Construction Law/Min Amount of IPC

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Question
Dear Sir!

We are Contractor working under Fidic 4th. 1987, As per Sub Clause 60.2; The Engineer shall not be bound to certify any payment under this sub clause, if the net amount thereof, after all Retention and deductions would be less than Minimum Amount of Interim Payment Certificate mentioned in Appendix to Tender".

Sir we have completed the project and applied for TOC but practically TOC is not issued yet. The Employer may take months to issue TOC due to lengthy procedures of TOC approvals within his department. I want to get clarification on the issue of Statement at Completion. (Q-1)This Statement at Completion may be submitted now (after submitting request for TOC) or we should wait for issuance of TOC; which we believe be issued after 2 or 3 months at-least. (Q-2) If the net amount of this Final Statement after Retention and deduction is less than minimum amount of IPC mentioned in Appendix to Tender; still the Engineer shall not be bound to certify this Statement at Completion or he shall certify this Statement at Completion irrespective of min amount of sub clause?

Answer
Dear Ishaq, Hope you will be fine.

As regard TOC, the Engineer is obliged to issue TOC within 21 days or may say that the works are not yet substantially completed but cannot keep it pending without any reasons.In MDB Harmonized version,if the Engineer do not issue TOC within the specified time,the TOC will be deemed to be issued with effect from the date of notification by the Contractor.In my opinion,the Engineer should not prolong the matter of TOC,if the Contractor has completed the Works.

Statement at Completion cannot be submitted before TOC as the date of TOC is required for Statement at Completion. You should pursue and remind the Engineer for early issuance of TOC.

Q2) Minimum limit of IPC is not applicable for Final Statement Application.It is only for monthly Payments. The Contractor generally include so many claims/disputed amounts and others in final statement at Completion/Final statement.  

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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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