
lump sum contract, marble and granite, granite works: Dear DBY First of all sorry for late reply since I was busy for a problematic project. Regarding your question, I understand that the Employer request the Contractor for performing provisional sums such as AC s and also instruct to use different types...

Construction Law: Hudson's Formula, excel sheet, figue
excel sheet, figue, overhead costs: Dear ABdul, Have a look at this article http://www.icoste.org/ZACK.pdf, which will give you a good insight into the application of Hudson s formula and similar solutions. The actual percentage depends on what you can prove as reasonable, because it varies...

Construction Law: Imposition of Liquidated Damages Through Final Payment Certificate, FIDIC 4, Liquidated damages
FIDIC 4, Liquidated damages: Dear imtiazurrehman, 1. There are no time bars in FIDIC 4, 2. How should I know? Perhaps the Employer was waiting for a decision on a delay claim. If there is insufficient money in the Final Account, then the Employer will use the courts to recover...

Construction Law: Interest Claim on Price adjustment, delay payment, hayat
delay payment, hayat, ipc: Dear Raja, Thank you for your question . Yes ,it is applicable for delayed payments of all heads as an IPC is not confined to monthly payments only under clause 60.An IPC can well be issued by the Engineer under any other term of the contract such as delayed...

Construction Law: Labour & Safety Compliances, FIDIC 99, Safety enforcement
FIDIC 99, Safety enforcement: Hi ali, Here you have a problem due to laziness in writing the Particular Conditions of Contract. There is a similar problem with termination for non-performance before the time for completion has expired. The failure is a breach of contract and the only...

Construction Law: Large Scale Roads & Infratsructure Works, cesmm, infrastructure works
cesmm, infrastructure works, pomi: Dear Mr. George, Thanks for your Questions. In my best suggestion, you should choose POMI instead of CESMM3/CESMM4. The POMI method is very easy and it will take less time to prepare and you don t wants to provide much details. You can group to the small...

Construction Law: Nominated Subcontractor, FIDIDC 99, Nominated subcontractor
FIDIDC 99, Nominated subcontractor: Dear shamsundar, There is no difference between a nominated or domestic subcontractor once the Contract between the subcontractor and the Contractor has been signed. So the question is really how may the Employer be protected against the effects of defective...

Construction Law: P&G, Direct Costs and Overheads/Profit in EOT Claim, Emndens, loss and expense
Emndens, loss and expense: Hi Neeraj The object of compensating a contractor for loss and expense in case of an EoT award is to put him back to the position he would have been but for the delay. These costs should cover the period when the work was in delay. It should not include...

Construction Law: P&G, Direct Costs and Overheads/Profit in EOT, unforeseen disruption, storage yards
unforeseen disruption, storage yards, fidic: Dear Neeraj, Thank you for your question. I shall answer indeed based on FIDIC itself, but you ll need to go back to your actual contract and check against its provisions. 1. Yes, confirmed. 2. Yes, confirmed, providing you demonstrate the direct...

Construction Law: P&G, Direct Costs and Overheads/Profit in EOT Claim, FIDIC 99, Prolongation costs
FIDIC 99, Prolongation costs: Dear Neeraj, I do no think that there will be double payment. Consider a normal situation where there is no delay. You would pay the P&G and also the dayworks in full. Supervision in the context of dayworks is the specific foreman or gang leader who...

Construction Law: P&G, Direct Costs and Overheads/Profit in EOT Claim2, pro rata basis, award contracts
pro rata basis, award contracts, storage yards: Hello Neeraj, welcome back! Now that s indeed a detailed explanation, but in return I ll try being as concise as possible. 1. Yes, generally correct, except: - Supply and erection of Contractor s site offices - they only do it once. Maintenance...

Construction Law: P&G, Direct Costs and Overheads/Profit in EOT Claim, unforeseen disruption, pro rata basis
unforeseen disruption, pro rata basis, storage yards: Dear Neeraj, I do not understand why you would you use dayworks rates for direct costs such as staff etc. I suggest that A, B & C should be paid on a pro rata basis depending on the agreed extension. Unabsorbed overheads and profit should be paid using...

Construction Law: possibilities to avoid LAD, LAD, SUBCONTRACT
LAD, SUBCONTRACT: Hi Enoch The simplest way to avoid LAD is to claim for an extension of time. If the employer has caused delays to the work then he is not entitled to deduct LAD s. Regarding your sub-contractor it all depends on what is in the sub-contract agreement. This...

Construction Law: Privity of nominated sub-contractor, bidding document, main contractor
bidding document, main contractor, privity of contract: Dear Haroon, Thank you for your kind scoring and for coming back. To answer your queries, when talking contracts, one must judge ANY matter, ONLY based on what the Contract and applicable law are providing for. As such: 1. There is no general...

Construction Law: Privity of nominated sub-contractor, bidding document, contractual arrangement
bidding document, contractual arrangement, main contractor: Dear Haroon Sahib, Let me first thank you your appreciation. I regret that i do not agree with the views expressed in Wikipedia on the subject matter. As for as i know, Wikipedia only provide opinion of different individuals and subsequently provide it in...

Construction Law: Privity of nominated sub-contractor, bidding document, subcontractor
bidding document, subcontractor, applicable law: Dear Haroon, You do not mention the form of contract so the following comments are general in nature. Generally a nominated subcontractor is dealt with as a normal domestic subcontractor, with no special privileges or rights. The Employer does not bear...

Construction Law: Provisional sum, kinds of soil, partition walls
kinds of soil, partition walls, nespak: Dear Faheem Faruqui Sahib, I am indeed grateful for your interesting question. I can give my opinion only after certain queries raised or clarified. These are related to written discharge requirement as per clause 60.7 and present status of performance bond....

Construction Law: Reductions due to Non-deduction of rebate on extra and additional works, ab initio, boq
ab initio, boq, rate basis: Dear Ghulam Hussain Sahib, Thank you for your question. As i could understand, your question relate to application of rebate that you have agreed to give in the contract over you quoted amount and was accepted in pre-award negotiation. If this is the correct...

Construction Law: Resubmission of Cost Proposal, lump sum
lump sum: Hi Antonio In a lump sum price you carry the risk of quantity errors which can either be positive or negative. It seems that the contractor is trying to deprive you of your positive benefit under the fixed price contract. The way to protect your position...

Construction Law: Retention Money., Return of Retention
Return of Retention: Dear Gordon, You do not state the form of contract so the following comments are general only and may not apply. Generally 50% of the retention is returned on issuing the Taking Over Certificate or equivalent. The remainder is returned at the end...

Construction Law: Role of Engineer in Evaluating Claims based on FIDIC Red Book (1987), FIDIC 4, Differences in measurement
FIDIC 4, Differences in measurement: Dear Fatimah, I think that you are shooting the wrong person. Once the Engineer has agreed something, it is a done deal, for many reasons, even if it can be opened up and changed before the final certificate. It is essential not to undermine the authority...

Construction Law: subcontract terms for the construction, implied terms, related works
implied terms, related works, enoch: Dear Mr. Enoch, Thanks for your Questions. Right now, You have the Letter of Award only. So, what ever mentioned in that document its applicable for all the related works. In this above situation your point is valid and applicable. Thanks and Regards,...

Construction Law: T.O.C, snag list, kitchen hoods
snag list, kitchen hoods, notification period: Maher, I am not aware under which form of contract your project is administered. I may need this information in order to provide a more feasible response. However, based on the terms used in your question, i would tend to believe that the contract is one...

Construction Law: Tender Drawings verus Contract Drawings, FIDIC 99, Revised Drawings
FIDIC 99, Revised Drawings: john, I suggest that you make the Engineer and the Employer aware that you have noticed the Engineer s deception and ask for time to review and adjust prices if necessary. Deception of this nature and at this stage is unlikely to be conducive to good relationships...

Construction Law: Tender evaluation - bidder adds new BoQ item, bill of quantities, tender dossier
bill of quantities, tender dossier, bidding documents: Dear Peter, Thank you for your question. As a general approach, I d suggest you write back to that Tenderer, requesting a new BoQ, following exactly the pattern provided in the Tender Dossier/ Bidding Documents, but obviously, without modifying the...

Construction Law: Value Engineering - Fidic 1999, bill of quantities, temporary works
bill of quantities, temporary works, contract value: Dear Roland, Thank you for this question. Clause 13.2 refers to value engineering changes in the whole, inclusive of permanent and temporary works; accordingly all elements should be considered. I hope that this assists you. Kind regards, John...

Construction Law: Variation Dispute, word paragraph, contract conditions
word paragraph, contract conditions, main contractor: Dear Antonio, Thank you for your question. I don’t see any reason why you need to make the question private, so I change it to public so other people will also benefit from this service. You failed to mention the form of contract you are using and...

Construction Law: VARIATION ORDER AND PARALLEL CLAIMS, FIDIC 99, EPC
FIDIC 99, EPC, time bar: Dear YC, I have no experience or knowledge of parallel claims. That said, I suggest that the Engineer is a little hasty to reject your claim on the basis of time bar, because he is likely to be overturned by either the DAB or the Arbitrator, under the...

Construction Law: variation orders, material price, tender price
material price, tender price, material type: Dear Ma n, Get the contractor s tender breakdown for the item. Get the price of the new item at the same date (normally 28 days before date of tender submission). Calculate the new rate using the new price in the same way that the tender price was...

Construction Law: VARIATIONS AND CLAIMS, contractual provisions, contract clause
contractual provisions, contract clause, what is variation: Dear YC, Thank you for your supplementary question. Let me take up your question one by one as follows. 1) The measurement of works for public sector projects in Pakistan has to be immediately after completion of BOQ item satisfactorily and has to be recorded...

Construction Law: Variations Clause 13.1, fidic contracts, defect notification
fidic contracts, defect notification, question pool: Hi Berend, I got your question from the question pool. Please allow me to define first Taking Over Certificate, Defect Notification Period and Variation under FIDIC 99. It seems to me you are a bit confused. Taking Over Certificate is defined under...

Construction Law: Whats relief if PS item of Work is deleted by Employer, Provisional Sums
Provisional Sums: Hi Syed The general rule is that the Employer can omit any item of work from the contract provided he does not want it done at all. Since the employer is supplying the light fittings himself he has broken this basic rule. In my opinion in these circumstances...

Construction Law: Adjustment of contract rates, contractual period, contract rates
contractual period, contract rates, contract completion: Dear David, In the calculation of prolonged cost, all areas of general expenses and overheads should be taken into consideration. However, in the event that there are legitimate changes in the price of material, plant or labour due to works being constructed...

Construction Law: Bill of Quantities, bill of quantities, law jurisdictions
bill of quantities, law jurisdictions, boq: Dear Shadi, Thank you for this question. In both situation mentioned there is an ambiguity between the BoQ and the Specifications; and the contract, including ambiguity will be will be interpreted in accordance with contract terms and the local law....

Construction Law: BOQ&drawings, contract clauses, preamble
contract clauses, preamble, e mail: Dear Rado, Thank you for this question. Under the standard FIDIC 1999 form of contract the work is subject measurement and valuation; this is the case irrespective of whether the work item is found in the BoQ. The contractor should perform the work in...

Construction Law: Claim for Temporary Work, supplier invoices, dear madam
supplier invoices, dear madam, favorable reply: Dear yaminn, Thanks for your question My first query in such a scenerio is the availability of contemporary record to substantiate the claim under clause 53 0f fidic 4 type contract( this is my assumption).Please correct me if I am wrong.Also please clarify...

Construction Law: CLAIM UNDER CLAUSE 12.3 OF RED BOOK 1999 IV, bill of quantities, boq
bill of quantities, boq, percentage percentage: Dear Sanjay, The new rate shall not be calculated based on change in market rate. It shall be calculated either loss of Overhead and profit because of change of quantity or based on some discount that is not available because of change in quantity. Do...

Construction Law: Claim under clause 20.1, paragraph 6, paragraph 5
paragraph 6, paragraph 5, 28 days: Dear Wong, Thank you for your question. I am unaware of any such deadline, paragraph 6 of Sub-Clause 20.1 does not mention any 28 days, except for the Contractor, in case of claims related to causes with continuous effect. You re probably referring...

Construction Law: Claim under FIDIC clause 201., case laws, contentious issue
case laws, contentious issue, 28 days: Dear Wong, Theoretically its a breach of the Contract. There is no specific remedy available in FIDIC and FIDIC is silent on this. Nowhere its indicated that if such breach happens, the Claim shall become valid and payable without any questions asked. ...

Construction Law: Clause 52-3, FIDIC 4, Variations
FIDIC 4, Variations, Valuation: Dear Salah Zoghby, Don t get all emotional. But you still have clause 44.1 and clause 52.1, because if the Employer changes the scope, there is likely to be a change in the time for completion and a change in the type, nature and quantity of the work to...

Construction Law: Variation due to modification of BoQ item, completion certificate, substantial works
completion certificate, substantial works, construction contract: Dear Sanjay, Apology once again for lateness in replying you. Yes, you are right, where the Contractor did not submit claim for negative variations, the Engineer has the contractual obligation to propose and notify the Contractor accordingly. It is then...

Construction Law: completion certificate, completion certificate, notification period
completion certificate, notification period, performance guarantee: Dear Sanjay, Thank you for coming back. A. Indeed, there must be a formal agreement between the Parties, i.e. a Variation Order for omitting that item. It should indeed come from the Contractor, so that they do not require loss of profit. B....

Construction Law: completion certificate, completion certificate, substantial completion
completion certificate, substantial completion, construction contract: Dear Sanjay, 1. Engineer may issue the Substantial completion certificate but final completion certificate shall be issued only after final account settlement. 2. DLP shall start after final completion certificate if it is not specified different in...

Construction Law: Construction Law, utility relocation, breach of contract
utility relocation, breach of contract, contract documents: Dear Mututantree, Thank you for this question. On the limited information you have been able to provide I must sit on the fence and say that the Contractor might be entitled; all will depend upon the wording of the contract including any particular...

Construction Law: FIDIC CLAUSE 8.4, bill of quantities, boq
bill of quantities, boq, percentage percentage: Dear Sanjay, Welcome back with this new issue. 1. No, it is not possible to increase or decrease the Time for Completion, based on significant variation of quantities. Although it sounds logical, the Contract does not provide for that. Please...

Construction Law: Contract Document Clarification, FIDIC 99, Unforeseen conditions
FIDIC 99, Unforeseen conditions: Dear Michael, I think that the contract excludes unforeseen natural physical conditions below ground, such as splintered or weathered rock or sand lenses, as a basis for a claim for extension of time. I cannot imagine any unforeseen physical conditions...

Construction Law: Contract price adjustment, requirement, conditions
requirement, conditions: Dear Amando Please clarify what you mean by price adjustment. if it is the ability of the engineer to delete or increase certain quantities of an item in the BOQ then the answer is yes. if the deletion or addition concerns the general requirements or conditions...

Construction Law: Contractor's claim on EOT and New rates-reg, resident engineer, eot
resident engineer, eot, additional works: Dear Saravanan, I am afraid that I haven t understood your question very well, so would request you to elaborate this and come back with more details. To the extent what I have understood is: a) that you as Resident Engineer have granted the EOT in...

Construction Law: Contractor's claim, multilateral development bank, diamter
multilateral development bank, diamter, contract value: Dear Chandika, Thank you for this question. From the information provided I am of the opinion that your interpretation is more correct than that of the Contractor. The contract provides for payment of materials upon delivery to site, at the rate of...

Construction Law: Contractor's termination, breach of contract, time extension
breach of contract, time extension, overhead costs: Dear Seyyahimes, Thank you for this additional question. In theory if the Contract places a minimum value on Interim Certificates then the Engineer is not obliged and the Employer does not have to pay whenever the interim amount is less than that minimum;...

Construction Law: Contractual, 28days, critical path
28days, critical path, substantial increase: Dear Rafiqul, Thank you for your question. Assuming nothing is writtend under Particular Conditions, granting of EoT depends on the following: 01.If the substantial increase in quantities is a variation i (subclause 8.4 item (a)) /i 02. If the...

Construction Law: Cost Claim for Non-Compensable EoT, compensable, financial benefit
compensable, financial benefit, monthly statements: Dear Syed Khalid Sahib, Thank you for your question. A very brief answer to your question in my opinion is that extension of time under clause 44 and adjustment of cost under clause 70 are two distinctly different matters and are not to be mixed together....

Construction Law: Cost Claim under FIDIC, sc3, manish
sc3, manish, clauses: Dear Alicia, Entire claim shall be prepared as per the conditions of applicable contract. If there is a contradiction between the contract and the law; the law prevails. Yes, the determination shall be made under SC3.5, also providing references from...

Construction Law: CPC and CNC, developer need, testro
developer need, testro, main contractor: Hi Enoch If the Employer has taken beneficial use of the building then it is deemed to be Practically Complete. If it is complete in all respects having been tested and commissioned and all O&M s issued then the Employer is obliged to issue the certificate...

Construction Law: currency for safety fines, fidic contract, civil liabilities
fidic contract, civil liabilities, safety fines: Hi, Alicia, You felt very well the spirit of the FIDIC contract, i.e. if the payments under the Contract are to be made in a certain currency (in your case, in the local currency), the fines applied under the contract should be paid in the same currency....

Construction Law: Deduction for repayment amortisation of advance payment., force majuere, interim payment
force majuere, interim payment, interim payments: Dear Gautam, Thank you for your question. An option would be to apply the amortisation rate to the amount from the first IPC, which exceeds the 30%. So, if that is your Contract Price (excluding Provisional Sums), 30% means 298,441,317.00 Nrs. ...

Construction Law: Delay Analysis, underground powerhouse, construction periods
underground powerhouse, construction periods, delay analysis: Dear Michael, Thank you for this question. On the limited information available at this time I am able only to give a very simple opinion in overview of the facts. There are other factors not stated here which would influence my decision; for example...

Construction Law: Delay Analysis under FIDIC, fidic contracts, delay analysis
fidic contracts, delay analysis, correct sequence: Dear Alicia, Thank you for your question. You need to check your contract if something is written regarding accepted delay analysis method. If nothing is written you have the privilege to choose. You may want to ask the Engineer of his preferred method....

Construction Law: Delay Analysis under FIDIC, fidic, claim
fidic, claim, eot: Dear Alica after receiving the contractors claim, the Engineer shall determine fairly the total extension of time and cost implication then he (the engineer) shall discuss and reach an agreement with the Employer regarding the same. of course the contractor...

Construction Law: Delay Of Commencement, fidic contract, staff salaries
fidic contract, staff salaries, contract firm: Dear Fernando, Apologies for my lateness in responding. I am so sorry. To your question, It depends on the terms of your contract. If it allows for fluctuation, then, you can. And i believe that, the mechanism for establishing this claim would have been...

Construction Law: Design and Build Fidic 1999, lump sum contract, procurement rules
lump sum contract, procurement rules, tender award: Dear Mr.David Thang Thank you for your comment. I still feel that NSC in design build need to be considered very carefully and i will check it up in Yellow book. I unfortunately do not have it handy at the moment to check it. Any way my best wishes and good...

Construction Law: Design & Build: responsibility for designing works, defect notification, david answer
defect notification, david answer, performance certificate: Dear David, While thanking you for your comments, i beg to differ on your interpretation for the unfulfilled obligation referred to in clause 11.10. As stated earlier in my answer, this unfulfilled obligation relate to latent defects only which may appear...

Construction Law: EoT Cost Claim method, disruption claim, delay claims
disruption claim, delay claims, critical activities: Dear Syed, Thank you for this question. In the circumstances that you have described I would expect to see two different types of evaluation being used; one would be to value the costs (either historic or projected) flowing from the additional time required...

Construction Law: EOT procedures, fidic contracts, main contractor
fidic contracts, main contractor, nsc: Dear Baek, The most important and first thing you should do is to submit a notice to the Engineer in accordance to sub-clause 20.1 within 28 days you became aware of should have become aware of the event. You need to read entire sub-clause 20.1 for...

Construction Law: EoT Rejection, conditions of contract, timely notice
conditions of contract, timely notice, peralta: Dear Pat, b Unless something is written in the Contract, the Engineer has 21 days from the receipt of Contractor s Programme to give notice to the Contractor if programme does not comply with the Contract pursuant to sub-clause 8.3. /b The Engineer...

Construction Law: EOT Under clause 8.4 of FIDIC99 red book, cement concrete, concrete pavement
cement concrete, concrete pavement, bill of quantities: Dear Sanjay, Thank you again. In answering your question no 1 on guide for evaluation of the extension of time claim. Going by the fidic 1999 - red book; the only situation where a contractor would be entitled to extension of time as a result of variation...

Construction Law: EOT Under clause 8.4 of FIDIC99 red book, eot
eot: Dear Sanjay It seems that the original project has had enough variation to build another project of the same size. here we have to only negotiate with the contractor for EOT and for the price of the new works. FIDIC will not help you here beacuse the chages...

Construction Law: EOT Under clause 8.4 of FIDIC99 red book, FIDIC 99, EoT Costs
FIDIC 99, EoT Costs: Dear Sanjay, 1. With all EoT questions, I recommend that the SCL Delay & Disruption Protocol www.eotprotocol.com should be downloaded and studied. It is the best guide to EoT that I have found. 2. Without further details, I cannot advise 3. The Contractor...

Construction Law: EOT UNDER SC 8.4 OF FIDIC99 RED BOOK, cement concrete, concrete pavement
cement concrete, concrete pavement, bill of quantities: Dear Sanjay, Thank you for this question. Again your question is rather long and involved and I would lkke to answer it outside of this forum. Please direct the question to me at the e-mail address given below. Kind regards, John Dowse Follow me...

Construction Law: EOT UNDER SC 8.4 OF FIDIC99 RED BOOK, cement concrete, concrete pavement
cement concrete, concrete pavement, bill of quantities: Dear SANJAY, 01. LD shall be imposed only if the Contractor failed to finish the works on agreed Time for Completion. The essence of awarding an EoT to the Contractor is to relieve him from LD and to have a new Completion Time. 02. Depends on what is...

Construction Law: escalation, concept hope, allexperts
concept hope, allexperts, qestions: Dear Waheed sahib, Thank you for your question. May i request you to refer to following link where i had already dealt with this question in detail some time back. After review of this link, please let me know if you still have any query on the subject matter....

Construction Law: Directives and Instruction on site, Instruction, Directive
Instruction, Directive: Hi Godfrey It is usual for a contract to refer to Instructions and the mechanism for dealing with them is usually clear cut. Unless the contract defines the word Directive then it has no contracual meaning so if you receive a Directive then reply asking...

Construction Law: Claim for Temporary Work, shutdown period, contract rate
Construction Law: Claim for Temporary Work, shutdown period, contract rate, faults

Construction Law: Delay Analysis under FIDIC, aia, disruption
Construction Law: Delay Analysis under FIDIC, aia, disruption, protocol

Construction Law: PC items valuation
Construction Law: PC items valuation

Construction Law: FICID 1st Edition 1999, replacement of the Engineer
replacement of the Engineer: Hi, According to the Contract FIDIC 1999 the Contractor cannot ask the Employer to replace the Engineer. If the Engineer is failing to fulfill his obligations foreseen in the works Contract, his failures are considered the Employer s failures and breach...

Construction Law: FIDIC 1999 RED BOOK- 3 MEMBET DAB AGREEMENT, fidic conditions of contract, far hope
fidic conditions of contract, far hope, remedial works: Dear Don, Thank you for your queries. To answer briefly: 1. YES, termination of Works Contract has nothing to do with DAB Agreements. Parties have agreed, by means of signed Works Contract, to resolve their disputes through the DAB, thus they are...

Construction Law: Fidic 4th '87 & Fidic '99 - Termination of the employment under the contract and termination of the contract, termination clauses, procurement procedures
termination clauses, procurement procedures, public procurement: Dear Samarajeewa, Thank you for coming back with these details. Now is indeed clear. No, there is no difference, you should read one book at the time and not combined. Due to various experiences, the 99 edition brings some different wording that...

Construction Law: FIDIC,99 RED BOOK CLAUSE 12.3,13.8 &8.4, bill of quantities, percentage percentage
bill of quantities, percentage percentage, reasonable adjustments: Dear SANJAY, b The Works shall be measured in accordance with the Contract. /b b Question 3 /b Pursuant to sub-clause 12.3 new rate shall be established (appropriate) as per requirements of item (a) and (b) under SC12.3. If there s an...

Construction Law: FIDIC,99 RED BOOK CLAUSE 12.3,13.8 &8.4, bill of quantities, id mubarak
bill of quantities, id mubarak, percentage percentage: Dear Sanjay sahib, Thank you for the question.We have used plant and design-build version of fidic 1999 but not of construction .My assessment ,however,is as follows. Clause 12.3 provide for change in a BOQ rate,if 4 conditions mentioned therein are already...

Construction Law: FIDIC,99 RED BOOK CLAUSE 12.3,13.8 &8.4, bill of quantities, alofe
bill of quantities, alofe, percentage percentage: Dear Sanjay, Thank you for your follow up question. i will answer them as follows: 1. fixed rate items with respect to FIDIC99 red book are those items which right from the tender stage, they have been titled in the preamble to the sections of the items...

Construction Law: FIDIC,99 RED BOOK CLAUSE 12.3,13.8 &8.4, bill of quantities, percentage percentage
bill of quantities, percentage percentage, clearity: Dear Sanjay, I will try to answer this question point-wise as follows - Q. 1 - There has been a reduction in quantities thereby depriving the contractor from recovery of overheads and profit on these items. Since these items fall within the ambit and...

Construction Law: FIDIC,99 RED BOOK CLAUSE 12.3,13.8 &8.4, Volume Changes, Fixed Price
Volume Changes, Fixed Price: Hi Sanjay Phew that is one massive question - I shall try to summarise it in principle. Contract rates comprise three elements of net cost: Time Volume Fixed. These elements can become unbalanced if the original volume of work changes. This applies...

Construction Law: FIDIC - ADDITIONAL COMPENSATION, fidic conditions of contract, bills of quantities
fidic conditions of contract, bills of quantities, tender validity period: Hi Trevor, Thank you for explaining the problem so explicitly and identifying the type of contract used for the project. Firstly: If at tender stage, you used a particular rate for an item in the BOQ and upon the award of the tender there was no change...

Construction Law: Fidic Contract 1999, scope of works, design drawings
scope of works, design drawings, shop drawings: Dear Ricardo, As I mentioned earlier, you need to check you contract (meaning all documents in the contract not only BOQ). You can check the specifications or scope of works and all other documents in the contract (not only the BOQ). b In accordance...

Construction Law: FIDIC without Engineer role, fidic contracts, fidic form of contract
fidic contracts, fidic form of contract, dear madam: Dear Dayu, The FIDIC Green Book is the most flexible and the most simple one. You can add whatever provisions you will feel it fit to your particular case, especially if they provide more clarifications as regards the scope of the Works. These additions should...

Construction Law: FIDIC99 red book SUB CLAUSE 12.3,13.8 & 8.4, bill of quantities, percentage percentage
bill of quantities, percentage percentage, reasonable adjustments: Dear Sanjay, Thank you for this question. As the question is somewhat long and involved I would like to answer it outside of this forum. Can I ask that you forward it to me at the e-mail address given below? Kind regards, John Dowse Follow...

Construction Law: Final Completion Certificate, resident engineer, completion certificate
resident engineer, completion certificate, road projects: Dear Million Ali, Thank you for your question which i have already answered about 7-8 days back. It appears that it is miss placed due to some net problem for which tender my apologies. I resubmit my response very briefly as follows. Considering FIDIC-IV...

Construction Law: Foreign Currency for Safety Violations Penalty, tender dossier, company contractor
tender dossier, company contractor, safety violation: Dear Alicia, Thank you for coming back. For the sake of clarity, do not complicate the things, do not think if it is professional, ethical, unfair, etc, just think of what is contractual or not. Yes, there should be in the Contract regulations for...

Construction Law: Guarantees under FIDIC -New red book, performance guarantee, dowse
performance guarantee, dowse, performance security: Dear Alicia, Thank you for this follow-up question. In answer to the first part of your question, if the guarantees were obtained from other jurisdiction approved by Employer but the words are not acceptable the Employer can reject providing that the...

Construction Law: ICE 7th Edition, lump sum contract, negotiation process
lump sum contract, negotiation process, measure value: Thank you for this further question. In the circumstances you have described and as I have interpreted them measurement of the works is necessary. Under the Contract this obligation falls to the Engineer; however in the circumstances and to identify the...

Construction Law: Industry Standard, lump sum contract, contract drawings
lump sum contract, contract drawings, relevant provisions: Dear Paul, Thanks for your question. To start with in general, let me say that FIDIC 1987 is basically meant to cater for re-measure contracts but can be modified to lump sum contracts. This also require certain condition of the contract to be further reviewed...

Construction Law: Industry Standard, lump sum contract, contract drawings
lump sum contract, contract drawings, scope of works: Dear Paul, Thanks for your question. I can understand what you mean. Your argument is correct if the item of work is / are shown in the tender drawings or contract drawings (in most cases, both are same but if differs, whichever was used to firm up the...

Construction Law: Interest on Delayed Payment of Advance Payment, interest free loan, quantity surveyor
interest free loan, quantity surveyor, engineer team: Dear Jackson, First and foremost, let us address the issue of Advance Payment. The General Conditions are normally not project specific and are general to the Employer. The Contract Data is Project Specific. So the Contract Data overrides the General Conditions....

Construction Law: Interim Claim under FIDIC, lump sum contract, interim payment
lump sum contract, interim payment, contract price: I m not sure what some documents you are referring. As stipulated under subclause 14.3, Application for Interim Payment shall be submitted together with b supporting documents /b which shall include Progress Reports under subclause 4.21. In my opinion,...

Construction Law: Interim Payment Certificate, field density, density test
field density, density test, incomplete documents: Dear Widyapraja, Thank you for your question. The value of the work shall be certified in accordance to the Contract. To answer your question, I must say that the Engineer b should not return /b the Interim Claim back to the Contractor due to...

Construction Law: IPC, FIDIC 99, IPC
FIDIC 99, IPC, Supporting Documents: Dear widyapraja, Many engineers do not understand the provisional nature of an IPC, nor that the money is the oxygen of a contractor s continued existence. If I was the Engineer, I would delete the disputed items and certify the remainder, clarifying my...

Construction Law: Liquidated damages, delay compensation, time extension
delay compensation, time extension, completion date: Dear Anil, I will attempt to answer your queries point-wise as follows - Point 1 - Liquidated damages is a consolidated pre-estimate of the damages that can be levied by a party to the Contract in case there is a breach by the other party. This provision...

Construction Law: Loss of Profit, fidic contracts, burden of proof
fidic contracts, burden of proof, overhead costs: Dear Alicia, Thank you for the follow up to your question. It is possible and practical to claim for loss of profit and loss of opportunity in FIDIC contracts, once the contractor can prove his claim though facts and reliable documentation supporting...

Construction Law: Lump Sum/Remeasure Issues, contract sum, information purpose
contract sum, information purpose, price basis: Dear Gareth, Thank you for your question. Apologies for the delay in my response. Having reviewed the two clauses in the terms and conditions of your subcontract with the Main Contractor, i see that the clauses are very specific in their terms. Having...

Construction Law: lumpsum contract, cash flow chart, boq
cash flow chart, boq, mtr: Dear Mr. Radha Krishnan, Thanks for your Questions. If, your contract is lumpsum you can not get the actual qty of 100mts. In lumpsum contract, the BOQ is the Guides to apply for the Monthly Payments only. What ever contractor made the mistakes he can resolve...

Construction Law: missed items from spec or plan, shaver outlets, scope of work
shaver outlets, scope of work, socket outlets: Dear Steve, Thank you for this question. The first point I would check is whether the contract you have allows for variations (in particular variations by reduction of scope in this case). If it does not the omission may be invalid. Notwithstanding...

Construction Law: new home, contract drawings, soil removal
contract drawings, soil removal, boq: Dear Jenny, Thank you for your question. Going by the situation you have narrated, i feel this will be a case of one party trying to play smart through deliberate deceit to derive benefit from another party by tricks or contractual incorrect technicalities....

Construction Law: Novation, novation agreement, main contractor
novation agreement, main contractor, conditions of contract: Dear Samarajeewa, Thank you for coming back. If the Subcontractors were hired by the Main Contractor, then I am uncertain how can the Employer use novation . I mean, I am somewhat uncomfortable with using that word, which Webster s explains it...

Construction Law: Payment evaluation, construction drawings, evaluation question
construction drawings, evaluation question, working on a building: Hi David, Sorry for the delay in getting back to you. In answering your question on compensation to the employer resulting from liquidated damages, it is important to know the following: Liquidated damages (LD)is based on compensation to the employer...

Construction Law: PC items valuation, FIDIC 4, Lump Sum
FIDIC 4, Lump Sum, Variations: Dear Lito Aquino Jr, Lump sum contracts and BoQ s are an oxymoron, especially if there is no guidance on the use of the BoQ. Only the idle, the inexperienced, idiots and little children include BoQ s in Lump Sum contracts. You do not say why there was...

Construction Law: Performance Guarantee -FIDIC, performance guarantee, time claim
performance guarantee, time claim, ashish: Dear Alicia, Normally when the Contract is signed and agreed, it involves obligations by both parties. Many a times, Employers do provide that Performance Guarantee has to be taken from a specified type of entity. By agreeing to the contract, the contractor...

Construction Law: Preliminaries Bill, hypothetical question, two choices
hypothetical question, two choices, tenderer: Dear Alan, Thank you for this question. As this is a coursework question I prefer not to answer fully but I will give some pointers, that I hope will be helpful for you. The question demands a thorough analysis of the tender rules and the evaluation...

Construction Law: Prolongation Claim vs Paid Preliminaries item, burden of proof, prolongation
burden of proof, prolongation, preliminaries: Dear Alvin, You have not identified what type of contract is being used to govern the project. Nevertheless, based on what you have said so far, I would assume that a standard form of contract has been used, and the issues involving the cause of the prolongation...

Construction Law: Query during Pre-Tender Q&A, tender questions, construction drawings
tender questions, construction drawings, scope of works: Dear Abdul, Thank you for this question. I am not conversant in the laws of Saudi Arabia and I offer this advice on that basis. Clearly there is an ambiguity between the contract documents, in so far as the Q&A list will reflect the position of the...

Construction Law: Refunding money from dishonest contractor, victim witness assistance center, victim witness assistance
victim witness assistance center, victim witness assistance, property losses: Dear Annette, This question deals mainly with seeking further recourse on a matter which was obviously resolved through the courts, already in favour of the claimant. Usually the courts would have made their decision on the payment of restitution based...

Construction Law: Responsibility for designing works, defect notification, performance certificate
defect notification, performance certificate, notification period: Dear David, Thank you for your question. In the given situation, there is nothing to be done under the Contract. However, I assume Sub-Clause 1.4 says that Law of the Country is applies. Suggest thus you check with a local lawyer and see if there...

Construction Law: retention money, interim payment, application statement
interim payment, application statement, fidic: Hi, Diana, The Contractor is to include in the Interim Payment Application (Statement at Completion) the respective half of the Retention Money, and the Engineer is to certify it. Then, if the regulations of the applicable law request this, as the case of...

Construction Law: revoke of termination, procurement law, public procurement
procurement law, public procurement, contract agreement: Dear Sanjay, Thank you for your kind scoring and for coming back. In my opinion, in such circumstances, the Parties have actually agreed such recovery of the advance payment and that can only be undone, again, by will of the Parties. What has been...

Construction Law: scarcity of materials, FIDIC 99, Shortage of Materials
FIDIC 99, Shortage of Materials: Dear Chris, You would have to prove that the shortage of materials was due to an epidemic or governmental action. There is nothing in your question to suggest that the delays are caused by these actions. The fact that the Contractor, or the importers,...

Construction Law: Ten Year Warranty of Marine grade plywood, marine grade plywood, marine plywood
marine grade plywood, marine plywood, female toilets: Dear Junie, The best that the client could expect is a written statement that the product complies with the specification. If he wants a 10 year warranty, then ask him for his specific words needed in the warranty and submit an offer as to the cost of...

Construction Law: Tender category, tender dossier, tender evaluation
tender dossier, tender evaluation, contracting authority: Dear Attaullaa, Thank you for your question. Tender evaluation: is the complete assessment of offers received by a Contracting Authority/ Employer, based on evaluation criteria published in the tender dossier. Tender analyse: I did not encounter...

Construction Law: Termination in case of Contractor's voluntary arrangement, FIDIC 99, Employer Termination
FIDIC 99, Employer Termination: Dear Lelde, The important phrase is at the start of clause 15.2 The Employer i shall be entitled /i to terminate the Contract if the Contractor: . It does not say The Employer b shall /b terminate the Contract if the Contractor: . Now we come...

Construction Law: Termination of contract, contract agreement, termination of contract
contract agreement, termination of contract, supplementary agreement: Dear Sanjay, Sorry for extreme lateness in replying. If you say the contract agreement was terminated under clause 15.2, i will assume that it was the Engineer that terminated this agreement without client s awareness. If not, i do not think that, the...

Construction Law: Uninstructed variation, hi john, pragmatic approach
hi john, pragmatic approach, unjust enrichment: Dear Mattlaw, Thank you for this question. In my opinion a pragmatic approach should be taken to this issue. You have not stated what the work was and whether it would have been instructed by the Architect in any event. If it would not have been...

Construction Law: Variation due to modification in BoQ Item, lime stone, jmf
lime stone, jmf, contract specifications: Dear Sanjay, The Contract or the Tender has to be read in totality and not specific to any component of the Contract Documents. Even if the BOQ does mention the cement filler, the Specifications do not do so. And priority of documents rate the Specifications...

Construction Law: Variation in item due to modification in BoQ item, lime stone, jmf
lime stone, jmf, contract specifications: Yes Sanjay, The Specification is of a leading priority in contract documents usually and i guess it is not being amended under your contract to be another thing entirely. You will need to check the order in which they are presented please. Thanks. ...

Construction Law: variation Order, engineer consultant, boq
engineer consultant, boq, scope of work: Dear Raul, Thank you for this question. My reading of item #6 is that any item for which there was not a BoQ item shall be subject to prior agreement on price before the work is performed. My question is whether the amended letter of award was then incorporated...

Construction Law: Variations, FIDIC 4, Variations valuation
FIDIC 4, Variations valuation: Dear Prasath, You do not clarify the type of mistake. If the mistake is material and relevant, then the VO can be varied, despite all the signatures. I had a contract where the Engineer made a mistake in calculating the rate for an increased item. The...

Construction Law: Variations under FIDIC, lump sum contract, boq
lump sum contract, boq, correct assessment: Dear Alicia, As regards item x being there in BOQ but not in drawings, you will have to check the priority of documents to see whether its an extra item. As regards, items y and z, once the Engineer has accepted them as extra items, they have their own...

Construction Law: Variations under FIDIC, procedural guidelines, notice of claim
procedural guidelines, notice of claim, question thanks: Good Day Dwayne, Your interpretation is indeed correct. The Contractor does not have the right to revise, revoke or dismiss a valid variation. This right is reserved by the Engineer/ Employer s Representative only. However, consequential losses can be...

Construction Law: weightage for price adjustment, adjustable components, weightage
adjustable components, weightage, road projects: It depends on the type of project that you are executing. There are standard guidelines available such as MORTH Standard Data Book for Road Projects, or CWC guidelines of river valley projects. You may refer to the same. Regards Ashish Gura...

Construction Law: access route, nuclear agency, transport scheme
nuclear agency, transport scheme, exact route: Dear Rado, Thank you for your sending a question. It is clear that there was a discrepancy or error in information (“the route”) provided by the Employer to the Contractor during Tender Stage (7km). It is also clear that the Employer is responsible...

Construction Law: ambiguity, fidic, dump site
fidic, dump site, transport scheme: Dear Radoslav, Thanks for your question. I tend to reason with your opinion that the offer has clarified the matter. However, we need to double check some fundamental basis to justify this. The bases are as follows: 1. Which of the two came later? the...

Construction Law: Amendment to Contract, procurement law, fidic
procurement law, fidic, conditions of contract: Dear Kevin, Thank you for your question. Aren t you in fact talking about Yellow Book 99? I am unaware of that 95 edition. Presuming you actually do, I ll answer in that light, if that s not OK with you, please do come back with details and will...

Construction Law: CLAIM, disruption claim, inclement weather
disruption claim, inclement weather, subcontract agreement: Good day Mohammad, In order to answer your question properly, I would need to know what type of subcontract agreement was used to administer the works. If the contract is a domestic / bespoke (non standard form of contract) one, your means of recourse will...

Construction Law: CLAIM, disruption claim, subcontract work
disruption claim, subcontract work, main contractor: Thank you Mohammad, Yes, i agree with you, you can ask for disruption claim but it has to be in your contract else, it will be challenging to push it through. Again, you cannot unilaterally claim for acceleration without an instruction from the employer...

Construction Law: Claim for Early Termination of Contract, Termination of contract
Termination of contract: Dear Tariq H Ahmad Hello Your question is not quite clear regarding the termination of contract. Please furnish the complete information regarding the reason of termination of contract. If the early termination of contract before completion of project scope...

Construction Law: Claim without FIDIC standard form of Contract, unfair contract terms, main contractor
unfair contract terms, main contractor, overhead cost: Good Day to you Satiro, This is an interesting question which actually relates to situations some subcontractors face within the industry. When a Subcontractor enters into a contract with the Main contractor whether back to back or not, he as well...

Construction Law: Clause 27.1 Delay in Completion, fidic conditions of contract, mechanical works
fidic conditions of contract, mechanical works, half a percent: Thank you for this question. As indicated by your narrative, the 10% is calculated in reference to the contract price. If the contract value as stated in the LOI then became the contract price, that is the value to be used. I note that the Client has...

Construction Law: Commencement Date FIDIC RED, Right of access to the site
Right of access to the site: Dear Bilal Hello As per FIDIC red book clause 2.1;The Employer shall give the Contractor right of access to, and possession of, all parts of the Site within the time (or times) stated in the Contract Data. If no such time is stated in the Contract Data,...

Construction Law: conditional contract, conditional contract, straight forward answer
conditional contract, straight forward answer, contract sum: Dear Samuel, Thank you for your question. I believe the matter has no straight forward answer, but one needs to go into deep details and make a proper analysis of the facts and would need to look at the Particular Conditions and Appendix to Tender...

Construction Law: constractual mile stone, commencement day, external envelope
commencement day, external envelope, grid lines: Dear susmr, Thank you for coming back but i noticed your question today in the pending list rather then email notification. This delayed my response to you and i am sorry for that. Coming to your clarification on the grid line issue, it has to be linked...

Construction Law: Construction claim, construction claim, maqbool
construction claim, maqbool, steel plate: Dear Arif, Thank you for your question. Normally you should be able to propose the Employer whatever you consider appropriate and if Employer agrees, then you modify the Contract, based on that mutual agreement. But prior going there, I d suggest...

Construction Law: Construction law, relocation work, relevant authorities
relocation work, relevant authorities, law question: Dear Piyasoma, Ok. In this case, the costs pertaining to the coordination process to obtain authorities approval must be paid by the Employer. The percentage can be calculated by prorating the standard activities required to be completed before any authority...

Construction Law: Construction Law, FIDIC 99, clause 3.5
FIDIC 99, clause 3.5, consultation : Dear Mututantree, It would appear prudent to consult with both parties, if only to avoid accusations of failure to comply with the Contract. The Consultation need not be too long. I would like to know the contractual basis of your claim, considering...

Construction Law: Contract termination, contract termination, financial arrangement
contract termination, financial arrangement, local contractor: Hi, In case the Contract was terminated because of the Contractor s default, the Contract says that the Engineer is to instruct the Contractor about the protection and the safety works that he shall do. The Engineer is to determine the value of the works...

Construction Law: Contracts in Construction, construction question, testro
construction question, testro, text category: Hi Rey Printed text is what is in a standard form of contract such as Fidic. Written text is any ammendments to the contract or when particular shedules or appendices are filled in - letters also come in the written text category. I would expect the phrase...

Construction Law: Cost Claim, e mail address, civil engineering construction
e mail address, civil engineering construction, followup question: Dear Mohd. Yes, you can submit an EOT claim. However if the EOT is approved or determined by the Engineer, the Delays Damages (or LDs)shall be applicable after the revised Completion Date. The Delay Damages are not applicable if there is no time for...

Construction Law: Delay, Costs for Employer's delays.
Costs for Employer's delays.: Dear Suneth, You can claim costs (your costs include site overhead and head office overhead - see the definition of the Cost in the Clause 1 - and profit, because the delay was because of the Client. These costs and profit should refer to: 1) fluctuation...

Construction Law: delay notice, commencement day, design drawings
commencement day, design drawings, construction drawings: Dear Susmr, Thank you for coming back. Time for Completion only elapses as of Commencement Date, which is preceded by the Notice to Commence. If the Commencement Date, is delayed, then indeed, the Contractor may be able to demonstrate that original...

Construction Law: Design & Build Contract, thick wood, contract documents
thick wood, contract documents, wood floor: Dear David, Sorry for the delay in answering your question. First to begin, you have not identified the type of contract you are working with. Nevertheless, i will assume that it is a FIDIC type contract for Design & Build. In a Design & Build contract...

Construction Law: Determinning cost claim of idle equipment, depreciation charges, irrigation system
depreciation charges, irrigation system, owned equipment: Good Day, Sorry for not having answered your question sooner. Based on the scenario stated, the claim for depreciation charges for idle equipment on site for production equipment is indeed a valid entitlement to the Contractor. Return on Investment...

Construction Law: DRB or Arbitration?, FIDIC 99, Employer's Breach
FIDIC 99, Employer's Breach, Clause 4.10: Dear Robert, You have a problem and very little time to act. There are many instances in FIDIC CoC where a breach is defined, but no sanctions are defined. The Employer s failure to comply with clause 4.10 is one such case. I would ask what benefit...

Construction Law: Employer's duty to disclose, FIDIC 99, clause 4.10
FIDIC 99, clause 4.10: Dear Jose, Clause 4.10 states what the Employer must do. It does not mention the applicable sanction if the Employer fails in his obligations. You need to study clause 16.2 (perhaps clause 16.2 d) and see if you have contractual grounds for terminating...

Construction Law: Evaluating Variations, bills of quantities, followup question
bills of quantities, followup question, conditions of contract: Dear Tejas, If the Employer s specifications changes and the installation costs remain same; only the difference of costs pertaining to the supply of material or equipment shall be reimbursed. A reasonable analysis shall be presented. If it is evident that...

Construction Law: Expired contract, east consulting, completion period
east consulting, completion period, consultancy contract: Dear Rajesh, Thanks for your question. Q1. If i understand your question so well, you mean your contract period as the Consultant? if yes, and the Contractor has not finishe the work; it then means, your contract would need to be extended with your...

Construction Law: ambiguity, fidic, dump site
Construction Law: ambiguity, fidic, dump site, clarification

Construction Law: Claim without FIDIC standard form of Contract, kermit, thang
Construction Law: Claim without FIDIC standard form of Contract, kermit, thang

Construction Law: Construction claim, lump sum, thang
Construction Law: Construction claim, lump sum, thang, measurement

Construction Law: DRB or Arbitration?, drb
Construction Law: DRB or Arbitration?, drb

Construction Law: Evaluating Variations, tender time, period 2
Construction Law: Evaluating Variations, tender time, period 2, escalation

Construction Law: items of work not in the BOQ
Construction Law: items of work not in the BOQ

Construction Law: T.O.C., engineer, clause
Construction Law: T.O.C., engineer, clause

Construction Law: FIDIC 12.3, FIDIC 99, Clause 12.3
FIDIC 99, Clause 12.3, Varied rates: Dear Abhay, 1. Yes. All four conditions must be met. Note the word and at the end of paragraph (iii). 2. so, in this case, the cost of the item must vary by more than 8 per unit due to the increase in quantity. Be aware that the rate can decrease due...

Construction Law: FIDIC 1999 Red Book Notice of Intention to Claim, FIDIC 99, clause 20.1. claims submission.
FIDIC 99, clause 20.1. claims submission.: Dear Cedric, You are continuing to use emotive phrases, which will do your case no good in a court of law. You must be objective. The minimum specification is not the maximum specification and you could have brought trucks in from South Africa. The...

Construction Law: FIDIC 1999 Red Book Notice of Intention to Claim, tally sheets, consulting engineer
tally sheets, consulting engineer, suitable material: Dear Cedric, I don’t think the word “rejected their determination” is appropriate since an Engineer’s determination under sub-clause 3.5 does not require any approval from any Party. It his duty to determine the matter, consult with each Party and make...

Construction Law: FIDIC 2006-, CONTRACTOR'S CLAIM
CONTRACTOR'S CLAIM: Dear Rohana Thanks for come again,it is very clear that importation issues are not in the control of the Employer or Employer Personnel.Now it is clear that you can claim Extension of Time for completion under clause 20.1 for the reasons under 8.4(b)& (d)...

Construction Law: Fidic 99 - Lump Sum - Variations and Notice 20.1, variations, claim
variations, claim: Dear William You should be able to claim for variation for any changes made to your original contracts. such variations, if not initiated by the engineer, shall be initiated by the contractor by serving the proper notice promptly after discovering the incidences...

Construction Law: FIDIC new rate, bill of quantity, contract rate
bill of quantity, contract rate, e mail: Dear Chandika, Thank you for this further information. The quantity has increased by more than 25% of the original, so the requirement of sub-clause 12.3(a)(i) is satisfied. The change would increase the contract price by 120 No x NR12,000 = NR 1,440,000...

Construction Law: Idle Equipment Claim, Claim on suspension
Claim on suspension: Dear Hazrat Noor Hello Your question is not clear to reply: Whether the machinery are idle due to any suspension instructed by the Engineer? If yes then the Contractor shall be entitled to payment of the value (as at the date of suspension) of Plant and/or...

Construction Law: INTEREST ON DELAYED INTEREST PAYMENTS, Delayed Payment
Delayed Payment: Dear VLP Bhavaraju hello I am trying to reply your question, I think contract agreement should have the provision of Delayed Payment Clause and payment of financing charges compounded monthly on the amount unpaid during the period of delay will be paid by...

Construction Law: items of work not in the BOQ, kabayan, contract document
kabayan, contract document, bms: Dear Raul, Thank you for coming back. It’s a bit strange that General Conditions takes precedence over Particular Conditions. Nevertheless, your LOA takes precedence over BOQ, which means the conditions in your LOA shall prevail over BOQ. The Engineer...

Construction Law: lead time in extension of time claims, waiting periods, sithole
waiting periods, sithole, necessary conditions: Hi, Zsithole, The principle is this: when the Contractor is in culpable delay, i.e. when the Contractor caused the delay, no extension of time is to be given to him. Only when the actions or inactions of the Employer or Engineer caused the delays the Contractor...

Construction Law: Letter of credit, LoC's
LoC's: Dear Aziz, You can whatever you like with a LoC. However, I would include the provisions for the LoC in the Bid Documents, so that the bidders can include the price effect of any risk reduction in their offer. It is OK to use it for the foreign currency...

Construction Law: Limit on Variation, scope of works, procurement laws
scope of works, procurement laws, procurement regulations: Dear Iffat, You do not state the applicable law, form of contract, nor type of employer. If the Employer is a government body, then there could be something in the applicable law or procurement regulations which limits the size of a variation. If the...

Construction Law: Lump sum contract, lump sum contract, bill of quantities
lump sum contract, bill of quantities, work scope: Dear Tamer, Thank you for this question. The answer will depend upon several facts not disclosed by your question; for example, who prepared the Bill of Quantities and how was the contract negotiated? It is accepted that in a lump sum contract the...

Construction Law: lump sum contracts, BOQ, Lump
BOQ, Lump, sum: Dear Mutasem The conditions for lump sum contracts is based on the contractor reading all documents together, the qty in BOQ are not accurate, and the drawings have precedence over boq. this means that you are obliged to do the 6000 m3. You can advise me...

Construction Law: Main Contractor Coordination fees, nsc works, civil engineering construction
nsc works, civil engineering construction, fidic conditions: Dear nelly, I assume you are using b FIDIC 1999 /b and under FIDIC 1999 NSC is under clause 5 and I also assume that you are using b FIDIC Conditions of Subcontract for Works of Civil Engineering Construction /b 1994 for NSC. I will also use your...

Construction Law: Materails At Site Claim, price escalation, sri lankan economy
price escalation, sri lankan economy, ventilation fan: Dear Kumara Still I can t understand your concern as you will apply same escalation percentage for a particular batch of material. However please refer Appendix To Tender; which should define the exact methodology to be used for MOS valuation Material...

Construction Law: Materials on Site, price, escalation
price, escalation, fidic: dear Kumara it is my understanding that the price escalation is based on the difference between the base price and the purchase price. IE it will not make any difference when you will inter the material on site in your interim payment because the calculation...

Construction Law: Mobilization fee, ground floor walls, tender dossier
ground floor walls, tender dossier, bidding document: Dear John, Thank you for coming back. That Draw Schedule must be there for a reason and I believe it is in fact, somehow included in the Contract, in which case you have your answer. Was that Schedule included in the Tender Dossier/ Bidding Document,...

Construction Law: Omission Clause in Fidic, dear madam, educational purpose
dear madam, educational purpose, contract price: Hi, In principle is simple: whenever the Contractor had to do some works according to the Contract, but the Engineer (or the Employer) tells to him that part of these works are not to be done anymore, the Contractor shall be compensated for his loss, if any....

Construction Law: Performance bond and Retention in Lumpsum Contracts, good reply, interim payments
good reply, interim payments, additional works: Dear Mohamed, The purpose of Performance Guarantee under FIDIC is for proper performance of the Contractor. It should not be deducted from Interim Payments as you mentioned, once the Employer is entitled to any claim under the contract, he may claim...

Construction Law: pre contract, Advance Payment
Advance Payment: Hi Miabzar In some projects the employer pays the contractor an advance payment before work starts - usually 10% of the contract price. This payment is recovered during the progress of the work by a pro rata deduction from the interim payments. Hence Advance...

Construction Law: Preliminaries, management staffs, tower crane
management staffs, tower crane, construction time: Dear Viet Do, Thank you for your question. First of all, it is very important to carefully read and eventually consult a local lawyer, in respect of wording of that agreement, whereby the Parties have agreed that granted extension of Time is ... without...

Construction Law: Price adjustment, contractual support, contract index
contractual support, contract index, price inflation: Hi Get I think you have misunderstood what I meant by country of source . For instance if the Base Price Index included the purchase price of Cement from a local supplier that would not be the same as say - special valves from Japan. The contractor agreed...

Construction Law: Price adjustment clause 13.8, verbal explanation, price adjustments
verbal explanation, price adjustments, year construction: Dear Dragan, I cannot make sense of the graphs due to lack of information. I would need the following as a minimum for a detailed appraisal of your comments:- 1. Value of IPC on a monthly basis; 2. Indexation factor on a monthly basis - I assume the...

Construction Law: Quantity Surveying, civil engineering standard method of measurement, standard method of measurement
civil engineering standard method of measurement, standard method of measurement, cesmm: Dear Mr. Ahmed, Thanks for your Questions. The Standard Method of Measurements and Civil Engineering Standard Method of Measurement are dealing the type of measurements only. But, the SMM is well detailed and preparing BOQ by using SMM will take higher...

Construction Law: rate-only items in BoQ, rate-only items stipulation
rate-only items stipulation: Dear Basudev Misra Sorry I couldn t understand the question. Now I reply the question as below.GFR rule 155,clearly mentioned that: Rule 155. Contents of Bidding Document : All the terms, conditions, stipulations and information to be incorporated in the...

Construction Law: Re-measured Contract, lump sum contract, answer sessions
lump sum contract, answer sessions, boq: Dear Abdul, Thank you for this question. This is, potentially, a complex issue. When the quantities were queried prior to tender the Employer should have issued a clarification document instructing the bidders to amend the quantities accordingly. If...

Construction Law: Remeasure Contract, bill of quantities, star rates
bill of quantities, star rates, interim payments: Dear Ahmed, The Re-measurement Contract contains a Bill of Quantities which is estimated and not final . The contractor quotes against each BOQ item and enter a unit rate thereby making a total amount. During the interim payments; joint measurements...

Construction Law: Revokation of termination, contract agreement, contract conditions
contract agreement, contract conditions, termination of contract: Dear SANJAY, 1- Client has right to revoke the termination , they have to give only information to Engineer. 2- Any agreement done referring to the original contract is a part of the Contract. 1- Yes, take it this way , an amendment done to the contract...

Construction Law: Off setting additional consultants fees., rectification work, defects liability period
rectification work, defects liability period, dear james: Dear James, Thank you for this question. My suggestion would be that for certainty the contract should be amended, in respect of sub-clause 2.38, to make clear that the Contractor is to bear any cost incurred by the Employer in respect of the Architect...

Construction Law: Site, FIDIC 4, Access to Site
FIDIC 4, Access to Site: Dear Khan, If there is nothing to the contrary in the contract, then it is the Contractor s responsibility to ensure that he has access to the site boundary. All sorts of things can go wrong with land purchase. A prudent bidder would have a conditional...

Construction Law: Standing Time For Tipper Trucks, tipper trucks, lorry owners
tipper trucks, lorry owners, thanks in advance: Hi Munya, I suggest that you negotiate a middle course, where you take some of the pain and they take some of the pain, especially if it was your fault that there was a fuel shortage. Forget emotion and work out how much it will cost you to defend the...

Construction Law: Sub-Clause 16.2, FIDIC 99, clause 16.2 Termination
FIDIC 99, clause 16.2 Termination: Dear widyapraja, 1. The period is 56+14 days notice. However, you must get legal advice before issuing the notice to be sure that it is legal under the applicable law. 2. It is mandatory to give notice to the employer prior to terminating. By mutual...

Construction Law: Suspension of Works, suspension of work, claim
suspension of work, claim: Dear Tariq H Ahmad Hello I am taking the opportunity to reply your question; your question is that the;Is one entitled to claim the demobilisation and demobilisation charges as well plus idling of manpower and machinery costs on suspension of work? Under...

Construction Law: T.O.C, defects liability period, contractual provision
defects liability period, contractual provision, performance certificate: Dear Tamer, Apologies for the lateness in responding to your question. You want to know when to issue final T.O.C. My response is that, you do not have to issue any final T.O.C. I believe the scope of the works (section or part thereof) for which...

Construction Law: T.O.C., consultant company, e mail
consultant company, e mail, sectional: Dear Tamer, Thank you for this question. Firstly, I assume that the contract provides for taking-over in sections. If it does not you should be considering seeking the contractor s agreement to the partial possession and/or use that is intended. ...

Construction Law: Taking over of the parts of works, Taking Over Certificate, Deemed Completion
Taking Over Certificate, Deemed Completion: Hi Mansur If the works are divided into sectional completion zones with attached liquidated damages then the Contractor should apply for taking over certificates for these parts. Of course each section must be complete before a taking over certificate can...

Construction Law: Termination by Contractor, termination by contractor
termination by contractor: Dear Widyapraja hello I am taking the opportunity to reply your questions, your questions are; (1)Does the Contractor entitle to terminate himself instantly after the Engineer fails within 56 days after receiving statement or otherwise after expiry of...

Construction Law: TERMINATION BY THE EMPLOYER, FIDIC 99, delayed completion
FIDIC 99, delayed completion: Dear Anastasios, There you are on a 50M+ Euro contract and you expect salvation from a free service. Well they say that hope springs eternal. You don t say the reason for the absolute deadline, nor whether your are employed by the Contractor, the Employer...

Construction Law: variation or claim, FIDIC 99, Yellow Book
FIDIC 99, Yellow Book, Omissions: Dear Radoslav, I think that you should respond to the notice under 5.1 and issue the variation, with attendant cost and time effects. Hopefully, the contractor will not pursue his claim and you can respond by saying that the matter is resolved. The important...

Construction Law: Variation Claims, monetary claims, fidic
monetary claims, fidic, mandatory language: Dear Abdul, Thank you for this question. Referring to the FIDIC 199 contract for building and engineering works designed by the Employer (the Red Book) sub-clause 20.1 sets out the process, which I summarise here. 1. Event occurs. 2. Contractor...

Construction Law: Variation Order, scope of works, fidic
scope of works, fidic, breach of contract: Dear Mahdi, Still you did not mention the form of contract you are using, thus my reply will be based on FIDIC 1999. Assuming the instruction is within the scope of contract, thus in accordance with sub-clause 13.1 the Contractor shall b execute...

Construction Law: Variation procedure in FIDIC Conditions of Contract for Plant and Design Build (Yellow Book), First Edition 1999, FIDIC 99, YB
FIDIC 99, YB, clause 13.3: Dear Hardy, The Contractor cannot vary the Works without an instruction in writing from the Engineer. Clause 13.3 refers to a request for a proposal. A proposal is not an instruction. So the work covered by the proposal does not become part of the Contract...

Construction Law: Variations, employer contractor, boq
employer contractor, boq, lumpsum: Dear Chris, First of all let me welcome you to this platform. Scenario No. 1: What you have done is obvious. The Engineer can omit such items and replace it with another. Accordingly the cost adjustments needs to be done. The Contractor argument...

Construction Law: boq item not in specifications, contract quantities, kind reply
contract quantities, kind reply, cost estimators: Dear Ruyhan EL-laithy Hello It is my pleasure to listen you once again. In your case, it is clear that item included in the contract as only rate the item with total provisional amount is 8 million dirahams. Contract specifications are not included the...

Construction Law: bypass my authority, necessary inspections, 7 months
necessary inspections, 7 months, sanctions: Dear Shadi, I am not sure that I can answer your question effectively without a lot more information. A difficult, but not unusual situation. If you are responsible for certifying payment, then the solution is easy - do not issue any payment certificates...

Construction Law: Claims, Claim
Claim: Dear Sachin Hello It is great pleasure to listen you again. Out of the contract your claim will be admissible on merit basis as per provision of contract agreement for dispute resolution. If conditions are allowed for claim,claim not paid by the client...

Construction Law: Construction/basis of design specs on government projects, unauthorized deviation, compliant material
unauthorized deviation, compliant material, Shop Drawing: 10-Jan-2013 Thank you for your question, Lori. From the statement of your question it appears that the type of the contract your client – the Architect / Engineer (“A/E” or “Design Professional” or “DP”) on a large government project – is involved in the...

Construction Law: Construction Contract - NOC's & Permits, project execution, relevant authorities
project execution, relevant authorities, issuing authority: Dear Mani, Its an interesting situation. Since the unhappiness is just emotional factor I wont be able to comment on that. However situation has to be considered and if the Contractor can prove that this situation is change in Authority Regulation ...he...

Construction Law: construction law, scope of works, contract works
scope of works, contract works, contract conditions: Good Day Hannah, Thank you for selecting me to answer your questions. With reference to determination and termination, my understanding is as follows: The terms Determination and Termination of contract are used interchangeably. Generally they both...

Construction Law: Contract Differences, contract type, lump sum
contract type, lump sum, nominated sub-contractor: 22-Jan-2013 Dear Jay, Thank you for the inquiry titled “Contract Differences.” 1. What are the major contractual differences between a Fixed Lump Sum (All-in) and Fixed Lump Sum (with Nominated Sub-Contractor for long lead items) and Owner Supplied Materials...

Construction Law: Contract Drawings, contract drawings, shop drawings
contract drawings, shop drawings, ordering materials: Dear Marc, Thank you for your question. That should be specified in the Contract, but in general, that is to be well in time, for enabling the Contractor to proceed with the Works, as per their Work Programme. That might include time for ordering...

Construction Law: Delay damages, EOT, FIDC
EOT, FIDC, 2005: Dear Otabek I have difficulty in understanding both questions but in general: Regarding first question: The contract is delayed and the imposed penalty on the contractor shall be as stated in the Contract Data ( Appendix to Tender). This Contract Data section...

Construction Law: Engineer not approving alternate material, undertaking letter, material submission
undertaking letter, material submission, alternate material: Dear Rameesha, Thank you for this question. The Contractor was granted approval for the alternative material it submitted. From your narrative I understand that the contract named a brand but allowed an approved alternative. If the new Engineer (Engineer...

Construction Law: EOT against delay payment, exact days, delay payment
exact days, delay payment, conditions of contract: Dear raja, In accordance with 60.10 the amount due to the Contractor as certified by the Engineer shall be paid by the Employer within 28 days after such certificate has been delivered to the Employer. The Employer is also required to pay interest at the...

Construction Law: Extension of contract time, EOT, Programm review
EOT, Programm review: Dear Sir, It is your business/entrepreneurial skills to lead to a win- win decision. We are of the opinion, to complete your working/finalization of your recommendations for the project revised schedule/EOT request and sending it to the Employer for his consent...

Construction Law: Extension of contract time, relevant clauses, contract clauses
relevant clauses, contract clauses, consultancy contract: Hi Murodjon From which standpoint are you asking this question? Consultant - Contractor or Client? Also the following points are not clear: 1. Is the contract works complete - when was the certificate of completion issued? 2. At the moment the consultancy...

Construction Law: Extension of Subcontractor’s Time for Completionh, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Mr. Dan, Thank you for another question and appreciate your comments on my earlier response although it contains some typing errors. As discussed earlier, the two contracts (s/c & m/c) are to be dealt with independently unless both contain like provisions...

Construction Law: Extension of Subcontractor’s Time for Completionk, LD's, EOT
LD's, EOT, SUB-CONTRACTOR: Dear Dan, We have the following comments/suggestions on the question: 1. S/C is entitled to receive EOT for reasons beyond the granted EOT to m/c provided by the condition that s/c EOT is not tied –up with the EOT of the m/c. We passed through a contract...

Construction Law: Extension of Subcontractor’s Time for Completionl, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Dan, I will reply back in parawise order. 1. If the S/c is delayed by M/c more than the EoT granted, then burden and responsibility belongs to M/c. Same case as if you consider M/c as your Employer and due to reasons caused by him S/c is delayed,...

Construction Law: Extension of Subcontractor’s Time for Completionc, EOT of sub contractor
EOT of sub contractor: Dear Dan Hello, Happy new year. Sorry for delaying in reply. 1. What if the s/c is delayed by m/c more that the EOT granted to m/c? If any work delayed due to any reasonable reason and EOT granted on that reason to m/c, then s/c is liable for that EOT...

Construction Law: Extension of Subcontractor’s Time for Completionj, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Dan, Thank you for your question. Please find below my answers. 01. b What delays where considered in that EoT? /b Delay due to Employers default, MC or both? b What is the reason for MC delaying the SC? /b Was it because of MCs default,...

Construction Law: Extension of Subcontractor’s Time for Completionm, FIDIC 4, S/C
FIDIC 4, S/C, delays: Dear Dan, This question is rather longer and more detailed than some on this site but here goes:- 1. What if the s/c is delayed by m/c more that the EOT granted to m/c? This situation is rather common. It depends on who caused the delay and the s/c...

Construction Law: Extension of Subcontractor’s Time for Completiono, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Dan, Appreciate your well articulated Question and apologies for delay your questions can be replied at 2 levels, one is within the contract and other is Under UAE law. 1. What if the s/c is delayed by m/c more that the EOT granted to m/c? ...

Construction Law: Extension of Subcontractor’s Time for Completion a, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Dan, My replies to each of your are as below: 1. What if the s/c is delayed by m/c more that the EOT granted to m/c? --- This shall be purely on the b basis of dominant delay event. 2. Sometimes EOT to m/c will be 100 days while the s/c Time...

Construction Law: Extension of Subcontractor’s Time for Completionn, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Dan The following are my answers is sequential ordered as per your email. 1- Then the s/c is entitled for all the delay 2- The EOT to S/C is not related to main Contractor EOT when not affected by the cause/effect relation 3- Yes if he wishes so...

Construction Law: Extension of Subcontractor’s Time for Completionp, delay, Extension of Time (EOT)
delay, Extension of Time (EOT), Liquidiated Damages: Hello Dan. Thanks for the question(s) – they are very, very intense. 1. What if the s/c is delayed by m/c more that the EOT granted to m/c? Answer-1: It seems the quoted sub-contract clause, Provided that the Subcontractor shall not be entitled...

Construction Law: Extension of Subcontractor’s Time for Completionf, civil engineering construction, fidic conditions
civil engineering construction, fidic conditions, eot: Dear Dan, Thank you for your question. Firstly, you should consider the two contracts, entirely separately, you (the SC) are the Contractor and the MC is your Employer. Whatever contract has your MC with his Employer, is none of your business, except...

Construction Law: Monthly Report and Suspension, ipc, obligation
Construction Law: Monthly Report and Suspension, ipc, obligation, engineer

Construction Law: Omission work
Construction Law: Omission work

Construction Law: RE: FORM OF TENDER, first instance, priority
Construction Law: RE: FORM OF TENDER, first instance, priority, mr john

Construction Law: Feasibilty Study, feasibility study report, interface issues
feasibility study report, interface issues, cerno: Dear Abdul, Thank you for this question. Please advise which of the several forms of FIDIC 1999 contract applies to your project, as this would make a difference to my answer. Kind regards, John Dowse Follow me on Twitter: @CernoOrg For...

Construction Law: FIDIC, FIDIC 4, EoT
FIDIC 4, EoT: Dear John, Was it a referendum or an election? If an election, it could have been foreseen and allowed for, even if the actual timing might not have been known. If it was a referendum, it was unforeseeable and thus an allowable claim. I would suggest...

Construction Law: FIDIC 87 - Approval for Alternate Material, undertaking letter, material submission
undertaking letter, material submission, alternate material: Dear Rameesha, First of all, till to the time of replacement of the Engineer, there was an Engineer at site, so that all work done and material used approved by him are considered approved. If the new Engineer request you to change approved material already...

Construction Law: FIDIC 87 - Approval for Material, FIDIC 4, Materials
FIDIC 4, Materials, Engineer's approval: Dear Rameesha, A fairly common problem with a change in engineer, especially in your part of the World - the new Engineer does not wish to get replaced as the previous one was, so he will do as much as possible to avoid extra costs for the Employer. Really,...

Construction Law: FIDIC Claims, referendum days, head office staff
referendum days, head office staff, constitutional referendum: Dear John, I suggest clause 70 of FIDIC 4 & clause 13.7 of FIDIC 99 under the heading of changes in legislation would be appropriate. The requests for reimbursement of extra costs or extension of time or both would be submitted under the normal clauses...

Construction Law: FIDIC- Engineer is not approving alternate material, undertaking letter, material submission
undertaking letter, material submission, alternate material: Dear Rameesha, Sorry for the delay which is because of technical reasons. 1- Yes they can continue with the approved material. In Contract Engineer is specified and their responsibilities are also specified. Contractor has no responsibility for the...

Construction Law: Government Order to increase wages, Force Majeure, Unjust Enrichment
Force Majeure, Unjust Enrichment: Hi Samuel Even in a fixed price lump sum contract there is usually a clause in the Contract that allows for compensation for changes in Government Laws. Read through the terms and conditions of the Contract to find that clause and follow the text. If there...

Construction Law: Idle Plant FIDIC 1998, depreciation method, specialist machinery
depreciation method, specialist machinery, specialized machinery: Dear Steven, A fairly common problem. You can try a couple of approaches, local hire rates for similar equipment or a depreciation calculation with static running costs (operator(s) and support costs). It depends on which the engineer will accept. Depreciation...

Construction Law: IPC issueance, Interim Payment, delayed review
Interim Payment, delayed review, FIDIC-2005: Hello Mansur, Thank you for your inquiry. Based on the facts stated in your inquiry, I do not believe your company – a supervising consultant acting under FIDIC-2005-MDB, is in breach. Here is why. The 28-day period associated with review of any submittal...

Construction Law: joint venture, FIDIC 99, JV
FIDIC 99, JV, Bankruptcy of a partner: dear ro, I think that you should take proper legal advice and then advise the Employer of the situation. It does not matter how I, or even you, see the risk, but what is written in the contract and how the Employer feels about the situation. Hiding relevant...

Construction Law: Lack of Progress, Resource Modelling
Resource Modelling: Hi Aryan I will try and give you a simple example based on a task for a block wall 1000 m2. If a mason can lay 2 m2 per hour then he will take 500 hours to build the wall which in a 10 hour day would be completed in 50 days. That is resource modelling. If...

Construction Law: Main Contractor Disruption, time at large
time at large: Hi Dan OK it is much simpler now. Q1 and Q3 is linked. If the sub-contract does not allow for the S/C EoT to exceed an EoT award to the MC and the delay is caused by the MC (or the Employer through the MC) then the sub-contract time is set at large. This...

Construction Law: mechanical system work, FIDIC 99, RB Design
FIDIC 99, RB Design: Dear Shadi, I assume that you are using FIDIC Red Book and that the Contractor has no responsibility for design. In this situation, it is the Employer s responsibility to define the works, including the pump. If you did not have a clear specification...

Construction Law: How can we minimize the exposure of risk when we enter the overseas market using contract management?, project cash flow, negative cash flow
project cash flow, negative cash flow, government insurance: Dear Satrio, I think that there is a low possibility of any partners accepting your conditions, especially as part of the losses or negative cash flow could be caused by your actions or inactions. You can minimise your exposure to risk by paying for insurance...

Construction Law: Monetary Penalty Clause, liquidated damages, penalty
liquidated damages, penalty, late completion: Hello Don, Thank you for the question. A simple answer to your question is No, - the Owner does not have to include a Bonus clause into a contract, for Contractor s early completion of the work. This is purely optional to the Party who prepares the...

Construction Law: Monthly Report and Suspension, FIDIC 99, Monthly Report
FIDIC 99, Monthly Report, Clause 4.21: Dear Nikolaos, It might be an obligation, but it would be a foolhardy client or engineer that tried to enforce it when the contract is suspended. I suggest that you concentrate on getting the Employer to fulfil his obligations rather than hitting on the...

Construction Law: new item rate, bill of quantities, cost estimators
bill of quantities, cost estimators, kind reply: Dear Ruyhan, According to Sub-Clause 1.1.4.10 “Provisional Sum” means a sum which is specified in the Contract as a provisional sum, for the execution of any part of the Works or for the supply of Plant, Materials or services under Sub-Clause 13.5. Provisional...

Construction Law: Nominated Sub / Provisional Sum, FIDIC 99, Clause 13.7
FIDIC 99, Clause 13.7, PS: Dear Jihad, It all depends on the expertise of the parties. There could be an argument to apply both percentages, which might be a bit excessive as the amounts are meant to reimburse the Contractor for his overheads and profit related to the item. However,...