Monday, May 21, 2012

Contractor's claims - FIDIC form of contract

FIDIC sub-clause 20.1 - Contractor's claims.(summarised)

The points below gives an overview of how Contractor's claims are addressed under the FIDIC form of contract for building and engineering works designed by the Employer.

1. The contractor must must give notice(s) within 28 days of the event or circumstance that could lead to an extension of time or need for additional payment, else he shall not be entitled to such claims. This notice shall describe the event or circumstance leading to the claims

2. Within 42 days, or agreed periods, of the event or circumstance leading to the claims, the contractor shall send to the engineer a fully detailed claim(extension of time and additional payment being claimed with supporting particulars)

3. The contractor shall keep contemporary records and relevant supporting particulars for the claims and shall permit the engineer to inspect records necessary to substantiate claims

4. The contractor shall also submit any other notices which are required by the contract, and supporting particulars for the claims. 


5. If the effect of the claim is continuous, then clauses 20.1(a-c) shall be applied.

6. The engineer shall approve or disapprove of the contractors claims within 42 days, after a which he will proceed; if claim is approved; to determine the required extension of time and additional payment in line with sub-clauses 3.5 and 8.4of the contract.

Note: Not all approved claims will lead to extension of time and/or additional payment.