Construction Law/Contraction Law


Dear Sir.
I am working as a QS in construction company in Sri Lanka.
Now we are doing a construction of water treatment plant, condition of contract of FIDIC MDB June 2010, There is a BOQ item in Provisional Sum section for "Provision of all Bonds & Guarantees under the Contract."

But client inform to us as per the Clause 14.2 the contractor can't recovery of cost for Advance Guaranty.

Sir are you agree with my client ?

Thanking you.
Bandula from SL

Dear Bandula,

I see nothing in clause 14.2 which overrides the Provisional Sum in the BoQ.  Perhaps you could send me the appropriate wording which was quoted by the Employer or his Engineer.  You may have to claim for it in your second IPC, the first being for the Advance Payment, and you need the Engineer's Instruction to spend the money for the Bonds and Guarantees in accordance with clause 13.5.

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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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