Construction Law/Preliminaries

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Question
Dear Ms Alina,
Contract agreement based on the FIDIC Red Book. Two projects scope mingled into the same agreement with common preliminaries. At present one of the project hold and the another is in progress. How can we consider the preliminaries for the running project. Contractually?
Thanks and regards,
Joseph A George

Answer
Dear Sir,
In the sub-clause 14.1 [The Contract Price], at item (d) it is foreseen: "the Contractor shall submit to the Engineer, within 28 days after the Commencement Date, a proposed breakdown of each lump sum price in the Schedules. The Engineer may take account of the breakdown when preparing
Payment Certificates, but shall not be bound by it."
Base on this provision, you can ask the Contractor to provide you the details of the lump sum price of the Preliminaries, to see how they are shared between the 2 parts of the agreement.
The philosophy of the Contract is the Contractor to be reimbursed for the works done, at the prices he included in the accepted offer, using the contractual mechanism foreseen in the Clause 14 [Contract Price and Payment].
Hope this helps.
Best regards,
Alina

Construction Law

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Alina Valentina Oprea

Expertise

I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.

Experience

Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on www.alinaoprea.com

Organizations
Dispute Resolution Board Foundation

Publications
see http://alinaoprea.com/publications/ ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Education/Credentials
Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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