Construction Law/Liquidated Damages

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Question
Greetings

We are working on fiddic 87 modified,in water line projects the contractor was delayed by more than 365 days & finally PAC was issued but client wants to apply LD due to the delay what guide lines as a client engineer I have to follow to apply LD.Contrcat documents clauses says amount of delay penalty-10% of final contract price.

Thanks
Shoaib

Answer
Dear Shoaib,

Sorry for late reply, but can you inform that is there any pending request of time extension of the Contractor or any other reason for delay present or not ?

Otherwise, I believe that the 365 days is extensive delay and full amount of LD may be deducted from the receivables of the Contractor (Retention Money + Final Bill + Performance Security) as 10%.

Best Regards

IRVALI

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

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.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
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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