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Construction Law/Advance payment - EOT


Dear Sir,

We are dealing with FIDIC 1987 for an interior project in Dubai.An additional advance payment was agreed based on advance payment guarantee .Can the Contractor claim for delay in the payment of Advance since there is nothing mentioned about the advance payment terms except against guarantee.CAN THE advance payment be considered as a interim payment and payment terms the same since there are no terms mentioned specially for it.
Thanks and regards,

Dear Srinadh

Apologies for delayed response.

Advance payment can not be considered as an interim payment and must be paid as soon as the APG is submitted aong with an Advance Payment Aplication.

In practice it is paid within a week after receiving all satisfactory documents from the Contractor.

Advance Payment can not be considered as an Interim Payment as the whole purpose of making an Advance Payment arrangement is defeated in such case. Sub-clause 14.2 - FIDIC 1999 can guide you further.

Best Regards


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Manish Gupta


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