Construction Law/Claiming for losses in delayed milestone
We are Contractor working under FIDIC 99 red Book. the Appendix to Contract define numerous milestones; if the Contractor fail to meet, delay damages will apply on him.
However, there is one milestone that the Owner actually have delayed us for 20 days without affecting the project Completion (it has a substantial float).
Is it possible under FIDIC to Claim for delay or at least for the losses in time and resources or the resources, eventhough this milestone does not delay the overall Project completion.
Kindly refer to specific FIDIC Clauses upon reply.
Thank you for this question.
The short answer is yes. In principle wherever there is a delay by the Employey which prevents the Contractor from achieving progress the Contractor can claim the costs it incurs. This is a disruption claim (or a claim for delays on specific activities) as opposed to a delay claim for the entire project.
The FIDIC contract does not expressly provide for delay claims but such are recognised in law; however the Contractor must stall make a claim under the contract (sub-clause 20.1) and demonstrate its entitlement. There is no reason that the Contractor should cite any particular contract clauses but it should refer to the Employer liability event which caused the disruption.
I hope that this assists you.
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