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Construction Law/Change in Villa Design due to authority instruction j

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Question
Subject: Change in Villa Design – Design changes
Project: Construction of 500 Villas
Contract: Design & Built
Location: UAE
Contract: Bespoke
Dear Mr. Jonathan l. Peralata
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
Regards
Mike

Answer
Dear Mike,


In most case, under a design and build contract, the Contractor should have adequate knowledge and information regarding local standards, codes and requirements (of course this depends on what is written in the Tender Documents).

The Contractor may be entitled to an EoT and Associated Cost if he can prove that there was no requirement for him to have his design compliant with the local custom or if the Client is responsible to give information to the Contractor regarding local codes,standards, custom and requirements.

This should have been discussed during the Tender Stage or should have been written in the tender docs.

Hope the above helps.


Regards,

Jonathan L. Peralta  

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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