Construction Law/FIDIC Red Book

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Expert: - 2/2/2012


Question
During work in progess a payment for 'material on order' occurred.
My question is: how will such amount be recovered in the subsequent interim certificates?.  Is it treated in the same way as 'material on site'?

Answer
Dear Zahra,
Thank you for your question.
I am inclined to agree with your approach to treat the matter on same lines as in case of "material on site". You have to take care, however, if the purchase order placement terms are not different of conflicting. The normal procedure adopted is to affect recoveries on the basis of actual consumption from IPCs. I hope this answer your question. If not, please come back with a supplementary question.
Kind Regards,
Liaqat Hayat  

Construction Law

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Liaqat Hayat

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I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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