Please see below the translation of the Comments from Financial Department
The Agreement is marked with two main points:
A- If the Contractor do not performance he will have to bear ALL (there is not a quantity or quality limitation) the damages rising out of the Project Co. (Client Concessionaire).
B- The contractor only will receive compensations (despite of not being entitled to them) if BEFORE the Client have got them from the Authority (Grantor of the Concession). The Art.29 is very clear regarding this.
There is not balance with respect the position of the Contractor. On one hand He has to assume Risks not defined and unlimited and on the other hand to make effective the rights in a conditioned to that the Client could make them possible to the Authority.
This Agreement is worded to protect to the Concessionaire to the maximum, but we should not forget that our company is taking part as well in the Construction Party.
The Contractor’s responsibility should be valued and of course limited; Otherwise the risks to be beard by the Contractor will not be possible to be known, or not proportionate in case the Contractor will not performance. The only solution under this not knowledge of risk is to offer a price so high that the Client would not accept it.
The Agreement is marked with two main points:
A- If the Contractor do not performance he will have to bear ALL (there is not a quantity or quality limitation) the damages rising out of the Project Co. (Client Concessionaire).
B- The contractor only will receive compensations (despite of not being entitled to them) if BEFORE the Client have got them from the Authority (Grantor of the Concession). The Art.29 is very clear regarding this.
There is not balance with respect the position of the Contractor. On one hand He has to assume Risks not defined and unlimited and on the other hand to make effective the rights in a conditioned to that the Client could make them possible to the Authority.
This Agreement is worded to protect to the Concessionaire to the maximum, but we should not forget that our company is taking part as well in the Construction Party.
The Contractor’s responsibility should be valued and of course limited; Otherwise the risks to be beard by the Contractor will not be possible to be known, or not proportionate in case the Contractor will not performance. The only solution under this not knowledge of risk is to offer a price so high that the Client would not accept it.
