Construction Law/Main Contractor Disruption
Dear Mr. Mike Testro
I am not the college student to write dissertation on the same topic. I accept i included 2 questions which i thought about may be you thought of academic style. From the beginning of our Sub-contract with the MC, we are facing lot of disruptions (if i want to explain the whole as you mentioned i will end up with 10 critical analysis/dissertation). I will try to make the question very simple, please help me.
Our Contract is based on FIDIC – Conditions of subcontract for works of Civil Engineering Construction (1st Edition 1994) with little amendments. Our Main Contract is based on FIDIC 1987 reprinted in 1992. (some of the Conditions are back-to-back). We suspect the Main Contractor got EOT without cost.
1. What if the s/c is delayed by m/c more that the EOT granted to m/c?
2. What if there is enough float in the m/c programme and s/c delays beyond the s/c TFC, but it does not delay the m/c and m/c does not suffer a LD, will m/c apply a penalty on s/c?
3. What happens when ‘the extension shall not in any event exceed the extension of time to which the Contractor is entitled under the Main Contract’?
Thanks & Regards
OK it is much simpler now.
Q1 and Q3 is linked.
If the sub-contract does not allow for the S/C EoT to exceed an EoT award to the MC and the delay is caused by the MC (or the Employer through the MC) then the sub-contract time is set at large.
This means the MC loses all his LAD rights and the S/C has a reasonable time to finish with costs.
The MC is entitled to deduct LAD's for S/C delays even if no further delay is caused to the M/C.
In some jurisdictions where a "Penalty" is used instead of LAD's then the MC must prove his losses up to the penalty value.
I hope that helps