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Construction Law/Financial charges on delayed payment


Dear Sir
I refer to FIDIC 2010 MDB harmonized edition Sub-Clause 14.8 regarding Financial charges on delayed payment; does this sub-clause is also applicable on delayed payment of Moblization Advance?

Mohammad Aqeel Ahmad

Dear Mohd,

I am extremely sorry for the delayed reply. For some reasons I didn't notice this email as it was sitting in my spam box.

Sub-clause 14.7 includes "The Employer shall pay to the Contractor: (a) the first instalment of the advance payment within 42 days after issuing the Letter of Acceptance .........................."

Furthermore Sub-clause 14.7 is specifically referred in Clause 14.8.....see below:

"if the Contractor does not receive payment in accordance with Sub-Clause 14.7[Payment], the Contractor shall be entitled to receive financing charges...."

In view of the above delayed payment on Mobilization Advance shall be covered under Sub-clause 14.8; unless noted otherwise in Particular Conditions.

Hope this helps.

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Manish Gupta


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