Construction Law/FIDIC Claims

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Question
QUESTION: Claims from a contractor under the following headings: Demonstrations; Political Instability; Obligatory early leave permits; Power cuts (effecting site staff and head office staff); Diesel Shortage, curfews.

Under what headings in FIDIC 1987 edition with amendments would each of the above be dealt with ? Is there any articles or case law concerning these “claim” heads, any help appreciated.

ANSWER: Dear John,

The contractor should give the contractual basis for his claims, stating the relevant clause numbers.  You could look at the following clauses 13.1, 20.4 b, 20.4 e& 66 for justification for approving his claims.  Clauses 13.1 and 66 deal with 'frustration' or force majeure, which is a common law concept rather than a civil code concept.  Clause 20 deals with Employer's Risks.  

I suggest that you get a copy of Corbett's excellent book on FIDIC 4, available both as hard copy and in electronic format (Powerdoc from www.fidic.org).  The case law is rather extensive so I suggest that you google the relevant keywords and go from there.


---------- FOLLOW-UP ----------

QUESTION: Obviously a Contractor has to allow in his programme for the works all national holidays and religious celebrations.
However, in Egypt due to the revolution of 25/01/11, a number of days were election or referendum days, namely 23&24/05/2012 Presidential Election 1st. round; 16&17/06/2012 Presidential Election 2nd. round; 15&22/12/2012 Constitutional Referendum and further election days in 2013, yet to be announced.
It would not have been reasonable for a contractor to allow for these days within his tendered programme.
•   So under what clause can the Contractor claim for an extension of time under FIDIC 1999 and FIDIC 1987
•   So under what clause can the Contractor claim for costs under FIDIC 1999 and FIDIC 1987
•   Is there any case law of a similar claim eleswhere

Answer
Dear John,

I suggest clause 70 of FIDIC 4 & clause 13.7 of FIDIC 99 under the heading of changes in legislation would be appropriate.  The requests for reimbursement of extra costs or extension of time or both would be submitted under the normal clauses for these items.  Again the case law is rather extensive so I suggest that you google the relevant keywords and go from there.

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Peter M. Elliott

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First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

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