Construction Law/Claim


QUESTION: "Dear sir:
My question is related to clause 53 of Fidic 1987 reprinted in 1992.
Would u please let me know the difference between following two situations:
(A)   Calculation of a claim of the contractor by the Engineer when a notice of intention to
      Claim has been given by the contractor and contemporary records have been maintained and submitted; and
(B).   Calculation of a claim of the contractor by the Engineer under sub-clause 53.4 where the contractor fails to     comply.
       Please answer and oblige."

ANSWER: Dear Tahir,

In case(A); the Engineer will have to process and determine the claim  under the provisions of the Contract.If the Contractor dissatisfied with the Engineer 's claim,he may raise dispute and adopt other remedial measures specified in the Contract.

Whereas in case(B): the Engineer is not bound to determine the claim.However,if he feels that the Contractor,s claim  has sound footing, he may determine it at his own on the basis of available record with him but for which the Contractor will have to agree with the Engineer,s determination and he cannot raise the claim further and make it dispute.

Engr.Arshad Mahmood

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

QUESTION: Do the provisions of Fidic 1987 r 1992 regarding Contractor's All Risks
Insurance Policy cover the Prolongation Costs?

As for as I understand, it does not cover the prolongation cost.Prolongation cost is against an EOT which is compensable and is  totally attributable to the Client. In such case,if EOT is granted, CAR insurance  will also be enhanced to cover the extended period.

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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