Construction Law/Performance Bond
Hi, we have a contract under FIDIC Short Form. The Performance Bond of the contractor expired since September 2012 and they have not supplied a renewed bond despite our reminders. We have now held them in breach of contract as a result and they are now stating that they will claim costs for the performance bond given that the project has been delayed. The Contractor has suspended works numerous times (for late payment of additional security). Even after payment the contractor failed to go back on site. How valid would such a claim be for costs of the performance bond?
Thank you for your question
As i could understand from your question,you have mentioned delays in payments and as a consequence contractor suspended the work several times and also on his part delayed validation of per. bond .Here it appears that delayed payments to the contractor are the main culprit and such frequent suspensions must have caused him tremendous.In principle,the contractor need to compensated for prolongations costs if the project has not been completed for employer's reasons
but you have to see what the contract says on this account and secondly followed procedure as laid down in clause 10.