Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Can I apply for a variation order due to the delay of payments?

I am working for a contractor and my question is if I can apply for a variation order due to the delay of payments by client

user-image
Question added by Nizar Mukahal , Sr. Project Manager , Dar Engineering
Date Posted: 2014/04/10
Mostafa Saber
by Mostafa Saber , Project Manager , NAGA Architects

I believe this should be stated in the contract on the first place. I doubt that this is the case, as in Saudi Arabia they will not mention such terms. In a matter of fact, almost all contractors get delayed payments by clients "usually government projects" & no one can object to that!

Deleted user
by Deleted user

A variation is a change in the contract required by the Client or by the contractor which might increase /decrease the scope, increase /decrease the time and increase /decrease of the cost of a project.

Delays in issuing payments affecting  the contractor financial and his  capability to continue working on the project  should be dealt as a contractual claim, it must be raised by the contractor for compensation (time, loss of profit, the increment of cost, etc, resulted from the client actions) this claim as per the conditions  established in the contract agreement

More Questions Like This