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Delay of Payment by Client

1 reply [Last post]
Thu, 2009-03-12 04:30
Tarek Barham
User offline. Last seen 5 years 39 weeks ago. Offline
Joined: 8 May 2008
Posts: 31
Groups: None
Dear All

I faced this case.

We are working with client and he is delaying our interim payment more than payment time 84 days.

I know that according to FIDIC we will be entitled to claim for financing charges, but can we ask for EOT ( extension of time) and could we claim for over head cost ( in case of payment delay affected the physical progress in the site.).

I’m looking forward your valuable advises with supports from FIDIC law.
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Replies

Thu, 2009-03-12 18:03
#1
Samer Zawaydeh
User offline. Last seen 5 years 8 weeks ago. Offline
Joined: 3 Aug 2008
Posts: 1664
Groups: Civil Engineering, Regional Representatives
Dear Tarek,

FIDIC clause 14/8 addresses the delayed payment. The Contractor is entitled to financing charges automatically for any delayed payment.

EOT is not coverd under this clause.

If you have a payment schedule stated in the Contract and signed by both parties, then it is a different situation and you can build on the Contractual clause and not the FIDIC clause.

Best Regards,

Samer
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