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Free-issue materials
Question
I have a question regarding Clause 69.1 for Default of Employer. We are executing a Contract for a Project in
Pakistan under FIDIC Fourth Edition, 1987. The Employer has assigned The Engineer and also an Employer's
Representative. The Employer's Representative is form time-to-time acting like The Engineer and would like to
physically check the works at site. They are also applying deductions on the certificates of The Engineer, such
as retention money on escalation, and also Quantities, etc. The amount of the unauthorized deductions are
around 5 % of the total amount certificates issued by The Engineer. We have served a notice under Clause 69.1
and 69.4, of the Conditions of Contract to reduce the rate of work and furthermore, clarify that the Clause 69.1
explains the default of the Employer, regardless of the quantum of amount in case of Employer's failure to pay to
the Contractor total amount due under any certificate of the Engineer. Do you think that the above statement is
true and it is a case of default of the Employer ?

Answer
Depending on what is written in the Contract and the Particular Conditions, generally speaking you have a case
against the Employer. The damages which the Contractor may claim would include interest and/or financing
charges. However, you must check the provisions of the Sub-clause 2.1 Engineer's duties and authority ,to see
what is mentioned there. It is not very clear what is this Employer's Representative and what are his duties under
the Contract,. However, one would suspect that you have a case against the Employer.