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Construction Law/Granted EOTs and related running cost claims


Dear Mr. Peter,

We have a construction project in UAE with contractual duration of 17 months but got delayed. The delays were mainly related to Engineer/Client changes and some part by the Contractor. However, an EOT was granted by the Client to the Contractor for 7 months.

Now the main part comes. An EOT was granted in Sept, 2013 based on Contractor claim. However, the Contractor has submitted cost claim of running items / preliminaries against the granted EOT only by May, 2015 i.e. after almost 1.5 years.

My question is the following:
1. In normal cases, does the Client need to pay the Contractor any running cost against the granted EOTs?
2. In our case, the Contractor failed to notify the Client about any cost claim at the time of awarding EOT. After 1.5 years, he submits claim for the running costs (site offices, facilities, attendants, services etc.) against the granted EOT. Is he still entitled to get such monies under FIDIC 1999 or standard construction industrial practices?

Dear Velmurugan,

1. It all depends on the basis for the claim for EoT.  The Contractor gets nothing, costs or costs and profit.  It all depends on who can control the risk. For example inclement weather is a shared risk.  The Contractor gets time but no costs.  
2. The time bar is a relatively new concept and the case law is uncertain at present.  Under clause 20.1, the Contractor is required to submit his claim within 28 days of knowing that he has a claim or be time barred and lose his right to a claim.  However, this requirement needs to be imposed with care, especially if Employer fault was the cause for the EoT.  I would review the claim and accept it or reject it on contractual grounds, excluding clause 20.1 time bar.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


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Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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