I am working on an EPC lumpsum Contract from Client side. Project has expected delayed of 7 months and Contractual completion date has passed. No extension of time and or extra claim has been approved yet.
Issue is Contractor wants to invoice all the balance amount under "Site Running Cost" and Client's Project Manager is reluctant to approve as no money will be left for subsequent months for Contractor to run the show.
The work complete should be invoice and paid within the time limits set in the Conditions of Contract. The client will be liable to pay finance charges automatically if the do not pay on time.
On the other hand, if this is your final payment, and you have delayed the handing over by a number of days, then the Delay penalties will be calculated depending on your Conditions of Contract and deducted from your last payment due.
The Client must pay for completed works as per the Condition of Contract.
If the project duration has ended, then the delay penalties starts. In this case, you need to have a proper time extension request submitted in a timely manner in order to increase the project duration.
Holding payments and delays are two separate issues that are Controlled by the Conditions of Contract that you have.
Member for
17 yearsHi All,I am working on an EPC
Hi All,
I am working on an EPC lumpsum Contract from Client side. Project has expected delayed of 7 months and Contractual completion date has passed. No extension of time and or extra claim has been approved yet.
Issue is Contractor wants to invoice all the balance amount under "Site Running Cost" and Client's Project Manager is reluctant to approve as no money will be left for subsequent months for Contractor to run the show.
How should one go about it?
Thanks
Abhishek
Member for
16 years 11 monthsRE: Delay Event -Payment?
Many thanks Samer
Member for
17 years 3 monthsRE: Delay Event -Payment?
Dear Shahul,
These are two different roads.
The work complete should be invoice and paid within the time limits set in the Conditions of Contract. The client will be liable to pay finance charges automatically if the do not pay on time.
On the other hand, if this is your final payment, and you have delayed the handing over by a number of days, then the Delay penalties will be calculated depending on your Conditions of Contract and deducted from your last payment due.
With kind regards,
Samer
Member for
16 years 11 monthsRE: Delay Event -Payment?
Thanks Samer
Let us assume a case project contractual completion date is slipped .But still client unable to pay to the contractor.
In this scenario my previous posting holds good to negotiate to prevent from LDs
Member for
17 years 3 monthsRE: Delay Event -Payment?
Dear Shahul,
The Client must pay for completed works as per the Condition of Contract.
If the project duration has ended, then the delay penalties starts. In this case, you need to have a proper time extension request submitted in a timely manner in order to increase the project duration.
Holding payments and delays are two separate issues that are Controlled by the Conditions of Contract that you have.
With kind regards,
Samer