Expert: Emilian TRAISTA - 3/22/2009

Question
Hi,
I have another question and like to have your opinion on this.If a contractor whose payment was delayed by two months, has been compensated by employer with interest rates mentioned in the contract. Apart from this,contractor is also asking for EOT for two months on the basis of disruption in cashflow etc.The contract provide for interest rate payment compensation only.I need Your views on this.Thanking you in advance.
Regards-liaqat hayat

Answer
Dear Mr. Liaqat Hayat,

You wrote: "The contract provides for interest rate payment compensation only." In my opinion, this is the answer to your question.
When signing the Contract, the Contractor agreed on this. If he wants to change this (or other provision in the Contract) he must have solid grounds in the Contract (or in the applicable Law).
It is the Engineer's main role to "help" the Parties to "play" by the rule (of the Contract) and to resist (as much as possible and as much as reasonable) any Party's attempt to change these rules during the "game".

My dear friend, my answer is:
The Contractor cannot be entitled to more than the Contract provides: compensation for late payment.

I hope my answer will help you.
Yours sincerely,
Emilian