I represent to a Contractor under oil and gas project, our subcontractor has a disputed claim, I reject the claim two time based on time bar clause since I came to know time bar clause have some flexibility considering the arbitration terms and even Subcontractor urged to approach arbitration in case if we not accepting his claims, then I reject it based on subcontractor’s discrepancies but still the matter is under dispute now I have to reply its letter.
My question is can I use the time bar clause and other clauses for rejection of the claim simultaneously is it appropriate and acceptable or after using time bar clause we cannot use any other clause as a status of the claim.
The time bar clause on notification of a claim will not hold if the delay was caused by the employer.
This is known as an Act of Prevention by the employer and he cannot gain benefit from his own default.
In most jurisdictions this is known as unjust enrichment.
I would not rely on the time bar argument winning in an arbitration if the defendant caused the delay.
In a contractor/sub contractor situation however if the sub contractor's claim was late which prevented the contractor from passing the claim up the ladder in good time then there is good reason to reject the claim.
In practical terms it is better to negotiate than arbitrate so try to reach a reasonable settlement.