Construction Law/Consultancy Fees Revision
WE are dealing in ABUDHABI,Consultancy contract was awarded 4years before, the construction contract for contractor was awarded recently.Now the consultant was asking revision of prices due to delay in construction contract, consultant was completed all the services as per the Contract ex.Conceptual Design,Final design ,contractors tender documents,pre contract engineering services,evaluations etc. except site supervision for construction Please comment.
ANSWER: Dear Shoaib,
It depends on their agreement with the Employer. There should be a time limit for consultancy and supervision services. Without analyzing their agreement, it is difficult to interpret. You can also clarify, what is the base of their claim ?
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Consultant job Stage-1 Conceptual Design etc. completed by consultant(Effective date from the date of letter of award)
Stage-II -Final Tender documents, specs. etc.-completed by consultant(effective date shall be final approval of conceptual design..)
Stage-III-Tender Evaluation etc.-completed by consultant(effective date shall be issuance of invitation to tender)
Stage-IV -Site supervision (delay due to award approval for contractor from higher authorities for more than 1.5 year)(effective date shall be date of mobilization of consultants staff to site)
I understand that the site supervision works have been delayed by the Employer more than 1.5 years however the period of supervision remains same, please confirm ?
Can you provide an answer that whether Consultant provide staff between stage 3 and stage 4 during approval procedure of Contractor ?
Is there any specific clause for price increase, extension of time, etc. that the Consultant may refer to ask revision of prices ?
Normally, in accordance with the agreed terms and periods, consultants keep the supervision staff ready and may incur expenses in this regards but as I told you before, without going through the Agreement between Consultant and Employer, it is not possible to evaluate.
I take this opportunity to wish you a happy new year.