Special Claim
In the Open Standard
Vishwas BindiganavaleMember for 22 years 5 months
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Hi All,
The recent embargo on cement & steel in the Middle East has crippled concrteing activities and in-turn the project schedule. For example, our project slabs are ready for concrete pour well on time but we are forced to pour concrete only when the RMC supplier is able to procure cement. As slabs lie in the critical path, the entire programme shows delay on updation.
Contractually speaking, the main contractor has no right to claim for an extension of time as we ourselves are not procuring the cement stocks. Moreover, the contract has approved the said RMC supplier.
I would like to know if there is anyway we can claim an extension of time? I had written to the Consultant/Client regarding this claiming EOT with regards to Clauses 12.2/12.3(Adverse Conditions) and 44.1.e(Special Circumstances). The Consultant turned it down stating that these were not the right clauses for EOT claim. He also stated that local government did not recognise the shortage and hence the claim was baseless. Moreover, there is no "Force Majore" clause in the contract.
Can u guys give me a breather?? Its suffocating to continue like this.
The recent embargo on cement & steel in the Middle East has crippled concrteing activities and in-turn the project schedule. For example, our project slabs are ready for concrete pour well on time but we are forced to pour concrete only when the RMC supplier is able to procure cement. As slabs lie in the critical path, the entire programme shows delay on updation.
Contractually speaking, the main contractor has no right to claim for an extension of time as we ourselves are not procuring the cement stocks. Moreover, the contract has approved the said RMC supplier.
I would like to know if there is anyway we can claim an extension of time? I had written to the Consultant/Client regarding this claiming EOT with regards to Clauses 12.2/12.3(Adverse Conditions) and 44.1.e(Special Circumstances). The Consultant turned it down stating that these were not the right clauses for EOT claim. He also stated that local government did not recognise the shortage and hence the claim was baseless. Moreover, there is no "Force Majore" clause in the contract.
Can u guys give me a breather?? Its suffocating to continue like this.
5 replies
Oldest first- 0Taher Abdel-Aziz ·Hi
I am sorry my dear, your consultant has all rights to answer you this rough answer.
From my point of view you have to change the supplier even you pay more cost at on those next few months till solving this problem.
You have to calculate both over cost due to delay or paying more to your supplier then you will know the answer.
- 0Shahzad Munawar ·To maintain the supply of cement and other construction comodities is entirely responsibility of the Contractor except that when such supplies are to be made by the Employer as per Contract.
In addition to above, EOT or compensation costs cannot be entertained to you as it is your default for not arranging the material at site in time.
Therefore Consultant is right for rejection of your claim for Extenion of time and its compenstaion costs and there is no remedy for your Special claim.
- 0Raj Singh ·Dear Vishwas
To start with it all depends on the Contract. Most of the contracts prevalent in the Middle East will not compensate you for increase in related costs. I agree that costs of lot of basic construction materials has gone up in the last one year and there can be temporary shortfall in supply.
Now, can you demonstrate to the Engineer/ Client that you did place all the relevant contracts for procurement of goods and services in time? Can you obtain letters from your suppliers that there is case of extra ordinary reasons due to which supplies are affected? If you can substantiate through the suppliers that you did all that you could do and if you have kept Engineer / Client notified all the time then you may claim EOT but without financial implications only delay penalties may be waived.
I believe that you used the term "Embargo". Embargo can be termed as Employer’s risk but in the region generally there has been no embargo.
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