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Construction Law/Client Consultant issues affect Contractor

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Question
We are Consultants performing supervision services on a middle east project under the White Book FIDIC form of contract.

The works are delayed due to circumstances beyond contractors control. The works are 80% complete, but the client will not sanction additional budgets for consultants supervision, resulting in an imminent demobilization of half of the supervision team.

We have notified the client of the demobilization schedule and how the works may be affected.

We feel it is our obligation to inform the contractor too. Is it OK to do so, or will there be repercussions against us.

Answer
Hi Jaison,

Apology as I am on vacation now and seldom had an opportunity to check my inbox. I hope you had a happy holidays.

Let us present the two (2) contracts:

Client x Consultant = FIDIC White Book
Client x Contractor = Not Specified

It is demonstrated on the above presentation that the Consultant has nothing to do with the Contract executed between the Client and Contractor. Such issue shall be dealt between the parties involved.

Generally speaking (considering that the Contract between Client and Contractor was not specified), the Client shall only notify the Contractor in case of replacement of appointed Consultant. Meaning, the Client has to notify the Contractor about the demobilization in the same manner that the Client notify the Contractor the appointment of  Supervision Consultant (your organization). It is not your obligation to inform the Contractor, much more that the case is only reduction of manpower and not replacement of Consultant.

What matters in Contractor's perspective is that they will be able to obtain the approvals/comments/recommendation/certification, etc., within the duration specified in the Contract, regardless of the size of your organization or whoever execute the supervision. The Contractor will just claim in case of failure by other party to provide the same within the specified duration. In other words, the risk falls under the responsibility of the Client.

To answer your question, it is not your obligation to inform the Contractor about the changes in your organization. Let the Client notify the Contractor, if they think it is necessary.

Kind regards,

Rofel Ningal

Construction Law

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Rofel Ningal

Expertise

Questions related to Construction Law, Conditions of Contract, Contract Terms & Conditions, Claims, Contract Administration, etc.

Experience

Having more than 10 years extensive experience in international companies, including working in the UAE, Qatar and Philippines, both for private and public sectors, such as, Government, Project Management, Consultancy and Construction provide a wider perspective in analyzing the issues related to Construction Law and the like to provide advice in a fair and reasonable manner, in accordance with the applicable Contract Terms and Conditions. The hands-on experience I had for preparing cost proposal for variations; daily correspondences protecting the rights of my organization under contract; preparation and finalization of contract/agreement; preparation, negotiation and finalization of claims for extension of time and associated cost, etc. will be useful to understand the details of every question asked. With experience working in a project administered by FIDIC Form of Contract (Red and Yellow), Public Works Authority (Qatar) Conditions of Contract, etc.

Organizations
Philippine Institute of Certified Quantity Surveyors Philippine Institute of Civil Engineers

Education/Credentials
BSc in Civil Engineering - West Negros University MBA in Construction (Units only) - Manchester Business School Worldwide

Awards and Honors
Licensed Civil Engineer at the age of 20

Past/Present Clients
Public Works Authority (Qatar), Roads & Transport Authority (UAE), Qatar Foundation (Qatar), Qatar Real Estate Investment Co., ALDAR Properties (UAE)

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