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Construction Law/Admissibility of Expenses

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Question
Hi Mike

I would welcome your opinion on whether an employees meal expenses should be admitted as a part of "Travel Expenses" within a cost recovery claim under FIDIC 99. Air fares and hotel costs are probably accepted, but it is argued that as food would be necessary whether the individual was working in his home office or was required to travel overseas for meetings and the like the costs do not arise as a direct result of the claim circumstance.

Answer
Hi Keith
Interesting question.
The meal expenses in restaurants would inevitably cost more than domestic expenditure.
Provided it was not excessive - champagne and caviar style - I would argue that meals on business trips is a valid cost to include in a claim.
Some companies have a fixed daily subsistence allowance and that would be a reasonable approach.

If the costs were incurred as part of the claim submission then they would normally all be disallowed.

Best regards
Mike Testro

Construction Law

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Mike Testro

Expertise

Anything related to extensions of time and delay analysis.

Experience

45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Organizations
Society of Construction Law Adjudication Society ex Planning Engineers Organisation

Publications
6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Education/Credentials
Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

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