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Civil Engineering/Clause 20 Clarifications



Different queries regarding costs claims from various Public Sector Formations are being submitted to us for review and advice from time to time. Text of some paras of Clause 20 is reproduced for ease of reference please.

(i)   Para-1
If the Contractor considers himself to be entitled to any extension of the Time for Completion and/or any additional payment, under any Clause of these Conditions or otherwise in connection with the Contract, the Contractor shall give notice to the Engineer, describing, the event or circumstance giving rise to the claim. The notice shall be given as soon as practicable, and not later than 28 days after the Contractor became aware, or should have become aware, of the event or circumstance.

(ii)   Para-3
The Contractor shall also submit any other notices which are required by the Contract, and supporting particulars for the claim, all as relevant to such event or circumstance.

(iii)   Para-5
Within 42 days after the Contractor became aware (or should have become aware) of the event or circumstance giving rise to the claim, or within such other period as may be proposed by the contractor and approved by the Engineer, the Contractor shall send to the Engineer a fully detailed claim which includes full supporting particulars of the basis of the claim and of the extension of time and/or additional payment claimed. If the event or circumstance giving rise to the claim has a continuing effect:
(a)   this fully detailed claim shall be considered as interim;
(b)   the contractor shall send further interim claims at monthly intervals, giving the accumulated delay and/or amount claimed, and such further particulars as the Engineer may reasonably require; and
(c)   the contractor shall send a final claim within 28 days after the end of the effects resulting from the event or circumstance, or within such other period as may be proposed by the Contractor and approved by the Engineer.
(vi)   Para-7
         Within the above defined period of 42 days, the Engineer shall proceed in accordance with Sub-Clause-3.5 [Determinations] to agree or determine (i) the extension (if any) of the Time for Completion (before or after its expiry) in accordance with Sub-Clause-8.4 [Extension of Time for Completion], and/or (ii) the additional payment (if any) to which the Contractor is entitled under the Contractor.

(vii)   Para-8
Each payment Certificate shall include such additional payment for any claim as has been reasonably substantiated as due under the relevant provision of the Contract. Unless and until the particulars supplied are sufficient to substantiate the whole of the claim, the Contractor shall only be entitled to payment for such part of the claim as he has been able to substantiate.

In order to provide our comments on the afore-mentioned claims, please advice on the following legal aspects: -

(i)   If Contractor fails to provide notice under Paras-1 or Para-3, then contractor’s claim shall be processed or no action is required by the Engineer/The Employer.

(ii)   If Contractor fails to maintain contemporary records to substantiate any claim, then contractor’s claim prepared in accordance with standard formulas or theoretical basis be entertained or otherwise.

(iii)   If the Contractor fails to submit his claim within stipulated period, then contractor’s claim be rejected or otherwise.

(iv)   If the Contractor submit the notice or claim without referring the pertinent Clause/Sub-Clause, then contractor’s claim be analyzed or otherwise.

(v)   What shall be the requisite/mandatory documents for contemporary record?

Dear Inam

The claims must be on time and documented, unless there is an excuse like the engineers or employer being out of reach or a direct and urgent order of the employer make an urgent situation for the contractor. But allways the contractor should give his written notes. After all the contractor can claim based on reliable documents in any time provided that he can prove his claim based on actual situation and theoretical facts. If you dont have observable facts to prove your claim, there is no obligation for the engineers to accept your claim even to investigate the situation.


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Babak Esmailzadeh Hakimi


I can answer questions in Structural Engineering, Earthquake Engineering, Project Management and Project Control topics!


I am experienced in the area of earthquake engineering in electrical power industry, i.e. Lifeline Earthquake Engineering. My focus has been on structural seismic design of power installations. Recently I have got involved in project management in the category of constructional engineering.

Sinam Consulting Engineers Co.

Bs degree in Civil Engineering from Ferdowsi University ,1988, Mashhad Iran, Ms degree in Earthquake Engineering, Sharif University of Technology, 1993, Tehran, Iran

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