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Subbies Penalty

3 replies [Last post]
Sat, 2007-07-21 08:38
Raphael Adeyemi, ...
User offline. Last seen 10 years 24 weeks ago. Offline
Joined: 23 May 2007
Posts: 51
Groups: Petro-Chem / Oil & Gas
Dear Senior Coleaques,

I am at lost as to what is the correct application of FIDIC Clause 47 (1) by Main Contractor to Sub-Contractor. The frequent copies of Subbies contract agreement coming to my desk put the maximum penalty or LD to 10% of the Main Contract Value. I considered this unfair. What of a situation where the sub-contract value is less than 10% of the main contract.

I guess it should be back to back contract with the subbies penalty of LD to 10% of subbies contract value.

Is any one there having a contrary opinion? HELP ME OUT PLEASE
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Replies

Sun, 2007-07-22 00:38
#1
A D
User offline. Last seen 4 years 15 weeks ago. Offline
Joined: 20 May 2007
Posts: 1027
Groups: Accreditation Editors
But then, what the brownbook states, "CONTRCAT / SUBCONTRACT MANAGEMENT USER GUIDE".

I have not referred this from long time. May be anybody from Contracts can elaborate further and I believe, it will be 10% of the contract value and not the main contract value.

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Sat, 2007-07-21 09:08
#2
Raphael Adeyemi, ...
User offline. Last seen 10 years 24 weeks ago. Offline
Joined: 23 May 2007
Posts: 51
Groups: Petro-Chem / Oil & Gas
Thank you Jaya, that is my thought too
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Sat, 2007-07-21 09:05
#3
J Venkatesh PMP P...
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Joined: 7 Aug 2006
Posts: 52
Groups: GPC Qatar
I do with you...

10% should be on the respective sub contract value only, not on the Main contract...


Venkat
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