Construction Law/Claims


Dear Sir,

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.
Please advice

Hi Mutjaba
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.
Best regards
Mike Testro

Construction Law

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Mike Testro


Anything related to extensions of time and delay analysis.


45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Society of Construction Law Adjudication Society ex Planning Engineers Organisation

6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

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Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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