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Construction Law/Delay Damages when there is sectional completion



Please advice how the mechanism of imposing delay damages apply to sectional completion as the case below.

Project comprise of office levels and services apartment levels

The conditions of contract is FIDIC RED BOOK 1999

There are specified dates to require completion in 4 sections from 1 to 4

The delay damage for entire works is 0.1 % of the Accepted Contract Amount per day to the maximum of 12 % of the Accepted Contract Amount

This delay damage applied to each sectional completion is the same for the entire works which is 0.1% the Accepted Contract Amount per day to the maximum of 12 % of the Accepted Contract Amount.

If the Contractor delay to complete section 1 and section 2. Shall this percentage of 0.1% of the Accepted Contract Amount per day shall be applied to the total days of delay for section 1 and 2.

But if the contractor can accelerate to complete the entire works on times. Shall the delay damages of the above section be imposed?

Appreciate for your enlighten this case


ANSWER: Dear Tri,

Thank you for your question, but think you sent a previous one, if not identical, quite similar ...

I presume you have a value of works within each section, i.e. the Contract Price is the sum of prices for each of the four sections.

Thus, you will judge independently each section and apply the delay damages by considering the respective price of each section.

If the Contractor completes ALL works in time, then there will be no delay damages. Or my understanding of your last question is not correct.

Hope that helps.

---------- FOLLOW-UP ----------


Sorry if making you confused

There is one tower in which there are 4 sections requested to complete on expected date.

Instead of giving the delay damage at the percentage per date for the amount of each section. The Employer would like to apply the fix percentage on the total accepted contract amount for each day of delay of each section.

The question is if section 1 would be delay in 10 days and making sequent delay in section 2 in total 12 days (10 days for section 1 plus 02 days for section 2). Shall delay damage be imposed on 12 days or 22 days (10 +12 days)

Completion of section 4 is also completion of whole works. but there is delay in section 4 of 2 days. So the delay damages shall be imposed for

A- Section 1 10days/ Section 2 12 days and section 4 - 14 days OR
B- Section 1 10days/ Section 2 2 days and section 4 - 2 days OR
C- 2days only for the whole works


Dear Tri,

Thank for coming back and for the additional information.

If the Contract PROVIDES for taking over on Sections, then delay damages shall be applied for each Section, applying the percentage to the value of that each Section. You will consider the number of days of delay for each Section.

If the Contract DOES NOT provide for taking over on Sections, then regardless the fact that certain Section were ready before, but not all of them, delay damages shall be calculated by applying the percentage to the whole Contract Price.

You will calculate the number of days of delay between the contractual Time for Completion and the date when the Taking Over of the latest of all Sections has been made.

Mind you, there is only one Taking Over for all the Works and Employer is not entitled to entered any finalised Section before the Taking Over.

Trust that answer your question.  

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