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Construction Law/Payment of contractor's Preliminaries

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Question
The Contractor is delay in completion of the project, however the payment under Prelims have been already paid (Mobilization + Recurring costs) more than 80% from the total Prelims. Original Contract period has been elapse more than 85%, but work has been completed only 30%

Can the Engineer reduce the Contractor's payment in respect of monthly recurring Prelims cost due to Contractor's delays. Can the Engineer redistribute the prelims across the revised  
target date of Completion of the project.

Answer
Dear Ranjith,


Thank you for your question.

As you did not indicate more in respect of actual situation from a contractual point of view, I can only suggest you analyse your case from the following prospective:

- if the Contractor has received an Extension of Time, as long no otherwise agreed, the Contractor should be also paid related costs, i.e. prelims and whatever other costs they have deminstrated as related to the EoT.

- if by the Contrary, no EoT granted, Contractor only gets the prelims related to original Contract duration and any other costs related to delays, will be with them.

- if the Contractor has claimed for an EoT and that is currently pending, you'll have to make a decision between above, depending ff EoT likely to be given, or not.

Hope that helps, but if further help needed, please come back to me describing the actual contractual situation.

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Florin NICULESCU

Expertise

Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.

Experience

Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Organizations
Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

Education/Credentials
- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

Past/Present Clients
- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

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