CLAIMS – SUBCONTRACT AGREEMENT
- Any Claims, changes and adjustments raised by the SUBCONTRACTOR whose issue rests with the COMPANY shall only be considered and/or accepted by the CONTRACTOR when they are considered and/or accepted by the COMPANY. Such claims, changes and adjustments shall be settled in accordance with the Subcontract only when the CONTRACTOR has received extension of time or additional payment in respect thereof under the Main Contract from the COMPANY.
It shall be a condition precedent for the SUBCONTRACTOR’s entitlement to an extension of Time for Completion and additional payment that whenever the Main Contract requires the CONTRACTOR to submit any documents, notices or information within a specific time, the SUBCONTRACTOR shall submit to the CONTRACTOR the aforesaid documents, notices or information, as applicable to the performance of the Subcontract, sufficiently in advance, so as to allow the CONTRACTOR to duly and timely perform its own obligations and enforce its own rights under the Main Contract.
- If the SUBCONTRACTOR raises any claims, changes and adjustments whose issue does not rest with the COMPANY, and:
- if the SUBCONTRACTOR intends to claim extension of Time for Completion, the Clause 7.2 shall apply; or
- if the SUBCONTRACTOR intends to claim additional payment to which the SUBCONTRACTOR is in its opinion entitled under the Subcontract in addition to the Subcontract Price, the SUBCONTRACTOR shall notify the CONTRACTOR within five (5) Days after the date on which the SUBCONTRACTOR became aware or should have become aware of the event giving rise to the claim.
If the SUBCONTRACTOR fail to notify the CONTRACTOR within the time stated in this Clause 19.2, the SUBCONTRACTOR shall be precluded from bringing such claim. Within further five (5) Days after giving of the claim notice, the SUBCONTRACTOR shall establish, to the CONTRACTOR’s satisfaction, the basis of the claim under the Subcontract and the detailed amount of the claim with supporting particulars. The SUBCONTRACTOR shall keep and maintain full records relating to and necessary to support the claim.
Subject to the SUBCONTRACTOR’s timely notice, the CONTRACTOR shall consult with the SUBCONTRACTOR in an endeavor to reach agreement for such claim. If agreement is not achieved, the CONTRACTOR shall make a fair determination in accordance with the Subcontract, taking due regard of all relevant circumstances.
The CONTRACTOR shall give notice to the SUBCONTRACTOR of each agreement or determination, with supporting particulars. Each Party shall give effect to each agreement or determination, unless the SUBCONTRACTOR gives notice, to the CONTRACTOR, of his dissatisfaction with a determination within five (5) Days of receiving it. Either Party may then refer the dispute to the arbitration in accordance with Clause 27.
The SUBCONTRACTOR shall not be entitled to an additional payment for any delay resulting from the CONTRACTOR’s failure or fault to provide Materials, Plant, CONTRACTOR’s Equipment, drawings, or a service under the Subcontract, if the affected Subcontract Works is, of the opinion of the CONTRACTOR, not on the Critical Path or the duration of such delay does not exceed the affected Subcontract Work’s Total Float as reflected in the Schedule.
- The CONTRACTOR shall have the right to examine the full records relating to the SUBCONTRACTOR’s claim pursuant to Clause 19.1 and 19.2 that are necessary to support such claim, including but not be limited to, books, accounts, correspondence, instructions, specifications, plans, drawings, receipts and memorandum of the SUBCONTRACTOR and (if any) its subcontractors for the purpose of verifying all costs of such claim. The SUBCONTRACTOR shall be responsible for ensuring that all of its own and its subcontractors’ documentation, as specified above, shall be preserved and made available for audit at any time, without any additional payment.
- The SUBCONTRACTOR shall continue to perform its obligations under the Subcontract without interruption during the pendency of any claim or dispute.