Civil Engineering Reference
In-Depth Information
he has incurred in the period immediately preceding that for which the
Application for Payment has been made.
S7.3 Following the submission of an estimate under S7.2 the Contractor shall for
so long as he has incurred direct loss and/or expense to which clause 26.1
refers, on presentation of each Application for Interim Payment submit to
the Employer an estimate of the addition to the Contract Sum which the
Contractor requires in respect of such loss and/or expense which has been
incurred by him in the period immediately preceding that for which each
Application for Payment is made.
S7.4 Within 21 days of receipt of any estimate submitted under S7.2 or S7.3 the
Employer may request such information and details as he may reasonably
require in support of the Contractor's estimate but within the aforesaid 21
days the Employer shall give to the Contractor written notice either
S7.4
.1
that he accepts the estimate; or
S7.4
.2
that he wishes to negotiate on the amount of the addition to the Contract
Sum and in default of agreement to refer the issue for decision pursuant
to article 6A or 6B whichever is applicable; or
S7.4
.3
that the provisions of clause 26 shall apply in respect of the loss and/or
expense to which the estimate relates.
If the Employer elects to negotiate pursuant to clause S7.4.2 and agreement
is not reached the provisions of clause 26 shall apply in respect of the loss
and/or expense to which the estimate relates.
S7.5 Upon acceptance or agreement under S7.4.1 or S7.4.2 as to the amount of the
addition to the Contract Sum such amount shall be added to the Contract
Sum and no further additions to the Contract Sum shall be made in respect
of the direct loss and/or expense incurred by the Contractor during the
period and in respect of the matter set out in clause 26.2 to which that
amount related.
S7.6
If the Contractor is in breach of S7.2 and S7.3 direct loss and/or expense
incurred by the Contractor shall be dealt with in accordance with clause 26
but any resultant addition to the Contract Sum shall not be included in
Interim Payments but shall be included in the adjustment of the Contract
Sum under clause 30.5. Provided that such addition shall not include any
amount in respect of loss of interest or financing charges in respect of such
direct loss and/or expense which have been suffered or incurred by the
Contractor prior to the date of issue of the Final Statement and Final
Account or of the Employer's Final Statement and the Employer's Final
Account as the case may be.
It should be noted that clause 26 is modified, but not superseded by this
provision and that any loss and/or expense which is recoverable under
clause S6 (valuation of change instructions) is not recoverable under this
provision. If the supplementary provisions are stated in the Appendix to
apply, the contractor will be expected to initiate this procedure without
further prompting. The penalty for failure to proceed in accordance with
this clause are severe.
