FIDIC Yellow Book 2017: Extension of Time and Recovery of Loss and Expense

The FIDIC Yellow Book 2017, titled 'Conditions of Contract for Plant and Design-Build,' provides guidance on handling extensions of time and claims for loss and expense. Clause 8.4 specifically addresses claims for additional payment arising from delays or disruptions to the work.

While a contractor or subcontractor granted an extension of time may be entitled to recover direct loss and/or expense caused by the delay or disruption, this entitlement isn't automatic. The contractor or subcontractor must provide evidence to support their claim. The Engineer, acting as the contract administrator, assesses the claim and determines its validity.

Clause 8.4 outlines that the Engineer will decide the amount of any additional payment to the contractor or subcontractor based on the provided evidence and relevant factors. The Engineer must consider the delay or disruption's impact on the work's progress and any factors affecting the contractor's timely completion.

It is crucial for contractors and subcontractors to adhere to the contract's procedures for submitting a claim for additional payment. Failure to do so could lead to the claim being rejected, reduced, or even result in the loss of the right to make the claim altogether.

In conclusion, while an extension of time might entitle a contractor or subcontractor to recover loss and expense due to delays or disruptions, this entitlement isn't automatic. The contractor or subcontractor must provide evidence to support their claim, and the Engineer must assess the claim and determine its validity following the contract's procedures.