Construction Law/Delays Caused By Authority
QUESTION: Dear Sir,
According to FIDIC Red Book 1999, Sub Clause 8.5, if some delay occurs due to delays caused by authority, the Contractor gets EOT without any cost and profit.Can you clarify about the cost and profit mentioned in the same Sub Clause 8.5.
for eg. Contractor imports some equipment from other country and he can not import the same in time because of unable to provide the substantiation in the custom department and he pays demurrage cost for the same. Now I want to be clear on: Shall the Employer pay for the demurrage cost which the contractor has paid to the Custom Department?
ANSWER: Dear Binod,
BY the way the fidic edition of 1999 do not make mention of'cost and profit 'in text of clause 8.5 that you reffered to and please clarify to re-look into.
In general ,the intent of this clause is to compensate the contractor for delays caused by the authorities provided contractor has followed right procedures with timely actions relating to importation rules of the country.Hope this was your question?
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QUESTION: Dear Sir,
I am not fully agree in your explanation about Sub Clause 8.5. If you go through Sub Clause 1.9 and 2.1, there is clearly written about the cost and profit that the Contractor gets if the delay occurs due to drawing and instructions as well as due to right of access to Site. In Sub Clause 8.5, there is mentioned only EOT but not any cost and profit. If the interpretation of Sub Clause 8.5 was same with Sub Clause 1.9 and 2.1 , there would be some additional explanation about cost and profit in Sub Clause 8.5. That's why I am asking about the details of cost and profit.
Thanks for further clarifications on clause 8.5 but i am still unclear where we are differing as for as provisions of cl 8.5 is concerned.In my opinion,this clause relate to cause of delay and extension of time under clause 8.4 where EOT is granted against 5 specfic causes only.That means it can be or may not be granted with costs. This is further subject to the decision of the Enginer under cl 20.1.The clause 1.9 and 2.1 not applicable in this scenerio in my opinion