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Construction Law/Extesnion of time/Cost Claims

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Question
Dear Florin,

Hope you are doing fine.

Relating to Design and Build Project under FIDIC, first edition 1995

Pursuant to Sub-Clause 16.1, the Contractor may suspend or reduce rate of work after giving not less than 7 days prior notice to the Employer. If the Contractor suffers delay and/or incurs Cost as a result of suspending work or reducing the rate of work, the Employer’s representative shall agree or determine any extension of time, and the amount of such Cost the Contractor is entitled to.

1.   The Contractor notified the Employer that due to its failure to pay the amounts due under certificate of the Employer’s representative, they would reduce rate of work. I would appreciate if you give me an idea of what is expected of a Contractor who wants to claim for extension of time and Cost in this regard?

•   Can the Contractor simply request for extension of time counting the number of days after the expiry of the time specified in the contract? [without justifying the reduction in the rate of work and the impact on its work programme and completion time of the project]

•   Can the Contractor claim extension of time counting also the number of days before the expiry of the date of the 7 days prior notice the have to give?

Being deeply indebted in advance and looking forward to receiving your replies soon, I remain.

Alemeu

Answer
Dear Alemu,


Thank you for your question.

Firstly, it should be the 1999 edition, there was no 1995 edition.

To answer your queries:

- no, any time Contractor asks for an EoT, they must demonstrate the requested extension on their critical Path.

- no, because until the 7 days passed, the Contractor did not suspended the works. EoT can only be requested from the moment when the suspension entered into effect, as per Contract provisions.

Trust that answer your queries.

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Florin NICULESCU

Expertise

Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.

Experience

Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Organizations
Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

Education/Credentials
- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

Past/Present Clients
- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

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