Dear Friends,
I need your valuable inputs for the following issue:
We are main contractors for a project.Our contract has a delay penalty of 300,000 per day upto a max limit of 10% of contract value = approx 25 million. We have a nominated subcontractor who was nominated on time and within budget allocated in BOQ. He is currently under a delay of completing his scope of works and thus the overall project. I have completed all my scope of work. I have entered into a subcontract agreement with him as per FIDIC 1987 GC of contract. His contract with us is only 20 million, accordingly in agreement his delay penalty is 20,000 per day with a max limit of 10 % of contract value = 2 million. Now if the engineer puts a delay penalty on me i cannot recover full amt of this loss! and we will encounter huge losses for his delayed completion of works.
I want to know what are available options to me. Also in future what should be my course of action to cover myself against such risk.
Dear Friends please go ahead and give solutions available in other forms of contracts also.
Thanks,
Deepak.
I need your valuable inputs for the following issue:
We are main contractors for a project.Our contract has a delay penalty of 300,000 per day upto a max limit of 10% of contract value = approx 25 million. We have a nominated subcontractor who was nominated on time and within budget allocated in BOQ. He is currently under a delay of completing his scope of works and thus the overall project. I have completed all my scope of work. I have entered into a subcontract agreement with him as per FIDIC 1987 GC of contract. His contract with us is only 20 million, accordingly in agreement his delay penalty is 20,000 per day with a max limit of 10 % of contract value = 2 million. Now if the engineer puts a delay penalty on me i cannot recover full amt of this loss! and we will encounter huge losses for his delayed completion of works.
I want to know what are available options to me. Also in future what should be my course of action to cover myself against such risk.
Dear Friends please go ahead and give solutions available in other forms of contracts also.
Thanks,
Deepak.