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Construction Law/Max limit of the liquidated damage


Contract Fines
Contract Fines  
"Dear Sir

1- if the contract is remeasured with original contracted amount = X , then at the end of the project the contract amount shall be Y (after implementing the actual quantities and applying variations , claims , etc)
In view of the the relevant contract clauses, the max liquidated damages (fines) shall be 10% of X or Y?

2- if the applicable law states the following: "the final payment certificate, which shouldn't be less than 10% , will be released after taking over the Works from the Contractor" ... how do you understand this 10% ? 10% of which amount ?

Thank you Sir"

Dear khaled Sahib,
Thanks for the question.
I am inclined to respond as follows to the two questions.
1.The deduction of LDs is normally left to the Employer.In my opinion it will be 10 % of X
2.I will favour again 10% of amount X
Regards-liaqat hayat

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Liaqat Hayat


I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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