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Construction Law/Sub-contract agreement Clauses


I am sub-of a sub-contractor in a large scale project contains .my scope is to carry out part of the MEP works .
My sub contract agreement with the MEP contractor is installation and testing only for the major MEP equipment of the project and priced in lump sum rate (i.e. No. of equipment  X installation and test rate)
The agreement was having a plenty of Troublesome Contract Clauses  imposed on us while signing the contract arguing that it is for the benefits of both parties .however ,while the project progress it has been used against us .
one of these clauses is the following :

-   Date for Completion : “dates of completion shall be in line with the project construction schedule mutually agreed time to time “

the problem starts as follow :
in the beginning of the project we requested a detailed program of works for our activities to a plan our resources and equipment’s a head ,in return the contractor forward us a general schematic /schedule showing only part of our activities and start and finish month and total duration in months  (no days shown)  with no addt’l details.
We made our detailed schedule based on this schematic but unfortunately we did not submit.

While the project progressed . the work never goes as planned nor in sequence as shown in the schematic, instead the access to some parts/areas  on the same activities were on hold, disruption in progress ,sudden release of huge areas of works and a request to complete immediately in very short period …etc and subsequently the project goes beyond the completion date as delays were major.

My questions is :
1-   Can I claim for (disruption of works) and request addt’l cost for assigning specialized staff and equipment’s for long period than the planned due to dis continuity in works ?
2-   The project now is beyond the initial completion date and the works still going on . when I submit a claim for addt’l costs in monthly basis until the project completed (I.e. office overhead ,staff salaries, equipment rent ,…etc) the contractor replies back referring the aforementioned clause and reject my claim . is he right on this ? and how can I tackle that clause and pay my staff salaries if the project continue in delay for one more year ?

Dear Abdelrahamn,

You do not mention the form of contract so the following comments will be general in nature. I would need to study the contract documents to give you a detailed answer.  I suggest that you contact one of the companies that deals with such matters.  

1.  You can claim for your extra costs, but will the Contractor reimburse them without a long and expensive legal proceedings. You have to take a strategic decision.  
2.  Explain your problem to the Contractor.  If he is unsympathetic, then terminate the contract before you go bankrupt.  Alternatively, find other contracts to keep your staff busy and productive so that you can pay them.  

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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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