AboutPeter M. Elliott Expertise 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.
Experience Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit.
George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')
Question South africa.
We are in the proceeds of submitting a claim for works completed on a construction supply fab and install contract. the works was tendered as a rates based contract.However the client accelerated the contract as well as a substantial increase in scope of works.We would like to claim the extra manpower in terms of overtime and effiecency rate. the client is of the opinion that this should be rates based only,however we beg to differ as our manpower went up the effiency rate went down.We did complete the contract within the stipulated time and occurred no penalties of any kind except cost to ourselves.the contract is fedics based. We would like pointers on how to go about putting a claim together
regards
brendon baines
Answer Hi Brendon
At last a real question based on FIDIC Conditions of Contract.
You do not state the version of FIDIC, but I assume that you were using the red book 4th edition, although it might have been the orange book. Thus all comments will be based on the red book. I suggest that you buy the Powerbook version of the FIDIC Conditions of Contract issued by FIDIC and available from their web site. It costs £120 or something like that. Nothing compared to your claim. It includes the commentary by Bunnie on the case law, which makes the purchase worthwhile in itself. It will give you a good understanding of what you can claim for and what you cannot claim. As it is an electronic version, it is very easy to search on key words. The commentary is a bit dated and I suggest that you look at the web site http://www.atkinson-law.com/ for current legal commentary.
I assume that you have given all the monthly notices of intention claim as required, and that the Engineer has not asked for more information. If not any claim will have to be based on the best available records.
Clause 52.2 is the relevant clause for valuing variations. The Engineer should revalue the Works if the quantity or type of works has been varied sufficiently to warrant such a decision. In some cases this implies a reduction in the rate due to increased recovery of plant depreciation or overheads and the economy of scale. However, you claim that your efficiency dropped due to overcrowding or lack of resources - cranes not available when need etc. so you will have to prove your case.
If you were instructed to accelerate the Works, then the claim is made under clause 44.1 extension of time. If the Employer asked you to complete within the original Time for Completion, or did not grant an extension of time, then effectively he asked you to accelerate the Works. There have been a couple of court cases where the judges have decided that a failure to give an extension of time has implied an order to accelerate the Works.
I hope that the above gives you ideas. If you need further comment, please come back with a supplementary question
