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Construction Law/Claim - notification and substantiation period

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Question
Dear Sanjay,

As per Clause 20.1 of FIDIC 1999,
'If the Contractor considers himself to be entitled to any EOT...the Contractor shall give notice to the Engineer, describing the event or circumstance giving rise to the claim...

If the Contractor fails to give notice of a claim within such period of 28 days, the Time for Completion shall not be extended, the Contractor shall not be entitled to additional payment, and the Employer shall be discharged from all liability in connection with the claim'

With regard to notification, the time frame and the consequences are very clear.


'Within 42 days after the Contractor became aware (or should have) become aware of the event or circumstances giving rise to the claim, or within such 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.'

With regard to substantiation, they have stated the time frame but the consequences are none.

So does this mean that in case the Contractor is delayed for issuing the particular, and he can justify the reason for delay, is the Contractor still eligible for EOT and its compensation?

Thank you

Answer
Dear Mohamed Rabeeh
Hello
I taking the opportunity to clarify the matter as below;
Firstly the time frame for the notice by the contractor in the event of "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."
Secondly "If the Contractor fails to give notice of a claim within such period of 28 days, the Time for Completion shall not be extended, the Contractor shall not be entitled to additional payment, and the Employer shall be discharged from all liability in connection with the claim. Otherwise, the following provisions of this Sub-Clause shall apply."

It is clear from the above that; if the contractor fails to notify the claim within 28 days after contractor become aware,or should have become aware, of the event or circumstances. The Time for Completion shall not be extended,the contractor shall not be entitled to additional payment.

On the other part FIDIC 99 provision provides the period of 42 days or the period proposed by the contractor and approved by the Engineer for the submission of detailed claim as prescribed.

"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.
It is very clear from the above notices are to given within the period of 28 days and the detailed claim to be submit within 42 days after "Contractor became aware (or should have become aware) of the event or circumstance giving rise to the claim". The Contractor shall send a final claim within 28 days after the end of the effects resulting from the event or circumstance.
I hope this will clear your query that, contractor can not delay to submit the particulars of claim.If any delay in notify the event or circumstances of claim, the claim can not be considerable for that event or circumstances.
With best regards
Sanjay Khandelwal

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Construction Law

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Sanjay Khandelwal

Expertise

I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.

Experience

I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

Organizations
I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

Education/Credentials
My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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