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Construction Law/Deduction in Preliminaries


We have a lumpsum contract with one of the Client in the Kingdom of Bahrain (Arabian Gulf) under the JCT 1975 terms and conditions.  The contract clearly says as "Lumpsum".  We have completed and handed over the project to client and Practical Completion Certificate is also issued.  However, during the final account settlement the client wants to deduct the preliminaries, either part or full for some of the items.  The project is completed as per the contract drawings, specifications and accepted by the Client.

Is it contractually correct to deduct the preliminaires.  We request your opinion.


T.R.V. Pillai

Dear T R V Pillai
I am taking the opportunity to reply your query regarding deductions of preliminaries.
If the contract is Lump sum basis and the work has been completed with issuing of completion certificate. Client has no authority to make any deduction from the amount of contract at the time of final settlement of account.If any condition is included in the contract, then client will make the deductions with prior information to the contractor Otherwise there will not be any deduction is allowable from the final contract amount.
I hope above clarification will help to you.
With due regards
Sanjay Khandelwal  

Construction Law

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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