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Cash Flow

Discuss anything relating to Consumer Law

Cash Flow

Postby Tzefanyahu » Thu Nov 24, 2016 4:16 am

Dear Sir:

I am working with contractor, our contract is fidic 87.

We are ahead of the schedule in our project, and thus our interim payments are exceeding the approved cashflow.

is it allowed that the client reject or reduce our monthly payment because it is more than the submitted cash flow?

What clause of fidic supports our position??

Thanks
Tzefanyahu
 
Posts: 47
Joined: Thu Jan 02, 2014 3:45 pm

Cash Flow

Postby Carlie » Thu Nov 24, 2016 6:32 pm

Dear Sir:

I am working with contractor, our contract is fidic 87.

We are ahead of the schedule in our project, and thus our interim payments are exceeding the approved cashflow.

is it allowed that the client reject or reduce our monthly payment because it is more than the submitted cash flow?

What clause of fidic supports our position??

Thanks
Carlie
 
Posts: 41
Joined: Mon Jan 20, 2014 7:38 pm

Cash Flow

Postby Finnin » Sun Nov 27, 2016 8:28 am

Dear Basem,

Thank you for your question.

The answer to this will be dependent upon the extent of the amendment to the FIDIC terms. The standard FIDIC 1987 contract for civil engineering works is a remeasurement contract and requires that the Contractor is paid, usually on a month-to-month basis, for what he had done; however the payment terms can be varied by the conditions of particular application.

If the contract has been amended so that the Contractor provides a cash flow analysis which will be the sole basis for calculation of interim payment, then the Contractor may not be entitled to payment if he exceeds the anticipated rate of progress. The wording of such a clause will be very important; one point which immediately springs to mind is would the Engineer certify to "over-pay" you if you were behind on the anticipated progress position?

I hope that this assists you.

Kind regards,

John Dowse

John Dowse can be contacted by e-mail to [email protected]
Finnin
 
Posts: 51
Joined: Fri Feb 07, 2014 6:08 am


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