Total Ghana Limited a construction company is undertaking the Installation of a Traffic Management System in the Greater Accra Region. The Conditions of Contract is the FIDIC for EPC/Turnkey Projects 1989. The Client is the Republic of Ghana. The Government of Ghana has allocated funds for the project in the Governments annual budgetary allocation to the Ghana Highways Authority. The completion period is one (1) year. However, one (1) year after contract award, the Client has not paid any Interim Payment Certificate approved and validated by the Engineer. The Company has received a letter from the Client indicating that the contract has been terminated stating delay as the cause of termination. Discuss with reference to relevant clauses the necessary steps your company should take in accordance with the contract in the light of the letter received from the Client.
Total Ghana Limited a construction company is undertaking the Installation of a
Traffic Management System in the Greater Accra Region.
The Conditions of Contract is the FIDIC for EPC/Turnkey Projects 1989. The Client
is the Republic of Ghana. The Government of Ghana has allocated funds for the
project in the Governments annual budgetary allocation to the Ghana Highways
Authority. The completion period is one (1) year.
However, one (1) year after contract award, the Client has not paid any Interim
Payment Certificate approved and validated by the Engineer. The Company has
received a letter from the Client indicating that the contract has been terminated
stating delay as the cause of termination.
Discuss with reference to relevant clauses the necessary steps your company
should take in accordance with the contract in the light of the letter received from
the Client.
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