Construction Dispute Resolutions/FIDIC Red Book 1999 - Term

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Question
Good Day Sir,
Presently on a project where the works are suspended under Clause 16 due to non payment of Interim Payments.
During the this delay period, imported equipment (major) arrived on port, was cleared and stored for delivery to site.
Question:
Can the contractor claim for interim payment certificate(s) while the works are suspended. Does FIDIC 1999 red book address this.?

Under the circumstances, we would want to claim for material off site following the standard procedure.

Your advise is invaluable; Thanks in advance.

Answer
Dear Mr Neville,
Sorry for the delayed response.
I hope you had given sufficient notice of suspension of site works due to non payment by the owner. That notice should have covered the aspects on how you would claim for the outsourced materials for which order has been placed / or in transit.
Ideally, the contractor is eligible for the works already order placed / under shipping / clearance even though the site works are suspended. Because, any procurement involves upfront payment and resources.
FIDIC red book covers this situation on a overall manner under suspension of works but does not cover in specific instances. Because, it is expected that this to be covered under particular conditions of contract as this matter is purely the understanding between owner and contractor. If this arrangement is not covered in particular conditions of contract also, still the contractor is eligible to claim for material off site following the standard procedure.
regards,
r sivaraman

Construction Dispute Resolutions

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r sivaraman

Expertise

I can answer questions related to construction contract formation, contract management, dispute resolution especially arbitration, contract closure procedures i can not answer question on price negotiation prior to forming contracts

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I have 20 years of experience in contracting strategies, contract framing, contract administration in various capacities representing consulting companies, project management consultants, contractors and client i have 9 years of experience in construction dispute resolution (mediation and arbitration) between contractors and owners

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Member in the Institution of Engineers Member in the Institution of Technical Arbitrators Fellow in the Institution of Valuers Member of Indian Concrete Institute

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Diploma in Civil Engineering Diploma in Construction Management Bachelor's degree in Civil Engineering Currently pursuing masters in real estate valuation

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I am somewhere at the top but nowhere near the medals

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