Construction Law/Duration

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Question
QUESTION: Sir

We are dealing with Fiddic silver book contract,a letter of award issued to bidder with one month duration ,bidder refused to acknowledge stating the duration should be 3 month,since 1  month duration was approved by employer committee ,work is very urgent
what procedure can be adopted to convince the bidder to start the work, there is no clause of liquidated damages.Please guide.

ANSWER: Dear Shoaib,

If you are referring to clause 8, Commencement of Works. Generally, Letter of Award confirms commencement date, which is given in Form of Tender and Contract Documents. If the Commencement of Works Indicated as 3 months and Employer wants Contractor to start in one month, then it is a negotiable condition and they may be agreed to start Works in one month with some compensation to the Contractor. If the subject period is for Time for Completion, and again if it is not according to Contract, it may be possible to make agreement with the Contractor to get it done through some compensation.

For more precise answer you need to clarify contractual position of the Contractor and the Employer, since Employer Committee approval may be meaningless for Contract.

Best Regards

IRVALI

---------- FOLLOW-UP ----------

QUESTION: Bidder quoted duration 8 ex.factory plus delivery to site 5 weeks,mistakenly considered by client as 4 weeks processed and approved by higher authorities and now bidder requesting to make amendment to duration.Please tell me the solution,Bidder decline to acknowledge the letter of award

Answer
Dear Shoaib,

It is indicated as 3 months in tender submission, but what about Contract documents already signed by both Parties ? If there is no any indication or contradiction, then as indicated in tender documents, official duration may be accepted as 3 months and the Employer may have two choices, either to agree with the Contractor to complete the said task in one month or to request from their internal committee to amend the said duration. Consideration of a period for completion is not a contractual term and their internal committee's, higher authorities and approvals also meaningless. The most important document to be based on is Contract between Employer and Contractor. Therefore whatever referred to in the contract documents and/or tender documents should be based on for completion period.

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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