Construction Law/Delay Damages



I am working with the consultant firm on a contract based on FIDIC 1999 conditions of Contract. The Contractor has failed to complete the Works within the Scheduled Time for Completion and time is at large. The Employer has notified under Sub-Clause 2.5 for deduction of Delay Damages. Sub-Clause 8.7 states that “ the Contractor shall subject to notice under Sub-Clause 2.5 pay delay damages to the Employer for this default”. My questions are as follows;

(i)   Should the Delay Damages be deducted just by passing the Scheduled Time for Completion or the Employer has to wait until the issuance of TOC for the Works which will define the delay period?

(ii)   If the Delay Damages are deducted before issuance of TOC and then afterward an EOT is awarded, then the Contractor is to be entitled for the compensation of the deducted amount for the awarded time period?



ANSWER: Dear Umer,

(i) Delay damages may be deducted from each IPC, if the Employer so instructs, once the Time for Completion has expired.  The Employer does not need to wait for the ToC.  

(ii) If an EoT is awarded after the expiry of the Time for Completion, then a new Time for Completion is applicable.  If Delay Damages have been deducted, then they must be repaid for the appropriate period, together with compensation in accordance with the applicable law (interest or finance charges).

I am concerned that you state that 'time is at large'.  Just because the Time for Completion has expired, it does not necessarily mean that time is at large.  Also if time is truly at large, then delay damages cannot be applied.

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


Thanks for the answer, I would be more thankful if you explain the term "Time at Large" in context of Commom Law and FIDIC.


UMER Shabbir

Dear Umer,

Why do you use terms if you do not understand them, or at least research them?  

I suggest that you look at the following website

If you need further information, then google 'time at large'

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


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