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Construction Law/Change in Legislation Claims

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Question
Hi Manish,

One of my projects in Oman is awarded an Extension of Time by the client without cost implication. During the course of the project, a legislation (Royal Decree) was promulgated providing an increase in the minimum wage of local employees.

The Contractor has submitted their claim for the duration covered under the original contract period and the extended period. Is the Contractor entitled for payment of the claim for the extended period knowing they were awarded an extension of time without any cost implication?

The Contract used is the Oman Standard Conditions of Contract.

Thank you,

Mike

Answer
Dear Mike

Since, the EOT was awarded with any Cost Implication and I presume that the same was agree mutually; in my opinion the said additional payment shall not be paid for the extended period. It shall be applicable during original time for completion only.

Best Regards

Manish

Construction Law

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Manish Gupta

Expertise

I can answer questions related to Cost Planning, Contract Administration, Construction Law & Other Post Contract QS related areas.

Experience

7 Years with Contractors 12 plus Years with Owners & Consultants

Organizations
Calgary Project Consultants, Jacobs International, Turner International, J Ray McDermott Inc. Hindustan Construction Company

Education/Credentials
MRICS, MCIArb, BE (Civil), PGDCM LLM-Constuction Law in Arbitration and Adjudication

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