Construction Law/Financial Charges Duration
Sub-Clause 14.8 FIDIC 1999 EPC says, if the Contractor does not receive payment in accordance with Sub-Clause 14.7 (Timing for Payment), the Contractor shall be entitled to receive financing charges compounded monthly on the amount unpaid during the period of delay. The Employer was to pay an IPC amount within 56 days but he actaully make payment on 156th day. So he delayed IPC payment for net 100 day. He calcualted Fin Charges for 100 delay days say X amount. But failed to pay the X amount of Fin Charges on the same date of payment of IPC amount on 156th day.
He after passing another 60 days (Total 156+60=216 days of submission of IPC)paid us the same X amount of Fin Charges calculated on 156th day. We are of the opinion that X amount is the Principle Amount for 60 delay days and Fin Charges shall be paid to us on X amount for 60 adys. What is your opinion.
Please advice us how to proceed.
As for I could understand from your question,I feel that you should be paid
1)x amount of fin charges calculated on 156 day + ipc amount due and
2)fin charges on x amount for another 60 days as i agree with you that it is now part of prin. amount but you have not mentioned why he disagreed with your approach