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Construction Law/suspension of works by contractor

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Question
Hi Jonathan,

following fidic 16.1, a contractor has the right to suspend works for failure by the employer to comply with GCC 14.7 (payment).

During the 21 days notice period when the contractor has reduced the rate of work, should the payment be 100% or a reasonable payment (say 60% of the interim payment certificate being claimed) enough to instruct the contractor to resume normal rate of work.

Thanks in advance.

Dan Lizardo

Answer
Dear Danilo,

Please take note that there are 3 scenario where in the Contractor may suspend the work or reduce the rate of the work.

The payment shall be that of what has been certified and reflected on the IPC as certified by the Engineer pursuant to sub-clause 14.6 and 14.7.

The Contractor is entitled to receive the amount certified in each IPC (ref. item [B] sub-clause 14.7).

In addition, you may be entitled also to receive financing charges due to delayed payment (ref. sub-clause 14.8). You can follow the procedures under sub-clause 20.1 for this additional claim(if applicable).


Hope this helps. Good Luck!

Thanks and Regards,

Jonathan L. Peralta

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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