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Construction Law/Payment to Contractors

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Question
Can payment be withheld to a contractor after works have been fully completed, whether or not theer maybe inflated rates provided that the contractor has a signed contract with agreed rates and was allowed to proceed with the works as per contract.

Answer
Dear Ronald,


You did not mention the form of contract you are using.

In general, payment to the contractor for the works done in accordance with the requirement of the contract shall not be unreasonably withheld.

Some contracts have provision for retention money, in which a certain percent is retained for each payment and shall be released upon a certain period of time.

Check your contract for provision regarding delayed payment. You may want to submit a claim for delayed payment plus inclusion of interest etc.


Regards,

Jonathan L. Peralta

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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