1.

Bogus claims
Question
I request to give me clarification about the correct interpretation of Clause 60.6 Final statement in the FIDIC
Conditions of Contract 1987 revised in 1992. This is about submission by the Contractor of final statement
containing the following (a) 'the value of all work done in accordance with the contract, and (b)any further sums
which the contractor considers to be due to him under the contract or otherwise'. I want clarification with respect
to (b) above. Does it include the Claims which the Contractor has never raised during the currency of contract
according to provisions of the contract? I am confronted with a dispute In which the contractor for a value of total
work of Rs 70 million has submitted final accounts of Rs 280 millon by including various type of claims which he
never claimed during the contract period and now claims in the final statement and since the Engineer/Employer
failed to respond, the Contractor claims that the final account has become final. I would request for an early
response as to the true and intended purpose of the sub-clause (b) of Clause 60.6 of the General Conditions of
the above mentioned FIDIC version for civil works construction. Should I include all bogus claims what I intend to
include for the purpose that if I claim USD 100 I would at least get USD 1. How I can rebut this?

Answer
The provisions of Sub-clause 60.6 have to be read together with the provisions of Sub-clause 60.5 and of course
with the provisions of the Sub-clause 60.9. In order for the Contractor to maintain any claim, he must include it in
his Statement at Completion, if it has arisen by then, and in his Final Statement. There are a number of
incidences under the contract when the Employer gives to the Contractor indemnities or is otherwise responsible
to the Contractor. Clauses in which this occurs and where the Contractor's resulting claims against the Employer
could arise for the first time after the Statement at Completion or Final Statement have been submitted by the
Contractor include the following: Clause 19.2 (Employer's responsibilities) in relation to safety; Clause 21.3
(Responsibility for amounts not recovered); Clause 22.3 (Indemnity by Employer); Clause 24.1 (Accident or
injury to workmen); Clause 25.4 (Compliance with policy conditions); Clause 26.1 (Compliance with statutes,
regulations); Clause 70.2 (Subsequent legislation); and Clause 71.1 (Currency restrictions). In each of the above
cases, it is conceivable that the Contractor would wish to make a claim against the Employer after the date of the
Final Statement. Further, if the Contractor was made liable under the applicable law to a third party in respect of
design which had been carried out by the Engineer, the Contractor would wish to bring a claim against the
Employer to recover any damages paid out. Sub-clause 60.9 in fact bars the claims not mentioned in the
Statement at Completion and in the Final Statement. The purpose of the sub-clause is sensible, namely to
enable the Employer to achieve a reasonable degree of certainty as to his ultimate liability.