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Construction Law/Client Consultant issues affecting 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
Dear Jaison,

It is not unusual for the Employer to refuse to allocate extra funds to the Engineer, if a project is delayed or the supervision budget has been exceeded.  In this instance, you have to do the best that you can.  There are some differences between FIDIC 4 and FIDIC 99 with regard to changing the Engineer.  

Consider why you would inform the Contractor.  If you hoping to pressure the Employer to extend your services, forget it.  I think that it right to tell him that you will be demobilising half your staff and that there will be further reductions in staff, without giving a reason.  Then he will understand why you are pressing him to produce end of contract documentation, such as final measurements and O&M manuals, if required.  Whether or not there will be repercussions depends on your relationships with the Employer and the Contractor.  Make sure that you have copies of all documentation off shore in your head office.  

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Peter M. Elliott

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First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

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Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

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B Sc(Hons) in Civil Engineering

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