Construction Law/Interim Claims

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Question
Dear Sir,

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?

Regards,

UMER SHABBIR

Answer
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.

Kind regards,
John Dowse

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John Dowse

Expertise

Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.

Experience

Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Organizations
Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Publications
Various UK and International construction and legal publications.

Education/Credentials
LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

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