Construction Law/Change in Villa Design due to authority instruction h
Subject: Change in Villa Design – Design changes
Project: Construction of 500 Villas
Contract: Design & Built
Dear Mr. Manish Gupta
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
Sorry for late reply as I was traveling last week.
Presuming that it was design and built contract(since contractor developed the Villa Design). the onus stays with the Contractor to advise the Client if there is any non-conformance between the approved Mock-up design and Authority design regulations.
However if the Contractor was not fully involved in designing the Villa; Client needs to compensate for the time and cost impact.
This said, try to analysis if the aforementioned authority regulation existed during the tender or those were issued post -tender period. Any regulations issued during Post-tender ; shall entitle the Contractor for time/cost impacts arising due to the related changes.