Preguntas frecuentes

What is meant by the suspension of a public works contract?

It is the legal power to temporarily interrupt contracted work.

What does the Public Works Law express about the suspension of the public works contract?

It states that the agencies and entities may temporarily suspend, in whole or in part, the work contracted for any justified cause. The holders of the dependencies and the governing bodies of the entities will designate the public servants who may order the suspension and determine, where appropriate, the temporary nature of the suspension, which may not be indefinite.

What procedure is carried out by the authority to suspend a work and the steps to make a notification?

First a notification is made, a circumstantial act is drawn up and this is written in the log.
Steps to take to make a notification.
 - Notification by the public servant designated by the agency or entity to the contractor.
 - The notification must indicate the causes that motivate it.
 - Indicate the start date of suspension.
 - Indicate the date of the probable resumption of work.
 - You must indicate the actions you should consider in relation to your personnel, machinery and construction equipment.

What is the relationship between the Circumstantiated Act and the suspension of the work?

In addition to the notification, the circumstantial certificate of the suspension must be drawn up, in which it is recommended that the state of the property be recorded, as well as the list of personnel and machinery.

What collection rights do the construction companies have in case of suspension?

The agency or entity must pay the work performed, as well as the non-recoverable expenses, provided that these are reasonable, are duly verified and directly related to the contract in question.

What is the suspension of the work due to incidental or unforeseen circumstances?

When the suspensions derive due to incidental or overwhelming force, there will be no liability for the parties, and must only sign an agreement recognizing the term of the suspension and the dates of restart and finish of the work, without modifying the execution period established in the contract. If the works are damaged or destroyed and need to be repaired or replaced, they must be paid for through an agreement.

What payments are due in the suspension of the work due to incidental or unforeseen circumstances?

The staff of watchmen, conservation and surveillance personnel of the facilities and works, assigned during the suspension of works;
The costs of administration of work in terms of fees, salaries and benefits of technical and administrative personnel strictly necessary and having a specific function during the suspension, and
The scheduled workforce that remains on the job site during the period of the suspension, that has not been transferred to another work front or to another work and that is registered in the Logbook or in the assistance control document that Define the parts.

What are the financial expenses?

Financial expenses are the compensation or financial compensation that is made to contractors for non-compliance with payments by agencies and entities.
Also defined as such is the compensation or financial compensation that the contractor makes to the dependencies and entities, for overpayments or unpaid advances.

What is a conventional penalty in a public works contract?

A conventional penalty is the stipulation made by the parties, with respect to paying a certain amount as a penalty, in the event that an obligation is not fulfilled or is not fulfilled in an agreed manner.

Is there an obligation in the construction contract to indicate conventional penalty?

In public works contracts it is mandatory to establish a clause containing the conventional penalty.
Said clause must establish the terms, conditions and procedure for the application of conventional penalties, withholdings and / or discounts.

How does withholding apply?

The dependencies and entities, in case of delay in the execution of the works during the validity of the program of general execution of the works, can apply economic retentions to the estimates that are in process on the date that the delay is determined, which They will be calculated based on the progress in the execution of the works according to the cut-off date for the payment of estimates agreed in the contract.