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FIDIC ContractsTraining to Volker Stevin (1 October 2015)

Mark Castell – Regional Managing [email protected]

mailto:[email protected]

http://www.drivertrett.com/

Our expert witness support service. World-class quantum,delay, and technical experts for litigation and provision ofinternationally experienced adjudicators, arbitrators, andmediators.

Provision of project management alongside transactionadvisory services to clients for the delivery of concessionprojects using PFI, PPP and DBFO procurement options.

Our project controls team, delivering commercialmanagement, quantity surveying, and planning servicesthroughout the project lifecycle.

Our dispute and advisory team, delivering high-levelcommercial and contract management, procurementadvice, planning and programming services, disputeresolution support and training and seminars.

What we do

• Driver Group is a global construction consultancy, providing

construction and engineering focused services since 1978

• Stock exchange listed plc. – AIM (2005)

• Driver Trett established in 2012 when Trett Consulting became

part of the Driver Group.

• Market leader in expert witness, planning, commercial and

disputes.

• Nearly 500 global staff. >£40m turnover.

• Network of offices across Europe, Africa,

Americas, Asia Pacific, and the Middle East.

• Global reach with projects undertaken

worldwide.

GROUP OVERVIEW

DRIVER GLOBAL PRESENCE

Some questions to start with…

6

Q: What is a Contract?

A: Simply speaking, it is an agreement.

Q: What is the objective of a contract?

A: To define the relationship and how the

parties act – the ‘rules of the game’.

Q: What is common to every project?

A: Contracts, whether with a client, a

supplier or a subcontractor.

7

Q: When should the management of

contracts begin?

A: At the conception of a contract.

Q: When should the management of

contracts end?

A: At the finalisation of all matters.

Contracts involve a process – from ‘conception to grave’

Understanding the clients’ needs and the risks involved

Making an offer, or tender

Forming a legal agreement

Understanding the parties’ obligations under the agreement

Monitoring the parties’ actions against these obligations

Identifying any variance

Invoking the terms of the contract according to the circumstances

Issuing and / or receiving requests for payment and additional time

Agreeing financial and other matters

8

99

Q: Is it true (or fair) to say that a bad

contract is the fault of those involved

at the tender stage?

A: No. Why?

Q: Is it true (or fair) to say that an

unprofitable project is the fault of those

involved at the execution stage?

A: No. Why?

Q: Who is involved in managing a contract?

A: Everyone within the business...

10

Revised Q: Who should be involved in

managing a contract?

FIDIC Contracts Workshop Objectives

The objective of today is to increase your awareness and understanding of:

The philosophy of the FIDIC standard forms of contract and what their use means.

The broad differences between the various FIDIC standard forms of contract and the particularities of the Yellow Book.

The obligations and liabilities the parties take on when using the Yellow Book.

Typical revisions made to the Yellow Book by Employers and the consequences of them.

The practical implications of using the Yellow Book in both tender and execution stages. 11

12

Introduction to FIDIC

FIDIC(Fédération Internationale des

Ingénieurs-Conseils)

Federation of national associations of consulting engineers

Based in Geneva

Founded in 1913 with original founding members from France, Belgium and Switzerland

UK joined 1949, USA joined 1958

Seen as international from 1970s and members from about 70 counties

Amongst other things, FIDIC produces Standard Forms of Contract

General principles of FIDIC Standard Forms of Contract - 1

Often known by their colour i.e. red, yellow, silver, blue.

Historically based on Anglo Saxon type contracts. So, more

reliance on documentation.

Drafted for general use on an international basis. So,

applicable law and ruling language needs to be stated.

Modifications may be required in some jurisdictions. These

should be included as revisions.

Drafted for use on construction and engineering projects but

often used for offshore projects. Revisions are therefore

needed for this too.

General principles of FIDIC Standard Forms of Contract - 2

FIDIC standard forms are generally accepted to be well-written and capable of being understood by users.

They recognise there will be problems and potential for conflict and dispute on projects but set out processes to resolve them including:

Placing a significant administrative burden on the parties and;

Requiring the parties to deal with issues at the time.

16

The Current FIDIC Standard Forms of Contract

Current FIDIC Main Standard Forms of Contract

Green (1999)Blue (2006) Red (1999) Pink (2010)

Yellow (1999) Silver (1999) Gold (2008)

http://fidic.org/books/construction-contract-mdb-harmonised-ed-version-1-may-2005-harmonised-red-book


http://fidic.org/books/dbo-contract-1st-ed-2008-gold-book



Green book.Short Form

Blue book.Dredgers Contract

Red book.Construction

Contract

Pink book.MDB

Construction Contract




Yellow book.Plant and

Design-Build Contract

Silver book.EPC/Turnkey

Contract

Gold book.DBO Contract



For dredging & reclamation works, the Blue book

When do you use which standard form?

STRAIGHTFORWARDPROJECT ?< $500K or < 6 months

EMPLOYER DESIGN ?

CONTRACTOR DESIGN

All types of project withpotential for high unforeseenrisks

Little employer involvementno major unforeseen risks

no

noyes

Otherwise, which contract should be used?

yes

yes

Ongoingoperation no

yes

no

yes



22

Overview of FIDIC Red and Yellow

Books

An overview - 1

FIDICRed bookConstruction Contract

20 clauses in the General Conditions

Particular Conditions anticipated

Appendix to Tender contains project specific data

Tenderers issued with Specification, Drawings & Schedules (includes BoQ); and site data

FIDICYellow bookDesign build Contract

20 clauses in the General Conditions

Particular Conditions anticipated

Appendix to Tender contains project specific data

Tenderers issued with Employer’s Requirements and site data

An overview - 2


Generally no Contractor design responsibility

Generally re-measurable

Contractor responsible for completing Works in Time for Completion. Failure means delay damages paid


Design responsibility (and fitness for purpose) with Contractor

Generally lump sum Contractor responsible for completing Works in Time for Completion including Tests on Completion. Failure means delay damages paid

So, in summary:

Red bookConstruction Contract

The Contractor constructs the Works in accordance with a design provided by the Employer. However, the Works may include some elements of Contractor designed civil, mechanical, electrical and / or construction works.

Yellow bookDesign build Contract

The Contractor designs and provides, in accordance with the Employer’s Requirements, Works, which may be any combination of civil, mechanical, electrical and / or construction works.

An overview - 4


Responsibility for unforeseen conditions with Employer

Contractor entitled to extension of time for Employer-risk delays

Contractor entitled to recovery of additional costs for Employer breaches or risk events


Responsibility for unforeseen conditions with Employer

Contractor entitled to extension of time for Employer-risk delays

Contractor entitled to recovery of additional costs for Employer breaches or risk events

An overview - 4


Employer appoints Engineer to act on its behalf

Engineer can delegate dutiesand authority to assistants

Engineer has authority to instruct the Contractor, and Contractor shall comply with instructions.

Engineer can vary the Works without agreement of effects.


Employer appoints Engineer to act on its behalf

Engineer can delegate dutiesand authority to assistants

Engineer has authority to instruct the Contractor, and Contractor shall comply with instructions.

Engineer can vary the Works without agreement of effects.

An overview - 5


Contractor responsible for care of the Works

Contractor responsible for safety of operations and security of the Site

Contractor and / or Employer to take out insurance policies

Contractor indemnifies Employer against claims, damages and losses


Contractor responsible for care of the Works

Contractor responsible for safety of operations and security of the Site

Contractor and / or Employer to take out insurance policies

Contractor indemnifies Employer against claims, damages and losses

Clause 1 - General Provisions

Clauses 2 to 4 – The Employer, the Engineer and the Contractor

Clause 5 – Nominated Subcontractors

Clauses 6 and 7 - Staff, labour, plant, materials and workmanship

Clause 8– Commencement, delays and suspension

Clauses 9 and 10 – Tests on Completion and Employer’s Taking Over

Clause 11 - Defects Liability

Clause 12 – Measurement and Evaluation

Clause 13 – Variations and Adjustments

Clause 14 – Contract Price and Payment

Clauses 15 and 16 – Termination and suspension

Clauses 17 to 19 – Risk, Insurance and Force Majeure

Clause 20 – Claims, Disputes and Arbitration

Red Book General Conditions

29



Clause 5 – Design





Clause 12 – Tests after Completion






Yellow Book General Conditions

30

31

Example Contract



Clause 5 – Design and Execution of the Works





Clause 12 – Tests after Completion






Clause 21 - Miscellaneous

Wikinger Offshore Wind Farm Conditions

32

The tender stage

Photograph credits to FreeDigitalPhoto.net & Grant Cochrane

Tender stage – Yellow Book

Employer normally stipulates the General Conditions and produces separate Particular Conditions setting out revisions.

Sometimes however, the Conditions are combined into one document (as Wikinger Offshore Wind Farm).

What is the effect of this?

Appendix to Tender is usually used to contain project-specific information.

Not used on Wikinger Offshore Wind Farm.

What is the effect of this?


Tenderers issued with Employer’s Requirements.

According to Clause 1.1.1.5, Employer’s Requirements must specify (cannot imply) for each part of the works:

The purpose

The scope

The design

Other technical criteria

(Similar wording in sub-clause 1.1.42 for Wikinger Offshore Wind Farm)

Contractor to design and construct the Works so they are fit for the purposes for which the Works are intended as defined in the Contract (sub-clause 4.1).

The obligation for fitness for purpose is more onerous that designing with “due skill and care”i.e. Suitability of end product versus design process

Responsibility for fitness for purpose cannot be passed to anyone else or insured

Sub-clause 4.1 for Wikinger Offshore Wind Farm says:The Contractor shall design (only to the extent explicitly laid down in Part D.5.4 (Employer’s Requirements, Transport), Part D.5.5 (Employer’s Requirements, Installation Works) and Part E.8 (Contractor’s Schedules, Design Works)), execute and complete the Works in accordance with the Contract and Good Industry Practice…

Sub-clause 1.1.48 is definition of Good Industry Practice.

Importance of Employer’s Requirements

Treatment of errors in the Employer’s Requirements provided for by the ‘experienced contractor test’ (sub-clause 5.1).

Should “an experienced contractor exercising due care”found it pre submitting its tender?

Resolution could be as a Variation or a claim if deemed not.

Otherwise Contractor liability.

Sub-clause 5.1 for Wikinger Offshore Wind Farm is similar but omits the period of time that differentiates between a Variation or a claim.

Errors in the Employer’s Requirements


Tenderers issued with Site Data.

Sub- clause 4.10 says:

The Employer shall have made available all relevant data in its possession.

The Contractor shall be responsible for interpreting such data.

The Contractor to the extent which was practicable (taking account of cost and time), shall be deemed to have obtained all necessary information… which may influence or affect the Tender or Works.

The Contractor shall be deemed to have inspected and examined the Site… the above data and other available information, and to have been satisfied…

See also sub-clause 4.11 – sufficiency of Accepted Contract Amount

Sub-clause 4.10 for Wikinger Offshore Wind Farm is revised.

Yellow Book Letter of Tender

Contains statements including:

“We accordingly offer to design, execute and complete the Works and remedy any defects therein, in conformity with this Tender…for the lump sum of..”

“We agree to abide by this Tender until [] and it shall remain binding upon us and may be accepted at any time before that date.”

“If this offer is accepted, we will provide the specified Performance Security, commence the Works ... and complete the Works … within the Time for Completion. We guarantee that the Works will then conform with the Schedule of Guarantees.”

“Unless and until a formal Agreement is prepared and executed, this Letter of Tender, together with your written acceptance thereof, shall constitute a binding contract between us.”

39

Contractor’s offer

Formation of a Yellow Book contract

Letter of Acceptance signifies a contract has been entered into.

Contract Agreement to be put into place after contract entered into if Letter of Acceptance used (sub-clause 1.6).Otherwise, it signifies contract entered into.

There is no Letter of Acceptance for Wikinger Offshore Wind Farm. Sub-clause 1.6 says that the Contract shall come into full force and effect upon the signature of the Contract Agreement by the Parties.

41

What happens post award within Volker Stevin?

Have a process for transferring knowledge internally; from

tender to execution personnel?

If so, what is discussed? Who is involved?

Do you review your contract to identify obligations and the

need for project-specific systems?

What issues need to be addressed?

Do you have a kick off meeting with the client

What is discussed?

What opportunities does this present?

Do you?

43

Employer & Engineer

Employer’s role – Yellow Book

Employer means a person named as Employer (sub-clause 1.1.2.2)

Employer has a limited role after contract is signed.

Gives Contractor access to Site and possession of it as described in the Contract (sub-clause 2.1).

Provides assistance to Contractor for applications for permits, licences etc (sub-clause 2.2).

Pays Contractor sums certified by Engineer (sub-clause 14.7).

Employer can make claims against the Contractor (sub-clause 2.5) and set-off amounts against payments.

For example, delay damages (sub-clause 8.7), failure to pass Tests on Completion (sub-clause 9.4), failure to put in place insurance (sub-clauses 18.1 and 18.2)

Employer appoints the Engineer (sub-clause 3.1).

Engineer’s role – Yellow Book

Engineer means a person appointed by the Employer (sub-clause 1.1.2.4)

Engineer appointed as representative of Employer acting after contract is signed (sub-clause 3.1).

“…Except as otherwise stated in these conditions:

Whenever carrying out duties or exercising authority, specified in or

implied by the Contract, the Engineer shall be deemed to act for the

Employer. …”

Sub-Clause provides the ‘exception’“Whenever these Conditions provide that the Engineer shall proceed in accordance with this Sub-Clause 3.5 to agree or determine any matter, the Engineer shall consult with each Party in an endeavour to reach agreement. If agreement is not achieved, the Engineer shall make a fair determination in accordance with the Contract, taking due regard of all relevant circumstances.”

Engineer’s delegation – Yellow Book

Engineer can delegate specific duties and authority to assistants (sub-clause 3.2).

In the Wikinger Offshore Wind Farm contract, other persons are defined:

Marine Warranty Surveyor (sub-clause 1.1.68)

Project Certification Agency (sub-clause 1.1.81)

On offshore projects, it is common to have an Employer’s Representative on-board the vessel.

Do these persons have delegated duties and authority ?

47

Contractor

Some of the obligations – Yellow Book

Contractor appoints Contractor’s Representative who is the only person authorised to receive instructions (sub-clause 4.3).

Contractor shall comply with instructions in respect of the Works given by the Engineer (sub-clause 3.3).

Contractor shall obtain consent to sub-contract works (sub-clause 4.4):

“Contractor shall not subcontract the whole of the Works.

… shall be responsible for the acts and defaults of any Subcontractors… as if they were the acts and defaults of Contractor.

… shall not be required to obtain consent for suppliers of Materials, or a subcontract … named in the Contract.

The prior consent of the Engineer shall be obtained to other proposed Subcontractors.

… shall give the Engineer not less than 28 days notice of the intended date of commencement of each Subcontractor’s work…”

Some of the obligations – Yellow Book

Communications shall be in writing, transmitted using specific methods and to the addresses stated in Appendix to Tender. Allowable electronic systems of transmission also stated in Appendix to Tender (clause 1.3).

There is no Appendix to Tender for Wikinger Offshore Wind Farm. Sub-clause 1.3 sets out the requirements:

Whilst emails can be used, some notices and communications are required to also be delivered by hand or mail or courier.

All communications shall be marked Wikinger Offshore Wind Farm/Foundation Installation Agreement

Addresses given for Employer, Engineer, Contractor and Contractor’s Representative

50

Exercise

Assuming a longer duration Yellow Book project, list:

The documents that the Contractor should expect to submit within a period of say 28 days of Contract Award

The ‘things’ that the Contractor should expect to receive from the Employer and/or the Engineer within say 28 days of Contract Award

51

Exercise

Exercise - answers

The documents that the Contractor should expect to submit within a period of say 28 days of Contract Award:

Sub-Clause 1.6 [Contract Agreement] says that the Employer and Contractor shall enter into a Contract Agreement within 28 days of the Contractor receiving the Letter of Acceptance.

Sub-Clause 4.2 [Performance Security] states that the Contractor shall provide to the Employer Performance Security.

Sub-Clause 4.3 [Contractor’s Representative] provides for the Contractor to appoint a Representative who will have the authority to act for the Contractor (including issuing and receiving communications).

A detailed time programme (and separate report) under sub-clause 8.3 [Programme].

If Sub-Clause 14.4 [Schedule of Payments] applies and the Contract does not contain a schedule of payments, the Contractor shall submit to the Engineer within 42 days of the Commencement Date, non-binding estimates of the expected payments during each quarterly period.

If Sub-Clause 14.2 [Advance Payment] applies, the Contractor shall provide to the Employer an advance payment guarantee.

Sub-Clause 18.1 [General Requirements for Insurances] requires that the relevant insuring Party shall provide to the other Party evidence that the insurances have been effected, copies of policies and evidence of payment of premiums; and give notice of such to the Engineer.

Exercise - answers

The ‘things’ that the Contractor should expect to receive from the Employer and/or his representative within say 28 days of Contract Award:

• Sub-Clause 1.6 [Contract Agreement] says that the Employer and Contractor shall enter into a Contract Agreement within 28 days of the Contractor receiving the Letter of Acceptance.

• Sub-Clause 2.1 [Right of Access to Site] says that the Employer shall give the Contractor right of access to, and possession of parts of the Site as stated in the Appendix to Tender.

• Sub-Clause 3.2 [Delegation by the Engineer] allows the Engineer to assign duties and / or delegate authority to Assistants; this would include authority to communicate with the Contractor on certain matters.

• Not less than 7 days notice of the Commencement Date (sub-clause 8.1).

• If Sub-Clause 14.2 [Advance Payment] applies, the Employer shall pay the advance payment in accordance with Sub-Clause 14.7 [Payment].

• Sub-Clause 18.1 [General Requirements for Insurances] requires that the relevant insuring Party shall provide to the other Party evidence that the insurances have been effected, copies of policies and evidence of payment of premiums; and give notice of such to the Engineer.

Design issues

Procedure for the Engineer to review and / or approve submitted documents (sub-clause 5.2).

Engineer’s criteria is whether proposals conform to the contract or not

Review and / or approval removes no responsibility from the Contractor

Design

56

Time Issues

Time and planning

Contractor to commence Works on the Commencement Date and complete within the Time for Completion (sub-clauses 8.1 and 8.2).

Contractor to issue a detailed programme (including method statement and envisaged resources) under sub-clause 8.3

Engineer has a 21 day period to give notice whether it does not comply with the contract

Otherwise, Contractor shall proceed in accordance with it.

Revised programmes to be submitted in various situations

Sub-clause 4.21 says that they shall be submitted monthly until completion of all work

Comprehensive - shall include:

a) Charts & descriptions of progress for each stage

b) Photographs

c) Manufacture report

d) Contractor’s personnel & equipment

e) QA documents, test results etc

f) Notices of claims

g) Safety statistics

h) Comparisons planned versus actual progress, risks and mitigation measures

Progress reports

58

Sub- clause 8.6 says:

“If, at any time:

a) Actual progress is too slow to complete within the Time for Completion, and / or

b) Progress has fallen (or will fall) behind the current programme under Sub-Clause 8.3…

other than as a result of a cause listed in Sub-Clause 8.4 [Extension of Time]…

Rate of progress 1

59

…then the Engineer may instruct the Contractor to submit…a revised programme…

Unless the Engineer notifies otherwise, the Contractor shall adopt these revised methods, which may require increases in the working hours and / or in the numbers of Contractor’s Personnel or Goods, at the risk and cost of the Contractor…

If these revised methods cause the Employer to incur additional costs, the Contractor shall subject to Sub-Clause 2.5 [Employer’s Claims] pay these costs to the Employer, in addition to delay damages (if any) under Sub-Clause 8.7 below.”

Rate of progress 2

60

Valuation & Payments

Clauses 14.1 and 14.2 refer

Contract Price is lump sum (option for remeasurement)

Any quantities are estimated but may not be measurable (see particular conditions)

Any advance payment is subject to a guarantee and is progressively reduced as works proceeds

First interim payment also subject to issue of Performance Security

Clause 14.3 Contractor submits Statement at end of stated period – 6 copies in approved form and including supporting details (including progress report)

Clause 14.4 - Schedule of payments may apply. Payments may be adjusted for actual progress.

Contract Price and Payments

62

Clause 14.5 - Payment for plant and materials may apply – certain conditions attached

Clause 14.6 – Engineer issues Interim Payment Certificate within 28 days of receipt of Statement

Certificate does not indicate acceptance or approval

Clause 14.7 – Employer pays within 56 days of receipt of Statement (different for advance payment)

Clause 14.8 - Contractor entitled to interest for late payments withoutgiving notice

Clause 16.1 – Engineer failure to certify or Employer failure to pay also gives rights for Contractor to slow down and / or suspend Works (notice needed)

Payment Procedure

63

Clause 14.9 – half retention release at issue of Taking Over certificate and passing Tests on Completion (plus success in the Tests after Completion if appropriate)

Clause 14.9 – remainder of retention release at expiry of Defects Notification Period unless still works to be done

Clause 14.10 – Contractor issues Statement at Completion within 84 days of Taking Over certificate. Engineer certifies as Interim Payment Certificate

Clause 14.11 – Contractor submits draft final statement within 56 days of receipt of Performance Certificate (issued under Clause 11.9 and confirms Contractor has met all obligations and works accepted)

When agreed, Contractor issues Final Statement

Clause 14.12 – At same time Contractor also issues discharge that amount is in full and final settlement

Clause 14.13 – Engineer issues Final Payment Certificate within 28 days of receipt of above

Clause 14.7 – Employer pays within further 56 days

Payment Procedure

64

Variations

Generally

Only the Engineer (or delegated assistants) can vary the Works (sub-clause 13.1).

Variations is a defined term and “a change to the Employer’s Requirements”.

A Contractor’s proposal to be requested prior to an variation being instructed (sub-clause 13.1)

Contractor shall comply with instructions from the Engineer (sub-clause 3.3)

Contractor has limited rights to object to a variation, but can be over ruled (sub-clause 13.1)

Contractor is entitled to recover the time and money effects of a Variation

Adjustments to the Contract Price are to be agreed or determined by the Engineer

Reasonable profit is to be included

Contractor’s Claims

Notice

Notice shall be issued by Contractor whenever it considers it to be entitled to more time and / or money and within 28 days of being aware (or should have been aware).

Notice in writing to the Engineer.

Must make the potential for a claim clear and state ‘event’

Failure to comply means a loss of rights to claim (sub-clause 20.1).

Subsequent procedure for submission of any claims also subject to timescales (sub-clause 20.1).

According to sub-clause 20.1, records shall be kept and Engineer permitted to view

Fully detailed claim to be submitted within 42 days of any event or circumstance that gives rise to entitlement including full supporting particulars

Further claims to be submitted on a monthly basis if on-going

Late submission of details may prejudice Contractor’s position

Final submission within 28 days of end of effects

Procedure - Contractor

69

Procedure - Engineer

Engineer to respond with 42 days of submission

May request further particulars but must respond on principles of claim

Interim payments allowed for amounts substantiated

Engineer to agree / fairly determine (clause 3.5)

DAB appointed to resolve disputes (sub-clause 20.2).

Claims can be submitted for:

Delayed drawings or instruction – clause 1.9

Late access or possession – clause 2.1

Setting out reference point errors – clause 4.7

Adverse unforeseeable conditions – clause 4.12

Extension of Time – clause 8.4

Interference with tests – clause 10.3

Variations – clause 13.3

Change in law – clause 13.7

Force Majeure – clause 19.4

Entitlement

71

72

Completion and Taking Over

Tests and Taking Over

Provision for Tests on Completion (clause 9) and Tests after Completion (clause 12).

Contractor to have issued as-builts and O & M manuals (sub-clause 4.1) prior to Tests on Completion

Contractor gives not less than 21 days of notice of Tests on Completion

Contractor may apply for Taking-Over Certificate (sub-clause 10.1)

Employer issues Taking Over Certificate to signify Works, a Section or a part, are ready for taking over but are not necessarily complete (sub-clauses 10.1 and 10.2).

Taking over deemed to have happened if Employer uses any part of the Works

Of the Works and Sections under sub-clause 10.1, they include:

Delay damages (sub-clause 8.7) may be levied by the Employer for late completion

Amount as agreed between the parties and whether Employer has suffered damage is not relevant

Subject to reduction for partial completion

Refers to sub-clause 2.5 (procedure)

Comprises Contractor’s entire liability for delay

Defects Notification period starts

Period for undertaking outstanding work and remedying defects stated in the Appendix to Tender (sub-clause 11.1).

Upon Taking Over 1

74

Of the Works and Sections under sub-clause 10.1, they include:

Test after Completion, if required, start (sub-clause 12)

Engineer’s right to initiate Variations ceases (sub-clause 13.1)

Contractor entitled to receive part retention release (sub-clause 14.9)

Procedure for claiming interim payments changes (sub-clause 14.10)

Contractor’s responsibility for care of the Works ceases (sub-clause 17.2)

Contractor’s requirement for certain insurances cease (sub-clause 18.2)

Upon Taking Over 2

75

End of the Defects Notification

Performance Certificate issued at the end of Defects Notification period and confirms Employer acceptance of the Works (sub-clause 11.9)

Dispute resolution

Resolution of Disputes under Yellow Book

If not agreed, Engineer to fairly determination (cl. 3.5).

Any dispute can be referred to the procedure in cl. 20:

Adjudication by a Dispute Adjudication Board (DAB) in accordance with the rules in the standard form

If any Party dissatisfied or decision not made when it should, Notice of Dissatisfaction issued within 28 days

Arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce (ICC)

78

Yellow Book typical sequence of dispute events envisaged in clause 20

<28d >56d<28d<84d

Parties present submissions to DAB Amicable settlement

FIDIC Contracts Workshop Objectives

The objective of today was to increase your awareness and understanding of:

The philosophy of the FIDIC standard forms of contract and what their use means.

The broad differences between the various FIDIC standard forms of contract and the particularities of the Yellow Book.

The obligations and liabilities the parties take on when using the Yellow Book.

Typical revisions made to the Yellow Book by Employers and the consequences of them.

The practical implications of using the Yellow Book in both tender and execution stages. 80

81

Mark CastellRegional Managing Director

[email protected]

Photograph credits to FreeDigitalPhoto.net & David Castilo Dominici

mailto:[email protected]

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