QUESTION: Dear Sir;
I am the CA of an Oil & Gas project. Contract is a bespoke one which states in one of its Contract Conditions Clauses that governing law is the laws of England & Wales. Upon reviewing the issue of Contractor's delay, EOT and concurrent delays I have accordingly referred to the "SCL delay and disruption protocol" .. is it OK ?
The Contractor is raising objection and asking if this protocol is Governmental law of England (or State law) or this SCL is just a private sector society?
May you help me with supporting references please.
ANSWER: Dear Mr.Khaled,
Thank you for your question. My response is as follows
SCL protocol is a guidance note for a transparent procedure adopted for award of additional time and/or money to the party under a contract in UK. This party under the contract is not at risk for the effect of change. Also, it is not a Contract document nor a statement of law. It only provide a balanced and viable way to deal with delay and disruption issues and is prepared by a group of experienced lawyer/experts in 2002 as assistance to the construction industry in UK to decide on such matters. Since matter is not clearly defined or provided for, it is a practice in UK and now in some other countries also like Hongkong to refer to this protocol when dealing with concurrent delays issues under standard form of Contracts like FIDIC.
Regards and best wishes,
---------- FOLLOW-UP ----------
QUESTION: Dear Sir;
Thank you however I am still confused about:
1- the sentence "This party under the contract is not at risk for the effect of change" is not clear for me. I didn't understand what do you mean by saying that and what does it aim to. Also, what does "this party" refer to ,you mean the Contractor?
2- I understood that SCL protocol is prepared by a group of lawyers/experts i.e. the SCL society is a private organization. SO, how come it is referred to in UK and other countries such as Hong Kong as you mentioned. is it considered or counted by official jurisdictions or state laws?
3- your answer to above mentioned question in "2" will allow me justify to the Contractor why I referred to the SCL protocol when dealing with his claim of EOT and prolongation costs.
Thank you very much Sir, you are so generous as usual
Sorry my one sentence in response to question no.1 above, has been a source of confusion. All I mean with this sentence was that there has been many litigation and dispute on award of EOTs on construction contracts due to concurrent delays and resulting liability on either party. With the induction of SCL things are clear now before hand while entering into a contract and this way it has no problem while evaluating the effect of change. Regarding point no.2, I suggest that you get an official confirmation from SCL office at website http://www.scl.org.uk/contact
and phone no.07730-474074. I hope this will be found useful.