Construction Law/Delayed Payment

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Question
QUESTION: Dir Sir
i want to ask about how this paragraph is correct in red book fidic /1999 :
" if the employer fails to make payment within the timescales set down in sub-clause 14.7, then the contractor becomes entitled to recover his financing charges So 񄥬ayed Payment򠷩ll not entitle the contractor an extension of time ." ??


best regards

ANSWER: Dear Muhanned,


Thank you for your question.

No, delayed payment by itself, does not entitle to any extension of time.

It might become possible, in case of extended delay of payment, if the Contractor reduces pace of works or suspends them - see Subclause 16.1.

Hope that helps.

---------- FOLLOW-UP ----------

QUESTION: thanks a lot about above ,
this mean if the employer fails to make payment within the timescales ,,,  The Contractor " No Entitled To Any Compensation (Overhead , Missed Opportunities ,,, )Except only Financing Charges If The Contractor Does not Reduce or/Suspend The Work " Even if the project is delayed due to delayed the internal payment.
 Best Regards

Answer
Dear Muhanned,


Welcome back.

Indeed, you have no entitlement.

The safest is to follow the Contract procedures (Sub-Clause 16.1) and issue the right notices at the right time, reduce the works pace and/ or suspend the works. Or even terminate.

That is how you will record the delays and can claim for.

Hope that answers your question.

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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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