Construction Law/Compensation of satff salary in case of extesion of time
We have FIDIC 1999 form of contract.
The employer has granted one year extension to the contract due late handover of the site.However, we as contractor, have continued to work in a peacemeal manner to mitigate delays in whatever area was handed over to us.
We are now preparing claim for the delay for this one year period. How should we account for the staff salaries for this period because we have been working all this period. Can we claim for the full staff salaries for this period?What is the best and recognized way to deal with such a situation?
Thank you for this question.
A fundamental principle of payment of damages in a contract is to put the innocent party back into the position it would have been but for the breach.
I assume that you reduced the level of staff as much as you were able from time-to-time to mitigate the cost to the Employer (and yourself) and that you are looking at the uneconomic cost of working in this piecemeal manner. In this case my suggestion is that you should recover the full cost of the staff, less any amount earned by working in the manner described. Check also your contract (and particular conditions) to ascertain whether you are entitled to overhead and profit recovery on the delay period.
I hope that this assists you.
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