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Project & Contract Management Notes_LuxConsult (Mtius) Ltd

1. Advance Payment to Contractor


 Payment made to Contractor prior to site mobilization and commencement of works.
 Advance Payment is catered for as per Sub-Clause 14.2 of the FIDIC Conditions of
Contract.
 Advance Payment Value (excluding VAT) is normally 10 % of (Contract Value [excluding
VAT] – Provisional Sums – Contingencies - Dayworks).
 The following is a typical example of an Advance Payment Certificate.
EMPLOYER : NATIONAL HOUSING DEVELOPMENT COMPANY LTD
MAIN
: SUPER CONSTRUCTION COMPANY LTD
CONTRACTOR
CONTRACT PRICE : 159,698,888.00 (EXCLUDING VAT)
WORK AS AT : N/A

SN Bill Item Description Amount (MUR)

1 Contract Price
159,698,888.00
2 Less Provisional Sums & Contingencies
-
3 1A.7 Additional and Contingent Works
5,000,000.00
-
4 1A.9.1 Prov. Sum for Obtaining Building & Land Use Permit
500,000.00
-
5 1A.9.2 Prov. Sum for Wayleave Purposes
200,000.00
-
6 3D.1.9.1 Connection to Main Water Pipe
50,000.00
-
7 3F.1.1 Street Lighting
1,300,000.00
-
8 3H.1.1 Boulodrome
200,000.00
-
9 3H.1.2 Children's Playground
300,000.00
-
10 Bill No. 4 Dayworks
459,700.00
-
8,009,700.00

Amount for Accepted Contract Price Less Provisional


Sums and Contingencies 151,689,188.00

Pursuant to Sub-Clause 14.2, amount of Advance Payment excluding VAT is 15,168,918.80


Project & Contract Management Notes_LuxConsult (Mtius) Ltd

2. Claim for Extension of Time


 Related Clauses in FIDIC Conditions of Contract”:
- Sub-Clause 8.4 – Extension of Time for Completion
- Sub-Clause 20.1 – Contractor’s Claims
 Assessment of Extension of Time (without cost) due to adverse climatic conditions can
be done on the following:
- Rainfall event of 30 mm or more for activities on the critical path would have an
adverse effects on the Programme of Works – Extension given on days having 30
mm or more of rainfall
- Cumulative rainfall of 50 mm or more shall have an adverse effect on the PoW –
Extension given on days greater than 50 mm + the following day.
3. Payment to Contractor via Interim Payment Certificates
Payment to Contractor is done via Interim Payment Certificates following claims from the
Contractor (based on his forecasted cash flow and amount of works carried out).
The Consultant assesses the claims on the basis of the actual amount of works v/s the planned
amount of works and certifies payment on a pro-rata basis.

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