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Construction Law/Evaluation of Cost claim


Dear Sir,
We have determined and notified EOT of 45 days due to additional work of concrete piles which were required under the abutment of a barrage work. During execution  of this additional work, the Contractor's  all equipment and resources were  in use on other activities to be performed under the Contract and there was nothing idling of equipment. The Contractor has raised cost claim and is demanding  depreciation & FCCM cost,besides claiming other indirect cost.I,m not sure for which cost he is entitled to. Please note that conditions are of MDB harmonized version 2010.Please advise and help.

Engr. Arshad

Dear Arshad,

Thank you for your question.

I understand the Contractor is given an EoT for certain additional works that were required, for carrying out these works.

And for these works, they are paid, presumably with some prices derived from unit rates existing in the Contract.

Hence, I do not understand why are they asking for depreciation costs and indirect costs, as the rates they are paid for the additional works are including the cost for equipment and overheads.

What is FCCM standing for?

In brief, in absence of any other details to sustain that, I see no reason to pay them anything else than value of additional works.

Mind you I am not saying they are not entitled, I am saying that out of available information I see not other supplementary cost that may be due to them.

Hope that helps.

Construction Law

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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.


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.

Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List and of DRBF Chapter for Eastern Europe Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List Member of “” volunteers pool Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States

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