Construction Law/Interim Claims
FIDIC MDB Harmonized Conditions are being implemented in our Contract. In accordance with the Clause 20.1 of GCC, the Contractor has the obligation to send further interim claims to the Engineer if the event or circumstances giving rise to claim has a continuing effect. I have following questions:
(i) Has the Contractor required to submit interim claim in case of legislation claim or simply add the interim claim amounts in Monthly Statements?
(ii) Is it the obligation of the Engineer to respond approval or disapproval in case of each interim claim?
(iii) In case of approval of interim claim, if the Engineer does not respond to the approved interim claim, then it can be construed as the interim claim is rejected by the Engineer?
Dear Umer Shabbir,
Thank you for this question. Taking each of your points in turn:
(i) Each separate event or circumstance giving rise to a new head of claim should be separately notified. Any change in legislation is, I suggest, entirely separate from any other head of claim and ought to be notified separately.
(ii) The Engineer is obliged to respond with approval, or disapproval with reasons stated, on the principle of each new claim submitted. He does noir have to restate that approval/disapproval on the principle when the Contractor updates the details of his claim; the action then required is to review and assess/evaluate the Contractor's submissions and determine the Contractor's entitlement.
(iii) If the Engineer does not respond within the time specified or a reasonable time thereafter this fact may draw the inference that the claim is rejected; however there are several other factors which might be considered. A rejection will not automatically be implied purely from a lack of response.
I hope that I have correctly interpreted your question and that this assists you.
Follow me on Twitter: @CernoOrg
For my regular industry newsletter e-mail to email@example.com, stating SUBSCRIBE in the subject line
Training and consulting services are available, bespoke to companies and individuals.
John Dowse can be contacted by e-mail to firstname.lastname@example.org (When e-mailing, please include “AllExperts” in the subject line.)