Jan 09-Q&A-1

My comments are given in red below:----- Original Message ----From: Gayantha Abeywardena
To: sam99@eim.ae
Date: Mon, 09 Feb 2009 12:11:19 +0400
Subject: RE: Q&A
Dear Sir,
Suppose in a hypothetical project, work started and Final version of the
Agreement has sent to us for the signature. My request for the Varied rates
was rejected during the Draft proposals. There is a provision for Variations
proposed by Contractor but we have to get the approval prior to execution.
The project is involving only the Manpower No material involvement ( say
Software implementation)
My question is we are liable for LDs with the phases of project progress Delay
in any phase leads to LD charges. And our relief is the extension of time with
reasonable effects to mitigate the delay. Claim procedure is silent in the
Contract Agreement.
If we are experiencing delays caused by client. Can we raise a claim for
Idling of our resource staff and acceleration cost when we resume the work
with higher amount of resources than allocated in the Base Line Programme.
There is condition of minimum resource requirement. (1 PMS and 2 Project
Assistants)
Even though contract is silent about the cost impact of the delay arent we
entitle to claim for our reasonable additional cost incurred due to delay.
As we discussed during the 2nd session, it is not necessary for express claim procedure or
references to entitlement to exist in a contract. If the Contractor is not responsible for the
delay, then the Employer cannot levy Liquidated Damages (and therefore time should be
extended). If the Employer is responsible for the delay, then the Contractor can
additionally get his costs reimbursed as damages for breach of contract. If both parties are
not responsible for the delay, still the time should be extended but no cost reimbursement.
Regards,
Prof. Sam.
Prof. Indrawansa Samaratunga PhD, DSc
FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FBEng
Chartered Quantity Surveyor and Registered Arbitrator / Expert
Australian Inst.of Qty.Surveyors-Middle East Representative
PO Box 23461, Dubai, UAE. T +971504588949 F +97143378668
Thanks and regards
Gayantha Abeywardena
Commercial Manager
----- Original Message ----From: Charlie Vince

To: sam99@eim.ae
Date: Sun, 08 Feb 2009 08:59:02 +0400
Subject: RE: Important Q&A
Dear Prof Sam,

Many thanks for the continued support.
My question relates to Suspension of Work. If the Employer instructs the Engineer to suspend
part of the works (ID works etc.) under clause 40.1 and the suspension lasts for the full 84 days +
28 day notice period before permission is granted to recommence can he a few months later
suspend the works again? The suspension is being used to force the purchaser to pay more than
the original SPA.
There are no provisions in FIDIC Form of contract, to prevent a repetitive suspension, if it is necessary.
However, the Contractor should be compensated pursuant to 40.2. There are of course complex issues
involved with any suspension which cannot be discussed in brief in this short-answer forum and would be
discussed in detail in one of the sessions titled Omission, Suspension and Termination in July/August at
the Contract Administration Advanced Class.
Regards,
Prof. Sam.
regards
Charles Vince
----- Original Message ----From: rabbay alam alam
To: "Prof.Sam" <sam99@eim.ae>
Date: Thu, 05 Feb 2009 08:03:57 +0000
Subject: Questions
Dear Professor Sam,

First of all Thank you for sharing your Knowledge with all Contract administrators.
I was a student of September 2008 session-Sound Contract Administration. I would like ask one question
related Consultant Fees.
CLAIM : CONSULTANT FEES DURING DEFFECT LIABILITY PERIOD.

Situation is : A Contractor handed over the building to client its also occupied. During DLP any defects are
attended by the main contractor. This rectification goes for a period of 8 10 months after DLP as
building is occupied. Is the Consultant entitled for any payments during this period. Generally, the
Consultancy Agreements between Employers and Consultants expressly state the extent of services to be
provided during DLP. If the provided services exceed that scope and were carried out at the Employers
request, then the Employer is liable to pay additional fees. If he is then who will bear this cost the Client or
the Main Contractor. If the nature and extent of the rectifications are extraordinary when compared to those
in similar projects, then there may be a possibility to contra-charge the Contractor. If not and if such long
period was required because the Employer could not provide access, then the Contractor may not be liable.
Is their any clause in FIDIC for this? Not in FIDIC 4th Edition.
Regards,
Prof. Sam.
Thank you.
Regards,
Rabbay Alam
----- Original Message ----From: Moorthy Narayana
To: sam99@eim.ae
Date: Sun, 01 Feb 2009 12:04:46 -0800 (PST)
Subject: Reg.- law clarification -moorthy.
Dear Sir,
Here with I am attaching my question for your comment. I am doing studies related to Bsc qty surveying.for
that I am studying construction law subject for my course. I need your advise and guidance for this question.
thanking you in advance for your kind attention.
truly your`s,
moorthy.
(one of your student)
Question 1.
Critically examine the contention that liquidated damages

provisions of the type commonly found in standard form
building contract offer many advantages to contractors and
many disadvantages to employers .
A detailed response cannot be given in this short answer forum. Suggest you research on
the internet. Some advantages to the Contactor are, awareness of the risk in advance in
order to manage it better, a capped liability, not being penalized etc. Some disadvantages
to the Employer are, inability to recover actual loss during the post contract stage,
inability to fix a higher LD rate or limit in the pre-contract stage (without being held to be
a penalty), etc. (However in the UAE penalties can be included in contracts instead of
LDs.)
Regards,
Prof. Sam.
----- Original Message ----From: Sackeer Hameem

To: "Prof. Sam" <sam99@eim.ae>
Date: Thu, 29 Jan 2009 10:39:53 +0400
Subject: EOT and Additional loss and expense clauses
Dear Pro. Sam

Respected;
Could you please clarify that Extension of Time and assessment of additional loss and
expense clauses in the standard form construction contracts.
Too vast a subject to be discussed in this short answer forum. EOT provisions are almost similar
in all Standard Forms. When it comes to money, FIDIC only has cost (i.e. expense)
reimbursement provisions but not compensation for loss, whereas JCT etc has loss and expense
provisions. Legal aspectss regarding compensation (loss of profit) are quite complex and would
be taken up for discussion during the Contract Administration Advance course in July/August.
Regards,
Prof. Sam.
With best regards,
Sackeer Hameem
(TechRICS, MACostE, MAQS, ACIArb)
Contracts Manager
----- Original Message ----From: abdul azeez isma lebbe
To: Prof Sam <sam99@eim.ae>
Date: Wed, 28 Jan 2009 09:57:32 +0400

Subject: Question
Dear Sir
Thank you very much for your valuable Service
If you can give a solution of the Question arised due the Global Financial Crisis.
If a (Lump Sum) Contract with a Contractor which comprise of Phase 1,2 &3 (in One LOI which has
breakdown of Lump sump price and substantial Completion date), where Phase 1 & 2 are on going Projects.
The Phase-3 shall be start from June 2009 and Substantial Completion on September 2010. due to the
Global Financial Crisis, in Oder to save the money, precaution measures to be taken by following way.
1) Some part of the works to be Omitted from Phase 1 & 2:
The scenario is we have to Omit Some parts of the works , but it is required to after the Taking Over
Certificate is issued ( upon the demand). As per the Contract, in my knowledge the Omitted Works cannot
be given to Other Contractor or done by the Employer within the TOC issued. Can we re tender for the
Particular Works and appoint another Contractor to do the same with another price after the TOC issued.
NO. However this could be done after compensating the Contractor first.
2) Phase-3, to be Terminated
As per the requirement,Phase-3 is not required up to end of 2011. Our intention is to Terminate the
Contract,Phase-3, Whole. our intention to re tender after 2011 in Order to avoid any escalation to be given to
the Same Contractor and get the lowest price. Can we terminate the Contract and give to the Other
Contractor after TOC (Rest of the Works Phase 1 & 2) has been taken?. What would be impact as an
Employer point of view? Same answer as above.
Regards,
Prof. Sam.
If you would give ma comments would be very helpful.

thank you very much
Abdul Azeez.
----- Original Message ----From: Buddhika Patikiri
To: sam99@eim.ae
Date: Mon, 26 Jan 2009 11:38:43 +0400
Subject: RE: Important Q&A
Dear Prof Sam

Please clarify the reason to state in clause 60.2(b) as other than pursuant to Clause 47 in
FIDIC conditions. The Engineer should not deduct any Liquidated Damages in the payment
certificates.
Considering the practical situation if Engineer does not apply deductions under clause 47 in the
monthly payment certificate, where it is to be addressed. Engineer has nothing to do with
Liquidated Damages. It is left for the Employer to deduct them from the monies due.
Regards,
Prof. Sam.
Thanks
Buddhika Patikirimudiyanselage
B.Sc (QS) Hons, AAIQS
Quantity Surveyor | Jumeirah Village | PMT | Nakheel PJSC
----- Original Message ----From: ANANDA WEERAKOON

To: sam99@eim.ae
Date: Sat, 24 Jan 2009 12:07:03 +0000 (GMT)
Subject: Fw: Day Works
--- On Sat, 24/1/09, ANANDA WEERAKOON <ananda402002@yahoo.co.uk> wrote:
From: ANANDA WEERAKOON <ananda402002@yahoo.co.uk>
Subject: Day Works
To: sam99@eim.de
Date: Saturday, 24 January, 2009, 4:05 PM
Dear sir,
The day works instructed by Engineer has been carried out by Contractor and claimed accordingly with day
works rates established in the BOQ.(labour and machinery). My question is that can the Contractor
claim machinaries and tools (such as Tower crane, hilti, grinder, tipper, Bob cat etc) which are available at
site ? The Contractor has not brought any machine or tool from out side for the intended works instructed
under day works. Is it covered under prilims or not ? The percentage mark-ups added to Labour, Equipment
and Material should allow not only for Contractors OH &P but also for specific procurement and
preliminaries. That is why those percentages are always higher than the normal OH&P percentages
included in contract rates. Therefore any resources from preliminaries should not be included in the Daywork
sheets as labour, equipment/tools or material.
Regards,
Prof. Sam.
Thanks
Weerakoon (1st batch )

Jan 09-Q&A-1

Uploaded by

Copyright:

Available Formats

Jan 09-Q&A-1

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Jan 09-Q&A-1

Uploaded by

Copyright:

Available Formats

My comments are given in red below:----- Original Message ----From: Gayantha Abeywardena

Thanks and regards

----- Original Message ----From: Charlie Vince

Dear Prof Sam,

Dear Professor Sam,

CLAIM : CONSULTANT FEES DURING DEFFECT LIABILITY PERIOD.

Critically examine the contention that liquidated damages

----- Original Message ----From: Sackeer Hameem

Dear Pro. Sam

With best regards,

Date: Wed, 28 Jan 2009 09:57:32 +0400

If you would give ma comments would be very helpful.

Dear Prof Sam

----- Original Message ----From: ANANDA WEERAKOON

You might also like