Construction Law/Omit Total work


Dear Mr. Elliot,

The one villa project in dubai. The project has A, B & C 3 parts. the 3 parts consider as 3 project. A,B, & C whole 3 parts advance payment issued and A, B parts constructing. Now client omit total C parts from the project. Then how can we recover the Advance payment issued for this part C. please advise me.

Dear chamera,

You do not mention the applicable law nor the form of contract so the following remarks will be generic in nature.  

I guess that the advance payment will be recovered through the IPC's in the normal way.  I suppose that you have an advance payment security, so the actual money will be protected.  I assume that the problem is that the recovery per IPC will be greater than normal due to the new the Contract Price, which will be lower than the Accepted Contract Sum.  The contractor's cash flow will be affected adversely due to the need to recover the extra amount from each IPC.  The recovery of the Advance Payment must be part of the negotiations to agree the cost of the Variation Order to delete part C.  I suggest that you proceed cautiously as the problem has been caused by the Employer.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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