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Construction Law/FIDIC 1999 red book 20.1 claims


Dear Peter,

I'm involving with water supply project (contractor's QS) including civil work. There are TYPE C & TYPE E culverts in our BOQ (Type C is costlier than TYPE E ) Most of the TYPE C culverts are now changed into type E (the survey carried out by contractor). Can I claim for loss of profit?
Thank you.

Dear Daun,

You might be able to claim for loss of profit, but it will be difficult to prove.  If the Contract Price is close to the Accepted Contract Sum, say plus/minus 15%, then your claim would be rejected.  Then you would have to prove that you had rejected alternative work, due to your expectations of work on the type C culverts. Then you would have to prove your actual profits, using audited accounts for the past 5(?) years.  I would concentrate on more cost effective activities.  

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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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