Construction Law/interest

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Question
Dear Sir

i am working for the client in a road project. the consultant submitted Fee Notes 5, 6, 7, 8, 9, 10 and 11 at different dates at the end of the project. Fee Notes 5 and 6 were monthly payments. 7 - 11 a for different causes eg representation at the Dispute Resolution Board. we had a problem with 5, 6 and 7 which we wrote to him stating the issues. we discused and agreed to pay him 5 as it is but do away with 6. The amount for 7 was reduced. because 6 has been cancelled the consultant had to renumber the other Fee Notes ie 7 became 6 and so on. the question is when he claims for interest on all the Fee notes (since it had taken time without effecting the payments) is interest for 8, 9, 10 and 11 calculated from the original submissin dates or from the resubmission date.

thank you

Answer
Dear Simon Motai,

Difficult one because it all depends what is written in the Contract.  I suggest that, as the Consultant made an error in his fee notes, that the interest runs from the resubmission date for the incorrect fee notes.  However, I suggest that the interest for notes 8-10, which appear to have been correct, the interest runs from the original submission date, especially as they are for independent services unconnected with his main contract.  You could have solved the problem by making Fee note 6 a zero amount and then avoiding any renumbering, which would have allowed you to pay 7-11 on time.  

Construction Law

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Peter M. Elliott

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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 www.eotprotocol.com before submitting a question.

Experience

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')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

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