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Construction Law/Delay in Signing Contract Agreement

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Question
Dear Mr. Arshad,

Contract Type: Measure and Pay
General Conditions of Contract:FIDIC MDB June 2010

As per clause 1.6 in FIDIC MDB June 2010, the Parties shall enter into a Contract Agreement within 28 days after the Contractor receives the Letter of Acceptance.

This has not been amended in the Particular Conditions.

The Contractor has received the Letter of Acceptance 90 days back and he has handed over the Performance Bond too in time.

But so far the Contract Agreement has not been signed.

Please provide me clarifications for the following.

1.0 Is the Contractor entitled for any claim in this regard?
2.0 What is the clause applicable?
3.0 What are losses can be claimed?
4.0 When the Contractor shall serve Notice in this regard?
5.0 Since the Contractor is willing to get this Contract even at a
   later date, is it alright to serve the said Notice after signing
   the Agreement?

I am grateful if you would provide full details.

Thank you.

Answer
Dear Jayan,

In your question,you have not mentioned the reasons for delay in signing of Contract. Anyhow, here is the answer/clarifications of the points raised in your question:

1. Yes,the Contractor may title for the prolongation time.
2. Sub Clause 20.1 and Sub-Clause 1.6.
3. The losses actually incurred.
4. Notice can be served right now,even on expiry of 28 days time-frame specified in Sub-Clause 1.6 of the  
  Contract.
5. You may wait for signing  of the Contract,but I would suggest that there is no harm to serve notice
  right now.But wait for signing of the Contract for submission of the Claim.


 Regards

 Engr. Arshad Mahmood  

Construction Law

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Arshad Mahmood

Expertise

I may answer to the questions relating to FIDIC 4th as well as FIDIC 2010 MDB Harmonized version,price adjustment ,Variations,Eot and Cost claims,EPC Contract,Bidding Document,consultancy Contracts,certification,Standard Forms, Dispute resolution; and others pertaining to Contract implementation.

Experience

Contract management and Contract Administration, using FIDIC Conditions of 4th Addition as well as Fidic 1999 Red, Yellow and Silver Books including MDB Harmonized Edition 2010. Particularly in the area of Procurement of Contracts, Certification,Price Adjustment, variations,disputes management, EoT and Cost Claims; and other contractual issues arises from time to time during currecy of the Contracts.

Organizations
Member -Pakistan Engineering Council Member -Pakistan Engineering Congress Member -FIDIC Organisation

Publications
Joint Venture and Consortium Agreements for Pakistan Engineering Council,Pakistan

Education/Credentials
BSc Civil Engineering; Basic Management course; Hydro power Projects; and various other on Job Trainings

Awards and Honors
Commendation Certificate for the excellent management qualities and dedication at Ghazi Barotha Hydropower Project; and Certificate of Excellent work performed during Survey Camp.

Past/Present Clients
Water and Power Development Authority (WAPDA),Associate Consulting Engineer(ACE) and National Engineering services Pakistan(Pvt.) Limited (NESPAK)

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