Manavasi RameshPM II| Powergrid Corporation of IndiaMumbai, Maharastra. India, India
How can project professionals establish the legal admissibility of claims for loss of profit in business, stemming from delays in infrastructure projects due to right of way clearance issues? In the absence of explicit contract clauses, what provisions or clauses should be incorporated into bid documents to address and permit such claims? Discuss the nuances of arbitration awards and provide insights into the establishment and management of these claims within the realm of project management, emphasizing a comprehensive understanding of legal considerations and practical solutions."?
Are there any provisions available in international contracts /FIDIC to address this issue ?
The claim is mostly arising out of idling of resources, loss of opportunity to bid for other projects due to this stuck up project . Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Manavasi
I've worked in various countries and things work differently from one country to another, except that for every project that Ive managed, there was a legally executed contract that is legally binding to all parties and includes clauses for the different claims.
In the absence of contracts, I suggest you do two things:
1) Add "Loss of Business" to your project insurance. For every project there is insurance which includes Course of Construction, Wrap-Up Liability and other optional items like Loss of Business.
2) Have some sort of binding document (Example: Signed fee proposal from the contractor) between your organization and the contractor to reduce your organizations risk exposure.
As for the FIDIC, it has been a while since I used it but I do recall there were clauses for different claims and the claims process. In Canada, we use CCDC contracts and they do have Claims Clauses.
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