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

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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 Bogdan Oprea
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 Sir
Taking into account the elements submitted to me in my opinion and pending on what is mentioned in the Contract the Contractor will be entitled to an extension of time for completion of the works, additional costs for the re-design and works plus reasonable profit. in the same time the Contractor should comply with the authorities regulations
Best regards

Construction Law

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Bogdan Oprea

Expertise

I can answer to claims assesments under FIDIC 4 and under FIDIC red book; I can answer to procedural issues under FIDIC rules; DAB implementation DAB procedures, etc

Experience

8 years in consulting companies, road contracts (rehabilitation and new) more than 250 Milion Euro supervision Contracts

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