Construction Law/Delay Penalty & LD

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Question
Greetings

We are using Fidic 99 Silver,can we include penalty clause and Liquidated damages clause since client is having agreement with main client the main client included a LD clause, so we want to pass on the risk to contractors.Please comment!

Answer
Dear Shoaib,

It is a common practice to distribute risk and pass some of them to Contractors/sub-contractors, subject to prior notification before performing agreements/contracts with them. However, in that case, their cost may be increased because of covering additional risk of penalty.

Clause 8.7 of Silver Book clarifies Delay Damages if the Contractor fails to comply with Time for Completion, therefore if you perform a back to back contract, you can apply the same.

Best Regards,

IRVALI

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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