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Construction Law/Claims related to Idling of plant & machineries due to omission of scope of works


Hi Peter, a brief on the current contract situation.. The contractor's scope of work has been reduced to 44% overall. As part of their overall claim due to the large portion of work omitted they have submitted a claim pertaining to the loss they have incurred due to heavy investment on plants and machinery. The contract format is baed on a modified 1992 FIDIC & Saudi Arabian Law. Are they entitled to it ? Their claim submission is very general... No specific dates showing the idling of P&M happened, & no records what so ever...

Thanks & Regards,

Hi Jackson,

I would guess that the Contractor has a claim for loss of overhead recovery and profit as well as a revised unit rates under clause 52.3, due to the reduced amount of work.  Generally, the Contractor has to make his case.  However, if the Contractor cannot submit records, then the Engineer could make an estimate of the extra costs and agree it with the Employer.  

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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.
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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
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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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