In Contractor scope of work Contractor has to supply material such as pipes and in mechanical erection works Contractor has to supply Equipment, my questions is “then how much tolerance is applicable in accordance to following contractual clauses applicable for delays from contractor’s obligations against contract”. Since Subcontractor claims for failure of Contractor in supplying of material due to delays in delivery of equipment mainly for erection subcontractor and pipes for pipe fabrication and erection works.
We have a clause 1.1.14 in Subcontract Agreement covering nonproductive period due to weather downtime that may occur during the period of Agreement shall be considered or deemed to be included in Subcontract price. No standby charges are payable in the event of work stopped due to safety, breakdown or non-availability of Contractor’s material, equipment and general miss match of each Subcontractor works.
As per another clause 1.1.15 The Subcontract charges shall be include adequate allowance due to Port Congestions and surcharges, all duties and taxes of customs clearance etc.
Hi Mohammed Mujtaba
Firstly sorry for late reply.
See although the Contract mentioned that no standby cost is payable for delay due to non availability of The Contractor's material. But it dose not mentioned any thing about the time and time related cost.
If it mentioned about the time, that it is considered as act of prevention and Time at large and you will lose all your rights to claim any LD.
In my opinion The Subcontract is eligible for time lost due to non availability of material and equipment supplied by you.
You need to prove that the sub-contractor is also late in same period when delivery is delayed by you (Concurrent Delay).
In case of Concurrent delay, the subcontractor can get the time but not the cost (Prolongation cost) and the contractor also can not charge LD.
I hope this will give you way ahead.
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