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Construction Law/Mob Advance Application

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Question
Dear Sir! We are working at a canal project in Tank with WAPDA. Contract is based on general conditions of FIDIC 4th 1987. According to Clause 60.11, An interest free mobilization advance upto 10% of the Contract Price shall be paid by the Employer to te Contractor in 2 equal installments upon submission of Mobilization Advance Bank Guaratee for full amount.(1) First part within 21 days after signing of contract. (2) Second part within 42 days from the date of payment of 1st part.

Issue is that the Contractor could not get Bank Guarntee in 3 months. So, he submitted the application for Mob Advce after 3 months of signing of the Contract. The Employer says Mob Advce Application is Time Bared as it was to be submitted in 21 days after signing of the Contract. Kindly guide us how to proceed. We cannot start work without mobilization advance and already 3 months gone.

Answer
Dear Bhatti sahib,
Thanks for the question.
Was Employer informed of this delay in time in writing? .If not,the employer can take present position in principle.If you feel that still you have valid reasons and still client donot accept your stance you have no option but to follow clause 67 route but i feel you should update your clause 14 program as well to inform what effect it will have on construction period if no mob. advance is paid with a realistic analysis
Regards-liaqat hayat

Construction Law

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Liaqat Hayat

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I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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