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Delay due to advance payment

2 replies [Last post]
Ammar Alkhatib
User offline. Last seen 3 weeks 5 days ago. Offline
Joined: 5 Aug 2020
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Hi All ,

I'm working on a project started on 22-Mar-20 , as per the agreed contract ; an advance payment must be paid by the client at the begining of the project .

 

until now the payment still not processed , the contractor is facing a lot of delay due to delay in placing order for the materials to vendors , in this condition the programme is delayed about 3 months.

 

how can I build a claim regarding this matter ? 

 

Thanks ,

I really appreciate all your support regarding this matter.

 

 

Replies

Ammar Alkhatib
User offline. Last seen 3 weeks 5 days ago. Offline
Joined: 5 Aug 2020
Posts: 4
Groups: None

Hi Tom,

 

Thanks for your comment ,I refered to FIDIC and to the contract and you are absoultely right.

I tried to tell my managment to suspend the works , but they disagreed with me because we are dealing with a client that could give a lot of projects in the future.

my question is, in this situation ; how I can start claiming an EOT and prolongation costs knowing that a notification letters sent to client several times.

 

Thank you again.

 

 

 

Tom Boyle
User offline. Last seen 15 hours 48 min ago. Offline
Joined: 28 Nov 2006
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Ammar,

Check the details of your contract.  Given that the owner's primary obligation is to make timely payments, standard form contracts like FIDIC red book typically entitle (and even encourage) the contractor to suspend work when payments are delinquent, then claim for delay and cost of the suspension.  That process leaves little room for dispute.  Absent a suspension of work, however, the contractor's rights to claim for the impacts of cash flow disruption may be limited (e.g. to charging of interest).  Good luck, tom