Construction Law/Change in Villa Design due to authority instruction f
Subject: Change in Villa Design – Design changes
Project: Construction of 500 Villas
Contract: Design & Built
Dear Mr. Mike Testro
Background of the issue:
During the inception stage, Client approved a mockup villa (in different emirates). The Contractor priced the project in line with the tender documents (master plan and approved drawing – Mockup villa Plan). Based on the approval by the client, the Contractor developed the Villa design and when it was submitted to the Local Municipality approval (different emirates) the authority rejected the design and asked the Contractor to change the design completely, saying that it does not match up with the local custom. The GFA as per old design and new design remains same. Municipality hasn’t introduced any new design. Client tried to convenience the Municipality and lost. Due to the instruction by the authority the Contractor suffered a
1. Delay (EOT & Prolongation cost)
2. Additional cost due to redesign and
3. The construction cost (Increase in structural quantities of the villas as per the new design)
Contract Conditions: (usual one)
1. Contractor should comply with all authorities regulations and the project budget must not vary
Question: Whether we (contractor) is entitled for the above claim
Subject to your conditions of contract the answer is generally yes to all the claim headings.
Regarding your stated sentence "Contractor should comply with all authorities regulations and the project budget must not vary" would be relevant if the Contractor was responsible for securing such compliance.
However since it is the Employer's problem then he cannot blame the Contractor.
This principle of "unjust enrichment" is not allowed in UEA Civil Code.