Construction Law/Delayed payment
Please draw your attention to the following situation related to delayed payment for performed works and share your opinion.
1. Contractor is delaying payment for the works performed by, us, ie. subcontractor referring to the fact that the supporting documents should be revised, although the engineer approved IPA s conditionally and issued IPCs.
2. According to the subcontract (not FIDIC contract), which is one sided contract favoring the contractor, cl. 7.12 "the subcontractor shall be paid within 5 days after the contractor receives payment otherwise the the subcontractor reserves right to stop performing works and after 28 days the subcontractor may refer the issue to ADB".
3. However the contractor ignoring this clause provision and not paying us.
So instead of it can we apply FIDIC contract clauses executed between the contractor and the employer, eg.14.3 Application for IPC, 14.8 Delayed payment and claim financing charges as stated therein.
I would be happy if you could give some advice.
I am trying to reply your question.
First of all, If you are appointed as the subcontractor with due permission of Engineer or you are nominated subcontractor then you are liable to raise the issue to the Engineer.Engineer can advise to client to insist to the contractor to clear the dues,otherwise client may pay the amount and can be deducted from the contractors payment.
Secondly, if you are not appointed as subcontractor then you are liable to raise the issue to the
Engineer. Then Engineer may take the action against the contractor.
I hope you will get the directions.
With due regards