Hi All,
I wish to seek your valuable experience and learn your opinion for the case I have here which I have encountered:
- I am a QS working for a Governmental Department
- I was asked to prepare a report responding to a Contractor’s claim of termination.
- The Termination of the Contract was made by the Department under "Release From Performance" clause of FIDIC 4th Edition "Clause 66.1"
- There was no particular reason for termination except that the Department has decided to sell the Land on which the project was intended to be built upon.
- The Payment as per this situation should be made in accordance with Clause 65.8.
My Question is as follows:
- Is the Termination "Release From Performance" procedure is correct i.e. is it the Correct Clause to use for this situation?!
- Clause 65.8 doesn’t give the right for reimbursement of loss or damage (or even loss of profit), but the Contractor has include such item in his Termination claim, so is he really entitled for such compensation?
- For General items (Prelims) is it the cost of those items should be consider only proven by actual invoices, time sheets, vouchers ..etc, or as per the rates set out in the BOQ as if they were permanent work items.
- Finally, if Clause 65.8 is not giving the entitlement for reimbursement for loss or damage. Can the Contractor seek such compensation under the Governing law?, and how it could be quantified?
Thanks in advance for your professional help
I wish to seek your valuable experience and learn your opinion for the case I have here which I have encountered:
- I am a QS working for a Governmental Department
- I was asked to prepare a report responding to a Contractor’s claim of termination.
- The Termination of the Contract was made by the Department under "Release From Performance" clause of FIDIC 4th Edition "Clause 66.1"
- There was no particular reason for termination except that the Department has decided to sell the Land on which the project was intended to be built upon.
- The Payment as per this situation should be made in accordance with Clause 65.8.
My Question is as follows:
- Is the Termination "Release From Performance" procedure is correct i.e. is it the Correct Clause to use for this situation?!
- Clause 65.8 doesn’t give the right for reimbursement of loss or damage (or even loss of profit), but the Contractor has include such item in his Termination claim, so is he really entitled for such compensation?
- For General items (Prelims) is it the cost of those items should be consider only proven by actual invoices, time sheets, vouchers ..etc, or as per the rates set out in the BOQ as if they were permanent work items.
- Finally, if Clause 65.8 is not giving the entitlement for reimbursement for loss or damage. Can the Contractor seek such compensation under the Governing law?, and how it could be quantified?
Thanks in advance for your professional help