“Can you elaborate on the Changes in Clause 20.2 of FIDIC 2017 and a brief explanation on why it is an enhanced Clause that is an improvement over that of FIDIC 1999.” ?
Global Claims have always been a “pain in the arse” for Employers and Engineers since the dawn of time. Despite the many cases where they have been rejected time and time again over the years, they refused to die and submitted to be by Contractors unabated.
This is by virtue that Clause 20.2 in FIDIC 1999 did not make it mandatory in the form of a time bar for the submission of the detailed Claim, although this was the requirement for the submission of the Notice to Claim. So much so that Contractors take the easy way out and waited till the tailend of the Contract to make their time and cost Claims on a Global basis.
The new enhanced Clause 20.2 in FIDIC 2017 solved the above conundrum through the introduction of a mandatory second time bar for the submission of a detailed Claim, filing which the Contractor will lose his entitlement to time and cost.
This enhancement in a single stroke put to rest and spelt the end of Global Claims as the Contractor is forced to file their Claims as they occur. They no longer have the luxury of taking it easy and file the Claims at the tail end of the Contract which most likely will end up in the form of a Global Claim.
As the above will impact on the Profit and Loss account of the Contractor, those who have Contracts under FIDIC 2017 need to be warned of and be made aware so that measures are taken to revamp their organisation structure to include a new set up just to handle the additional requirements of Clause 20.2 in order not to lose out financially.
Is your Contract based on either FIDIC 1999 or 2017 ?
For those of you who found my weekly musings informative and helpful, I have posted 45+ posts at www.medium.com. You can access them there. You can use this link to find me at :-
https://lhchin.medium.com.
Hope to see you guys signing up as my followers.
For those of you who found my weekly musings informative and helpful, I have posted 58+ posts at www.medium.com. You can access them there. You can use this link to find me at :-
https://lhchin.medium.com.
Hope to see you guys signing up as my followers.
Want to know more about rules of Construction Law that most of you are unaware of (by virtue of what you are taught in college are too shallow to be of any use in your career path ) ?
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The CDC MEET are essentially a weekly 1.5 hour meet where I or one ofmy associates will (over some 30 sessions) mentor/coach you and your Contract Team leaders to attain a solid foundation on the nuances, intricacies and modalities of Construction Law under the Common, Civil and Sharia Law legal system at :-
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Appointment Request Form
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Cheers, Happy Reading and Wishing you Good Health Always.