Construction Law/Employer Payment


Contract is based on FIDIC 1987 AND 1992
This is a interior fit out contract in Dubai along with civil and mep works
As per LOA it is mentioned that the payment will be released in 30 days from the date of fully substantiated application.

But the Contract agreement appendix states as per Clause 60.10 the payment from Employer is 30 days from the date of receiving the certificate.

the contract is signed by Contractor but he Client did not sign the contract waiting for confirmation on the  validity of the signing authority of the Contractor.

Which one will supersede in this case since there is an argument on the due date for release of payment by Employer.

Dear Srinadh

Based on the scenario I understand that LOA will form part of your Contract Agreement and based on the priority of documents stipulated in your Contract, the priority shall be established.

Sub-clause 5.2 states following:

(1) The Contract Agreement (if completed);
(2) The Letter of Acceptance;
(3) The Tender;
(4) Part II of these Conditions;
(5) Part I of these Conditions; and
(6) Any other document forming part of the Contract.

Therefore Contractually terms agreed in the LOA shall be considered; unless stated otherwise by amending sub-clause 5.2.

Best Regards

Manish Gupta

Construction Law

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Manish Gupta


I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.


7 Years with Contractors 12 plus Years with Owners & Consultants

Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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