Construction Law/delay consultant fees reimbursement
We are dealing with modified fiddic contract, in a contract the project was delayed & contractor accepted delay & agreed to pay liquidated damages but decline to reimbure the consultant fees stating "d) In addition to the Delay Penalty stated in the Appendix to Conditions, CONTRACTOR shall pay to Employer all or part of the supervision cost, and any other related costs, incurred by Employer due to delay in completion of the WORKS. The supervision costs represent the amounts paid to the Consultant(s) during the delayed period calculated from the contractual completion date until the Date of Issuance of PAC.
Since above stated was not stated in the contract documents,so contractor declin. Please guide me.
ANSWER: Dear Shoaib,
The Consultant has to be paid by the Employer during the course of the Project and he has to be paid during the extended period of the Project as well by the Employer. The mechanism of the Liquidated Damages are to cover such expenses and the Consultant for his continuation for extended period needs to made an agreement or amendment with the Employer to clarify how he is getting and when he is getting payment for the extended period. Therefore, I suggest to apply to Employer to get answer on this question. The consultant may be asking different rates than the agreed terms and conditions of his contract. The Employer before making payment to the Contractor, may deduct such amount and pay to the Consultant.
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Contractor not eligible to pay consultants fees during delay period
Yes, it is must be well described in the Contract that how much LD shall be paid by the Contractor for each day of delay. The Contractor only liable to pay the written amount in the Contract, payment to the Consultant is Employer's liability, unless otherwise mentioned in the Contract.