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Construction Law/Payment of contractor's Preliminaries


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.

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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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.


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