Construction Law/Fidic 1999 11.4

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Question
Considering 11.4 (b) how could somebody estimate in advance the
"reasonable reduction of the contract price" which must be determined from the Engineer for a certain defect?
Thanks in advance for your time!

Answer
Dear Dimitris,
Thank you for your question and like to respond as follows:
As I could understand from your question, the reasonable reduction here means the cost component of defective work under discussion between the contractor and the Engineer. Normally, such works are compensated on the basis of 'risk and cost' and employer deducts the amount actually incurred on the defected work through another agency. Is this your question and if not please come back with more details to enable an appropriate answer. Normally, the contracts have bonds and securities and this way the work done at risk and cost by a third party can be adjusted at the end.

Regards, Liaqat Hayat

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Liaqat Hayat

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I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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