Construction Law/Force Majeure

Advertisement


Question
QUESTION: We are using FIDIC Yellow Book. We got a tornado recently. It damaged many of our equipment and our works. What should we do? Can we claim damages from our insurance company? What rights do we have under the contract? Can we claim for delay and expenses under the contract? Please advise.

ANSWER: Dear Wong,


Thank you for your question.

Suggest you notify a claim as per Sub-Clause 20.1, based on Sub-Clause 8.4 (c)   exceptionally adverse climatic conditions for time, Cost, but no profit.

As for your insurance company, depends on what kind of insurance you have, but normally yes, you should be able to claim at least a part from them.

Hope that helps.

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

QUESTION: What about sub-clause 19.2. Do we have to give notice. How do we deal we sub-clause 19.3 and 19.4?

Answer
Dear Wong,


Thank you for coming back.

Sub-Clause 19.1 may apply indeed, depending on magnitude of consequences of the tornado. Was it a "hurricane"?

If yes, simply proceed as indicated in Sub-Clauses 19.2 - 19.4, including issuing the notice of Force Majeure and the notice of claim under Sub-Clause 20.1 - I do not understand what is not clear.

You will ask for time and cost, but no profit.

Trust that answer your question.

Construction Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Florin NICULESCU

Expertise

Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.

Experience

Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Organizations
Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

Education/Credentials
- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

Past/Present Clients
- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

©2016 About.com. All rights reserved.