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Question
We are working as employers on a sub stations and our contract is based on  totally modified FIDIC 99 edition. Before asking my question let me brief you with the history.A contract was awarded to the contractor on 27-02-2014 with a duration of 2 years & with a warranty of 2 years due to the delay in progress conducted a meeting in the begining of january 2015 & agreed by contractor to submit recovery programme & promised to complete within the time schedule but till today progress in only 5% as compared to programme of works 55% .As a employer shall i proceed to terminate the contract as per clauses of conditions of contract.Please comment

Answer
Dear Shoaib,

I well come to your Question.Here is my answer and comments.

I could not understand whether your Contact is based on FIDIC 1999 or in some other form of Contract. Any how, in all Contracts,provision always exists for termination of Contract by the Employer. If you are following FIDIC 1999 Contract,then before termination,we have to follow some prerequisite which are stated here under:
1 Sufficient Letters from the Engineer for slow progress of work under Clause 8.6[Rate of Progress] to the Contractor with the instruction to submit, a revised programme[under Sub-Clause8.3] and supporting report describing the revised method in order to expedite progress and complete the work within Time for Completion.
2.Notice  to Correct under Sub-Clause 15.1 by the Engineer to the Contractor with some  defined target with specific time frame---and if the Contractor still did not improve the Progress of works,
then the Employer under Sub-Clause 15.2 is entitled to terminate the contract.

If your Contract have some other provisions, you will proceed accordingly.In case of any further clarification,please feel free to contact me.

Regards


Engr.Arshad Mahmood

Construction Law

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Arshad Mahmood

Expertise

I may answer to the questions relating to FIDIC 4th as well as FIDIC 2010 MDB Harmonized version,price adjustment ,Variations,Eot and Cost claims,EPC Contract,Bidding Document,consultancy Contracts,certification,Standard Forms, Dispute resolution; and others pertaining to Contract implementation.

Experience

Contract management and Contract Administration, using FIDIC Conditions of 4th Addition as well as Fidic 1999 Red, Yellow and Silver Books including MDB Harmonized Edition 2010. Particularly in the area of Procurement of Contracts, Certification,Price Adjustment, variations,disputes management, EoT and Cost Claims; and other contractual issues arises from time to time during currecy of the Contracts.

Organizations
Member -Pakistan Engineering Council Member -Pakistan Engineering Congress Member -FIDIC Organisation

Publications
Joint Venture and Consortium Agreements for Pakistan Engineering Council,Pakistan

Education/Credentials
BSc Civil Engineering; Basic Management course; Hydro power Projects; and various other on Job Trainings

Awards and Honors
Commendation Certificate for the excellent management qualities and dedication at Ghazi Barotha Hydropower Project; and Certificate of Excellent work performed during Survey Camp.

Past/Present Clients
Water and Power Development Authority (WAPDA),Associate Consulting Engineer(ACE) and National Engineering services Pakistan(Pvt.) Limited (NESPAK)

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