Construction Law/claim

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Question
QUESTION: Dear Sir,

We have lumbsum contract. And we have extension of time more than original contract duration. Fidic is part of our contract and the % of variations more than 15% . i wanna claim for increasing the contract value by amount proportionate to the inflation in my country which is 4% annually. the approved extension of time is 2 years. should i claim for amount of money equal to 1.04% or 1.08% of the original contract value.

Thanks alot

ANSWER: Dear Hosam,


Thank you for your question.

You did not indicate which FIDIC edition are you using, but if it is '87 - '94, Sub-Clause 70.1, if not deleted in the Particular Conditions, should help you in your endeavor.

If you're using FIDIC '99 (or harmonized '06), you can check Sub-Clause 13.8.

Obviously, you'll have to be very careful to the wording of the eventual related particular sub-clause and related indexes.

Trust that answer your query.

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

QUESTION: Thanks a lot for your reply. But still i wanna know how to claim for inflation. if inflation 4% for each year of the extension of time which is two years, should i claim for increase project value by 1.04% or 1.08%. in other words, we add the inflation of all years together or we consider it as it's 4%.

Thanks a lot for your cooperation

Answer
Dear Hosam,


Thank you for coming back.

Please go back to your Contract, read carefully indicated Sub-Clause and there is your answer. There should be a formula with indices to be included, etc. Read it several times and make sure you understand how it works. But first, make sure you have such provision alive in your Contract.

Please understand that regardless how qualified we may be, none of us can know your Contract better than yourself (especially when you don't even indicate which FIDIC are you using!). All we can do, is to help in understanding, interpreting, or identifying solutions, but only after yourself have done your own homework and properly red the Contract.

Good luck!

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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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