Construction Law/Prilims under Lump Sum contract
I am working for a project management company in Qatar for building contract project. The project is a Lump sum contract & Fidic 99 (first edition) has been used as General Condition of Contract.
The contractor have submitted a organization chart after commencement date of the project showing all the required technical & administrative staff for the project. But now we have noticed that, the contractor & nominated sub contractor have reduced their key staff from the site, due to this, client facing problem in delivering the project on time and afraid of the quality of project.
Please explain me how to handle this situation,
Is the organization chart applicable through out the project or varies?
Is the client entitled to reduce the prelims from the Lump sum?
Thank you for this question.
Unless the contract requires and defines a (minimum) level of supervision/administrative from the Contractor at all times the matter will be at the Contractor's discretion unless and until the Employer claims and can demonstrate that the actual performance on site will not be sufficient to meet the obligations set by the contract or the Engineer assesses that to be the position.
The adopted form of contract passes risk from the Employer to the Contractor but leaves the Contractor more freedom in the management. The Contract also defines the Employer's remedies in the event of non-performance.
You have expressed that the Employer has concerns but you have not stated the basis for such concern.
It would be very unusual for the organisation chart to have any contractual standing. The Contractor is obliged to provide suitable levels of resources, and that will vary from time to time through the project; however the Employer is not entitled to reduce the prelims. from the lump sum only for the reason of the Contractpr providing fewer resources.
I hope that this assists you.
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