Construction Law/Standby Days/hours

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Question
article 27
article 27  
Dear Sir,

Here I am again. Sorry for the repetitive headache I cause to you but I always find my answers with you. Our Contract is bespoke in gas & oil field. The EPC Contract allows for paying Standby costs of personnel/equipment to the Contractor when his work stops due to reasons attributed to the Employer. I am the contract administrator for the Consultant (you can say the Engineer. I am attaching the Article 27 about this issue. I hope you read very thoroughly the sub-Articles 27.1 and 27.2 and reply the following question which is very very important:
1- The contractor submitted 54 cases of his work stoppage along with supporting documents and records signed by our construction team on site however many of these cases were about stoppage for some hours in a day not full days (4 hours, 3 hours and sometimes 1.5 hours) in which his work has stopped then resumed again during the same day. Is he entitled to such cases of hours stoppage or at least he should have stopped for one whole day to be entitled.

I need you help ASAP Sir as I have to submit my report within 2 days.

Thank you a lot

Khaled

Answer
Dear Khaled Sahib,
Thank you for your question and like to respond as follows.
As for as contract is concerned, there is normally no bar how delayed event should be recorded or considered i.e in days or hours for a particular event. I am not clear why you are considering that contractor's request should have been in "full days". I feel that contractor should compensated for the actual standby time in hours as recorded and verified by the field staff. Normally the equipment / plant's standby cost is also in hours. I hope i have answered your question and if not please comeback with specific point still unclear.
Regards,
Liaqat Hayat
Date 30/12/2013  

Construction Law

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Liaqat Hayat

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I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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