Construction Law/Advance Payment due



First of all I would like to thanks for your time

I am working with contractor side as a Sr. Quantity Surveyor.
I want to clarify regarding advance payment due ( Advance Payment late by 60 days)
Contract is LS, As we received Letter of Intent & project execution started. As per contract client has agreed advance payment. Consultant has not yet recommended advance payment because Contract not yet signed official by client ( from our side signed & stamp submitted in time).
1)Assume advance payment late by 60 days, in this scenario can we entitle EOT Claim & interest for delay advance payment. Contract does not indicate regarding delay interest claim.
2) If client doesn't pay advance payment after 60 day, can contractor stop the work officially ?

Please help.

Thanks & Regards

ANSWER: Dear Prakash
Hello, Sorry for delay in reply.
I am unable to the situation in the contract as you have received the letter of INTENT from the client. After your confirmation and signing of agreement document client has not signed the agreement.
Please clarify how can you claim for advance payment without signing of agreement?
Please clarify how can you start the execution of project without signing of an agreement?
Please give the type of FORM of agreement adopted?
After above clarifications your answers will be given.
with due regards


---------- FOLLOW-UP ----------

QUESTION: Dear sir,

Scenario is, after getting LOI we started the execution (Refurbishment of existing Building ). Form of contract is FIDIC & as after getting LOI contract documents are signed & stamp from our end & submitted to client stamp & signature ( contract stamp & signature under process from Client & getting delayed ). Immediately after LOI we prepare Performance Bond & advance payment guarantee & submitted advance payment to consultant review. Now consultant is not processing advance payment because of contract documents not yet signed.
In this scenario what should be the commencement date ?
If LOI is the Commencement date then did we entitle for EOT ?

Please clarify

Thanks & Regards

Dear Prakash
welcome for comeback with clarifications under follow up, Except otherwise specified in the Particular Conditions of Contract, the Commencement Date shall be the date at which signature of the Contract Agreement by both Parties, and if required, approval of the Contract by relevant authorities of the Country; and the Engineer’s instruction recording the agreement of both Parties on such fulfilment and instructing to commence the Work is received by the Contractor. LOI is not the Commencement Date even date of LOA is the date of commencement which will be issued after signing the agreement by the both parties.
Therefore the contract agreement is not in force then EOT will not be needed to ask.  

I hope this will help to you.

With due regards

Construction Law

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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