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Delay in Releasing the monthly Payments

10 replies [Last post]
ashraf alawady
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Hi,

in any contract i’m sure that there is a specific duration to the engineer and to the employer to release the monthly payment of the contractor,


if the engineer or the empoloyer faild to release the payment within the stabulated time ,what are the contractor entitlements and there is any relatyion between the delay in releasing the payment and the possibility to claim for EOT or the matter is related to compasation of cost only.
can this considered as the Employer - and the enginner have failed to administer the contract properly and therefore placing the Employer in breach of conttract and the contractual implecations in this case.

can i get you opinion,please.

Replies

Ravi Potwar
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Hi Ashraf

It is possible that Contractor requesting revised commencement date .It happened to my one projects . Since Advance is not released contractor mobilisation and all other works is delay. So insted of getting contractor delay and claim we shifted the commncement date. So that prelimin can start from new commencement day

Regards

Roland Tannous
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You might be able to take action under the code of contracts and obligations in the egyptian civic law depending on contract wording. Consult with a lawyer , he’ll be able to guide you better.
Regards



Shahul .
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Many thanks Raphael
Raphael Adeyemi, ...
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One thing you should know is that Interim Payment is a payment on Account.

Delay in payment is no issue to progress except is expressly stated in the contract conditions ( which i have not come across one).

Usually there is a contract provision for interest payment on delay payment.

Cheers
Shahul .
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Hi to all

Due to delay in monthly payment,is there any way to show slow down in project progress using a programme
Samer Zawaydeh
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Dear Ken,

If you have a condition of contact stating that the Interim payment must be exact, then so be it.

The approval of the amount is left to the determination of the Engineer, because it is a monthly payment and the detailed verification of the amount usually takes much more time.

With kind regards,

Samer
Ken Sadler
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Samer

An Interim Certificate is not so called because it is a guess, which is not a finally determined value.

Its called "Interim" because it is a payment which is only part of the total contract sum and precedes the Final Certificate.

The amount included in an Interim valuation is supposed to be accurate.

Regards

Ken
Samer Zawaydeh
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Dear Ashraf,

FIDIC states out clearly the time duration permitted for payment of Interim Certificates. What you have to realize is that the finance charge is automatically calculated thereafter. That is a standard practice and you can claim the charges in your next Interim Certificate (invoice).

They call it an Interim Certificate because it does not have to be verified 100%. This is an approximate value of the work complete (usually per month.

If you want to prove breach of Contract, then you need to follow the requirements of FIDIC regarding payment (Chapter 14 FIDIC 1999) or the version of FIDIC that you are using, and clealy show the notices that you sent to the Engineer and failure to respond in a timely manner. You can also write a letter directly to the Client with a copy to the Engineer in Extreme cases.

With kind regards,

Samer
Rav B
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As far as fourth edition of FIDIC is concerned, it does state about the delay to payments.

Refer to

--> Clause 60.1 stating the interest Contractor can claim on the overdue amount,

--> Clause 69.1 stating that employer will be on default and contractor can terminate the contract by giving 14 days notice or

--> Clause 69.4 stating that contractor can suspend work or reduce the rate of work by giving 28 days notice and accordingly, the Contractor can ask for EOT as applicable in Clause 44 on account of slow progress of works.

Cheers,
ashraf alawady
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Dear All,

i have two issues now:-
1- the contractor has submit notification as per cluse 69.1 to reduce the progress but he has shifted all his resources to another project.

2- the contractor requesting the client to consider the day of releasing the advance payment as new commencement date for the project.

in my opinion,there is no relation between the client delay in paying the advance payment and the commencment date of the project . delay in payng theadvace payment and other intrem payment may affect the progerss and may delay the completion date .

i need your advise ,please.