Dear Shri Vineet Shrivastava,
My query is related to Claim due to prolongation in Indian Scenario.
Basically it is a commercial Contract for the creation of a Township
containing quarters with facilities like swimming pool, park and so
on.There is a delay partly attributable to Employer. The Contractor
submitted various claims, which included prolongation cost. The
Claimant included the following in the prolongation cost.
> Site establishment Cost.
> Contractual Cost.
> Head Office Overheads and profit.
> Finance Costs.
I would like to clarify that the form of contract used is not FIDIC-
and hence FIDIC conditions cannot be used. The Contract and
conditions are similar to CPWD which do not provide for such claims.
I would like to know which law make the Claimant entitled for such
Claims. I also would be more obliged if you could throw some light on
the logic behind such claims.
Expecting your expert views.
Thanking you for spending time and share your expertise with the
Dear Mr. Natarajan
Thanks for your question and sorry for late reply.
I hope you know what is prolongation cost. It is the actual time related cost (Cost of Equipment, Staff and labor etc.) incurred by the Contractor for an excusable delay for which the Contractor is entitled for an EOT. you can read more about Prolongation cost on the Internet.
Please note it is the actual cost, therefore the Contractor need to provide proof of each time related cost incurred by the Contractor for the periods of excusable delay.
If the Contract doesn't allow for such claim. The Contactor can make claim for such cost through a variation or through common law.
Since I don't have the Condition of Contract of this Case and due to my little knowledge on CPWD COC, I can not comment much on the Contract Condition.
I hope this will clarify your query.
Please do not hesitate me to contact further.
Please leave a positive feedback for me.