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Construction Law/Vairaiton Rate as per Red Book

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Question
one of the itme was executed for three years and paid also for 30 IPC's.  this work is now completed and unit rate was aproved by Engineer and paid also, however Employer approval for approved rate was not taken by Engnieer.  Now after three years, whether Engineer can deduct the amount from Cntractor for not having the approval from Employer?

Regards,

Rajesh

Answer
Yes, the Engineer can deduct the amount from Contractor because the rate was not approved by the Employer. In 12.3, the Contract mentions: "Until such time as an appropriate rate or price is agreed or determined, the Engineer shall determine a provisional rate or price for the purposes of Interim Payment Certificates" and 14.7 says: "The Engineer may in any Payment Certificate make any correction or modification that
should properly be made to any previous Payment Certificate."
So, yes, the Engineer can deduct the amount.
All the best!
Alina

Construction Law

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Alina Valentina Oprea

Expertise

I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.

Experience

Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on www.alinaoprea.com

Organizations
Dispute Resolution Board Foundation

Publications
see http://alinaoprea.com/publications/ ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Education/Credentials
Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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