Construction Law/Delayed Payment


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

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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