Construction Law/Claim due to Progress delay
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.
It seems that the main contractor is covered in the agreement for delays in providing the subcontractor with the required material or equipment; but this cover does not last forever and it should be reasonable (say Few Days) before the subcontractor run out of float in his program and proceed into delays. The subcontractor has to be logically supplied with the required material and equipment so that the total works of the Contractor himself does not get delayed and obviously such delay will not be attributed to the subcontractor.
Basic logic and common sense needs to be adopted here regardless of the agreement text.