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 Employers risk but in the region generally there has been no embargo.
Member for
21 years 6 months
Member for21 years6 months
Submitted by Vishwas Bindig… on Sat, 2004-06-12 01:33
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.
Member for
21 years 6 months
Member for21 years6 months
Submitted by Taher Abdel-Aziz on Thu, 2004-06-10 06:35
Member for
21 years 5 monthsRE: Special Claim
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 Employers risk but in the region generally there has been no embargo.
Member for
21 years 6 monthsRE: Special Claim
C
Member for
21 years 6 monthsRE: Special Claim
Come-on guys, dont give-up so soon. There should be some way to arm-twist the consultant/client!
Member for
22 years 4 monthsRE: Special Claim
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.
Member for
21 years 6 monthsRE: Special Claim
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.