Construction Law/EoT & Delay damages
I am a currently working in a construction project and the contractor is currently 03 Months into Delay charges and the works is still ongoing.
The contract is based on 1999 Edition of FIDIC yello book.
At this point in time we want to issue a variation to execute additional works.
1. I would like to know if whole of the delay charges will be dismissed from the contractor due to this variation ?
2. If we can still claim for delay , what FIDIC clause justifies it ?
ANSWER: dear mr. Ageela,
thanks for the question.
I have following comments please
1).NO AND IS TO BE DEALT WITH AS VARIATION INSTRUCTED DURING THE PERIOD OF 'CULPABLE DELAY'(IE AFTER THE CONTRACT COMPLETION DATE HAS PASSED)ON GROSS BASIS. THIS GROSS APPROACH WOULD INCLUDE CONTRACTOR'S DELAY
PRIOR TO THE PROPOSED VARIATION.THERE IS A NET APPROACH ASLO IN WHICH THE EOT IS GIVEN FOR THE TIMEREQUIRED FOR THEVARIATION ONLY AND IS ADDED INTO THE LAST REVISED COMPLETION DATE.IT IS ALSO CALLED 'DOT- ON'PRINCIPLE.I SUGGEST YOU FOLLOW 'DOT-ON' APPROACH
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QUESTION: Dear Mr. Hayat,
Thank you so much for your response.
The Dot-on principle sounds good for me as i am the clients representative. However, if the contractor fights back on this, what FIDIC clause can i use to justify this? The FIDIC clauses on time extension does not provide a lot of details on this.
Once again thank you very much.I greatly Appreciate your time
Dear mr. Ageela,
I feel that Dot-on principle is fair and gives balanced compensation.It is no harm that contractor fight back as It is no harm to have it reviewed to be sure.There is no fidic clause on it but was reviewed this way in the case of 'Belfour Beatty vrs Chestermount'.The net approach was considered correct in this case