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Construction Law/Application Date of Mob Advance


QUESTION: Dear Sir! We are working at a canal project in Tank with WAPDA PK. Contract is based on FIDIC 4th 1987. According to Clause 60.11, An interest free mobilization advance upto 10% of the Contract Price shall be paid by the Employer to the Contractor in 2 equal installments upon submission of Mobilization Advance Bank Guarantee for full amount.(1) First part within 21 days after signing of contract or date of receipt of Notice to Commence whichever is earlier. (2) Second part within 42 days from the date of payment of 1st part.......

Issue is that the Contractor could not get Bank Guarantee within 21 after signing of the Contract. Say, he submitted the application for Mob Advce + Bank Guarantee after 3 months of signing of the Contract. The Employer says Mob Advce Application is Time Bared as it was to be submitted in 21 days after signing of the Contract. Kindly guide us how to proceed.

ANSWER: Dear ISHAQ, Hope you will be fine.

For its detail answer,following info will be required:
Date of Commencement
Time for Completion of the Contract
Progress of Work after 3 month

In General practice, Mob Advance is not time barred, as there is nothing mentioned in the Contract, but for practical purpose,The Contractor may claim it during its mobilization period specified in his programme of Work(Baseline schedule).

The Contractor may prove that he has started the mobilization with his available financial sources after commencement date as per programme of Work but unluckily these were not enough to fully mobilize all resources and still he needed a substantial amount for equipment mobilization/ construction of Camp ,warehouse etc.;that is why he is requesting for Mob Advance.It may be an attempt but if the Contractor has fully mobilized and started the Work,then Employer stance may valid as the Contractor did not claim Mob advance and now the stage of Mob Advance has gone.Hope it will help you.
Engr Arshad Mahmood

---------- FOLLOW-UP ----------

QUESTION: Dear sir! Agreement was signed on 25 Mar. The commencement date started on 5 April. The contractor could not mobilized at site due to bad law and order situation, nor applied for Mob Advce till 9 June. He requested Mob advce on 9 June which was rejected on the plea that it was to be requested within 21 days of signing of contract.
Another developement is that the contractor applied for change of commencement date which has been accepted in Dec. New commencement date is now fixed by the Employer as 9 june. The project duration is 1 yr. (9 june 2015 to 8 june 2016).
The contractor is continously asking Mob Advce from June but being rejected again and again. My question is still same REQUEST OF MOB ADVANCE IS TIME BARRED if the contractor failed to apply within 21 days of siging of contract, due to any reason.

Although the Contractor should apply for Mob. Advance within the specified time-frame but it will be not fair to refuse the same. There is no such provision of its time  bar as I have already said,particularly in the prevailing circumstances as the Contractor could not mobilize  due to bad law and order situation.Admitting this fact the Employer has revised the commencement date.the Employer should consider the request of the Contractor that  he need money to mobilize, for which such provision has been made in the Contract.

But, it is also a fact that the Contractor seems  to be financial unsound that is why he could not manage the guarantee for Mob. Advance within three months from the date of signing of the Contract whereas the Contract duration is only one year. Now you may pursue the Employer.
Engr Arshad Mahmood

Construction Law

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Arshad Mahmood


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.


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.

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

Joint Venture and Consortium Agreements for Pakistan Engineering Council,Pakistan

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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