Construction Law/EXTENSION OF TIME
The Contract is the FIDIC - Design Build & Operate.
The Contractor has tendered a zero sum (presumably "included") in the BoQ for the item "Contractor's Establishment on Site & General obligations" Item c) "Time related Obligations" - Rate =0.
The Contract period has extended significantly and there is every intention by the Employer's Representative to grant a significant extension of time.
Has the Contractor an entitlement to be compensated for the unforeseen, but real costs of the extension of time, despite saying his time related costs are zero, and may be deemed to have included this cost in other bill items.
Thank you for this question.
Where the delay was the liability of the Employer or otherwise not the responsibility of the Contractor and the contract provides that the Contractor will be reimbursed, it has an entitlement to recover any damages it can show arose in consequence of those events. In the situation outlined I suggest that the Contractor will be able to recover the cost of the establishment for the delay period.
The caveat to this is where the contract states that the rates and prices specifically entered in the BoQ will be used for the evaluation of any future variations or claims, in which case the Contractor will have a difficulty in arguing that it did not accept the risk of the time related costs in the event of the contract period being extended.
I hope that this assists you.
Follow me on Twitter: @CernoOrg
For my regular industry newsletter e-mail to firstname.lastname@example.org, stating SUBSCRIBE in the subject line
Training and consulting services are available, bespoke to companies and individuals.
John Dowse can be contacted by e-mail to email@example.com (When e-mailing, please include “AllExperts” in the subject line.)