Strategy for Effective Claim Management Based on a FIDIC Derivative Contract

Jaggran-II hydroelectric project (JHPP-II), designed to produce 48 megawatts of green energy, is one of the largest projects constructed along the Jaggran hydel river energy corridor to contribute to renewable power generation in Pakistan. The contract agreement regime of JHPP-II is not administered through the famous Silver Book. Instead, it derives from the Silver Book authored by the financing agency itself. Incomplete data collection during the feasibility stage and a slow and inadequate land acquisition process led to several major design changes, resulting in cost and time overrun. This case study investigates the reasons for the dispute on an extension of time (EOT) between the employer and contractors. A retrospective delay analysis approach was adopted to ascertain the prolongation claim by collecting data from the project event logbook with short interviews of key project stakeholders. The study suggests an effective strategy to handle efficiently complex contract cases with multipartners on the consultants’ and contractors’ sides while taking benefits in favor of the contractor from the shortfalls in nonstandard Fédération Internationale Des Ingénieurs-Conseils (FIDIC) contract clauses.