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Construction Law/Delay Damages - FIDIC 1999

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Question
QUESTION: Dear Sir

In saw an article that the Delay Damages can be calculated as 10% of the Accepted Contract Amount / 20% of the Time for Completion.

Could you give your comment for the above? Is the above correct?

Br

Sudantha

ANSWER: Dear Sudantha,

Thanks for your question.
If I understand your question well and since you did not send a copy of the article for my reference, I guess the article must be referring to Calculation of the delay damages as 10% of the Accepted Contract per 20% of the time for Completion. For example, if the time for completion is 100days and the Accepted Contract sum is USD 100,000.00; the delay damages would be calculated as 10% of USD 100,000.00 = USD 10, 000.00 per (20% of 100days = 5days). It, therefore, means, USD 10,000.00 per 5days which is the same thing as USD 2,000.00 per day.

Hope this helps you?

Femi

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

QUESTION: Dear Sir

My query is whether the above formula is correct?

Br

Sudantha

Answer
Dear Sudantha,

Incorporating terms or formula for delay damages in the contract can be worded in any form to derive the amount for such damages to be levied against the contractor. There is nothing wrong if they a client choose to word the damages clause payable that way provided it can be interpreted. Some may simply put it as a lump sum amount per period (whether day or week or month and part thereof). Some may put it as a percentage or a fraction of contract sum per period (as described) and so on.

Thanks.

Femi

Construction Law

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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