Recovery of interest / financing charges due to prolongation in construction contract

It is a common occurrence for construction contracts to be delayed for one reason or another. This may be due to neutral event that beyond the control of the contracting parties or due to some act of prevention that cause by the employer or its authorized agent. In some circumstances, contractor req...

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Main Author:	Ng, Chee Kuang
Format:	Thesis
Language:	English
Published:	2010
Subjects:	TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/36267/1/NgCheeKuangMFAB2010.pdf
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id	my-utm-ep.36267
record_format	uketd_dc
spelling	my-utm-ep.362672017-09-19T00:58:51Z Recovery of interest / financing charges due to prolongation in construction contract 2010 Ng, Chee Kuang TH Building construction It is a common occurrence for construction contracts to be delayed for one reason or another. This may be due to neutral event that beyond the control of the contracting parties or due to some act of prevention that cause by the employer or its authorized agent. In some circumstances, contractor requires more working capital and longer duration to accomplish the project is both increased and had to deployed over a longer period of time. As a result, when the project is prolonged, the contractor has to necessarily sustain cost of his working capital to ensure the contract can be fulfilled over the additional period of delay. Under the general principle of common law, financial loss in the form of interest charges is not recoverable without any express contractual or statutory provisions except claim under special damages. Since there are no express provision under the contract, can the additional interest/ financing charges incurred recoverable under ‘loss and/or expense’ provision? Hence, this research is conducted to reducing the uncertainty and difficulties in the event of recovery of interest/finance charges in the event the project is prolonged and additional working capital is required to sustain the project. This study classified as doctrinal research is an essentially a library-based study. It was found that interest which contractor has suffered during the period between the loss and/or expense being incurred and the making of an application for reimbursement is recoverable. It is also important to serve a notice to the contract administrator to inform the disruption of the regular progress of the work under loss and/or expense clause in the successful recovery of interest/financing charges. 2010 Thesis http://eprints.utm.my/id/eprint/36267/ http://eprints.utm.my/id/eprint/36267/1/NgCheeKuangMFAB2010.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:76072?queryType=vitalDismax&query=Recovery+of+interest+%2F+financing+charges+due+to+prolongation+in+construction+contract&public=true masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH Building construction
spellingShingle	TH Building construction Ng, Chee Kuang Recovery of interest / financing charges due to prolongation in construction contract
description	It is a common occurrence for construction contracts to be delayed for one reason or another. This may be due to neutral event that beyond the control of the contracting parties or due to some act of prevention that cause by the employer or its authorized agent. In some circumstances, contractor requires more working capital and longer duration to accomplish the project is both increased and had to deployed over a longer period of time. As a result, when the project is prolonged, the contractor has to necessarily sustain cost of his working capital to ensure the contract can be fulfilled over the additional period of delay. Under the general principle of common law, financial loss in the form of interest charges is not recoverable without any express contractual or statutory provisions except claim under special damages. Since there are no express provision under the contract, can the additional interest/ financing charges incurred recoverable under ‘loss and/or expense’ provision? Hence, this research is conducted to reducing the uncertainty and difficulties in the event of recovery of interest/finance charges in the event the project is prolonged and additional working capital is required to sustain the project. This study classified as doctrinal research is an essentially a library-based study. It was found that interest which contractor has suffered during the period between the loss and/or expense being incurred and the making of an application for reimbursement is recoverable. It is also important to serve a notice to the contract administrator to inform the disruption of the regular progress of the work under loss and/or expense clause in the successful recovery of interest/financing charges.
format	Thesis
qualification_level	Master's degree
author	Ng, Chee Kuang
author_facet	Ng, Chee Kuang
author_sort	Ng, Chee Kuang
title	Recovery of interest / financing charges due to prolongation in construction contract
title_short	Recovery of interest / financing charges due to prolongation in construction contract
title_full	Recovery of interest / financing charges due to prolongation in construction contract
title_fullStr	Recovery of interest / financing charges due to prolongation in construction contract
title_full_unstemmed	Recovery of interest / financing charges due to prolongation in construction contract
title_sort	recovery of interest / financing charges due to prolongation in construction contract
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2010
url	http://eprints.utm.my/id/eprint/36267/1/NgCheeKuangMFAB2010.pdf
_version_	1747816420123607040

Recovery of interest / financing charges due to prolongation in construction contract

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