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Construction Law/fines for delay and interim payment


Dear peter,
I have a project following FIDIC 1987 reprinted 1992 fourth edition. My duty is just to review and check the payment and certify the due amount (I am not the Engineer, the client played as The engineer).
The question is about final payment.
As we finished the project and expecting to receive final payment from the contractor, my question is that;
If according to the taking over certificate which has been issued to the contractor we found there is a duration between ;
Project ending date (as per the contract) and the substantial completion date approved by the employer  there is about 30 days i.e. there is a delay and before there is no letter from the client approving any EOT.
In this case do I have to hold the payment and asked both parties (contractor and employer) to sort out this issue ?
Or I will go ahead and certify the payment?
Contractually does the employer have right to deduct for delay as per the contract from the payment or it should be a separated claim by the employer and the submitted payment should not be in such dispute?

Dear Hadi,

Clause 47.1 is relevant here.  The Employer may deduct liquidated damages for delay from any payment.  However, for certainty, I would ask for an Engineer's Decision in accordance with clause 67.1 and deduct any amount from the Interim Payment Certificate.  The Final Payment cannot be made until all matters have been resolved.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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