Construction Law/Contractor's Claim


QUESTION: Reference: Sub-clause 53.4 of General Conditions of Contract of FIDIC 1987 reprinted in 1992.

Dear Sanjhay;
Would u please explain the significance of sub-clause 53.4 of GCOC of FIDIC 1987 R 1992 i.e. processing of contractor's claim in case of failure to comply by the contractor.

ANSWER: Dear Tahir Jamil
Sub Clause 53.4 related to failure to comply with any provisions of clause 53 in respect of any claim the amount for panelty can not be more than the amount of his claim accessed by the Engineer or arbitrator. Penalty can be impose for his failure to comply but his claim can be accessed on merits and demerits of the claim seperately. You can not counter the claim amount, it means panelty for failure to comply the provisions of clause 53 and claim of contractor is and its valuation is seperate issue.

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

QUESTION: Dear sir:
Will u please explain the term panelt since I could not find find an explicit reference
In sub-clause 53.4 in this regard. Sir; this explanation is very important and interesting
for me.
Tahir Jamil

ANSWER: Dear Tahir Jamil
The term penalty means employer's claim under provisions of contract for failure to comply by the contractor. Employer can raise claim under provisions of contract but can not counter the contractor's claim

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

QUESTION: Dear sir:
Thanx for sparing your precious time. It may however be appreciated
That there is no provision in Fidic 1987 R 1992 regarding 'Employer's Claims'
Except 'Liquidated Damages'. So, then, how can the panelty for 'Failure to Comply'
be imposed on the Contractor under the provisions of contract. Sir, my question is
Important in the sense that normaly the Engineer does not impose any panelty
and evaluates Contractor's claim in the same way as the Contractor has not faed
to comply saying that conditions of contract empowers the Engineer to evaluate the
claim when the Contractor fails to comply. So, what is the difference when the Conractor
fails to comply AND when he fails to comply with the provisions of contract? Sir, ur
wise guidance under the provisions of contract will resolve a big issue.

Dear Tahir Jamil
Wellcome again, Employer can raise his claim under sub clause 10.3 for default of contractor under performance secuirity. Engineer as per contract sub clause should be impartial during evaluation of claims under the contract rather claim raise by the contractor or employer. There is no difference between contractor fails to comply or he fails to comply as per sub clause 1.1 (definitions) of contract agreement.

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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