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Construction Law/Suspension-EOT-Cost Claim


Dear Sir,

A prolonged suspension had taken place during which time a clear direction was not issued from the Engineer.

Further, it is also a known fact that the contract period for the subject project had lapsed at the time an instruction to recommence/resume was received.

1.   Does this bring change in the execution of the contract? By the way, the contract is FIDIC 1987, 4TH EDITION.

2.   How can the delay caused be analyzed to determine extension of time?

3.   Can a Contractor recover off-site overhead during suspension? If so, under what circumstances and on what basis?   Can Hudsonís Formula be applied?

4.   For hired equipment, hired rates form hire agreements may be used if so allowed during the period of suspension.  But, how can a Contractor claim for owned equipment, which remained standby during suspension? What standby rates can be used?

I am deeply indebted in advance.


Dear Alemu
I am happy to try my best clarify your doubts in the situation.
1. If contract is live then there won't be any change in execution of the contract.
2. By using Time Impact Analysis Method to analyse and determine extension of time.
3. Yes for calculation of prolongation cost Hudsonís Formula be applied.
4. The idle charges of the Equipments which are owned by the Contractor can be claim same as hired from the market.
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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