FIDIC Red Book 1987, 1999 & 2017

FIDIC Red Books {1987, 1999 & 2017}

Justice Academy
Programme, Time for Completion,
Rate of Progress & Delay Damages
(Red Books)
Lecture # 04

015th August 2020

Author-presenter:
1
Tahseen Saleh
Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – © Tahseen - 2019

 FIDIC Red Book 1987, 1999 & 2017

Outline
1. Commencement of Work & Time for
Completion
2. Programme
3. Extension of Time for Completion
4. Rate of Progress
5. Delay Damages (DD)

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 Programme, Time for Completion, Rate of Progress & Delay Damages

1. Commencement of Work & Time for

Completion

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 1 - Commencement of Work & Time for Completion

1.1 Commencement of Work

Sub-Clause 41.1 FIDIC 1987 4th Edtion

In the FIDIC 4th edition of the red book Clause 41.1

states:
“The Contractor shall Commence the Works as soon as
is reasonably possible after the receipt by him of a
notice to this effect from the Engineer, which notice
shall be issued within the time stated in the Appendix
to tender after the date of the letter of Acceptance.
Thereafter, the Contractor shall proceed with the
works with due expedition and without delay.”

.
4

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 1 - Commencement of Work & Time for Completion

1.1 Commencement of Work

Sub-Clause 8.1 FIDIC 1999 RB

The Engineer shall give the Contractor not less than

7 days’ notice of the Commencement Date. Unless
otherwise stated in the Particular Conditions, shall
be within 42 days after the Contractor receives the
Letter of Acceptance. Contractor shall:
- commence the execution of the Works as soon as
is reasonably practicable after the
Commencement Date, and
- shall then proceed with the Works with due
expedition and without delay.
5

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 1 - Commencement of Work & Time for Completion

1.1 Commencement of Work

Sub-Clause 8.1 FIDIC 1999 RB
• The Commencement Date (is the start of the “Time
for Completion”) which is the period within which the
Contractor has agreed to construct the Works.
• Number of days in the Time for Completion is given in
the Appendix to Tender or Contract Data.
• May refer to the whole of the Works, or a designated
Section of the Works.
• “day” defined as a calendar day rather than a working
day, so the number of days includes weekends and
holidays.
6

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 1 - Commencement of Work & Time for Completion

1.1 Commencement of Work

Sub-Clause 8.1 FIDIC 2017 RB
• The notice of the Commencement Date
became not less than 14 days after receiving
the Letter of Acceptance instead 7 days in the
1999 edition;
• The commencement shall be within 42 days
after the Contractor receives the Letter of
Acceptance unless agreed otherwise.

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 1 - Commencement of Work & Time for Completion

1.2 Time for Completion

Sub-Clause 41.1 FIDIC 1987 4th Edtion
In the FIDIC 4th edition of the red book Clause 43.1
states:
• “The whole of the Works and, if applicable, any
Section to be completed within a particular time
as stated in the Appendix to Tender, shall be
completed in accordance with the provisions of
Clause 48, within the time stated in the Appendix
to Tender for the whole of the Works or the
Section (as the case may be), calculated from the
commencement date, or such extended time as
may be allowed under Clause 44.”
.
8

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 1 - Commencement of Work & Time for Completion

1.2 Time for Completion

Sub-Clause 8.2 FIDIC 1999 RB
The Contractor shall complete the whole of the
Works, and each Section (if any), within the Time for
Completion of the Works or Section (as the case
may be), including: Obligation to complete includes:
- passing of any Tests on Completion;
- completing of all works stated in the Contract
as necessary for the purpose of taking over
under Sub-Clause 10.1.

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 Programme, Time for Completion, Rate of Progress & Delay Damages

2. Programme

10

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.1 Programme – 1987 4th Edition

Sub-Clause 14.1 FIDIC 1987 4th Edtion
In the FIDIC 4th edition of the red book Clause 14.1
states:
• “The Contractor shall, within the time stated in Part II
of these Conditions after the date of the Letter of
Acceptance, submit to the Engineer for his consent a
programme in such form and detail as the Engineer
shall reasonably prescribe, for the execution of the
Works. The Contractor shall, whenever required by the
Engineer, also provide in writing for his information a
general description of the arrangements and methods
which the Contractor proposes to adopt for the
execution of the Works .”
.
11

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.1 Programme – 1987 4th Edition

Sub-Clause 14.1 FIDIC 1987 4th Edtion
In the FIDIC 4th edition of the red book the other
Sub-Clauses of Clause 14 addresses:
• Sub-Clause 14.2: Revised Programme
• Sub-Clause 14.3: Cash Flow estimate to be
Submitted.
• Sub-Clause 14.4: Contractor not Relieved of Duties
or Responsibilities.

12 .
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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.2 Programme – 1999 Edition

Sub-Clause 8.3 FIDIC 1999 RB
The Contractor shall submit a detailed programme to
the Engineer within 28 days after receiving the notice
under S/ 8.1. The Contractor shall also submit a revised
programme whenever the previous programme is
inconsistent with the actual progress or with the
Contractor’s obligations. Each programme shall include:

13

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 2 - Programme

2.2 Programme – 1999 Edition

Sub-Clause 8.3 FIDIC 1999 RB
Each programme shall include:
(a) s the order in which the Contractor intends to carry out the Works,
including he anticipated time of each stage of design (if any), Contractor’s
Documents, procurement, manufacture of Plant, delivery to Site,
construction, erection and Testing,
(b) each if these stages for work by each nominated Subcontractor (as defined
in Clause 5)
(c) the sequence and timing of inspections and tests specified in the Contract,
and
(d) S a supporting report which includes:
a. a general description of the methods which the Contractor intends to
adopt, and of the major stages, in the execution of the Works, and
b. details showing the Contractor’s reasonable estimate of the number of
each class of the Contractor’s Personnel and each type of Contractor’s
Equipment, required on the Site for each major stage.
14

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.2 Programme – 1999 Edition

Sub-Clause 8.3 FIDIC 1999 RB
Unless the Engineer, within 21 days after receiving a
programme, gives notice to the Contractor stating
the extent to which it does not comply with the
Contract, the Contractor shall proceed in accordance
with the programme, subject to his other obligations
under the Contract. The Employer’s Personnel shall be
entitled to rely upon the programme when planning
their activities.

15

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.2 Programme – 1999 Edition

Sub-Clause 8.3 FIDIC 1999 RB
The Contractor shall promptly give notice to Engineer of
any future events or circumstances which may a)
adversely affect the Works, b) delay the completion, c)
increase the Contract Price. Engineer may, if the
Contractor gives such a notice, require the Contractor to
submit an estimate of the anticipated effect of the
future event or circumstances, and/or a proposal under
Sub-Clause 13.3.

16

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.2 Programme – 1999 Edition

Sub-Clause 8.3 FIDIC 1999 RB
if, at any time, the Engineer gives a notice to the
Contractor that a programme fails (to the extent stated)
to comply with the Contract or to be consistent with
actual progress and the Contractor’s stated intentions,
the Contractor shall submit a revised programme to the
Engineer in accordance with this Sub-Clause.

17

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.3 Programme – 2017 Edition

Sub-Clause 8.3 FIDIC 2017 RB
– More elaboration and detailing of S/C 8.3 [Programme]
– New sub-items which shall be included in the Programme
under S/C 8.3 are added:
• (a) commencement Date and the Time for Completion,
• (b) the date right of access to and possession of the Site to
be given to the Contractor,
• (d) the Review period for any submissions and tests
specified,
• (g) the detailing of the activities,
• (h) the dates of locally recognized days of rest and holiday
periods.
18

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 2 - Programme

2.3 Programme – 2017 Edition

Sub-Clause 8.3 FIDIC 2017 RB
– More elaboration and detailing of S/C 8.3 [Programme]
– New sub-items which shall be included in the Programme
under S/C 8.3 are added:
• (i) all key delivery dates of Plant and Material,
• (j) the status of actual progress, delays, etc.
• (k) supporting report:
– (i) a description of all major stages of the execution of the
Works
– (iv)if a revised programme, identification of any significant
change(s)to the previous programme,
– (v) the Contractor’s proposal to overcome the effects of
19 any delay(s) on the progress of the Works.
Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 Programme, Time for Completion, Rate of Progress & Delay Damages

3. Extension of Time for Completion

20

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.1 EOT – 1987 4th Edition

Clause 44.1 FIDIC 1987 4th Edition
– In sub-clause 44.1 (FIDIC) the events which may
be a reason for the extension of time. These are:
• (a) the amount or nature of extra or additional work,
• (b) any cause of delay referred to in these Conditions,
• (c) exceptionally adverse climatic conditions,
• (d) any delay, impediment or prevention by the
Employer, or
• (e) other special circumstances which may occur, other
than through a default of the Contractor breach of
contract by the Contractor or for which he is
responsible,
Being as fairly to entitle the Contractor to an extension
of Time for Completion of the Work, or …
21

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.1 EOT – 1987 4th Edition

Clause 44.1 FIDIC 1987 4th Edition
• The Contractor shall notify the Engineer within 28 days
after such event first arise with a copy to the Employer,
and
• Submit within 28, or such agreed other reasonable time
agreed by the Engineer after such notification to the
Engineer detailed particulars of any extension of time to
which he may consider himself entitled in order that such
submission may be investigated at the time.

• Sub-clause 44.3 allows for interim determination by the

Engineer of extension f time for the contractor provided
that the Contractor submits interim particulars at intervals
of not more than 28 days.
22

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
– The Contractor shall be entitled subject to S/C 20.1 to an
extension of Time for Completion if and to the extent that
the completion for the purposes of S/C 10.1 is or will be
delayed by any of the following Causes:
(a) A Variation (unless an adjust to the Time for Completion has
been agreed under S/C 13.3 or other substantial change in
the quantity of an item of work included in the Contract.
(b) A cause of delay giving entitlement to extension of time
under a S/C of these Conditions,
(c) exceptionally adverse climatic conditions,
(d) Unforeseeable shortages in the availability of personnel or
Goods caused by epidemic or governmental actions, or
(e) any delay, impediment or prevention caused by or
attributable to the Employer, Employer’s Personnel, or
Employer’s other contractors on the Site.

23

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
• If the Contractor considers himself to be entitled to
an extension of Time for Completion, the Contractor
shall give notice to the Engineer in accordance with
S/C 20.1. When determining each extension of time
under S/C 20.1, the Engineer shall review previous
determinations and may increase, but shall not
decrease, the total extension of time.

.
24

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
• If the Contractor considers himself to be entitled to
an extension of Time for Completion, the Contractor
shall give notice to the Engineer in accordance with
S/C 20.1. When determining each extension of time
under S/C 20.1, the Engineer shall review previous
determinations and may increase, but shall not
decrease, the total extension of time.

.
25

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
Extension of Time for Completion - Key issues
Conditions precedent to a claim for an extension of time:
if completion under Sub-Clause 10.1 is or will be delayed
by any one of the causes of Sub-Clause 8.4(a) to Sub-
Clause 8.4(e), then Contractor must give notice to the
Engineer in accordance with Sub-Clause 20.1.
If Contractor considers himself to be entitled to an
extension of Time for Completion, he shall give notice to
the Engineer in accordance with Sub-Clause 20.1.
When determining each extension of time, Engineer to
review previous determinations and may increase, but
not decrease, the total extension of time.
26

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
Extension of Time for Completion - Key issues
Events giving rise to an entitlement to an extension of
time:
• Variation or other substantial change in the quantity
of an item of work included in the Contract under
Clause 12.
• a cause of delay giving an entitlement to extension of
time under a sub-clause of the Conditions of
Contract.

27
.
Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
Extension of Time for Completion - Key issues
Events giving rise to an entitlement to an extension of time:
These events are:
- Delayed Drawings or Instructions
- Right of Access to the Site, Setting Out
- Unforeseeable Physical Conditions
- Fossils
- Testing
- Interference with Tests on Completion,
- Adjustments for Changes in Legislation
- Contractor’s Entitlement to Suspend Work
- Consequences of Employer’s Risks, and Consequences of Force
Majeure.
28

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.2 EOT – 1999 Edition

Sub-Clause 8.4 1999 Edition RB
Extension of Time for Completion - Key issues
unless an adjustment to the Time for Completion agreed:
• exceptionally adverse climatic conditions; unforeseeable
shortages in personnel or Goods caused by epidemic or
governmental actions.
• any act of delay, impediment or prevention caused by or
attributable to the Employer, his Personnel, or the his other
contractors on the Site.
Engineer to make decision in principle within 42 days of
receipt of detailed submission by Contractor (no time period
stated).
Engineer to determine the Extension of Time under Sub-
29 Clause 3.5 and “shall not be reasonably delayed”.
Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 3. Extension of Time for Completion

3.3 EOT – 2017 Edition

Sub-Clause 8.5 2.17 Edition RB
– The Contractor shall be entitled subject to S/C 20.1 to an
extension of Time for Completion if and to the extent that
the completion for the purposes of S/C 10.1 is or will be
delayed by any of the following Causes:
(a) A Variation (except that there shall be no requirement to
comply with S/C20.2;
(b) A cause of delay giving entitlement to EOT under a S/C of
these Conditions,
(c) exceptionally adverse climatic conditions, which for the
purpose of these Conditions shall mean adverse climatic
conditions at the Site which are Unforeseeable having
regard to the climatic data made available by the
Employer under S/C 2.5 and/or climatic data published in
the Country for the geographical location of the Site;
(d) Items (d) & (e) not changed
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 3. Extension of Time for Completion

3.3 EOT – 2017 Edition

Sub-Clause 8.5 2.17 Edition RB
– In the Red book only, consideration is made for EOT
if the measured quantity of any item is greater by
more 10% of the estimated quantity.
• The Sub-Clause lacks the definition of the weight of the
item!
– The Engineer has the right to adjust the duration of
activities if the if the measured quantity of any item
is less by more 10% of the estimated quantity,
provided that the overall project Time for Completion
including any extension thereto shall not be reduced.
31

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 3. Extension of Time for Completion

3.3 EOT – 2017 Edition

Sub-Clause 8.5 2.17 Edition RB
• the entitlement shall be subject to Sub-Clause 20.2
[Claims for Payment and/or EOT]
• The Engineer under Sub-Clause 3.7 [Agreement or
Determination] may increase, but shall not decrease
the project Time for Completion or the total EOT.
• The concept of concurrent delay is introduced in the
last paragraph of this Sub-Clause.

32

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 Programme, Time for Completion, Rate of Progress & Delay Damages

4. Rate of Progress

33

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 4. Rate of Progress

4.1 Rate of Progress – 1987 4th Edition

Sub-Clause 46.1 FIDIC 1987 4th Edition
• This Clause is applicable when the rate of progress is
slow to comply with the Time for completion without
any reason which entitles the Contractor to an
extension of time.

• The Engineer shall notify the Contractor who shall

upon such notification take the necessary steps,
subject to the Engineer’s consent, to expedite
progress to comply with the time for completion,

• The Contractor shall not be entitled for additional

payments for such steps,
34

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 4. Rate of Progress

4.1 Rate of Progress – 1987 4th Edition

Sub-Clause 46.1 FIDIC 1987 4th Edition
• The Contractor shall seek the consent of the Engineer
to work at night or during the recognized holidays to
comply with the time for Completion,

• Any additional Costs, as determined by the Engineer,

incurred by the Employer due to such additional
steps shall be borne by the Contractor

35

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 4. Rate of Progress

4.2 Rate of Progress – 1999 Edition

Sub-Clause 8.6 - 1999 Edition RB
the Engineer may instruct the Contractor to submit a
revised programme where:
- actual progress is too slow to enable the
Contractor to complete the project within the
Time for Completion; or
- where progress has fallen behind the programme.
the Engineer can only do this, where the reason for
the delay is a reason other than those listed in Sub-
Clause 8.4.
Revised programme must set out the way the
Contractor intends to deal with the situation and
36
complete within the Time for Completion.
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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 4. Rate of Progress

4.2 Rate of Progress – 1999 Edition

Sub-Clause 8.6 - 1999 Edition RB
• If the Engineer does not object, the Contractor shall
adopt these proposals at his own risk and cost.

• If the Employer incurs increased costs as a result of

the revised proposals, he may be entitled to claim
these costs from the Contractor under Sub-Clause
2.5.

• Any costs the Employer receives as a consequence of

this Sub-Clause shall be in addition to any
entitlement for delay damages under Sub-Clause 8.7.
37

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 4. Rate of Progress

4.3 Rate of Progress – 2017 Edition

Sub-Clause 8.7 - 2017 Edition RB
the following paragraph was added at the end of the
S/C.
Sub-Clause 13.3.1 [Variation by Instruction] shall
apply to revised methods, including acceleration
measures, instructed by the Engineer to reduce
delays resulting from causes listed under Sub-Clause
8.5 [Extension of Time for Completion].

38

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 Programme, Time for Completion, Rate of Progress & Delay Damages

5. Delay Damages (DD)

39

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 5. Delay Damages (DD)

5.1 Liquidated Damages for Delay – 1987 4th Edition

Sub-Clause 47.1 FIDIC 1987 4th Edition
• In the FIDIC form of Contract 4th edition 1987, it is
referred to as liquidated damages and not as a
penalty (which shall be the only monies due from the
Contractor for such default).

• The amount of Liquidated damages or penalty is

stated in the Appendix to Tender which is for every
day or part of the day calculated which shall elapse
between the relevant Time for Completion and the
date stated in the Taking-over certificate of the whole
of the Works or the relevant Section, subject to the
applicable limit stated in the Appendix to tender.
40

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 5. Delay Damages (DD)

5.1 Liquidated Damages for Delay – 1987 4th Edition

Sub-Clause 47.1 FIDIC 1987 4th Edition
– The Employer may deduct the amount of such
damages from any monies due to or to become due
the Contractor,
– The payment or deduction of such damages shall not
relief the contractor from his obligation to complete
the works, or from any other of his obligations and
liabilities under the Contract.

41

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 5. Delay Damages (DD)

5.1 Reduction of Liquidated Damages – 1987 4th Edition

Sub-Clause 47.2 FIDIC 1987 4th Edition
• If before the Time for Completion of the whole of the
Works or, if applicable, any Section, a Taking-Over
Certificate has been issued for any part of the Works
or of a Section, the liquidated damages for delay in
completion of the reminder of the Works or of that
Section shall, for any period of delay after the date
stated in such Taking-Over Certificate, and in the
absence of alternative provisions in the Contract, be
reduced in the proportion which the value of the part
so certified bears to the value of the whole of the
Works or Section, as applicable. The provisions of this
Sub-Clause shall only apply to the rate of liquidated
damages and shall not affect the limit thereof.
.
42

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 5. Delay Damages (DD)

5.2 Delay Damages – 1999 Edition

Sub-Clause 8.7 - 1999 Edition RB
• If the Contractor fails to complete his Works within
the Time for Completion, the Employer is entitled to
Delay Damages (DD).
• DD deducted at the rate specified in the Appendix to
Tender, which provides for the maximum amount of
DD to be capped.
• Unless the Contract is terminated, DD are the only
remedy available to the Employer prior to
Completion.

43

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 5. Delay Damages (DD)

5.2 Delay Damages – 1999 Edition

Sub-Clause 8.7 - 1999 Edition RB

• DD do not relieve Contractor of other contractual

obligations.
• To recover DD, Employer must make an application in
accordance with Sub-Clause 2.5.

44

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FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 5. Delay Damages (DD)

5.3 Delay Damages – 2017 Edition

Sub-Clause 8.8 - 2017 Edition RB
the following paragraph was added at the end of the
S/C.
This Sub-Clause shall not limit the Contractor’s
liability for Delay Damages in any case of Fraud,
gross negligence, deliberate default or reckless
misconduct by the Contractor.

45

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019

 Obligations of the Contract Parties

• THANK YOU
• Tahseen Saleh
• [email protected]
• +1(519)870 6630
• +962-79 911 0350
• +974 5522 6500
• +974 7726 5000
46

Tahseen Saleh

FIDIC – INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WWW.FIDIC.ORG – [email protected] – COPYRIGHT 2019