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Construction Law/Rejection of IPC by the Employer

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Question
Dear Florin,
We are the Contractor under the Red FICIC -1999 first edition, and the Engineer has issued to the Employer an IPC which include works + materials on site ….. The Employer decide to reject the IPC and he request to be deducted from it the value of the materials on site, due to its financial arrangements issues.
We have issued a “notice of claim” on 20.1, considering that the reason for which the IPC was rejected is not contractual. The Engineer has issue an revised IPC to the Employer without the value of materials on site.
Can you recommend us what to claim ?
Thank you.

Answer
Dear Stefan

Thank you for your question.
Firstly, you should check the actual Particular Conditions and ensure the Employer has indeed not reserved any such right.
I believe one would need to check in more depth for a fully fledged answer, but think you can proceed on the basis of delayed payment for the portion unpaid, I.e. the difference between the first and revised IPC. Including suspension and termination.
But again, first read the Particular Conditions.
Hope that helps.

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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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