Construction Law/Prelims Payment


Dear  Peter
Thank you in advance for your efforts .
We  have a Road project , under FIDIC 1987 , (REAMEASRABLE Quantities) , and the progress of work is tremendously  delayed . My question , how to pay the preliminaries in particular (the monthly ones-time related) ,  can we pay on monthly basis regardless of the delay  or the payment should be proportioned to the progress of work .  
many thanks  

Dear Mohammad,

It all depends what it says in the Contract.  In normal cases you have to pay the monthly amount monthly, unless you can justify non-compliance by the Contractor of the items covered by the prelims.  Next time, why not make the prelims a percentage of the monthly payment instead of a fixed sum.  Also include a clause that allows the Employer to terminate the Contract if the Contractor does not achieve certain values in a certain time, for instance 5% of the value in 10% of the time, 12% of the value in 25% of the time or 50% of the value in 50% of the time.  It is very difficult to terminate a contract for delay until the time for completion has expired.  

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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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