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Construction Law/EOT against delay payment


Road Project, Contract based on FIDIC 1987 edition 4th.
Project Cost: 1,700,000,000         
Project Time:   12-Feb-11   11-Feb-13   730
What is net effect of delayed payments on time completion? For example our payments delayed as under
IPC#01   Approved Amount: 133,059,747      
Payment Due Date      26-Apr-11      
Payment Released Date      20-Feb-12      
Delayed Days          300      
IPC#02:   Approved Amount: 59,845,436   
Payment Due Date      24-Jun-12      
Payment Released Date      15-Oct-12      
Delayed Days          113      
IPC#03: Approved Amount:  69,836,974      
Payment Due Date      27-Jul-12      
Payment Released Date      7-Jan-13      
Delayed Days          164      

How to calculate the exact days for time extension against delayed payments.

Dear raja,

In accordance with 60.10 the amount due to the Contractor as certified by the Engineer shall be paid by the Employer within 28 days after such certificate has been delivered to the Employer. The Employer is also required to pay interest at the rate stipulated in the Appendix to Tender.

Should the Employer fail to pay the Contractor within the time specified under subclause 60.10, the Contractor is also entitle to terminate the Contract pursuant to subclause 69.1.

It is important that the Contractor received the amount of money as certified on time frame stipulated in the contract. If there is a delay in payment, he (the Contractor) may have difficulty in providing his resources, pay the subcontractors, pay his workers and staff, rents etc.

If there is a delay and such delay impacted the Time for Completion and it's a claimable delay under the Conditions of Contract, the Contractor is entitled to an EoT.

EoT is covered under 44.1, should there be any event which belongs to items a to e of subclause 44.1, the Engineer shall consult the Employer and Contractor and determine the amount of extention which is fair to the Contractor. The Contractor is also responsible to provide notification to the Engineer (copy to Employer) within 28 days after the event occurred.

Any claims by the Contractor under any of clause shall follow the procedure for claim under clause 53.

Hope the above helps and you can rate me. Thanks.


Jonathan L. Peralta

Construction Law

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Jonathan L. Peralta


Questions relating to claims, Extension of Time, Variations, Interim Payment and delays utilizing FIDIC Form of Contracts.


Extensive experience gained from international contractors in Vietnam, Myanmar and the Philippines in various sectors including: infrastructures, marine works, civil and buildings.

AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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