9/25/2019 Pam Contract 2006 With Quantities
Cl compilation. 1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN Bachelor of Quantity Surveying (Honours) CONSTRUCTION LAW Lecturer: Wong Chong Wei Date of Submission: 20st June 2018 Student Name Student ID Chuang Jing 0322934 Jackson Ting Shii Hang 0324326 Liu Wei Qian 0322969 Michael Chang 0319198 Preti Roxane Marie Alyzee 0334005 Than Lek Mei 0313538. a) The Contractor fails to apply an extension of time before the project completion date, can the Superintending Officer grant an extension of time to the Contractor?
CLAUSES REGARDING TO PAYMENT UNDER PAM CONTRACT 2. CHAPTER 2 2.1 Introduction of PAM Contract 2006 (With Quantities) Since 1969, the Pertubuhan Akitek Malaysia (PAM) standard forms of building contract are used extensively in the private sector commercial, institutional, housing and other building projects.
Under PAM 2006, there are 24 ‘relevant events’ that entitles the Contractor to claim for extension of time (EOT) under clause 23.8 where 15 relevant evens are caused by the employer and 9 relevant events referred to neutral events. Refer to appendix for the relevant events caused by employer and neutral event.
Relevant events caused by the employer entitles the Contractor to claim for EOT, loss and/or expense whereas relevant events caused by neutral events the Contractor is only entitled for EOT but not to loss and/or expense. To entitle the Contractor to claim for EOT, under Clause 23.1 the Contractor is required to submit written notice and particulars if the Contractor in his judgement where works will be delayed to the Architect which is the Superintending Officer his intention to claim within 28 Days from the date of AI, CAI or commencement of the relevant events stated in Clause 23.8 depending on which event is ealier (Clause 23.1 (a)). A following official application has to be submitted by the Contractor within 28 days of end of clause of delay (Clause 23.1 (b)).
If the Contractor fails to submit the subsequent application, it will be deemed that the Contractor has evaluated the relevant event which will not cause any delayed. In the opinion of Architect that the submitted information is insufficient, he may inform the Contractor for further detailes within further 28 Days or any period stated by the Architect in writing (Clause 23.3) (PAM, 2006). With this precedent rules stated above, the Contractor from the question above is not entitled for EOT if he failed to submit the application of EOT within 28 Days (or within any extended date), it is deemed that the Contractor has assessed the causes and completion date will not be delayed and Contractor has waived his rights to any EOT. However, the Architect is able to grant EOT retrospectively under Clause 23.4 that states: “The Architect may issue the written notice of rejection or the Certificate of Extension of Time before or after the Completion Date.” This implies and permits the Architect to make and communicate his decision on the application of Contractor retrospectively, in the discretion of the Architect.
There are several situations that enables the Architect to grant EOT retrospectively where under Clause 23.1 (b) and Clause 23.3 the Contractor has submitted the further requested particulars later than the Completion Date. Another situation would be where Contractor has made his application 6 weeks less than the Completion Date or the actual extension of time could not be determined after the Completion Date has passed (PAM, 2006).
In the verdict of Engineering Construction v Attorney General (1993) it was held that EOT can be granted retrospectively (Lim, 2015). Another clause that entitles the Contractor to be granted EOT after the issuing of Certificate of Non-Completion (CNC), under Clause 23.9 that states “Where a Relevant Event occurs after the issuance of the Certificate of Non-Completion, the Architect shall grant an extension of time. The extension of time granted shall be added to the Completion Date of the Works or any section of the Works.” Architect is able to grant EOT where there will be new completion date fixed and nullified the CNCin which it shall be read together with Clause 23.3 (PAM, 2006). If any surplus liquidated damages are being retained, the employer is required to return it to the Contractor. Nevertheless, if the Contractor still fails to comply with the new completion date, the Architect shall issue a new CNC (Lim, 2015). Alternatively, under Clause 23.10 the Architect is allowed to review the extension of time after Practical Completion in his discretion and opinion that a reasonable new Completion Date should be fixed in regards to any of the relevant events by reviewing the previous decision or relevant events that have been notified by the Contractor (PAM, 2006). Any of this review are not allowed to decrease the EOT that has been fixed or granted.
Any of the review that have affects the amount of liquidated damages, the employer similarly is required to return it to the Contractor within the period of honouring certificates (Lim, 2015). Whereas for JKR Standard Form of Contract PWD 203A 2007, Malconlaw (2012) stated that clause 43 contains provisions for extension of time (EOT) and monetary claim in the event of delay.
The relevant events causing delay which shall be the ground for the Contractor to claim for EOT. Two categories of events that enables the Contractor to stated by the Entrusty Group: i. “Category 1 – Natural events, e.g. Force majeure, exceptionally inclement weather, and ii. Category 2 – Defaults by the Employer and/or his agents, e.g.
Late decision of the Architect/S.O., late site delivery, compliance with the Architect/S.O., delay by the Employer’s agents, delay by nominated sub-Contractors/ suppliers, etc.” In clause 43.1, it stated that the contractor has to give written notice to apply EOT and in the opinion of said officer where works are expected to be delayed or has been delayed beyond the date for completion or beyond the extended date for completion under any relevant events, the officer in his opinion can grant EOT (Lee & Tan, 2012). Other than that, clause. 50.2 stated “if the Contractor suffers delay and/or incurs expenses in complying with the instruction under clause 50.1 (a), and in resumption of the Works, and if such delay and/or expenses was not foreseeable by the Contractor, the Contractor shall give notice for extension of time under clause 43 and the provisions thereof shall apply accordingly”. Norgainy, 2014 clarified that the Contractor will not be entitled to EOT if it is caused by the hi's negligence and fails to mitigate including the entitlement to payment of loss and expense in Clause 50.1 (b). In London Borough of Merton v Stanley Hugh Leach Ltd 1985, the judge stated that the contractor has to provide notice as this is a condition precedent to S.O’s duty to give EOT. S.O is under no duty to consider whether completion of the works is likely to have been delayed until the contractor has given notice of the cause of delay (Norngainy, 2014).
From the clause stated above the S.O is able to grant EOT to the Contractor provided that the Contractor give a written notice if the event has been or likely has been delayed beyond the date of completion or beyond the extended date for completion. Moreover, the Contractor requires to submit the Accompaniments Effects Period which are the particulars of expected effects
with an estimate of EOT required for a reasonable estimate. In this way, the Contractor will have a clear understanding on how to plan for the project and will lead to the preparation of a proper EOT claim for the consideration of the S.O. Usually, when an event which happens before the contractual Time for Completion, causes a delay for the Contractor work, the Contractor ought to make a claim for an extension of time (Clause 44.2) (“Contracts: advanced questions General Question/Answer International Federation of Consulting Engineers', 2018). After receiving the claim from the Contractor, the Engineer/Employer has to respond in a short time.
If the Contractor is late, he may still be entitled to an extension of time even if the event happens after the contractual time for completion. This demand of extension of time can be made if the event caused him more delay and if he wasn’t responsible (“Contracts: advanced questions General Question/Answer International Federation of Consulting Engineers', 2018). In FIDIC books, there are 18 situations which the Contractor is entitled to an extension of time. Refer to appendix for the relevant events cause by employer and neutral event. According to the sub-clause 20.1, if the Contractor think he needs and has the right to make a claim for an extension of time and the contract required a written notice submit to the.
Engineer as a condition to an extension of time (FIDIC MDB Harmonised Contract, 2007). Under Sub-Clause 8.4, the Contractor thinks he is entitled for EOT shall give notice to the Engineer where the events are in accordance with Sub-Clause 20.1. The notice must be supplied as soon as possible, and before the 28th day after the date on which the Contractor have become aware of the event.
If the Contractor doesn’t supply the notice before the time limit, his claim to time can be lost. After receiving the claim, the Engineer must reply within 42 days (Glover. J, 2015; Claims under the new FIDIC conditions of contract, n.d). The case Turner Corporation Ltd v. Austotal Pty Ltd, happened in 1998 is the proof.
Indeed, this case dealt with the situation of a delay caused by the employer. The contract specifies that a contractor’s written notice was a condition to a right to an extension of time. The contractor didn’t supply a notice, and he lost his right to an extension of time.
The notice must contain all events or issues which could have caused the delay. It also must contain all these following elements (How to prepare a claim for an extension of time, 2018): “ - When the event happened. Why it happened. Which task is affected and why. The resources that it required.
Any other events that were carried out, as a result. List of the activities which are affected from the agenda. Sketches, plans and photos - Detail of actions taken by the contractor to reduce delays. Alternative solutions and/or proposed recovery plan. Communications between the construction team relating to possible delays.” If the notice of the Contractor does not contain these elements, or if there is no notice, the Engineer/Employer can refuse his demand of extension of time. In that case, the Contractor might be chargeable for Liquidated damages for delay (Claims under the new FIDIC conditions of contract, n.d).
So, it is preferable for contractor to supply the notice before the deadline to optimize his chances to have a positive response to his demand of extension of time. The following table shows the summary and comparison between PAM, JKR and FIDIC in granting EOT before and after completion date. b) The Contractor is facing a challenging situation where the TNB does not provides a main power supply for a TNB substation energisation to allow for the full testing and commissioning of M&E works within the stipulated time in the contract.
Can the Contractor claim an extension of time for such situation? In PAM Contract 2006, there are three categories of delays, which consist of: - 1.
Delay caused by Contractor 2. Delay caused by Employer 3. Delay caused by Third Parties Since the delay was not caused by either Contractor or Employer, which means the third party cause the delay.
Tenaga Nasional Berhad (TNB) is clearly a service provider, which means this fulfils the requirement of Clause 23.8(q). Clause 23.8(q) states that, “delayed cause by any Appropriate Authority and Service Provider in carrying out, or failure to carry out their work which affects the Contractor work progress, provided always such delay is not due to any negligence, omission, default and/or breach of contract by the Contractor and/or Nominated Sub-Contractor”. So the answer is yes.
Contractor is able to claim for extension of time (EOT) due to TNB delay. The supporting clause is PAM Contract 2006, Clause 23.8 (q). But the contractor must fulfil PAM Contract 2006, Clause 23.1(a) and (b), which is to give written notice and submit an official application.
These two clauses emphasised that contractor needs to give written notice of intention to claim within 28 days from commencement of relevant event, as a precedent to any claiming of EOT. Following with the need to submit subsequent official application and substantiation of claim within 28 days of end of cause of delay. Written notice should include initial estimate of EOT required and all particulars of the cause of delay. Official application need to state the relevant event causing the delay, effect of delays on work programme and progress of work, number of days delayed, steps taken to accelerate the works, reschedule of works programme, number of days of EOT required, all supporting records, details, documents, and etc. In the JKR Form of Contract or P.W.D Form 203A, clause 50.2 stated that, Contractor is entitled to claim Extension of Time (EOT) if he has suffered loss or delay which those damages are not predictable or preventable by the Contractor. Features of EOT in JKRForm of Contract explained in Clause 43 and it clearly stated in this form of contract that the Superintending Officer (SO) is given the power to justify whether the EOT is approved. Before that, he has to give written notice to the SO including the causes of delay as well as any relevant information with certain supporting items for the SO to assess the claim.
If the SO receive such written notice, he has to assess those criteria by using the Clause 43.1(a)-(k) to see whether the causes of delay are reliable and whether the EOT can be claim by Contractor. In this case where the Contractor is facing a challenging situation that the TNB does not provides a main power supply for a TNB substation energisation to allow for the full testing and commissioning of M&E works within the stipulated time in the contract. By this, the Contractor can refer to the Clause 43.1(h) where Government sides of TNB didn’t perform their work to construct a TNB substation for Contractor to carry out M&E works. So, it is not Contractor’s fault or intention to cause this delay which entitled Contractor to claim EOT in this event. In Henry Boot Construction Ltd V Central Lancashire New Town Development Corporation (1980) 15 BLR 1, the judge held that Contractor has entitled to claim EOT because the delay of works caused by the services which needed to be installed by the Government in the building before the respective work can carry out onwards such as electricity, gas, water and etc.
So, Contractor is entitled to claim EOT due to the delay which is not caused by Contractor’s fault Besides, it should be cautious that this particular result only applicable to circumstances in which the local authorities is independently carrying out work according to its individual responsibilities. Unluckily, most of the forms of contract only have contain of general processes and entitlement for an EOT with some under-clarified zones that are open to different interpretation that would sometimes lead to arguments and disagreement within the parties involved. (Palaneswaran & Kumaraswamy, 2008) So, we always found that many disputes or arguments while Extension of Time claim come into place and people are always argue where Contractor says they are innocent and entitled to claim of EOT but Client’s side does not agree by giving and approving EOT to their Contractor. Under FIDIC Red Book MDB Harmonised Edition 2010, Sub-clause 8.4(b) mentions the consequences of delay is entitled to an extension of time under Sub-clause 8.4 Extension of Time for Completion of the contract.
Sub-clause 8.5 draws attention to the delays caused by authorities. According to this sub-clause, the Contractor is given an entitlement to an extension of time where delay is that, as a result of authority delaying or disrupting its work, in the country in which the Site is located (Glover J., Thomas C., and Hughes S., 2006).
Since TNB is a public authorised service provider, the Contractor is able to claim for extension of time for such situation according to Sub-clause 8.5 as mentioned. However, the sub-clause only takes effect if the Contractor has “diligently followed the procedures laid down by the relevant legally constituted public authorities, in the Country”, the authority “delay or disrupt the Contractor’s work”, and such delay was “unforeseeable” (FIDIC, 2010). Furthermore, if the problem is caused by a failure by the Employer to reply to a request for assistance under Sub-Clause 2.2 Permits, Licences or Approvals, the Contractor does not know the procedures, it will be troublesome to hold responsible TNB for the delay. Besides, the delay must be unforeseeable, which by Sub- clause 1.1.6.8 Unforeseeable Definition means “not reasonably foreseeable by an experienced contractor by the Base Date” (at the date from the tender submission) (Corbett & Co International Construction Lawyers Ltd., 2016). In short, the Contractor is able to claim for extension of time under Sub-clause 8.4 due to TNB delay.
However, the Contractor should consider Sub-clause 8.5 (a)-(c) thoughtfully. Unless all three terms apply, the Contractor will not be given the entitlement to an extension of time for such situation. The table below shows the comparison between PAM, JKR and FIDIC (Red Book) on entitlement to extension of time regarding delays caused by third party. Reference CLAIMS UNDER THE NEW FIDIC CONDITIONS OF CONTRACT. Retrieved from CONTRACTS: ADVANCED QUESTIONS GENERAL QUESTION/ANSWER.
Retrieved from Corbett & Co International Construction Lawyers Ltd. Clause 2 PDF file. Sub-Clause 2.2 – Permits, Licences or Approvals, 6. Retrieved from content/uploads/Clause-2.pdf Danuri, M. C., & Rahman, H. Application and Assessment of Extension of Time Claim. Retrieved from 2968871151CD2067F5699E&rd=1&h=qFlosogJ5QPFuvUYI4JH9Mwg UnixQfN9nJzPkf8NfNI&v=1&r=article/download/4942/2789/&p=DevEx.LB.1,5427 Entitlement to Extension of Time and Additional Payment under FIDIC Conditions of Contract.
(2014, October 21-25). Retrieved from imeandAdditionalPaymentunderFIDICConditionsofContract Entrusty Group (n.d.) Must The Contractor Notify The Employer/ SO of Its Loss And/Or Expense Claim? Retrieved from content/uploads/2012/08/Is-the-contractor-still-entitled-to-extension-of-time-when- there-is-concurrent-delay.pdf FIDIC MDB Harmonised Contract. (2007, April). Retrieved from Glover, J. (2015, February). Sub-Clause 20.1 – the FIDIC Time Bar under Common and Civil Law.
![]()
Retrieved from papers/contract-issues/sub-clause-fidic-time-bar How to prepare a claim for an extension of time. (2018, January 11). Retrieved from onoftime. International Federation of Consulting Engineers (FIDIC). Conditions of contract for construction. Switzerland: FIDIC Publication. Knutson, R., & Abraham, W.
FIDIC: an analysis of international construction contracts (1st ed.). The Hague etc.: Kluwer Law International etc. Lee, Y. (2012), the Assesment Of Applications For Extension Of Time Claims in Malaysia Construction Industry. LACSIT International Journal of Engineering and Technology, Vol.4, No.4, August 2012, pp. 446-450 Lian, L. M., & Ling, T.
The Assessment of Applications for Extension of Time Claims in Malaysian Construction Industry. The Assessment of Applications for Extension of Time Claims in Malaysian Construction Industry, 4. Doi:10.18411/d- 2016-154 Lim, S.C (2015). Lecture P2 – DELAYS AND DISPUTES Lecture notes. Subang Jaya, Malaysia: Taylor’s University.
Procurement through Design and Build. Retrieved from through-design-and-build/ Norngainy, M. A Pilot Survey OnCauses Of Delay in Malaysia Construction Project. MATEC Web of Conference 15 Pertubuhan Akitek Malaysia (PAM), (2006). Agreement and Conditions of PAM Contract 2006 (with quantities). Kuala Lumpur.
PWD Publication. Public Work Department Malaysia (2007). Standard Form of Contract to Be Used where Bills of Quantities Form Part of the Contract P. Form 203A (Rev.
Kuala Lumpur, PWD Publication. Appendix PAM 2006 15 relevant events that are caused by employer under Clause 23.8: - Clause 23.8 (e): late issuance of AI for which Contractor applied in writing within sufficient time before the commencement of the affected works provided that the AI issued was not due to the negligence by Contractor. Clause 23.8 (f): delayed by employer in giving site possession. Clause 23.8 (g): AI for discrepancy, variation and suspension of works. Clause 23.8 (i): re-nomination of nominated sub-contractor. Clause 23.8 (j) delayed by employer’s direct engage craftsmen, tradesmen or other contractors.
Clause 23.8 (k): delayed or failure to supply materials and goods by employer. Clause 23.8 (l): opening up for inspection and testing which are found to be in accordance with drawings and specifications. Clause 23.8 (m): act of prevention or breach by employer.
Clause 23.8 (o): AI in connection with discovery of antiquities. Clause 23.8 (r): appointment of a replacement consultant. Clause 23.8 (s): AI issued in connecting with neighbouring property owner causes disputes provided that it is not due to the default or negligence of Contractor. Clause 23.8 (t): execution of works under insufficient provisional quantity.
Clause 23.8 (u): delay in giving site entry to and exit from site. Clause 23.8 (v): suspension of works caused by non-payment and withdrawal of supervision. Clause 23.8 (x): any other ground for EOT expressly stated in contract 9 relevant events that caused by neutral event under Clause 23.8: - Clause 23.8 (a): force majeure. Clause 23.8 (b): exceptionally inclement weather.
Clause 23.8 (c): loss and damage caused by fire and other peril. Clause 23.8 (d): civil commotion, strike or lockout affecting relevant trades - Clause 23.8 (h): delay caused by nominated sub-contractors or nominated suppliers which the Contractor has taken all possible steps to avoid - Clause 23.8 (n): war damage. Clause 23.8 (p): any changes to statutory laws. Clause 23.8 (q): delay or failure to carry out by statutory bodies provided that it is not due to any default of negligence of Contractor or nominated sub-contractor.
A Case Study based on FIDIC and PAM Form 2006. 1. FIDIC WORKSHOP 2016 GROUP 6. QUESTION 1 WHAT ARE THE ESSENTIAL REQUIREMENTS FOR FORMATION OF CONTRACT? DISCUSS WHETHER A BINDING AND ENFORCEABLE CONTRACT HAS BEEN CONCLUDED BETWEEN JOLLY AND CAN- DO. TENDERS AS OFFERS. The building owner who invites tenders is only indicating an intention to receive (invitation to treat) tenders for a particular project.
When a contractor submits his tender, his tender is an offer made to the owner. Until the offer is duly accepted, no contractual obligations arise. In a contract, each party must have given consideration for the promise. QUALIFICATIONS IN A TENDER SUBMITTED. Quite often, tenderers may consider certain aspect of the design to be unnecessarily costly or decide that certain contract conditions to be commercially inefficient or impose undue risks. In this case, the tenderer may seek to qualify the tender by excluding or amending certain conditions which he considers may increase the attractiveness of his tender. Where a contractor submits his tender with qualifications and the tender is successful, the question which often arises is whether the.
3. ACCEPTANCE OF TENDER. A tender (offer) may be accepted any time after it is made.
Generally, the tender is open for a period of time which is called the tender validity period. Upon the expiry of the stipulated period, the offer lapses and can no longer be effectively accepted. The general principle of common law is that an offer can be withdrawn any time before acceptance unless there is a separate undertaking to keep the offer open.
It is common for tenderers to pay a tender deposit which can be forfeited in the event that the tenderer withdraws his tender before the expiry of the offer period. The acceptance of an offer must be unambiguous and must be communicated to the tenderer before a contract can be made. Acceptance may be implied by conduct. This principle is codified in section 8 of the contracts act 1950. LETTER OF INTENT. Once the owner has selected the contractor, he may communicate his decision by issuing a letter of intent which is understood that the owner intends to award the contract to the contractor. Although a letter of intent is usually stated to be nonbinding, the purpose here is to provide the contractor with some degree of assurance to persuade him to commence the mobilization of resources for the project.
Contractor may also deem it a. 5. ESSENTIAL TERMS OF AGREEMENT. Lord Blackburn in Rossiter v Miller (1878) held that if some particulars essential to the agreement still remain to be settled afterwards, then there is no contract.
Normally, an agreement requires the parties, price, time and description of works(scope of works) as the minimum necessary for a contract to be workable. LETTER OF AWARD. The formal letter of award can be issued by the owner once both parties have agreed on the principal terms of the contract. The letter is usually incorporated as part of the contract document. Quite often, the letter of award may be issued even though not all terms have been agreed between the parties, e.G. The definitions of milestones within a programme, insurance and performance bonds to be subject of negotiations until after the works have commenced. The typical contents in the letter of award are.
Answer:. There is an enforceable contract between Jolly and Can-do.
In the event of Can- do(contractor) was given possession of the site by Jolly(client) and instructed to commence the work. Although, there was no letter of acceptance was signed but Can-do(contractor) had begun the work while the contract documents were being prepared and finalized for signing. Under red book of FIDIC in section 1.1.1.3, “letter of acceptance” means the letter of formal acceptance, signed by the employer, of the letter of tender, including any annexed memoranda comprising agreements between and signed by both parties. If there is no such letter of acceptance, the expression “ letter of acceptance” means the contract agreement and the date of issuing or receiving the letter of acceptance means the date of signing the contract agreement. In such case, Bang-Bang(project manager) requested Can-do to expedite the preparation of the contract documents for signing.
The bound contract documents incorporated all the correspondence and documents listed in the letter of acceptance. In Event that MrJoll (client) would be. CASE LAW.
The classic case of Trollope & Colls Ltd V Atomic Power Construction Ltd (1963) support this situation where the subcontractors were notified of changes to the works after their submission of tender. They were instructed to commence work on the following terms: ‘as soon as matters outstanding between us are settled we will enter into a contract agreement with you, and in the meantime please accept this letter as an instruction to proceed ’ although no contract was actually signed, the english court held that a contract came into existence when the contractor commenced work. QUESTION 2 ADVISE JAZZY ON THE VALIDITY OF CAN-DO’S CLAIM FOR EXTENSION OF TIME AND ADDITIONAL PAYMENT ARISING FROM THE COLLAPSED TEMPORARY WORKS.
Based on the red book FIDIC in section 20.1contractor’s claim; if the contractor considers himself to be entitled to any extension of the time of completion and or any additional payment, under any clause of these conditions or otherwise in connection with the contract, the contractor shall give notice to the engineer, describing the event or circumstances giving rise to the claim. The notice shall be given as soon as practicable, and not later than 28 days after the contractor become aware, or should have become aware, of the event or circumstance.
If the contractor fails to give notice of a claim within such period of 28days, the time for completion shall not be extended, the contractor shall not be entitled to additional payment and the employer shall be discharged from all liability in connection with the claim. Answer:. Base on the situation, the contractor considers himself to be entitled to claim for extension for time and additional payment. The reasons behind his claim as described states that the collapse temporary works was due to the changes in design and method statement made by the engineer instruction where as their initial temporary works design would have been able to sustain during the national phenomenon, under 23.1 and 23.8(a) relevant eventsforce majeure of the PAM contract form 2006. Thus, they considers themselves entitled to claim for the delay 7 days given the reason that the collapsed temporary works was due to the engineer change in design and method statement towards their initial temporary work design. However, the contractor is not entitled to claim for EOT or additional payment because he failed to notify the engineer about the collapsed temporary works within 28 days of the incident that the contractor has become aware of consider as stated in section 20.1; even if the mistake. QUESTION 3 HOW SHOULD JAZZ RESPOND TO CAN-DO WITH REGARD TO THE LATTER’S CLAIM FOR EXTENSION OF TIME FOR THE DELAY CAUSED BY THE RAIN?.
Under Red Book FIDIC in section 8.4 (b) extension of time for completion stated that the contractor shall be entitled subject to extension of the time for completion if the completion will be delayed by the exceptionally adverse climatic conditions. In this case, the works have been suffer exceptionally heavy rain and con-do (contractor) has submitted the claim for extension of the time completion 40 days after the event.
Under Red Book FIDIC in section 20.1 contractor’s claims stated that extension of time for completion and additional payment, the contractor shall give notice to the engineer. The notice shall be given not later than 28 days from the event or circumstances. If the contractors fails to give notice of the claim within such period of 28 days, the extension for completion shall not be extended.
In this case, the engineer still granted 7 days extension of time to the contractors although the contractors submit the notice of claim for extension of time 40 days after the event or circumstances. Therefore, the contractor shall not be entitled for any extension of time. Moreover, in the contract, the jolly has instructed gulp to delete the sub-clauses on exceptionally adverse climatic condition. As a conclusion, contractor shall not entitled for any extension of time.
Under PAM form clauses 23.0 submission of notice and particulars for extension of time, if the contractors think that the works will be delayed beyond the completion date by any of the relevant events stated in clauses 23.8, he may apply for an extension of time. The contractors shall give written notice within 28 days. In this case, there is exceptionally heavy rain in the site, which referred in relevant events in clause 23.8 (b) exceptionally inclement weather. The contractor submitted the notice 40 days after the event. Which mean it exceed the time period to submit the notice of extension of time.
Comments are closed.
|
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |