In cases where the circumstance giving rise to the claim has a continuing effect, the fully detailed claim shall be considered interim and the contractor shall send further interim details at a monthly interval and the final detailed claim within 28 days after the end of the effect resulting from the event The engineer should respond with approval in 42 days upon receipt of the fully detailed claim 2. Claims by the employer Any claim by the employer for payment shall be communicated as soon as practically possible once the employer has become aware of the circumstance
The notice is given to the engineer who shall determine the amount the employer should be paid. The financial claims can arise from variations, measurement changes, adverse physical conditions, employer’s risk, compliance with statutes, price fluctuations, currency, defects & unfulfilled obligations, suspensions, commencement & delays, release from performance, defaults and terminations while. These claims are always included in the contact (Bunni, 2013). Some other claims may arise as a breach of contract and normally results from breaches affecting the performance of the contract which nevertheless proceeds to completion and breaches resulting in termination or rescission of contract before completion (Bunni, 2013) The FIDIC claim procedures are claimed to be burdensome and sometimes unfair by the contractors as they impose tough obligations upon the Contractor to give notice and subsequently provide particulars where something for which the Contractor is not responsible has caused, or is likely to cause, cost or delay (Jaeger & Hok, 2009).
MERITS AND DEMERITS Merits The FIDIC contract forms offer a multitude of significant benefits for all parties involved in the project. These benefits include: 1. Quality guarantee A guarantee for works quality by means of contractual conditions covering unwanted situations where the works status deteriorates shortly after being taken over by the Beneficiary. The validity of the good performance guarantee can be extended by the Contractor, should defects that need remediation occur before the works completion according to the standards imposed in the contract. In this way, the risks, rights and obligations of the Beneficiary and of the contractor are distributed in a balanced way and the Consultant Engineer has a clear record of works evolution. 2. Promotion of Alternative Dispute Resolution A special feature of the FIDIC forms of contract is its built-in dispute resolution process through adjudication by a Dispute Adjudication Board (DAB). With respect to the DAB mechanism, it is generally considered by market players as a success story in terms of promoting the efficient and cost-effective resolution of disputes.
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- Fall '16