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Construction Law/set off and contra charge

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Question
Dear riz,

It is a follow-up to my previous question

The contract is a bespoke contract based upon the old red book. The Employer, in particular conditions has introduced additional express conditions wherein the Employer is given the right to set off  any damages( other than liquidated damages) that it incurs as a result of any breach by the Contractor. This is in addition to the right under 47.1 to recover LAD. Reference is also made to the word contra charge in the same clause.
Whilst this clause appears to be poorly drafted, i just wanted to know whether there is any significant difference between set off and contra charge .

I would be grateful if you can advise.

By the way, I am surprised to know that you still remember me.

Answer
Hello Riz,


Thank you for coming back.

Set off is clear: if Employer suffers any damages, they can retain payments due to Contractor, up to the balance of the amounts.

But I am unclear in respect of "contra charge", it is obviously not a FIDIC term, but something introduced by the Employer.

Please send me the complete phrase/ clause, maybe I can gather something out of it.

Look forward hearing again from you.

Construction Law

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Florin NICULESCU

Expertise

Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.

Experience

Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Organizations
Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

Education/Credentials
- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

Past/Present Clients
- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

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