Construction Law/Mob Advance
We are a construction firm and working under EPC FIDIC 1999 in DIK PK. The Contract Clause 14.2 " An interest free Mobilization Advance upto 15% of Contract price will be given to the Contractor on submission of the Guarantee......" The Contractor submitted the Guarantee equivalent to 15%. But the Employer is paying 10% and saying that it is not mandatory to pay full 15%. He is saying it may be upto max 15%. Sir, we made our all financial planning on 15% Mob Advance. With 10% Mob Advance we will not be able to Mobilize at site as planned. Plz comment, an Employer can do it Contractually?
thanks for the question.
The terminology used of 'upto' do provide the Engineer to exercise option of reducing the percentage figure of mob. advance.My feeling is ,however, that this reduction in advance should have been intimated/discussed by employer at time of contract signing so that the contractor could have planned accordingly his cashflow arrangements.What he is paying on other jobs of his?