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Construction Law/variation exceeding 15% of contract value

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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

Thanks for the question.

After reviewing your scenario I am bit confused. Why you have used subject "variation exceeding 15% of contract value"? Is this the case or the subject was used wrongly.

This said; I need to review your agreement with the Consultant.

As a standard practice any interest should be paid from the date when the said Invoice was actual due to the Consultant and has nothing to do with the date of submission.

Hope this helps. Please submit a follow-up question with more details, should you require further advise on your query.

Thanks & Regards

Construction Law

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Manish Gupta

Expertise

I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.

Experience

7 Years with Contractors 12 plus Years with Owners & Consultants

Organizations
Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

Education/Credentials
MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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