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Construction Law/Consequential Damages



We are using fiddic modified condition of contract(EPC),i am working with the employer in one of the tender one consultant ask waiver of consequential damages clause.Please comments

Dear Shoaib,

Consequential damages, are damages because of the failure of one party to meet his contractual obligations and it may lead even to recover loss of profit.
When a contract is breached, the remedy for an employer is recovery of damages that result directly from the breach such as the cost to complete the work in accordance with the contract documents, the loss of value of lost or damaged work. Consequential damages, include loss of product and loss of profit or revenue and may be recovered if it is determined such damages were reasonably foreseeable or "within the contemplation of the parties" at the time of contract formation. This is a factual determination that could lead to the consultant/contractor's liability for an enormous loss therefore they may ask waiver. A consequential damages waiver may seem simple provision, but in case of breach of a contract, it can easily lead to a significant risk for employer that exposure to occurrence of risk needs to be analyzed.

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Construction Law

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FIDIC, Arbitration Procedures, Claim Management, Project Management.


I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

CEO of TURCON Construction presently.

M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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