Civil Engineering/Adjustment on ICB Contract
I am dealing with ICB contract,as per contract, I have to pay the IPCs 30% in PAKRs. and 70% in US$ for which I have to pay PAKRs. Day by day PAKRs is depreciating with respect to UD$, so according to FIDIC GCC Clause 13.8 the expected adjustment amount is crossing 20% to 25%. as for as the progress is concerned, the contractor is always beyond the work programme. The detailed work programme was submitted within 28 days after commencement of work but still have not been approved by the Engineer. Engineer has been always returning back the programme with comments and asking the contractor to incorporate comments and resubmit. Now my question is that, how i should control the adjustment????
ANSWER: Dear Ali
You should Finalize your schedule and have a meeting with consultant and minute all claims and also your own claim. As I know , no limit exists about the adjustment factor.
---------- FOLLOW-UP ----------
QUESTION: Dear Sir, first of all I thank you for your quick response.
Now, whatever you have suggested, It means that if Contractor delays work with consent of Engineer just for the sake of extra claims in shape of adjustment, I just accept their claims!!???.
Other thing, I agree with your advice about schedule and now it has been finalized. But, it is mentioned in FIDIC GCC clause-8.3 "The Contractor shall also submit a revised programme whenever the previous programme is inconsistent with actual progress or with the Contractor's bligations."
Now After finalizing schedule, may I penalize or not the contractor for delayed activities????
Every delay in critical path of project which is with agreement or under Engineers responsibility , must be recompensed in adjustment. Then you must be able to manage the situation to have efficient critical path at first and not to deviate in it.
After finalizing an agreed program with clear critical path ( s) you can define penalties for the contractor not being able to keep the critical path. Engineers must be able to define very clear set of critical path.
Regards and sorry for delay