Construction Law/Prolongation Cost


Dear Mr. Peter M. Elliot

In one of our projects based on FIDIC 1992 Conditions of Contract; due to phenomenal increase in quantities of various items of BOQ [almost three (3) times] a Variation was issued and executed quantities were paid as per relevant rates in BOQ with grant of extension of time as well. Apparently the delaying event is compensable but for the clarity:  My question is that whether the delay cost for prolongation is payable or not?


Shahed Khushnud Siddiqi

Dear Khushnud,

You are entitled to be reimbursed for all your extra costs due to a change by the Employer.  Here the costs are associated with a prolongation rather than a delay.  Once the prolongation is agreed, you can submit your request for reimbursement of extra costs, which will cover items such as bonds and insurance policies, site organisation and support and administrative costs.  You should be careful not to double charge any overheads which are included in the bill rates.

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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