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Construction Law/Client Consultant issues affecting Contract

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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
Dear Jaison,
In your question,it has been mentioned that the works have been delayed due to circumstances not attributable to the Contractor which means these were employer's delay.80% works have completed.Question arises whether Consultants have extended the contract duration of the Contractor's works for the completion of balance work.
You have said that Consultants have notified to the Client  of demobilization schedule.
In my opinion,1st step was  to inform the Client of the circumstances and probable effects of delay under clause-25.If EOT has been granted to the Contractor,same time may also be requested  to extend in consultancy contract to the Client.
If client is not sanctioning the additional budget for Consultants,it may be inferred that he doesn't require further service of the Consultants.You should write to the Client whether he need your services furthermore or not.In case of silence form the client end,you may further write that the Consultants is continuously performing the services beyond the stipulated time of the consultancy contract for which he has the rights to raise the bill(invoices) under the provisions of the Contract.

As per my understanding,it is not your obligation to inform the Contractor as per provisions of the  construction Contract.It is the obligation of the Client to inform the Contractor that who will play the role of the Engineer in future,if there will be no more role of the previous consultants.In case of termination without notices by the Client, the Consultants may raise his claims.If you feel that the Client don't want to extend the Contract, you may terminate the Contract by giving notices as required under the provisions of White Book.
Any further query,if required, will be always welcomed.

Engr Arshad Mahmood

Construction Law

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Arshad Mahmood

Expertise

I may answer to the questions relating to FIDIC 4th as well as FIDIC 2010 MDB Harmonized version,price adjustment ,Variations,Eot and Cost claims,EPC Contract,Bidding Document,consultancy Contracts,certification,Standard Forms, Dispute resolution; and others pertaining to Contract implementation.

Experience

Contract management and Contract Administration, using FIDIC Conditions of 4th Addition as well as Fidic 1999 Red, Yellow and Silver Books including MDB Harmonized Edition 2010. Particularly in the area of Procurement of Contracts, Certification,Price Adjustment, variations,disputes management, EoT and Cost Claims; and other contractual issues arises from time to time during currecy of the Contracts.

Organizations
Member -Pakistan Engineering Council Member -Pakistan Engineering Congress Member -FIDIC Organisation

Publications
Joint Venture and Consortium Agreements for Pakistan Engineering Council,Pakistan

Education/Credentials
BSc Civil Engineering; Basic Management course; Hydro power Projects; and various other on Job Trainings

Awards and Honors
Commendation Certificate for the excellent management qualities and dedication at Ghazi Barotha Hydropower Project; and Certificate of Excellent work performed during Survey Camp.

Past/Present Clients
Water and Power Development Authority (WAPDA),Associate Consulting Engineer(ACE) and National Engineering services Pakistan(Pvt.) Limited (NESPAK)

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