Construction Law/Client issues affecting Contractor
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.
That is an intriguing question indeed. It all depends on your contractual / legal relationship with the Contractor. If you are also "The Engineer" of the project (IRO FIDIC Red Book 4th Ed) then you may have a responsibility of intimating the same to the contractor. Otherwise, if you are working on an EPC / Turnkey Project, providing only technical assistance (in terms of construction supervision) to employer, then you may not be obliged to intimate the contractor.
There could also be an instance where the Employer and the Contractor have jointly appointed your firm in a QA/QC Role.
Moreover, also refer to the relevant appendices to your contract for your reporting requirements and assuming the fact that the employer has hired your services and responsible for your progress payments then in that scenario you are not obliged to notify the contractor, neither it is advisable; because as a general rule Supervisory Consultant acts an agent of Employer.
However, I would be able to offer further clarification if you are at liberty to share your contract.