Contractor’s Entitlement under Fidic Contact 4th Edition

Contractor’s Claim for increased cost of material due to unforeseen conditions resulting major revisions can be admissible under clauses 12.2, 6.3, 40.1, 51.1 and 6.4 (FIDIC 4th Edition)

I have a typical case with me and would like have opinion cum guidance from other members.

Contractor has suffered financial losses due to
01. Delays due to presence of existing u/g services (clause 12.2 & 6.3).
02. Consequently proposed building was relocated (51.1)
03. Consequently Structural Engineer requires soil investigation. Soil investigation findings resulted total revamp of Structural Design (6.4).
04. Consequently, work suspended for about 3 months (40.1).
05. In the mean time cost of reinforcement bars increased substantially.
06. Revised Structural Drawings issued with provision of two additional floors (51.1)
07. Contractor had procured Steel for original scope, and cut & bent steel is ready for foundation & upto ground floor. But due to design changes it cannot use it.
08. Moreover, due to substantial increase in the reinforcement quantity, contractor is forced to purchase at higher prevailing price.
09. Contractor has notified in a timely manner, of his intention of claim for all above noted consequences and finally submits his claim (along with contemporary evidences) for the additional costs only.
10. Cost Consultants rejects the claim with conclusion that there is no merit in Contractor’s claim for the increase in price of steel under clause 12.2, 51.1, 6.3 & 40.1
11. Note that contractor is not entitled to claim for any increase or decrease in the cost of materials under clause 70.1.

Are there any decided cases on similar claims?

Discover more from CMGuide

Subscribe now to keep reading and get access to the full archive.

Continue Reading

Scroll to Top