Construction Law/FIDIC 1987

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Question
Dear sir,
This project is based on FIDIC 1987.Planed contract period was 15 months but now it is extended for another 8 months. Now the contractor claims preliminaries for the actual consumption.Is it possible to proceed?

The other thing is the Contractor has delayed to submit their monthly bill.According to the particular Conditions of Contract it needs to be submitted within 2 weeks. But the QS has not notified that delay to the Contractor. Issuance of payment certificate was delayed by the QS.  Now the Contractor is claiming interest for their delay payment.Is it possible?

An early reply is very much appriciated.
Thank you

Answer
Dear Madushani,

I would like to ask the items in your preliminaries. Generally preliminaries consist of Engineer Offices, cars, laboratories, etc. and their payment based on monthly rates which in this case should continue as pay item. In some cases, payment based on consumed quantities which you can proceed with it. For precise answer you need to be more specific on items.

FIDIC, for payment as in Clause 60.1 and 60.2 clarifies certain periods. It states that at the end of each month, the Contractor has to submit a statement and upon receipt, the Engineer has to certify it in 28 days. Particular conditions may change such periods. In your question, I understand that the Contractor delayed for submission. In that case, the time starts counting after submission. If the Engineer delays on certification more than the period specified in Particular Conditions, then again it is a big question mark to claim interest because FIDIC 87 based interest payment on date of certification of Engineer to the Employer (Clause 60.10).

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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