FC-RA-B-AA-12-20/17 - 500

Federation Internationale des lngenieurs-Conseils

_... ... .,.,.... International Federation of Consulting Engineers
Internationale Vereinigung Beratender lngenieure
Federaci6n Internacional de lngenieros Consultores

Construction

GENERAL CONDITIONS
GUIDANCE FOR THE PREPARATION
OF PARTICULAR CONDITIONS AND ANNEXES:
FORMS OF SECURITIES
FORMS OF LEDER OF TENDER, LETTER OF
ACCEPTANCE, CONTRACT AGREEMENT AND DISPUTE
ADJUDICATION/AVOIDANCE AGREEMENT

~
FIDIC
~
International Federation of Consulting Engineers (FIDIC)
World Trade Center II
PO Box 311
1215 Geneva 15
Switzerland
Telephone: +41 22 799 49 00
Fax: +41 22 799 49 01
E-mail: [email protected]
WWW: http://www.fidic.org ISBN 978-2-88432-084-9 SECOND EDITION 201 7
 GENERAL CONDITIONS

GUIDANCE FOR THE

PREPARATION OF
PARTICULAR CONDITIONS
AND ANNEXES: FORMS
OF SECURITIES

FIDIC® Conditions of Contract for

FORMS OF LETTER OF
CONSTRUCTION TENDER, LETTER OF
ACCEPTANCE,CONTRACT
AGREEMENT AND
FOR BUILDING AI\ID ENGINEERING WORKS DISPUTE ADJUDICATION/
AVOIDANCE AGREEMENT
DESIGNED BY THE EMPLOYER

Second Edition 2017

ISBN 978-2-88432-084-9

FEDERATION INTERNATIONALE DES INGENIEURS-CQI\JSEILS

INTERNATIONAL FEDERATION OF CQI\JSULllNG ENGINEERS ~
INTERNAllONALE VEREINIGUNG BERATENDER INGENIEURE
FIDIC
FEDERACION INTERNACIONAL DE INGENIEROS COf\JSULTORES ~
COPYRIGHT
Copyright© 2017 FIDIC,World Trade Center II, 29 route de Pres-Bois, GenevaAirport, CH-1215
Geneva, Switzerland. All rights reserved.

FIDIC is the only Copyright owner of FIDIC publications, which are protected by the Berne
Convention for the Protection of Literary and Artistic Works, international conventions such
as TRIPS and the WIPO copyright treaty and national intellectual property laws. No part of
a FIDIC publication can be reproduced, translated, adapted, stored in a retrieval system or
communicated, in any form or by any means, mechanical, electronic, magnetic, photocopying,
recording or otherwise, without prior permission in writing from FIDIC.The version in English is
considered by FIDICas the official and authentic text for the purposes of translation.

TERMS AND CONDITIONS

The widespread dissemination, acceptance and use of FIDICpublications and their translations
are important means for accomplishing FIDIC'smission and are therefore actively promoted by
FIDIC. The sale of FIDICpublications and their translations is an important source of revenue for
FIDIC and its Member Associations. It creates resources for providing a wide range of services
meeting the business needs of member firms. All steps, starting with the initial drafting of
publications, often require considerable effort and expense.
FIDICregularlyupdates and reissues publicationsso that users can profit from the state-of-the-art.
By supplying publications, FIDIC does not grant any intellectual property rights. The purchase or
supply of a FIDIC publication, including forms for completion by a purchaser or authorised user,
does not confer author's rights under any circumstances.
Users rely on the contents of FIDIC publications, especially FIDIC contracts and agreements,
for important business transactions. The use of authentic publications is therefore essential
for safeguarding their interests. FIDIC discourages modification of its publications, and only in
exceptionalcircumstances will it authorise modification, reproduction or incorporation elsewhere.
Permission to quote from, incorporate, reproduce or copy all or part of a FIDIC publication
should be addressed to the FIDIC Secretariat, which will decide upon appropriate terms.
A license to prepare a modified or adapted publication will be agreed to under certain conditions.
Specifically the modified or adapted publication must be for internal purposes, and not be
published or distributed commercially.
In the case of FIDIC contracts and agreements, FIDIC aims to provide balanced and equitable
conditions of contract by ensuring the integrity of its publications. A purchaser or authorised
user of a FIDIC contract or agreement is thus granted the right to:
make a single copy of the purchased document, for personal and private use;
incorporate in other documents (or electronic files) either the original printed document (or
electronic file) or pages printed from an electronic file supplied by FIDIC for this purpose;
draw up and distribute internally and/or among partners clearly identified Particular
Conditions or their equivalent using text provided in the FIDIC publication specificallyfor this
purpose;
reproduce, complete and distribute internally and/or among partners any forms, in both
printed and electronic formats, provided for completion by the purchaser or user.

DISCLAIMER
While FIDIC aims to ensure that its publications represent the best in business practice, the
Federation accepts or assumes no liability or responsibility for any events or the consequences
thereof that derive from the use of its publications. FIDIC publications are provided "as is",
without warranty of any kind, either express or implied, including,without limitation, warranties of
merchantability, fitness for a particular purpose and non-infringement. FIDICpublications are not
exhaustive and are only intended to provide general guidance. They should not be relied upon in
a specific situation or issue. Expert legal advice should be obtained whenever appropriate, and
particularly before entering into or terminating a contract.

©FIDIC 2017
CONTENTS

Acknowledgements

Notes

General Conditions

Content i

Clauses 1 to 21 1

Appendix: General Conditions of Dispute Avoidance/ Adjudication

Agreement 107

Annex: DAAB Procedural Rules 117

Index of Sub-Clauses 124

Guidance for the Preparation of Particular Conditions

Contents 1
Introductory Guidance Notes 2

Particular Conditions Part A - Contract Data 3

Particular Conditions Part B - Special Provisions 8

Notes on the Preparation of Tender Documents . . . . . . . . . . . . . 10

Notes on the Preparation of Special Provisions. . . . . . . . . . . . . . 13

Clauses 14

Advisory Notes to Users of FIDIC Contracts Where the Project is to Include

Building Information Modelling Systems 53

Annexes: Forms of Securities 56

Forms of Letter of Tender, Letter of Acceptance, Contract Agreement and

Dispute Adjudication/ Avoidance Agreement

Letter of Tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

Letter of Acceptance , ii
Contract Agreement iii

Dispute Avoidance/ Adjudication Agreement iv

© FIDIC 2017
ACKNOWLEDGEMENTS

Federation Internationale des lngenieurs-Conseils (FIDIC) extends special thanks to the

following persons who prepared, assisted and contributed in the preparation of the
Second Edition of FIDIC's three standard forms of contract (Conditions of Contract for
Construction, Conditions of Contract for Plant and Design-Build, and Conditions of
Contract for EPC!Turnkey Projects):

FIDIC Contracts Committee's Updates Special Group:

Zoltan Zahonyi, Z&Partners Consulting Engineers, Hungary; Siobhan Fahey, Consulting
Engineer, Ireland (Principal Drafter); Christoph Theune, G't0/V Consult GmbH, Germany;
and William Howard, CDM Smith, USA (Executive Committee liaison).

Initial Update Task Group:

Svend Poulsen, Atkins/COWi, Denmark (Group Leader); Aisha Nadar, Advokatfirman
Runeland AB, Sweden (task group principal drafter); Robin Schonfeld, SMEC, Australia
(task group principal drafter); Darko Plamenac, Consulting Engineer, Serbia; Jan Ziepke,
Consulting Engineer, Germany; and Zoltan Zahonyi, Z&Partners Consulting Engineers,
Hungary (Contracts Committee liaison).

Second Stage Update Task Group:

Simon Worley, EIA Ltd., UK (Group Leader); John Greenhalgh, Greenhalgh Associates,
UK; Leo Grutters, C2S Global, Germany; Aisha Nadar, Advokatfirman Runeland AB,
Sweden; William Godwin, Matrix Seminars, UK; Siobhan Fahey, Consulting Engineer,
Ireland (Contracts Committee liaison); and Shelley Adams, EIA Ltd., UK (secretary to
the task group).

The preparation was carried out under the general direction of the FIDIC Contracts
Committee:
Philip Jenkinson, Atkins, UK (past Chairman); Zoltan Zahonyi, Z&Partners Consulting
Engineers, Hungary (Chairman); Vincent Leloup, Exequatur, France; Kaj Moller, SWECO,
Sweden; Siobhan Fahey, Consulting Engineer, Ireland; Mike Roberts, Mott MacDonald,
UK; Des Barry, Consulting Engineer, Ireland; Christoph Theune, G't0/V Consult GmbH,
Germany; Enrico Vink, FIDIC Managing Director; and Christophe Sisto, FIDIC Design
& Edition Manager.

together with liaisons to the FIDIC Contracts Committee:

Geoff French, Scott Wilson, UK (past EC liaison); Kaj Moller, SWECO, Sweden (past EC
liaison); Jose Amorim Faria, SOPSEC, Portugal (past EFCA liaison); William Howard,
CDM Smith, USA (EC primary liaison); Aisha Nadar, Advokatfirman Runeland AB,
Sweden (EC secondary liaison; and Pawel Zejer, AECOM, Poland (EFCA liaison).

Advisory Notes to Users of FIDIC Contracts Where the Project is Using Building
Information Modelling Systems were provided by:
Anthony Barry, Aurecon, Australia (FIDIC Executive Committee), Andrew Read, Pedersen
Read Consulting, New Zealand (chairman FIDIC Business Practice Committee) and Stephen
Jenkins, Aurecon, New Zealand (chairman FIDIC Risk, Liability and Quality Committee).

© FIDIC 2017
Special Advisers to the Contracts Committee provided invaluable and continued
support in the various drafting and revision stages:
Christopher Seppala, White & Case LLP, France (legal adviser, assisted by Dimitar
Kondev, White & Case LLP, France);Nael G Bunni, Ireland(risk and insurance adviser);
k/..el-V. Jaeger, Germany; Michael Mortimer Hawkins, UK/Sweden; and Christopher
Wade, UK.

Draftswere reviewedby many persons and organisations,includingthose listed below.

Their comments were duly studied by the FIDIC Contracts Committee's Updates
Special Group and Update Task Groups and, where considered appropriate, have
influencedthe wording of the clauses.
Mahmoud Abu Hussein, Dolphin Energy, United Arab Emirates; lhab Abu-Zahra,
CRC Hassan Dorra, Egypt; Mushtaq Ahmad Smore, Engineer, Pakistan; Richard
Appuhn, Engineer, Italy; Ulrik Bang Olsen, Bang Olsen & Partners Law Firm P/S,
Denmark; Hartmut Bruehl, Engineer,Germany; Donald Charrett, MTECC, Australia;
Edward Corbett, Corbett & Co InternationalConstruction Lawyers Ltd, UK; Cremona
Cotovelea, SCPA Tecuci-Paltineanu, Romania; Mark Etheridge, UWP Consulting
Pty (Ltd), UK; European International Contractors, Berlin, Germany; Ciaran Fahy,
Engineer,Ireland;Stephane Giraud, Egis, France; KarenGough, 39 Essex Chambers,
UK; Sarwono Hardjomuljadi, Special Adviser to the Minister of Public Works,
Indonesia; Sebastian Hoek, Kanzlei Dr.Hok Stieglmeier & Kollegen Berlin, Germany;
Tomohide lchiguchi, JICA, Japan; Reza lkani, Tehran Berkeley Group of Companies,
Iran; Levent lrmak, MC2 Modern, Turkey; Gordon Jaynes, Lawyer, UK; Nabeel
Khokhar, Driver Group, UK; Humphrey Lloyd, Queen Mary University London, UK;
Liu Luobing, Shanghai SICC Planning & Architectural Design, Republic of China;
Husni Madi, Shura Construction Management, Jordan; Malith Mendis, ACES, Sri
Lanka; BenjaminMellors, Holman Fenwick Willan LLP, UK; Christopher Miers, Probyn
Miers, UK; Henry Musonda, Kiran & Musonda Associates, Zambia; Kjeld B Nielsen,
Sweco, Denmark; Patrizia Palmitessa-Savric, Ginder Palmitessa Pty Ltd, Botswana;
James Perry, PS Consulting, France; Mikko Pulkkinen, Presentio Oy, Finland; John
Ritchie, Consultant, Canada; Munther Sakhet, Allied Planning & Engineering Co,
Jordan; MichaelSergeant, HFW, UK; Christian Siemer,FichtnerConsulting Engineers,
Germany; Evgeny Smirnov, EBRO, UK; Jakob B. Sorensen, M Holst, Advokater,
Denmark; BenjaminValloire,Syntec lnqenierie,France; Kitty Villani,Council of Europe
DevelopmentBank, France;Ahmed Faty Waly, WALYArbitration, Egypt.

Acknowledgement of all reviewers above does not mean that such persons or
organisationsapprove the wording of all clauses.

FIDIC very much appreciatesthe time and effort devoted by all the above persons.

The ultimate decision on the form and content of the document rests with FIDIC.

© FIDIC 2017
NOTES

This Second Edition of the Conditions of Contract for Construction has been published
by the Federation Internationaledes lnqenieurs-Conseils(FIDIC) as an update of the
FIDIC 1999 Conditions of Contract for Construction (Red Book), First Edition.

Along with the FIDIC 1999 Yellow Book (the Conditions of Contract for Plant and
Design-Build)and the FIDIC 1999 Silver Book (the Conditions of Contract for EPC/
Turnkey Projects), the FIDIC 1999 Red Book has been in widespread use for nearly
two decades. In particular,it has been recognisedfor, among other things, its principles
of balanced risk sharing between the Employer and the Contractor in projects where
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.

This Second Edition of the FIDIC Red Book continues FIDIC'sfundamental principles
of balanced risk sharing while seeking to build on the substantial experience gained
from its use over the past 18 years. For example, this edition provides:
1) greater detail and clarity on the requirements for notices and other
communications;

2) provisions to address Employers' and Contractors' claims treated equally

and separated from disputes;

3) mechanismsfor dispute avoidance and

4) detailed provisions for quality management, and verification of Contractor's

contractual compliance.
These Conditions of Contract for Construction include conditions, which are likely
to apply to the majority of such contracts. Essential items of information which are
particular to each individual contract are to be included in the Particular Conditions
Part A - Contract Data.

In addition, it is recognised that many Employers, especially governmental agencies,

may require special conditions of contract, or particular procedures, which differ from
those included in the GeneralConditions. These should be included in Part B - Special
Provisions.

It should be noted, that the General Conditions and the Particular Conditions (Part
A - Contract Data and Part B - Special Provisions)are all part of the Conditions of
Contract.

To assist Employers in preparing tender documents and in drafting Particular

Conditions of Contract for specific contracts, this publication includes Notes on the
Preparationof Tender Documents and Notes on the Preparationof Special Provisions,
which provide important advice to drafters of contract documents, in particular the
Specifications and Special Provisions. In drafting Special Provisions, if clauses in the
GeneralConditions are to be replaced or supplemented and before incorporating any
example wording, Employers are urged to seek legal and engineering advice in an
effort to avoid ambiguity and to ensure completeness and consistency with the other
provisions of the contract.

©FIDIC2017
This publication begins with a series of comprehensive flow charts which typically show,
in visual form, the sequences of activities which characterise the FIDIC Construction
form of contract. The charts are illustrative, however, and must not be taken into
consideration in the interpretation of the Conditions of Contract.

This publication also includes a number of sample forms to help both Parties to develop
a common understanding of what is required by third parties such as providers of
securities and guarantees.

Drafters of contract documents are reminded that the General Conditions of all FIDIC
contracts are protected by copyright and trademark and may not be changed without
specific written consent, usually in the form of a licence to amend, from FIDIC. If drafters
wish to amend the provisions found in the General Conditions, the place for doing this
is in the Particular Conditions Part B - Special Provisions, as mentioned above, and
not by making changes in the General Conditions as published.

FIDIC considers the official and authentic texts to be the versions in the English
language.

© FIDIC 2017
 Typical Sequence of Principal Events During Contracts for Plant and Design-Build

1. The Time for Completion is to be stated (in the Contract Data) as a number of days, to which is added any
extensions of time under Sub-Clause 8.5.

2. In order to indicate the sequence of events, the above diagram is based upon the example of the Contractor
failing to comply with Sub-Clause 8.2.

3. The Defects Notification Period is to be stated {in the Contract Data) as a number of days, to which is added
any extensions under Sub-Clause 11.3.

4. Depending on the type of Works, Tests after Completion may also be required.

Issue of the Submission Contractor's 8.1 1.1.24 11.9 Issue of

Tender of the receipt of Commencement Date of Performance
Documents Tender the Letter of Date Completion Certificate
Acceptance

Base Defects
Date 8.2 Time for Notification
Completion' Period3
~. . ~. ...
'
,_..,,.,.,.,
•G .,
"
28d s28d s21d
~. .
.,. 11 Notifying ..
Delay of Defects
attributable

t
to the ~
Contractor2

~. .
.,. Tender ·• 4.2.1 Delivery of the 9. Tests on
. Remedying
.
period Performance Security Completion4 "' of Defects y

4.2.3 Return of
the Performance
Security (subject to
Sub-Clause 11 . 11 )

© FIDIC 2017
 Typical Sequence of Payment Events Envisaged in Clause 14

14.3, 14.6.1 Engineer 14.6 Engineer 14.7 Employer makes

receives Contractor's issues Interim the payment to the
Statement and Payment Certificate Contractor
Supporting documents

s56d
Each of the
monthly (or
.,, .
~ ey•

otherwise)
interim
,
s28d
payments ...
w =

The final Engineer verifies the

statement, Contractor
payment submits information

s28d :$56d
. ~ ,. .
~ .,
- w,
~

14. 11 .1 Contractor 14.11.2 Contractor submits 14.13 Engineer issues 14.7 Employer
submits draft final Final Statement and the Final Payment makes payment
Statement to the Engineer 14.12 discharge Certiticate

Typical Sequence of Dispute Events Envisaged in Clause 21

Contractor 21 . 1 Parties 21.4.1 A Party refers 21 .4.4 A Party 21.6A Party

receives appoint the the Dispute to the may issue may initiate
the Letter of DAAB DAAB a "Notice of arbitration
Acceptance Dissatisfaction"

Parties present 21 .5 Amicable

submissions to the DAAB settlement

"'
"
s28d*
.
.
•
s84d
' ' ',.w-cccc
l .JI s28d
ttl
•• "Ji
>28d
1 l
DAAB gives Arbitrator/s
its decision appointed

* If not stated otherwise in the Contract Data (Sub-Clause 21 .1)

© FIDIC 2017
 Typical Sequence of Events in Agreement or Determination under Sub-Clause 3. 7

Scenario 11
Engineer starts Parties' agreement Notice of error by
performing duties Sub-Clause 3.7.1 a Party/Engineer
Sub-Clause 3.7 Sub-Clause 3.7.4

Engineer's Notice Engineer's Notice of

of agreement corrected agreement
Sub-Clause 3.7.1 Sub-Clause 3.7.4
Consultations

~
-
Sub-Clause 3.7.3
(a), (b} or (c)
:s42d
. "·
-
:S14d
.
•w ...
:s7d

Scenario 22
Engineer starts Parties advise the Engineer's Notice Notice of
performing duties Engineer: no agreement of determination Dissatisfaction
Sub-Clause 3. 7 Sub-Clause 3. 7 .1 (b) Sub-Clause 3.7.2 Sub-Clause 3.7.5

No Notice
of error

Consultations Period for making Engineer's

determintaion

:s42d
,IL

,.,•.
. •.
:s42d . :s14d .
....
-...,,-,,7
~ - -·
Sub-Clause 3. 7 .3
(a), (b} or (c)
•w
..," :s28d .
- .,

Scenario 33
Engineer starts No agreement Engineer's Notice Engineer's Notice
performing duties between the Parties of determination of corrected
Sub-Clause 3.7 Sub-Clause 3.7.1(a) Sub-Clause 3.7.2 determination
Sub-Clause 3.7.4

Notice of error by Notice of

a Party/Engineer Dissatisfaction
Sub-Clause 3.7.4 Sub-Clause 3. 7 .5

Consultations Period for making Engineer's

determintaion

s42d s42d

Sub-Clause 3.7.3 :S28d

(a), (b} or (c)

1. Agreement is reached within 42 days, error found in the Engineer's Notice of agreement and corrected.

2. The Parties' early advice that agreement cannot be reached and so Engineer'sdetermination is necessary,
no error in Engineer'sdetermination.

3. No agreementwithin 42 days, Engineer determineswithin 42 days, error found in the Engineer's determination
and corrected.

©FIDIC2017
© FIDIC 2017
 GENERAL CONDITIONS

GUIDANCE FOR THE

PREPARATION OF
PARTICULAR CONDITIONS
AND ANNEXES: FORMS
OF SECURITIES

FIDIC® Conditions of Contract for

FORMS OF LETTER OF
CONSTRUCTION TENDER, LETTER OF
ACCEPTANCE,CONTRACT
AGREEMENT AND
FOR BUILDING AND ENGINEERING WORKS DISPUTE ADJUDICATION/
AVOIDANCE AGREEMENT
DESIGNED BY THE EMPLOYER

General Conditions

FEDERA110N INTERNAllONAI.£ DES INGENIEURS-CONSEILS

INTERNA110NAL FEDERA110N OF CONSULTING ENGINEERS
INTERNA110NAI.£ VEREINIGUNG BERATENDER INGENIEURE
FEDERACION INTERNACIONALDE INGENIEROS CONSULTORES
 w
oz
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General Conditions 5
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CONTENTS
(!)
2
a:
0
LL

1 GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1 .1 Definitions
1.2 Interpretation
1 .3 Notices and Other Communications
1 .4 Law and Language
1.5 Priority of Documents
1 .6 Contract Agreement
1 .7 Assignment
1.8 Care and Supply of Documents
1.9 Delayed Drawings or Instructions
1 . 10 Employer's Use of Contractor's Documents
1 . 11 Contractor's Use of Employer's Documents
1 . 12 Confidentiality
1. 13 Compliance with Laws
1 .14 Joint and Several Liability
1 .15 Limitation of Liability
1.16 Contract Termination

2 THE EMPLOYER 14

2.1 Right of Access to the Site

2.2 Assistance
2.3 Employer's Personnel and Other Contractors
2.4 Employer's Financial Arrangements
2.5 Site Data and Items of Reference
2.6 Employer-Supplied Materials and Employer's Equipment

3 THE ENGINEER 16

3.1 The Engineer

3.2 Engineer's Duties and Authority
3.3 The Engineer's Representative
3.4 Delegation by the Engineer

General Conditions © FIDIC 2017

 3.5 Engineer's Instructions
3.6 Replacement of the Engineer
3. 7 Agreement or Determination
3.8 Meetings

4 THE CONTRACTOR 22
tu
o
z
cS 4.1 Contractor's General Obligations
s0 4.2 Performance Security
4.3 Contractor's Representative
4.4 Contractor's Documents
4.5 Training
(j)
2 4.6 Co-operation
,r
0
LL
4.7 Setting Out
4.8 Health and Safety Obligations
4.9 Quality Management and Compliance Verification Systems
4.10 Use of Site Data
4.11 Sufficiency of the Accepted Contract Amount
4.12 Unforeseeable Physical Conditions
4.13 Rights of Way and Facilities
4 .14 Avoidance of Interference
4.15 Access Route
4 .16 Transport of Goods
4.17 Contractor's Equipment
4 .18 Protection of the Environment
4.19 Temporary Utilities
4.20 Progress Reports
4.21 Security of the Site
4.22 Contractor's Operations on Site
4.23 Archaeological and Geological Findings

5 SUBCONTRACTING 37

5.1 Subcontractors
5.2 Nominated Subcontractors

6 STAFFAND LABOUR 39

6.1 Engagement of Staff and Labour

6.2 Rates of Wages and Conditions of Labour
6.3 Recruitment of Persons
6.4 Labour Laws
6.5 Working Hours
6.6 Facilities for Staff and Labour
6. 7 Health and Safety of Personnel
6.8 Contractor's Superintendence
6.9 Contractor's Personnel
6 .10 Contractor's Records

ii © FIDIC 2017 Conditions of Contract for Construction

 6.11 Disorderly Conduct
6.12 Key Personnel

7 PLANT,MATERIALS AND WORKMANSHIP 42

7.1 Manner of Execution

7.2 Samples
7.3 Inspection
7.4 Testing by the Contractor
7.5 Defects and Rejection
7.6 RemedialWork
7.7 Ownership of Plant and Materials
(/)
7.8 Royalties
~
(, ..
0
u...

8 COMMENCEMENT, DELAYS AND SUSPENSION 46

8. 1 Commencement of Works
8.2 Time for Completion
8.3 Programme
8.4 Advance Warning
8.5 Extension of Time for Completion
8.6 Delays Caused by Authorities
8. 7 Rate of Progress
8.8 Delay Damages
8.9 Employer'sSuspension
8.10 Consequences of Employer'sSuspension
8.11 Payment for Plant and Materials after Employer'sSuspension
8. 12 Prolonged Suspension
8. 13 Resumption of Work

9 TESTS ON COMPLETION 51

9.1 Contractor's Obligations

9.2 DelayedTests
9.3 Retesting
9.4 Failureto Pass Tests on Completion

10 EMPLOYER'STAKING OVER 53

10.1 Taking Over of the Works and Sections

10.2 Taking Over Parts
10.3 Interferencewith Tests on Completion
10.4 Surfaces Requiring Reinstatement

11 DEFECTS AFTERTAKING OVER 56

11 .1 Completion of Outstanding Work and Remedying Defects

General Conditions © FIDIC 2017

iii
 11.2 Cost of Remedying Defects
11.3 Extension of Defects Notification Period
11.4 Failure to Remedy Defects
11.5 Remedying of Defective Work off Site
11.6 Further Tests after Remedying Defects
11.7 Right of Access after Taking Over
LU
11.8 Contractor to Search
u
2: 11.9 Performance Certificate
C§ 11.10 UnfulfilledObligations
=(:) 11 .11 Clearance of Site

12 MEASUREMENT AND VALUATION 61

"'
2.
tr:
(5 12.1 Works to be Measured
LL
12.2 Method of Measurement
12.3 Valuationof the Works
12.4 Omissions

13 VARIATIONS AND ADJUSTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

13.1 Right to Vary

13.2 Value Engineering
13.3 Variation Procedure
13.4 Provisional Sums
13.5 Daywork
13.6 Adjustments for Changes in Laws
13. 7 Adjustments for Changes in Cost

14 CONTRACT PRICE AND PAYMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

14.1 The Contract Price

14.2 Advance Payment
14.3 Application for Interim Payment
14.4 Schedule of Payments
14.5 Plant and Materials intended for the Works
14.6 Issue of IPC
14.7 Payment
14.8 Delayed Payment
14.9 Release of Retention Money
14.10 Statement at Completion
14.11 Final Statement
14.12 Discharge
14.13 Issue of FPC
14.14 Cessation of Employer's Liability
14.15 Currencies of Payment

iv © FIDIC 2017 Conditions of Contract for Construction

 15 TERMINATION BY EMPLOYER 80

15.1 Notice to Correct

15.2 Terminationfor Contractor's Default
15.3 Valuationafter Terminationfor Contractor's Default
15.4 Payment after Terminationfor Contractor's Default
15.5 Termination for Employer'sConvenience UJ
o
z:
15.6 Valuation after Terminationfor Employer's Convenience <1'.
Cl
15.7 Payment after Terminationfor Employer's Convenience 5
(')

16 SUSPENSION AND TERMINATION BY CONTRACTOR 84

(J)
"<;;
16.1 Suspension by Contractor a:0
16.2 Terminationby Contractor u..

16.3 Contractor's ObligationsAfter Termination

16.4 Payment after Terminationby Contractor

17 CARE OFTHE WORKSAND INDEMNITIES 87

17. 1 Responsibility for Care of the Works

17 .2 Liabilityfor Care of the Works
17 .3 Intellectual and Industrial Property Rights
17.4 Indemnities by Contractor
17.5 Indemnitiesby Employer
17 .6 Shared Indemnities

18 EXCEPTIONAL EVENTS 90

18.1 Exceptional Events

18.2 Notice of an Exceptional Event
18.3 Duty to Minimise Delay
18 .4 Consequences of an Exceptional Event
18.5 Optional Termination
18.6 Releasefrom Performance under the Law

19 INSURANCE 92

19.1 General Requirements

19.2 Insuranceto be provided by the Contractor

20 EMPLOYER'S AND CONTRACTOR'S CLAIMS 96

20.1 Claims
20.2 Claims For Payment and/or EOT

General Condijions ©FIDIC2017

v
 21. DISPUTES AND ARBITRATION 100

21.1 Constitution of the DAAB

21.2 Failure to Appoint DAAB Member(s)
21.3 Avoidance of Disputes
21.4 Obtaining DAAB's Decision
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z<J Arbitration
21.6
cs
sCl 21.7 Failure to Comply with DAAB's Decision
21.8 No DAAB In Place

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APPENDIX 107
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GENERAL CONDITIONS OF DISPUTE AVOIDANCE/ADJUDICATION

AGREEMENT

INDEX OF SUB-CLAUSES 124

© FIDIC2017 Conditions of Contract for Construction

vi
 General Conditions

Gen al Provisions tsz

1.1 <{
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Definitions In the Contract the following words and expressions shall have the meanings stated, ('}
except where the context requires otherwise

1 .1 .1 "AcceptedContractAmount" means the amount accepted in the Letter of

Acceptance for the execution of the Works in accordance with the Contract.
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2
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1.1.2 "Advance Payment Certificate" means a Payment Certificate issued 0
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by the Engineer for advance payment under Sub-Clause 14.2.2 [Advance
Payment Certificate].

1.1.3 "Advance Payment Guarantee" means the guarantee under Sub-Clause

14.2.1 [Advance Payment Guarantee].

1.1.4 "Base Date" means the date 28 days before the latest date for submission
of the Tender.

1.1.5 "Bill of Quantities" means the document entitled bill of quantities (if any)
included in the Schedules.

1.1.6 "Claim" means a request or assertion by one Party to the other Party for
an entitlement or relief under any Clause of these Conditions or otherwise
in connection with, or arising out of, the Contract or the execution of the
Works.

1.1 . 7 "CommencementDate" means the date as stated in the Engineer's Notice

issued under Sub-Clause 8.1 [Commencement of Works].

1.1 .8 "Compliance VerificationSystem" means the compliance verification

system to be prepared and implemented by the Contractor for the Works in
accordance with Sub-Clause 4.9.2 [Compliance Verification System].

1.1.9 "Conditions of Contract"or "these Conditions" means these General

Conditions as amended by the Particular Conditions.

1 .1 .10 "Contract" means the Contract Agreement, the Letter of Acceptance, the
Letter of Tender, any addenda referred to in the Contract Agreement, these
Conditions, the Specification, the Drawings, the Schedules, the Contractor's
Proposal, the JV Undertaking (if applicable) and the further documents (if any)
which are listed in the Contract Agreement or in the Letter of Acceptance.

1 .1 .11 "ContractAgreement" means the agreement entered into by both Parties

in accordance with Sub-Clause 1 .6 [Contract Agreement].

1.1.12 "ContractData" means the pages, entitled contract data which constitute
Part A of the Particular Conditions.

1.1 .13 "ContractPrice" means the price defined in Sub-Clause 14.1 [The Contract
Price].

General Conditions © FIDIC 2017 1

 1 .1 .14 "Contractor " means the person(s) named as contractor in the Letter of
Tender accepted by the Employer and the legal successors in title of such
person(s).

1.1.15 "Contractor's Documents" means the documents prepared by the

Contractor as described in Sub-Clause 4.4 [Contractor's Documents].
including calculations, digital files, computer programs and other software,
drawings, manuals, models, specifications and other documents of a
technical nature.
5
0 1 .1 .16 "Contractor'sEquipment" means all apparatus, equipment, machinery,
construction plant, vehicles and other items required by the Contractor for
the execution of the Works. Contractor's Equipment excludes Temporary
Works, Plant, Materials and any other things intended to form or forming
part of the Permanent Works.

1 .1 .17 "Contractor'sPersonnel" means the Contractor's Representative and all

personnel whom the Contractor utilises on Site or other places where the
Works are being carried out, including the staff, labour and other employees
of the Contractor and of each Subcontractor; and any other personnel
assisting the Contractor in the execution of the Works.

1 . 1 . 18 "Contractor'sRepresentative"means the natural person named by the

Contractor in the Contract or appointed by the Contractor under Sub-Clause
4.3 [Contractor's Representative], who acts on behalf of the Contractor.

1.1 .19 "Cost" means all expenditure reasonably incurred (or to be incurred) by the
Contractor in performing the Contract, whether on or off the Site, including
taxes, overheads and similar charges, but does not include profit. Where the
Contractor is entitled under a Sub-Clause of these Conditions to payment of
Cost, it shall be added to the Contract Price.

1 .1 .20 "Cost Plus Profit" means Cost plus the applicable percentage for profit
stated in the Contract Data (if not stated, five percent (5%)). Such percentage
shall only be added to Cost, and Cost Plus Profit shall only be added to the
Contract Price, where the Contractor is entitled under a Sub-Clause of these
Conditions to payment of Cost Plus Profit.

1.1.21 "Country" means the country in which the Site (or most of it) is located,
where the Permanent Works are to be executed.

1.1.22 "DAAB" or "Dispute Avoidance/Adjudication Board" means the sole

member or three members (as the case may be) so named in the Contract, or
appointed under Sub-Clause 21.1 [Constitution of the OAAB] or Sub-Clause
21.2 [Failure to Appoint DAAB Member(s)].

1.1.23 "DAABAgreement" means the agreement signed or deemed to have been

signed by both Parties and the sole member or each of the three members
(as the case may be) of the DAAB in accordance with Sub-Clause 21.1
[Constitution of the OAAB] or Sub-Clause 21.2 [Failure to Appoint DAAB
Member(s)], incorporating by reference the General Conditions of Dispute
Avoidance/Adjudication Agreement contained in the Appendix to these
GeneralConditions with such amendments as are agreed.

1.1.24 "Date of Completion"means the date stated in the Taking-Over Certificate

issued by the Engineer; or, if the last paragraph of Sub-Clause 10.1 [Taking
Over the Works and Sections] applies, the date on which the Works or Section
are deemed to have been completed in accordance with the Contract; or, if

© FIDIC 2017 Conditions of Contract for Construction

2
 Sub-Clause 10.2 [Taking Over Parts] or Sub-Clause 10.3. [Interference with
Tests on Completion) applies, the date on which the Works or Section or
Part are deemed to have been taken over by the Employer.

1.1.25 "day" means a calendar day.

1.1.26 "Daywork Schedule" means the document entitled daywork schedule (if
any) included in the Contract, showing the amounts and manner of payments u.
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to be made to the Contractor for labour, materials and equipment used for z
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daywork under Sub-Clause 13.5 [Daywork). n
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1.1.27 "Defects Notification Period" or "DNP" means the period for notifying
defects and/or damage in the Works or a Section or a Part (as the case
may be) under Sub-Clause 11.1 [Completion of Outstanding Work and
Remedying Defects], as stated in the Contract Data (if not stated, one year),
and as may be extended under Sub-Clause 11 .3 [Extension of Defects
Notification Period]. This period is calculated from the Date of Completion of
the Works or Section or Part.

1.1.28 "Delay Damages" means the damages for which the Contractor shall be
liable under Sub-Clause 8.8 [Delay Damages] for failure to comply with
Sub-Clause 8.2 [Time for Completion].

1.1.29 "Dispute" means any situation where:

(a) one Party makes a claim against the other Party (which may be a
Claim, as defined in these Conditions, or a matter to be determined
by the Engineerunder these Conditions, or otherwise);
(b) the other Party (or the Engineer under Sub-Clause 3.7.2 [Engineer's
Determination)) rejects the claim in whole or in part; and
(c) the first Party does not acquiesce (by giving a NOD under Sub-Clause
3.7.5 [Dissatisfaction with Engineer's determination] or otherwise),
provided however that a failureby the other Party (or the Engineer)to oppose
or respond to the claim, in whole or in part, may constitute a rejection if, in
the circumstances, the DAAB or the arbitrator(s),as the case may be, deem
it reasonablefor it to do so.

1.1.30 "Drawings" means the drawings of the Works included in the Contract,
and any additional and modified drawings issued by (or on behalf of) the
Employer in accordance with the Contract.

1.1.31 "Employer " means the person named as the employer in the Contract Data
and the legal successors in title to this person.

1.1.32 "Employer's Equipment" means the apparatus, equipment, machinery,

construction plant and/or vehicles (if any) to be made available by the
Employer for the use of the Contractor under Sub-Clause 2.6 [Employer-
Supp/ied Materials and Employer's Equipment]; but does not include Plant
which has not been taken over under Clause 10 [Employer's Taking Over].

1.1.33 "Employer's Personnel" meansthe Engineer, the Engineer'sRepresentative

(if appointed), the assistants described in Sub-Clause 3.4 [Delegation by the
Engineer] and all other staff, labour and other employees of the Engineerand
of the Employer engaged in fulfilling the Employer's obligations under the
Contract; and any other personnel identified as Employer's Personnel, by a
Notice from the Employer or the Engineerto the Contractor.

General Conditions © FIDIC 2017 3

 1.1 .34 "Employer-SuppliedMaterials"means the materials(if any)to be supplied
by the Employer to the Contractor under Sub-Clause 2.6 [Employer-Sup-
plied Materials and Employer's Equipment].

1.1 .35 "Engineer'' means the person named in the Contract Data appointed by
the Employer to act as the Engineer for the purposes of the Contract, or
any replacement appointed under Sub-Clause 3.6 [Replacement of the
Engineer].

1.1.36 "Engineer's Representative" means the natural person who may be

appointed by the Engineerunder Sub-Clause3.3 [Engineer's Representative].

1.1.37 "Exceptional Event" means an event or circumstance as defined in

Sub-Clause 18.1 [Exceptional Events].
f,JJ

if0 1.1 .38 "Extension of Time" or "EOT" means an extension of the Time for
u, Completion under Sub-Clause 8.5 [Extension of Time for Completion].

1 .1 .39 "FIDIC" means the Federation Internationale des lngenieurs-Conseils, the

InternationalFederationof Consulting Engineers.

1.1.40 "Final Payment Certificate"or "FPC" means the payment certificate

issued by the Engineer under Sub-Clause 14 .13 [Issue of FPC].

1.1.41 "Final Statement"means the Statement defined in Sub-Clause 14.11.2

[Agreed Final Statement].

1.1.42 "Foreign Currency" means a currency in which part (or all) of the Contract
Price is payable, but not the Local Currency.

1.1 .43 "General Conditions"means this document entitled "Conditions of

Contract for Construction for Building and EngineeringWorks designed by
the Employer", as published by FIDIC.

1 .1 .44 "Goods" means Contractor's Equipment, Materials, Plant and Temporary

Works, or any of them as appropriate.

1.1.45 "Interim Payment Certificate"or "IPC" means a Payment Certificate

issued by the Engineerfor an interim payment under Sub-Clause 14.6 [Issue
of /PC].

1.1 .46 "Joint Venture" or "JV" means a joint venture, association, consortium or
other unincorporated grouping of two or more persons, whether in the form
of a partnership or otherwise.

1.1.47 "JV Undertaking"means the letter provided to the Employer as part of the
Tender setting out the legal undertaking between the two or more persons
constituting the Contractor as a JV. This letter shall be signed by all the
persons who are members of the JV, shall be addressed to the Employer
and shall include:

(a) each such member's undertaking to be jointly and severally liable

to the Employer for the performance of the Contractor's obligations
under the Contract;
(b) identificationand authorisation of the leader of the JV; and
(c) identification of the separate scope or part of the Works (if any) to be
carried out by each member of the JV.

© FIDIC 2017 Conditions of Contract for Construction

4
 1.1.48 "Key Personnel" means the positions (if any) of the Contractor's Personnel,
other than the Contractor's Representative,that arestated in the Specification.

1.1.49 "Laws" means all national (or state or provincial) legislation, statutes, acts,
decrees, rules, ordinances, orders, treaties, internationallaw and other laws,
and regulationsand by-laws of any legallyconstituted public authority.

1.1.50 "Letter of Acceptance" means the letter of formal acceptance, signed by UJ

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the Employer, of the Letter of Tender, including any annexed memoranda z
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comprising agreements between and signed by both Parties. If there is no =;
such letter of acceptance, the expression "Letter of Acceptance" means ("
the Contract Agreement and the date of issuing or receiving the Letter of
Acceptance means the date of signing the Contract Agreement.

1.1.51 "Letter of Tender" means the letter of tender, signed by the Contractor, (fl
stating the Contractor's offer to the Employerfor the execution of the Works. ~
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1.1.52 "Local Currency" means the currency of the Country.

1 .1 .53 "Materials" means things of all kinds (other than Plant),whether on the Site
or otherwise allocated to the Contract and intended to form or forming part
of the Permanent Works, including the supply-only materials (if any) to be
supplied by the Contractor under the Contract.

1.1.54 "month" is a calendar month (according to the Gregorian calendar).

1.1.55 "No-objection" meansthat the Engineerhas no objection to the Contractor's

Documents, or other documents submitted by the Contractor under these
Conditions, and such Contractor's Documents or other documents may be
used for the Works.

1.1.56 "Notice" means a written communication identified as a Notice and issued

in accordance with Sub-Clause 1.3 [Notices and Other Communications].

1.1.57 "Notice of Dissatisfaction" or "NOD" meansthe Notice one Party may give
to the other Party if it is dissatisfied, either with an Engineer'sdetermination
under Sub-Clause 3.7 [Agreement or Determination] or with a DAAB's
decision under Sub-Clause 21.4 [Obtaining DAAB's Decision].

1.1.58 "Part" means a part of the Works or part of a Section (as the case may be)
which is used by the Employer and deemed to have been taken over under
Sub-Clause 10.2 [Taking Over Parts].

1.1.59 "Particular Conditions" means the document entitled particular conditions

of contract included in the Contract, which consists of Part A - Contract
Data and Part B - Special Provisions.

1 .1 .60 "Party" means the Employer or the Contractor, as the context requires.
"Parties" means both the Employer and the Contractor.

1 .1 .61 "Payment Certificate" means a payment certificate issued by the Engineer

under Clause 14 [Contract Price and Payment].

1.1.62 "Performance Certificate" means the certificate issued by the Engineer

(or deemed to be issued) under Sub-Clause 11.9 [Performance Certificate].

1.1.63 "Performance Security" means the security under Sub-Clause 4.2

[Performance Security].

General Conditions © FIDIC 2017 5

 1.1.64 "Permanent Works" means the works of a permanent nature which are to
be executed by the Contractor under the Contract.

1.1.65 "Plant" means the apparatus, equipment, machineryand vehicles (including

any components) whether on the Site or otherwise allocated to the Contract
and intended to form or forming part of the PermanentWorks.

1.1.66 "Programme" means a detailed time programme prepared and submitted

by the Contractor to which the Engineer has given (or is deemed to have
given) a Notice of No-objection under Sub-Clause 8.3 [Programme].

1 .1 .67 "Provisional Sum" means a sum (if any) which is specified in the Contract
by the Employer as a provisional sum, for the execution of any part of the
Works or for the supply of Plant, Materials or services under Sub-Clause
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13.4 [Provisional Sums].
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0 1.1.68 "QM System" means the Contractor's quality management system (as may
U.

be updated and/or revisedfrom time to time) in accordance with Sub-Clause

4.9.1 [Quality Management System].

1.1.69 "Retention Money" means the accumulated retention moneys which the
Employer retains under Sub-Clause 14.3 [Application for Interim Payment]
and pays under Sub-Clause 14.9 [Re/ease of Retention Money].

1 .1 . 70 "Review" means examination and consideration by the Engineer of a

Contractor's submission in order to assess whether (and to what extent) it
complies with the Contract and/or with the Contractor's obligations under or
in connection with the Contract.

1.1.71 "Schedules" means the document(s) entitled schedules prepared by the

Employer and completed by the Contractor, as attached to the Letter of
Tender and included in the Contract. Such document(s) may include data,
lists and schedules of payments and/or rates and prices, and guarantees.

1 .1 . 72 "Schedule of Payments" means the document(s) entitled schedule of

payments (if any) in the Schedules showing the amounts and manner of
payments to be made to the Contractor.

1.1 . 73 "Section" means a part of the Works specified in the Contract Data as a
Section (if any).

1.1 . 7 4 "Site" means the places where the Permanent Works are to be executed
and to which Plant and Materials are to be delivered, and any other places
specified in the Contract as forming part of the Site.

1.1.75 "Special Provisions" means the document (if any}, entitled special
provisions which constitutes Part B of the Particular Conditions.

1.1 . 76 "Specification" means the document entitled specification included in

the Contract, and any additions and modifications to the specification in
accordance with the Contract. Such document specifies the Works.

1 .1 . 77 "Statement" means a statement submitted by the Contractor as part of an

application for a Payment Certificate under Sub-Clause 14.3 [Application
for Interim Payment], Sub-Clause 14.10 [Statement at Completion] or
Sub-Clause 14 .11 [Final Statement].

1 .1 . 78 "Subcontractor" means any person named in the Contract as a

subcontractor, or any person appointed by the Contractor as a subcontractor
©FIDIC 2017 Conditions of Contract for Construction
6
 or designer,for a part of the Works; and the legal successors in title to each
of these persons.

1 .1 . 79 "Taking-Over Certificate" means a certificate issued (or deemed to be

issued) by the Engineer in accordance with Clause 10 [Employer's Taking
Over].

1 .1 .80 "Temporary Works" means all temporary works of every kind (other than LU
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Contractor's Equipment)required on Site for the execution of the Works. z
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1.1.81 "Tender" means the Letter of Tender, the Contractor's Proposal, the JV
Undertaking (if applicable), and all other documents which the Contractor
submitted with the Letter of Tender, as included in the Contract.

1 .1 .82 "Tests after Completion" means the tests (if any) which are stated in the (/)

Specification and which are carried out in accordance with the Special 2
a:
Provisionsafter the Works or a Section (as the case may be) are taken over o
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under Clause 10 [Employer's Taking Over].

1.1.83 "Tests on Completion" means the tests which are specified in the Contract
or agreed by both Parties or instructed as a Variation,and which are carried
out under Clause 9 [Tests on Completion] before the Works or a Section (as
the case may be) are taken over under Clause 10 [Employer's Taking Over].

1.1 .84 "Time for Completion" means the time for completing the Works or a
Section (as the case may be) under Sub-Clause 8.2 [Time for Completion],
as stated in the Contract Data as may be extended under Sub-Clause 8.5
[Extension of Time for Completion], calculated from the Commencement
Date.

1 .1 .85 "Unforeseeable" means not reasonably foreseeable by an experienced

contractor by the Base Date.

1.1.86 "Variation" means any change to the Works, which is instructed as a

variation under Clause 13 [Variations and Adjustments].

1.1.87 "Works" mean the PermanentWorks and the TemporaryWorks, or either of

them as appropriate.

1 .1 .88 "year" means 365 days.

1.2
Interpretation In the Contract, except where the context requires otherwise:

(a) words indicating one gender include all genders; and "he", "his" and "himself"
shall be read as "he/she", "his/her" and "himself/herself"respectively;

(b) words indicating the singular also include the plural and words indicating the
plural also include the singular;

(c) provisions including the word "agree", "agreed" or "agreement" require the
agreement to be recorded in writing;

(d) "written" or "in writing" means hand-written, type-written, printed or

electronicallymade, and resulting in a permanent record;

(e) "may" means that the Party or person referredto has the choice of whether
to act or not in the matter referred to;

General Conditions © FIDIC 2017

7
 (n "shall" means that the Party or person referred to has an obligation under the
Contract to perform the duty referred to;

(g) "consent" means that the Employer, the Contractor or the Engineer (as the
case may be) agrees to or gives permission for, the requested matter;

(h) "including", "include" and "includes" shall be interpreted as not being limited
LU to, or qualified by, the stated items that follow;
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(i) words indicating persons or parties shall be interpreted as referring to natural
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\...,,/ and legal persons (including corporations and other legal entities); and

U) "execute the Works" or "execution of the Works" means the construction

and completion of the Works and the remedying of any defects (and shall be
c: deemed to include design to the extent, if any, specified in the Contract)
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LL In any list in these Conditions, where the second-last item of the list is
followed by "and" or "or" or "and/or" then all of the list items going before
this item shall also be read as if they are followed by "and" or "or" or "and/or"
(as the case may be).

The marginal words and other headings shall not be taken into consideration
in the interpretation of these Conditions.

1.3
Notices and
Other Communications Wherever these Conditions provide for the giving of a Notice (including
a Notice of Dissatisfaction) or the issuing, providing, sending, submitting
or transmitting of another type of communication (including acceptance,
acknowledgement, advising, agreement, approval, certificate, Claim,
consent, decision, determination, discharge, instruction, No-objection,
record(s) of meeting, permission, proposal, record, reply, report, request,
Review, Statement, statement, submission or any other similar type of
communication), the Notice or other communication shall be in writing and:

(a) shall be:

(i) a paper-original signed by the Contractor's Representative,the
Engineer, or the authorised representative of the Employer (as
the case may be); or
(ii) an electronic original generated from any of the systems of
electronic transmission stated in the Contract Data (if not stated,
system(s) acceptable to the Engineer), where the electronic
original is transmitted by the electronic address uniquely assigned
to each of such authorised representatives,
or both, as stated in these Conditions; and
(b) if it is a Notice, it shall be identified as a Notice. If it is another form
of communication, it shall be identified as such and include reference
to the provision(s) of the Contract under which it is issued where
appropriate;
(c) delivered by hand (against receipt), or sent by mail or courier (against
receipt), or transmitted using any of the systems of electronic
transmission under sub-paragraph (a)(ii) above; and
(d) delivered, sent or transmitted to the address for the recipient's
communications as stated in the Contract Data. However, if the
recipient gives a Notice of another address, all Notices and other
communications shall be delivered accordingly after the sender
receives such Notice.

© FIDIC2017 Conditions of Contract for Construction

8
 Where these Conditions state that a Notice or NOD or other communication
is to be delivered, given, issued, provided, sent, submitted or transmitted, it
shall have effect when it is received (or deemed to have been received) at the
recipient's current address under sub-paragraph (d) above. An electronically
transmitted Notice or other communication is deemed to have been received
on the day after transmission, provided no non-delivery notification was
received by the sender.
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All Notices, and all other types of communication as referred to above, shall o
not be unreasonably withheld or delayed. ~
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When a Notice or NOD or certificate is issued by a Party or the Engineer, the
paper and/or electronic original shall be sent to the intended recipient and a
copy shall be sent to the Engineer or the other Party, as the case may be. All
other communications shall be copied to the Parties and/or the Engineer as
(12
stated under these Conditions or elsewhere in the Contract. ..?.
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1.4 ·····------·-·-··----··-···- ---

Law and Language The Contract shall be governed by the law of the country (or other jurisdiction)
stated in the Contract Data (if not stated, the law of the Country), excluding
any conflict of law rules.

The ruling language of the Contract shall be that stated in the Contract Data
(if not stated, the language of these Conditions). If there are versions of any
part of the Contract which are written in more than one language, the version
which is in the ruling language shall prevail.

The language for communications shall be that stated in the Contract Data.
If no language is stated there, the language for communications shall be the
ruling language of the Contract.

1.5
Priorityof Documents The documents forming the Contract are to be taken as mutually explanatory
of one another. If there is any conflict, ambiguity or discrepancy, the priority
of the documents shall be in accordance with the following sequence:

(a) the Contract Agreement;

(b) the Letter of Acceptance;
(c) the Letter of Tender;
(d) the Particular Conditions Part A - Contract Data;
(e) the Particular Conditions Part B - Special Provisions;
(t) these General Conditions;
(g) the Specification;
(h) the Drawings;
(i) the Schedules;
U) the JV Undertaking (if the Contractor is a JV); and
(k) any other documents forming part of the Contract.

If a Party finds an ambiguity or discrepancy in the documents, that Party

shall promptly give a Notice to the Engineer, describing the ambiguity or
discrepancy. After receiving such Notice, or if the Engineer finds an ambiguity
or discrepancy in the documents, the Engineer shall issue the necessary
clarification or instruction.

General Conditions © FIDIC 2017

9
 "1.6
Contract Agreement The Parties shall sign a Contract Agreement within 35 days after the
Contractor receives the Letter of Acceptance, unless they agree otherwise.
The Contract Agreement shall be based on the form annexed to the Particular
Conditions. The costs of stamp duties and similar charges (if any) imposed
by law in connection with entry into the Contract Agreement shall be borne
by the Employer.

If the Contractor comprises a JV, the authorised representative of each

member of the JV shall sign the Contract Agreement.

"1.7
Assignment Neither Party shall assign the whole or any part of the Contract or any benefit
or interest in or under the Contract. However, either Party:
a:
;/;, (a) may assign the whole or any part of the Contract with the prior
C5
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agreement of the other Party, at the sole discretion of such other
Party;and
(b) may, as security in favour of a bank or financial institution, assign
the Party's right to any moneys due, or to become due, under the
Contract without the prior agreement of the other Party.

"1.8
Care and Supply
of Documents The Specification and Drawings shall be in the custody and care of the
Employer. Unless otherwise stated in the Contract, two copies of the Contract
and of each subsequent Drawing shall be supplied to the Contractor, who
may make or request further copies at the cost of the Contractor.

Each of the Contractor's Documents shall be in the custody and care of

the Contractor, unless and until submitted to the Engineer. The Contractor
shall supply to the Engineer one paper-original, one electronic copy (in the
form as stated in the Specification or, if not stated, a form acceptable to the
Engineer) and additional paper copies (if any) as stated in the Contract Data
of each of the Contractor's Documents.

The Contractor shall keep at all times, on the Site, a copy of:

(a) the Contract;

(b) the records under Sub-Clause 6.10 [Contractor's Records] and
Sub-Clause 20.2.3 [Contemporary records];
(c) the publications (if any) named in the Specification;
(d) the Contractor's Documents;
(e) the Drawings; and
(t) Variations, Notices and other communications given under the
Contract.
The Employer's Personnel shall have right of access to all these documents
during all normal working hours, or as otherwise agreed with the Contractor.

If a Party (or the Engineer) becomes aware of an error or defect (whether of

a technical nature or otherwise) in a document which was prepared for use
in the execution of the Works, the Party (or the Engineer) shall promptly give
a Notice of such error or defect to the other Party (or to the Parties).

© FIDIC Conditions of Contract for Construction

10 2017
1.9
Delayed Drawings
or Instructions The Contractor shall give a Notice to the Engineerwhenever the Works are
likelyto be delayed or disrupted if any necessarydrawing or instruction is not
issued to the Contractor within a particular time, which shall be reasonable.
The Notice shall include details of the necessary drawing or instruction,
details of why and by when it should be issued, and details of the nature and
amount of the delay or disruption likely to be suffered if it is late. u:
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If the Contractor suffers delay and/or incurs Cost as a result of a failure g
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of the Engineer to issue the notified drawing or instruction within a time (!)

which is reasonableand is specified in the Notice with supporting details, the

Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or EQT] to EOT and/or payment of such Cost Plus Profit.
(/)

However, if and to the extent that the Engineer's failure was caused by ~
a:
any error or delay by the Contractor, including an error in, or delay in the o
u,
submission of, any of the Contractor's Documents, the Contractor shall not
be entitled to such EOT and/or Cost Plus Profit.

1.10 ---- ·······················-···-·---~

Employer's Use of
Contractor's Documents As between the Parties, the Contractor shall retain the copyright and other
intellectual property rights in the Contractor's Documents (and other design
documents. if any, made by (or on behalf of) the Contractor).

The Contractor shall be deemed (by signing the Contract Agreement)to give
to the Employer a non-terminable transferable non-exclusive royalty-free
licenceto copy, use and communicate the Contractor's Documents(andsuch
other design documents, if any), including making and using modificationsof
them. This licence shall:

(a) apply throughout the actual or intended operational life (whichever is

longer) of the relevant parts of the Works;
(b) entitle any person in proper possession of the relevant part of the
Works to copy, use and communicate the Contractor's Documents
(and such other design documents, if any) for the purposes of
completing, operating, maintaining, altering, adjusting, repairing and
demolishing the Works;
(c) in the case of Contractor's Documents (and such other design
documents, if any) which are in the form of electronic or digital files,
computer programs and other software, permit their use on any
computer on the Site and/or at the locations of the Employer and the
Engineerand/or at other places as envisaged by the Contract; and
(d) in the event of termination of the Contract:
(i) under Sub-Clause 15.2 [Termination for Contractor's Default],
entitle the Employer to copy, use and communicate the
Contractor's Documents (and other design documents made by
or for the Contractor, if any); or
(ii) under Sub-Clause 15.5 [Termination tor Employer's Convenience],
Sub-Clause 16.2 [Termination by Contractor] or Sub-Clause
18.5 [Optional Termination], entitle the Employer to copy, use
and communicate the Contractor's Documents for which the
Contractor has received payment
for the purpose of completing the Works and/or arranging for any
other entities to do so.

General Conditions © FIDIC 2017

11
 The Contractor's Documents (and other design documents, if any, made
by (or on behalf on the Contractor) shall not, without the Contractor's prior
consent, be used, copied or communicated to a third party by (or on behalf on
the Employer for purposes other than those permitted under this Sub-Clause.

1.11
Contractor's Use of
l!l

(5 Employer's Documents As between the Parties, the Employer shall retain the copyright and other
2.: intellectual property rights in the Specification and Drawings and other
<(
CJ
5 documents made by (or on behalf on the Employer.The Contractor may, at
0
the Contractor's cost, copy, use and communicate these documents for the
purposes of the Contract.

These documents (in whole or in part) shall not, without the Employer's
(/) prior consent, be copied, used or communicated to a third party by the
2.
er Contractor, except as necessaryfor the purposes of the Contract.
c5
LL

1.12
Confidentiality The Contractor shall disclose all such confidential and other information
as the Engineer may reasonably require in order to verify the Contractor's
compliance with the Contract.

The Contractor shall treat all documents forming the Contract as confidential,
except to the extent necessary to carry out the Contractor's obligations
under the Contract. The Contractor shall not publish, permit to be published,
or disclose any particulars of the Contract in any trade or technical paper or
elsewherewithout the Employer's prior consent.

The Employer and the Engineer shall treat all information provided by the
Contractor and marked "confidential", as confidential. The Employer shall
not disclose or permit to be disclosed any such information to third parties,
except as may be necessary when exercising the Employer's rights under
Sub-Clause 15.2 [Termination for Contractor's Default].

A Party's obligation of confidentiality under this Sub-Clause shall not apply

where the information:

(a) was already in that Party's possession without an obligation of

confidentiality before receipt from the other Party;
(b) becomes generallyavailableto the public throuqh no breach of these
Conditions; or
(c) is lawfully obtained by the Party from a third party which is not bound
by an obligation of confidentiality.

1.13
Compliance with Laws The Contractor and the Employer shall, in performing the Contract, comply
with all applicable Laws. Unless otherwise stated in the Specification:

(a} the Employer shall have obtained (or shall obtain) the planning,
zoning or building permit or similar permits, permissions, licences
and/or approvals for the Permanent Works, and any other permits,
permissions, licenses and/or approvals described in the Specification
as having been (or being) obtained by the Employer. The Employer
shall indemnify and hold the Contractor harmless against and from
the consequences of any delay or failureto do so, unlessthe failure is
caused by the Contractor's failure to comply with sub-paragraph (c)
below;

© FIDIC 2017 Conditions of Contract for Construction

12
 (b) the Contractor shall give all notices, pay all taxes, duties and fees,
and obtain all other permits, permissions,licences and/or approvals,
as requiredby the Laws in relation to the executionof the Works. The
Contractorshall indemnifyand hold the Employerharmlessagainstand
from the consequencesof any failure to do so unless the failure is caused
by the Employer'sfailure to complywith Sub-Clause2.2 ~ssistance];
(c) within the time(s) stated in the Specification the Contractor shall
provide such assistance and all documentation, as described in the LU
0
Specification or otherwise reasonably required by the Employer, so z
<1'.
n
as to allow the Employerto obtain any permit, permission, licence or 3
approval under sub-paragraph (a) above; and ("

(d) the Contractor shall comply with all permits, permissions, licences
and/or approvals obtained by the Employer under sub-paragraph (a)
above.
If, having complied with sub-paragraph (c) above, the Contractor suffers
delay and/or incurs Cost as a result of the Employer's delay or failure to
obtain any permit, permission, licence or approval under sub-paragraph (a)
above, the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims
For Payment and/or EOT] to EOT and/or payment of such Cost Plus Profit.

If the Employer incurs additional costs as a result of the Contractor's failure

to comply with:

(i) sub-paragraph (c) above; or

(ii) sub-paragraph (b) or (d) above, provided that the Employer shall have
complied with Sub-Clause 2.2 [Assistance],
the Employer shall be entitled subject to Sub-Clause 20.2 [Claims For
Payment and/or EOT] to payment of these costs by the Contractor.

1.14
Joint and Several Liability If the Contractor is a Joint Venture:

(a) the members of the JV shall be jointly and severally liable to the
Employer for the performance of the Contractor's obligations under
the Contract;
(b) the JV leader shall have authority to bind the Contractor and each
member of the JV; and
(c) neither the members nor (if known) the scope and parts of the Works
to be carried out by each member nor the legal status of the JV shall
be alteredwithout the prior consent of the Employer(but such consent
shall not relievethe altered JV from any liability under sub-paragraph
(a) above).
1.15
Limitation of Liability Neither Party shall be liable to the other Party for loss of use of any Works,
loss of profit, loss of any contract or for any indirect or consequential loss
or damage which may be suffered by the other Party in connection with the
Contract, other than under:

(a) Sub-Clause 8.8 [Delay Damages];

(b) sub-paragraph (c) of Sub-Clause 13.3.1 [Variation by Instruction];
(c) Sub-Clause 15. 7 [Payment after Termination for Employer's
Convenience];
(d) Sub-Clause 16.4 [Payment after Termination by Contractor];
(e) Sub-Clause 17.3 [Intellectual and Industrial Property Rights];
(f) the first paragraph of Sub-Clause 17.4 [Indemnities by Contractor];

General Conditions © FIDIC2017 13

 and
(g) Sub-Clause 17.5 [Indemnities by Employer].
The total liability of the Contractor to the Employer under or in
connection with the Contract, other than:
(i) under Sub-Clause 2.6 [Employer-Supplied Materials and Employer's
Equipment];

LU
(ii) under Sub-Clause 4.19 [Temporary Utilities];
r >;

z
<(
(iii) under Sub-Clause 17 .3 [Intellectual and Industrial Property Rights];
CI and
5
o (iv) under the first paragraph of Sub-Clause 17.4 [Indemnities by
Contractor],

shall not exceed the sum stated in the Contract Data or (if a sum is not so
stated) the Accepted Contract Amount.
vJ
~
c5 This Sub-Clause shall not limit liabilityin any case of fraud, gross negligence,
u..
deliberate default or reckless misconduct by the defaulting Party.

1.16
Contract Termination Subject to any mandatory requirements under the governing law of the
Contract, termination of the Contract under any Sub-Clause of these
Conditions shall require no action of whatsoever kind by either Party other
than as stated in the Sub-Clause.

2.1
Right of Access to the Site The Employer shall give the Contractor right of access to, and possession
of, all parts of the Site within the time (or times) stated in the Contract Data.
The right and possession may not be exclusive to the Contractor. If, under
the Contract, the Employer is requiredto give (to the Contractor) possession
of any foundation, structure, plant or means of access, the Employer shall
do so in the time and manner stated in the Specification. However, the
Employer may withhold any such right or possession until the Performance
Security has been received.

If no such time is stated in the Contract Data, the Employer shall give the
Contractor right of access to, and possession of, those parts of the Site
within such times as may be required to enable the Contractor to proceed
in accordance with the Programme or, if there is no Programme at that time,
the initial programme submitted under Sub-Clause 8.3 [Programme].

If the Contractor suffers delay and/or incurs Cost as a result of a failure by

the Employer to give any such right or possession within such time, the
Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or EOT] to EOT and/or payment of such Cost Plus Profit.

However, if and to the extent that the Employer's failure was caused by
any error or delay by the Contractor, including an error in, or delay in the
submission of, any of the applicable Contractor's Documents, the Contractor
shall not be entitled to such EOT and/or Cost Plus Profit.

2.2
Assistance If requested by the Contractor, the Employer shall promptly provide
reasonable assistance to the Contractor so as to allow the Contractor to
obtain:
© FIDIC2017 Conditions of Contract for Construction
14
 (a) copies of the Laws of the Country which are relevant to the Contract
but are not readily available; and
(b) any permits, permissions, licences or approvals required by the Laws
of the Country (including information required to be submitted by the
Contractor in order to obtain such permits, permissions, licences or
approvals):
(i) which the Contractor is required to obtain under Sub-Clause
UJ
1.13 [Compliance with Laws]; 0
z
(ii) for the delivery of Goods, including clearance through customs; <l'.
C)
and 5
('}

(iii) for the export of Contractor's Equipment when it is removed from

the Site.

2.3 . ···········-···---······-·- ···············-····---····--·-·-··-···-----------

(J)

Employer's Personnel and ;;

0
Other Contractors The Employer shall be responsible for ensuring that the Employer's Personnel LL

and the Employer's other contractors (if any) on or near the Site:

(a) co-operate with the Contractor's efforts under Sub-Clause 4.6

[Co-operation]; and
(b) comply with the same obligations which the Contractor is required to
comply with under sub-paragraphs (a) to (e) of Sub-Clause 4.8 [Health
and Safety Obligations] and under Sub-Clause 4.18 [Protection of the
Environment].
The Contractor may require the Employer to remove (or cause to be
removed) any person of the Employer's Personnel or of the Employer's other
contractors (if any) who is found, based on reasonable evidence, to have
engaged in corrupt, fraudulent, collusive or coercive practice.

2.4
Employer's Financial
Arrangements The Employer's arrangements for financing the Employer's obligations under
the Contract shall be detailed in the Contract Data.

If the Employer intends to make any material change (affecting the Employer's
ability to pay the part of the Contract Price remaining to be paid at that time as
estimated by the Engineer) to these financial arrangements, or has to do so
because of changes in the Employer's financial situation, the Employer shall
immediately give a Notice to the Contractor with detailed supporting particulars.

If the Contractor:

(a) receives an instruction to execute a Variation with a price greater

than ten percent (10%) of the Accepted Contract Amount, or the
accumulated total of Variations exceeds thirty percent (30%) of the
Accepted Contract Amount;
(b) does not receive payment in accordance with Sub-Clause 14. 7
[Payment]; or
(c) becomes aware of a material change in the Employer's financial
arrangements of which the Contractor has not received a Notice
under this Sub-Clause,
the Contractor may request and the Employer shall, within 28 days
after receiving this request, provide reasonable evidence that financial
arrangements have been made and are being maintained which will enable
the Employer to pay the part of the Contract Price remaining to be paid at
that time (as estimated by the Engineer).

GeneralConditions © FIDIC 2017

15
2.5
Site Data and
Items of Reference The Employer shall have made available to the Contractor for information,
before the Base Date, all relevant data in the Employer's possession on
the topography of the Site and on sub-surface, hydrological, climatic and
environmental conditions at the Site. The Employer shall promptly make
available to the Contractor all such data which comes into the Employer's
possession after the Base Date.

The original survey control points, lines and levels of reference (the "items of
reference" in these Conditions) shall be specified on the Drawings and/or in
the Specification or issued to the Contractor by a Notice from the Engineer.

2.6
Employer-Supplied Materials
and Employer's Equipment If Employer-Supplied Materials and/or Employer's Equipment are listed in
the Specification for the Contractor's use in the execution of the Works,
the Employer shall make such materials and/or equipment available to the
Contractor in accordance with the details, times, arrangements, rates and
prices stated in the Specification.

The Contractor shall be responsible for each item of Employer's Equipment

whilst any of the Contractor's Personnel is operating it, driving it, directing it,
using it, or in control of it.

g1neer
3.1
The Engineer The Employer shall appoint the Engineer, who shall carry out the duties
assigned to the Engineer in the Contract.

The Engineer shall be vested with all the authority necessary to act as the
Engineer under the Contract.

If the Engineer is a legal entity, a natural person employed by the Engineer shall
be appointed and authorised to act on behalf of the Engineer under the Contract.

The Engineer (or, if a legal entity, the natural person appointed to act on its
behalf) shall be:

(a) a professional engineer having suitable qualifications, experience and

competence to act as the Engineer under the Contract; and
{b) shall be fluent in the ruling language defined in Sub-Clause 1 .4 [Law
and Language].
Where the Engineer is a legal entity, the Engineer shall give a Notice to the
Parties of the natural person (or any replacement) appointed and authorised
to act on its behalf. The authority shall not take effect until this Notice has
been received by both Parties. The Engineer shall similarly give a Notice of
any revocation of such authority.

3.2
Engineer's Duties
and Authority Except as otherwise stated in these Conditions, whenever carrying out duties
or exercising authority, specified in or implied by the Contract, the Engineer shall
act as a skilled professional and shall be deemed to act for the Employer.

© FIDIC2017 Conditions of Contract for Construction

16
 The Engineer shall have no authority to amend the Contract or, except as
otherwise stated in these Conditions, to relieve either Party of any duty,
obligation or responsibilityunder or in connection with the Contract.

The Engineer may exercise the authority attributable to the Engineer as

specified in or necessarilyto be implied from the Contract. If the Engineeris
requiredto obtain the consent of the Employer before exercising a specified
authority, the requirements shall be as stated in the Particular Conditions.
There shall be no requirement for the Engineer to obtain the Employer's
consent before the Engineer exercises his/her authority under Sub-Clause
3.7 [Agreement or Determination]. The Employer shall not impose further
constraints on the Engineer's authority.

However, whenever the Engineer exercises a specified authority for which

the Employer's consent is required, then (for the purposes of the Contract) (J)
such consent shall be deemed to have been given. ~
(''
-J
u. ..
Any acceptance, agreement, approval,check, certificate,comment, consent,
disapproval, examination, inspection, instruction, Notice, No-objection,
record(s) of meeting, permission, proposal, record, reply, report, request,
Review, test, valuation, or similar act (including the absence of any such
act) by the Engineer,the Engineer's Representative or any assistant shall
not relieve the Contractor from any duty, obligation or responsibility the
Contractor has under or in connection with the Contract.

3.3
The Engineer's
Representative The Engineer may appoint an Engineer's Representative and delegate to
him/her in accordance with Sub-Clause 3.4 [Delegation by the Engineer]
the authority necessaryto act on the Engineer's behalf at the Site, except to
replace the Engineer's Representative.

The Engineer's Representative (if appointed) shall comply with

sub-paragraphs (a) and (b) of Sub-Clause 3.1 [The Engineer] and shall be
based at the Site for the whole time that the Works are being executed at
the Site. If the Engineer's Representativeis to be temporarily absent from the
Site during the execution of the Works, an equivalently qualified, experienced
and competent replacement shall be appointed by the Engineer, and the
Contractor shall be given a Notice of such replacement.

3.4
Delegation by
the Engineer The Engineer may from time to time assign duties and delegate authority to
assistants, and may also revoke such assignment or delegation, by giving
a Notice to the Parties, describing the assigned duties and the delegated
authority of each assistant. The assignment, delegation or revocation shall
not take effect until this Notice has been received by both Parties. However,
the Engineershall not delegate the authority to:

(a) act under Sub-Clause 3. 7 [Agreement or Determination]; and/or

(b) issue a Notice to Correct under Sub-Clause 15.1 [Notice to Correct].
Assistants shall be suitably qualified natural persons, who are experienced
and competent to carry out these duties and exercise this authority, and who
are fluent in the language for communications defined in Sub-Clause 1 .4
[Law and Language].

Each assistant, to whom duties have been assigned or authority has been

GeneralConditions © FIDIC 2017

17
 delegated, shall only be authorised to issue instructions to the Contractor
to the extent defined by the Engineer's Notice of delegation under this
Sub-Clause. Any act by an assistant, in accordance with the Engineer's
Notice of delegation, shall have the same effect as though the act had been
an act of the Engineer. However, if the Contractor questions any instruction
or Notice given by an assistant, the Contractor may by giving a Notice refer
the matter to the Engineer. The Engineer shall be deemed to have confirmed
the assistant's instruction or Notice if the Engineer does not respond, within
7 days after receiving the Contractor's Notice, reversing or varying the
assistant's instruction or Notice (as the case may be).

3.5
Engineer's instructions The Engineer may issue to the Contractor (at any time) instructions which
may be necessaryfor the execution of the Works, all in accordance with the
!() Contract. The Contractor shall only take instructions from the Engineer,or
~ from the Engineer's Representative(if appointed) or an assistant to whom
cc.
0 the appropriate authority to give instruction has been delegated under
LL

Sub-Clause 3.4 [Delegation by the Engineer].

Subject to the following provisions of this Sub-Clause, the Contractor

shall comply with the instructions given by the Engineer or the Engineer's
Representative(if appointed) or delegated assistant, on any matter related
to the Contract.

If an instruction states that it constitutes a Variation, Sub-Clause 13.3.1

[Variation by Instruction] shall apply.

If not so stated, and the Contractor considers that the instruction:

(a) constitutes a Variation (or involves work that is already part of an

existing Variation); or
(b) does not comply with applicable Laws or will reduce the safety of the
Works or is technically impossible
the Contractor shall immediately,and before commencing any work related
to the instruction, give a Notice to the Engineerwith reasons. If the Engineer
does not respond within 7 days after receivingthis Notice, by giving a Notice
confirming, reversingor varying the instruction, the Engineershall be deemed
to have revoked the instruction. Otherwise the Contractor shall comply with
and be bound by the terms of the Engineer's response.

3.6
Replacement of
the Engineer If the Employer intends to replace the Engineer,the Employer shall, not less
than 42 days before the intended date of replacement, give a Notice to the
Contractor of the name, address and relevant experience of the intended
replacement Engineer.

If the Contractor does not respond within 14 days after receivingthis Notice,
by giving a Notice stating an objection to such replacement with reasons,
the Contractor shall be deemed to have accepted the replacement.

The Employer shall not replace the Engineer with a person (whether a
legal entity or a natural person) against whom the Contractor has raised
reasonableobjection by a Notice under this Sub-Clause.

If the Engineer is unable to act as a result of death, illness, disability or

resignation (or, in the case of an entity, the Engineer becomes unable or

©FIDIC 2017 Conditions of Contract for Construction

18
 unwilling to carry out any of its duties, other than for a cause attributable
to the Employer) the Employer shall be entitled to immediately appoint a
replacement by giving a Notice to the Contractor with reasons and the name,
address and relevant experience of the replacement. This appointment shall
be treated as a temporary appointment until this replacement is accepted by
the Contractor, or another replacement is appointed, under this Sub-Clause.

3.7 ··························································-------------------------------------

Agreement or Determination When carryingout his/her duties under this Sub-Clause,the Engineershall act
neutrallybetween the Partiesand shall not be deemed to act for the Employer.

Whenever these Conditions provide that the Engineer shall proceed under
this Sub-Clause to agree or determine any matter or Claim, the following
procedure shall apply:
(f)

3.7.1 Consultation to reach agreement 1J

()
U...

The Engineer shall consult with both Parties jointly and/or separately, and
shall encourage discussion between the Parties in an endeavour to reach
agreement. The Engineer shall commence such consultation promptly
to allow adequate time to comply with the time limit for agreement under
Sub-Clause 3.7.3 [Time limits]. Unless otherwise proposed by the Engineer
and agreed by both Parties, the Engineer shall provide both Parties with a
record of the consultation.

If agreementis achieved,within the time limitfor agreementunder Sub-Clause

3. 7.3 [Time limits], the Engineer shall give a Notice to both Parties of the
agreement, which agreement shall be signed by both Parties. This Notice
shall state that it is a "Notice of the Parties' Agreement" and shall include a
copy of the agreement.

If:

(a) no agreement is achieved within the time limit for agreement under
Sub-Clause 3.7.3 [Time limits]; or
(b) both Parties advise the Engineerthat no agreement can be achieved
within this time limit
whichever is the earlier, the Engineer shall give a Notice to the Parties
accordingly and shall immediately proceed as specified under Sub-Clause
3.7.2 [Engineer's Determination].

3.7.2 Engineer'sDetermination

The Engineer shall make a fair determination of the matter or Claim, in

accordancewith the Contract, taking due regardof all relevantcircumstances.

Within the time limit for determination under Sub-Clause 3.7.3 [Time limits],
the Engineer shall give a Notice to both Parties of his/her determination.
This I\Jotice shall state that it is a "Notice of the Engineer's Determination",
and shall describe the determination in detail with reasons and detailed
supporting particulars.

3.7.3 Time limits

The Engineer shall give the Notice of agreement, if agreement is achieved,

within 42 days or within such other time limit as may be proposed by the
Engineerand agreed by both Parties (the "time limit for agreement" in these
Conditions), after:

© FIDIC
General Conditions 2017
19
 (a) in the case of a matter to be agreed or determined (not a Claim), the
date of commencement of the time limit for agreement as stated in the
applicable Sub-Clause of these Conditions;
(b) in the case of a Claim under sub-paragraph (c) of Sub-Clause 20.1
[Claims], the date the Engineer receives a Notice under Sub-Clause
20.1 from the claiming Party; or
(c) in the case of a Claim under sub-paragraph (a) or (b) of Sub-Clause
U..1 20.1 [Claims], the date the Engineer receives:
~ (i) a fully detailed Claim under Sub-Clause 20.2.4 [Fully Detailed
s Claim]; or
o
(ii) in the case of a Claim under Sub-Clause 20.2.6 [Claims of
continuing effect], an interim or final fully detailed Claim (as the
case may be).
VJ
The Engineer shall give the Notice of his/her determination within 42 days
rf0 or within such other time limit as may be proposed by the Engineer and
u,
agreed by both Parties(the "time limit for determination" in these Conditions),
after the date corresponding to his/her obligation to proceed under the last
paragraph of Sub-Clause 3. 7 .1 [Consultation to reach agreement].

If the Engineerdoes not give the Notice of agreement or determinationwithin

the relevanttime limit:

(i) in the case of a Claim, the Engineer shall be deemed to have given a
determination rejecting the Claim; or
(ii) in the case of a matter to be agreed or determined, the matter shall
be deemed to be a Disputewhich may be referredby either Partyto the
DAABfor its decisionunderSub-Clause21 .4 [Obtaining DMB 's Decision]
without the need for a NOD (and Sub-Clause3.7.5 [Dissatisfaction with
Engineers determination] and sub-paragraph(a) of Sub-Clause 21.4.1
[Reference of a Dispute to the DMB] shall not apply).

3. 7.4 Effect of the agreement or determination

Each agreement or determination shall be binding on both Parties (and shall

be complied with by the Engineer) unless and until corrected under this
Sub-Clause or, in the case of a determination, it is revised under Clause 21
[Disputes and Arbitration].

If an agreement or determination concerns the payment of an amount from

one Party to the other Party, the Contractor shall include such an amount
in the next Statement and the Engineer shall include such amount in the
Payment Certificate that follows that Statement.

If, within 14 days after giving or receivingthe Engineer'sNotice of agreement

or determination,any error of a typographical or clerical or arithmetical nature
is found:

(a) by the Engineer: then he/she shall immediately advise the Parties
accordingly; or
(b) by a Party: then that Party shall give a Notice to the Engineer,stating
that it is given under this Sub-Clause 3. 7.4 and clearly identifying the
error. If the Engineer does not agree there was an error, he/she shall
immediatelyadvise the Parties accordingly.

The Engineer shall within 7 days of finding the error, or receiving a Notice
under sub-paragraph (b) above (as the case may be), give a Notice to
both Parties of the corrected agreement or determination. Thereafter, the

© FIDIC 2017 Conditions of Contract for Construction

20
 corrected agreement or determination shall be treated as the agreement or
determination for the purpose of these Conditions.

3. 7. 5 Dissatisfactionwith Engineer'sdetermination

If either Party is dissatisfiedwith a determination of the Engineer:

(a) the dissatisfied Party may give a NOD to the other Party, with a copy
to the Engineer;
{b) this NOD shall state that it is a "Notice of Dissatisfaction with the
Engineer's Determination" and shall set out the reason(s) for
dissatisfaction;
(c) this NOD shall be given within 28 days after receiving the Engineer's
Notice of the determination under Sub-Clause 3. 7 .2 [Engineer's
Determination] or, if applicable, his/her Notice of the corrected (;)

determination under Sub-Clause 3. 7.4 [Effect of the agreement or ~

a:
determination] (or, in the case of a deemed determination rejecting f.?
the Claim, within 28 days after the time limit for determination under
Sub-Clause 3. 7 .3 [Time limits] has expired); and
(d) thereafter,either Party may proceed under Sub-Clause21.4 [Obtaining
DMB's Decision].

If no NOD is given by either Party within the period of 28 days stated in

sub-paragraph (c) above, the determination of the Engineershall be deemed
to have been accepted by both Parties and shall be final and binding on
them.

If the dissatisfied Party is dissatisfied with only part(s) of the Engineer's

determination:

(i) this part(s) shall be clearly identified in the NOD;

(ii) this part(s),and any other parts of the determination that are affected
by such part(s) or rely on such part(s) for completeness, shall be
deemed to be severablefrom the remainderof the determination;and
(iii) the remainder of the determination shall become final and binding on
both Parties as if the NOD had not been given.

In the event that a Partyfails to comply with an agreementof the Partiesunder

this Sub-Clause 3. 7 or a final and binding determination of the Engineer, the
other Party may, without prejudice to any other rights it may have, refer the
failureitself directlyto arbitration under Sub-Clause 21.6 [Arbitration] in which
case the first and the third paragraphsof Sub-Clause 21 . 7 [Failure to Comply
with DMB's Decision] shall apply to such referencein the same manner as
these paragraphsapply to a final and binding decision of the DAAB.

3.8
Meetings The Engineer or the Contractor's Representative may require the other to
attend a management meeting to discuss arrangementsfor future work and/
or other matters in connection with execution of the Works.

The Employer's other contractors, the personnel of legallyconstituted public

authorities and/or private utility companies, and/or Subcontractors may
attend any such meeting, if requested by the Engineer or the Contractor's
Representative.

The Engineer shall keep a record of each management meeting and supply
copies of the record to those attending and to the Employer.At any such

General Conditions © FIDIC 2017

21
 meeting, and in the record, responsibilities for any actions to be taken shall
be in accordance with the Contract.

4.1
Contractor's
General Obligations The Contractor shallexecute the Works in accordance with the Contract. The
Contractor undertakes that the execution of the Works and the completed
Works will be in accordance with the documents forming the Contract, as
altered or modified by Variations.

The Contractorshall providethe Plant (and spare parts, if any) and Contractor's
Documents specified in the Contract, and all Contractor'sPersonnel,Goods,
consumablesand otherthingsand services,whetherof a temporaryor permanent
nature, requiredto futfil the Contractor'sobligationsunderthe Contract.

The Contractor shall be responsiblefor the adequacy, stability and safety of

all the Contractor's operations and activities, of all methods of construction
and of all the Temporary Works. Except to the extent specified in the
Contract, the Contractor:

(i) shall be responsible for all Contractor's Documents, Temporary

Works, and such design of each item of Plant and Materials as is
required for the item to be in accordance with the Contract; and
(ii) shall not otherwise be responsible for the design or specification of
the PermanentWorks.

The Contractor shall, whenever required by the Engineer,submit details of

the arrangementsand methods which the Contractor proposes to adopt for
the execution of the Works. No significant alteration to these arrangements
and methods shall be made without this alteration having been submitted to
the Engineer.

If the Contract specifies that the Contractor shall design any part of the
PermanentWorks, then unless otherwise stated in the ParticularConditions:

(a) the Contractor shall prepare, and submit to the Engineer for Review,
the Contractor's Documents for this part (and any other documents
necessaryto complete and implementthe design during the execution
of the Works and to instruct the Contractor's Personnel);
(b) these Contractor's Documents shall be in accordance with the
Specification and Drawings and shall include additional information
required by the Engineerto add to the Drawings for co-ordination of
each Party'sdesigns. If the Engineerinstructs that further Contractor's
Documentsare reasonablyrequiredto demonstratethat the Contractor's
design complies with the Contract, the Contractor shall prepare and
submit them promptly to the Engineerat the Contractor'scost;
(c) construction of this part shall not commence until a Notice of
No-objection is given (or is deemed to have been given) by the
Engineer under sub-paragraph (i) of Sub-Clause 4.4.1 [Preparation
and Review] for all the Contractor's Documents which are relevantto
its design, and construction of such part shall be in accordance with
these Contractor's Documents;
(d) the Contractor may modify any design or Contractor's Documents
which have previously been submitted for Review, by giving a Notice

© FlDIC 2017 Conditions of Contract for Construction

22
 to the Engineer with reasons. If the Contractor has commenced
construction of the part of the Works to which such design or
Contractor's Documents are relevant, work on this part shall be
suspended, the provisions of Sub-Clause 4.4.1 [Preparation and
Review] shall apply as if the Engineer had given a Notice in respect of
the Contractor's Documents under sub-paragraph (ii) of Sub-Clause
4.4.1 , and work shall not resume until a Notice of No-objection is
given (or is deemed to have been given) by the Engineer for the
revised documents;
(e) the Contractor shall be responsiblefor this part and it shall, when the ·,
Works are completed, be fit for such purpose(s)for which the part is 0
intended as are specified in the Contract (or, where no purpose(s)are
so defined and described, fit for their ordinary purpose(s));
(f) in addition to the Contractor's undertaking above, the Contractor
undertakes that the design and the Contractor's Documents for this
part will comply with the technical standards stated in the Specification
and Laws (in force when the Works are taken over under Clause 10
[Employer's Taking Over]) and in accordance with the documents
forming the Contract, as altered or modified by Variations;
(g) if Sub-Clause 4.4.2 [As-built Records] and/or Sub-Clause 4.4.3
[Operation and Maintenance Manuals] apply, the Contractor shall
submit to the Engineer the Contractor's Documents for this part in
accordance with such Sub-Clause(s)and in sufficient detail for the
Employer to operate, maintain, dismantle, reassemble, adjust and
repair this part; and
(h) if Sub-Clause 4.5 [Training] applies, the Contractor shall carry out
training of the Employer'sPersonnelin the operation and maintenance
of this part.
4.2
Performance Security The Contractor shall obtain (at the Contractor's cost) a PerformanceSecurity
to secure the Contractor's proper performance of the Contract, in the
amount and currencies stated in the Contract Data. If no amount is stated in
the Contract Data, this Sub-Clause shall not apply.

4.2.1 Contractor's obligations

The Contractor shall deliver the Performance Security to the Employer,

with a copy to the Engineer, within 28 days after receiving the Letter of
Acceptance. The PerformanceSecurity shall be issued by an entity and from
within a country (or other jurisdiction) to which the Employer gives consent
and shall be in the form annexed to the Particular Conditions, or in another
form agreed by the Employer (but such consent and/or agreement shall not
relievethe Contractor from any obligation under this Sub-Clause).

The Contractor shall ensure that the Performance Security remainsvalid and
enforceableuntil the issue of the PerformanceCertificate and the Contractor
has complied with Sub-Clause 11.11 [Clearance of Site]. If the terms of
the Performance Security specify an expiry date, and the Contractor has
not become entitled to receive the Performance Certificate by the date 28
days before the expiry date, the Contractor shall extend the validity of the
Performance Security until the issue of the Performance Certificate and the
Contractor has complied with Sub-Clause 11 .11 [Clearance of Site].

Whenever Variations and/or adjustments under Clause 13 [Variationsand

Adjustments] result in an accumulative increase or decrease of the Contract
Price by more than twenty percent (20%) of the Accepted Contract Amount:

General Conditions © FIDIC 2017

23
 (a) in the case of such an increase, at the Employer's request the
Contractor shall promptly increase the amount of the Performance
Security in that currency by a percentage equal to the accumulative
increase. If the Contractor incurs Cost as a result of this Employer's
request, Sub-Clause 13.3.1 [Variation by Instruction] shall apply as if
the increase had been instructed by the Engineer;or
(b) in the case of such a decrease,subject to the Employer'sprior consent
the Contractor may decreasethe amount of the PerformanceSecurity
in that currency by a percentage equal to the accumulative decrease.

4.2.2 Claims under the PerformanceSecurity

The Employershall not make a claim under the PerformanceSecurity, except

for amounts to which the Employeris entitled under the Contract in the event
of:

(a) failure by the Contractor to extend the validity of the Performance

Security,as described in this Sub-Clause,in which event the Employer
may claim the full amount (or, in the case of previous reduction(s),the
full remainingamount) of the PerformanceSecurity;
(b) failureby the Contractor to pay the Employeran amount due, as agreed
or determined under Sub-Clause 3. 7 [Agreement or Determination J or
agreed or decided under Clause 21 [Disputes and Arbitration], within
42 days after the date of the agreement or determination or decision
or arbitral award (as the case may be);
(c) failure by the Contractor to remedy a default stated in a Notice given
under Sub-Clause 15.1 [Notice to Correct] within 42 days or other
time (if any) stated in the Notice;
(d) circumstances which entitle the Employer to terminate the Contract
under Sub-Clause 15.2 [Termination for Contractor's Default],
irrespectiveof whether a Notice of termination has been given; or
(e) if under Sub-Clause 11.5 [Remedying of Defective Work off Site] the
Contractor removes any defective or damaged Plant from the Site,
failure by the Contractor to repair such Plant, return it to the Site,
reinstall it and retest it by the date of expiry of the relevant duration
stated in the Contractor's Notice (or other date agreed by the
Employer).
The Employer shall indemnify and hold the Contractor harmless against and
from all damages, losses and expenses (including legal fees and expenses)
resulting from a claim under the PerformanceSecurity to the extent that the
Employerwas not entitled to make the claim.

Any amount which is received by the Employer under the Performance

Security shall be taken into account:

(i) in the Final Payment Certificate under Sub-Clause 14.13 [Issue of

FPCJ; or
(ii) if the Contract is terminated, in payment due to the Contractor
under Sub-Clause 15.4 [Payment after Termination for Contractor's
Default], Sub-Clause 15. 7 [Payment after Termination for Employer's
Convenience], Sub-Clause 16.4 [Payment after Termination by
Contractor], Sub-Clause 18.5 [Optional Termination], or Sub-Clause
18.6 [Re/ease from Performance under the Law] (as the case may be).

4.2.3 Return of the PerformanceSecurity

The Employer shall return the PerformanceSecurity to the Contractor:

© FIDIC 2017 Conditions of Contract for Construction

24
 (a) within 21 days after the issue of the Performance Certificate and the
Contractor has complied with Sub-Clause 11.11 [Clearance of Site];
or
(b) promptly after the date of termination if the Contract is terminated
in accordance with Sub-Clause 15.5 [Termination for Employer's
Convenience], Sub-Clause 16.2 [Termination by Contractor],
Sub-Clause 18.5 [Optional Termination] or Sub-Clause 18.6 [Release
from Performance under the Law].

4.3
Contractor's
Representative The Contractor shall appoint the Contractor's Representativeand shall give
him/her all authority necessary to act on the Contractor's behalf under the
Contract, except to replace the Contractor's Representative.
o:
2
The Contractor's Representative shall be qualified, experienced and a:
0
u.
competent in the main engineering discipline applicable to the Works and
fluent in the language for communications defined in Sub-Clause 1 .4 [Law
and Language].

Unless the Contractor's Representative is named in the Contract, the

Contractor shall, before the Commencement Date, submit to the Engineer
for consent the name and particulars of the person the Contractor proposes
to appoint as Contractor's Representative. If consent is withheld or
subsequently revoked, or if the appointed person fails to act as Contractor's
Representative,the Contractor shallsimilarlysubmit the name and particulars
of another suitable replacement for such appointment. If the Engineerdoes
not respond within 28 days after receiving this submission, by giving a
Notice to the Contractor objecting to the proposed person or replacement,
the Engineershall be deemed to have given his/her consent.

The Contractor shall not, without the Engineer's prior consent, revoke the
appointment of the Contractor's Representativeor appoint a replacement
(unlessthe Contractor's Representativeis unable to act as a result of death,
illness, disability or resignation, in which case his/her appointment shall be
deemed to have been revoked with immediate effect and the appointment
of a replacement shall be treated as a temporary appointment until the
Engineergives his/her consent to this replacement, or another replacement
is appointed, under this Sub-Clause).

The whole time of the Contractor's Representative shall be given to

directing the Contractor's performance of the Contract. The Contractor's
Representative shall act for and on behalf of the Contractor at all times
during the performance of the Contract, including issuing and receiving all
Notices and other communications under Sub-Clause 1.3 [Notices and
Other Communications] and for receiving instructions under Sub-Clause 3.5
[Engineer's Instructions].

The Contractor's Representative shall be based at the Site for the whole
time that the Works are being executed at the Site. If the Contractor's
Representativeis to be temporarily absent from the Site during the execution
of the Works, a suitable replacement shall be temporarily appointed, subject
to the Engineer'sprior consent.

The Contractor's Representative may delegate any powers, functions and

authority except:

General Conditions © FIDIC 2017

25
 {a) the authority to issue and receive Notices and other communications
under Sub-Clause 1.3 [Notices and Other Communications]; and
(b) the authority to receive instructions under Sub-Clause 3.5 [Engineer's
Instructions]),
to any suitably competent and experienced person and may at any time
revoke the delegation. Any delegation or revocation shall not take effect until
the Engineer has received a Notice from the Contractor's Representative,
LU
C..) naming the person, specifying the powers, functions and authority being
z<(
cs delegated or revoked, and stating the timing of the delegation or revocation.
s
G
All these persons shall be fluent in the language for communications defined
in Sub-Clause 1.4 [Law and Language].

4.4
[})

~ Contractor's
0
u. Documents 4.4.1 Preparation and Review

The Contractor's Documents shall comprise the documents:

(a) stated in the Specification;

(b) required to satisfy all permits, permssrons, licences and other
regulatory approvals which are the Contractor's responsibility under
Sub-Clause 1.13 [Compliance with Laws];
(c) described in Sub-Clause 4.4.2 [As-Built Records] and Sub-Clause
4.4.3 [Operation and Maintenance Manuals], where applicable; and
(d) required under sub-paragraph (a) of Sub-Clause 4.1 [Contractor's
General Obligations], where applicable.

Unless otherwise stated in the Specification, the Contractor's Documents

shall be written in the language for communications defined in Sub-Clause
1.4 [Law and Language].

The Contractor shall prepare all Contractor's Documents and the Employer's
Personnel shall have the right to inspect the preparation of all these
documents, wherever they are being prepared.

If the Specification or these Conditions specify that a Contractor's Document

is to be submitted to the Engineer for Review, it shall be submitted accordingly,
together with a Notice from the Contractor stating that the Contractor's
Document is ready for Review and that it complies with the Contract.

The Engineer shall, within 21 days after receiving the Contractor's Document
and this Notice from the Contractor, give a Notice to the Contractor:

(i) of No-objection (which may include comments concerning minor

matters which will not substantially affect the Works); or
(ii) that the Contractor's Document fails (to the extent stated) to comply
with the Contract, with reasons.

If the Engineer gives no Notice within this period of 21 days, the Engineer
shall be deemed to have given a Notice of No-objection to the Contractor's
Document.

After receiving a Notice under sub-paragraph (ii), above, the Contractor shall
revise the Contractor's Document and resubmit it to the Engineer for Review
in accordance with this Sub-Clause and the period of 21 days for Review
shall be calculated from the date that the Engineer receives it.

© FIDIC 2017 Conditions of Contract for Construction

26
 4.4.2 As-Built Records

If no as-built records to be prepared by the Contractor are stated in the

Specification, this Sub-Clause shall not apply.

The Contractor shall prepare, and keep up-to-date, a complete set of

"as-built" records of the execution of the Works, showing the exact as-built
locations, sizes and details of the work as executed by the Contractor. The w
o
format, referencing system, system of electronic storage and other relevant z
<1'
details of the as-built records shall be as stated in the Specification (if not n
stated, as acceptable to the Engineer).These records shall be kept on the
Site and shall be used exclusively for the purposes of this Sub-Clause.

The as-built records shall be submitted to the Engineer for Review, and
the Works shall not be considered to be completed for the purposes of (/)
taking-over under Sub-Clause 10.1 [Taking Over the Works and Sections] 2
a:
until the Engineer has given (or is deemed to have given) a Notice of f?
No-objection under sub-paragraph (i) of Sub-Clause 4.4.1 [Preparation and
Review].

The number of copies of as-built records to be submitted by the Contractor

under this Sub-Clause shall be as required under Sub-Clause 1.8 [Care and
Supply of Documents].

4.4.3 Operation and Maintenance Manuals

If no operation and maintenance manuals to be prepared by the Contractor

are stated in the Specification, this Sub-Clause shall not apply.

The Contractor shall prepare, and keep up-to-date, the operation and
maintenance manuals in the format and other relevant details as stated in
the Specification.

The operation and maintenance manuals shall be submitted to the Engineer

for Review, and the Works shall not be considered to be completed for the
purposes of taking-over under Sub-Clause 10.1 [Taking Over the Works and
Sections] until the Engineer has given (or is deemed to have given) a Notice
of No-objection under sub-paragraph (i) of Sub-Clause 4.4.1 [Preparation
and Review].

4.5
Training If no training of employees of the Employer(and/or other identified personnel)
by the Contractor is stated in the Specification, this Sub-Clause shall not
apply.

The Contractor shall carry out training of the Employer's employees (and/
or other personnel identified in the Specification) in the operation and
maintenance of the Works, and any other aspect of the Works, to the extent
stated in the Specification. The timing of the training shall be as stated in the
Specification (if not stated, as acceptable to the Employer). The Contractor
shall provide qualified and experienced training staff, training facilities and all
training materials as necessary and/or as stated in the Specification.

If the Specification specifies training which is to be carried out before taking

over, the Works shall not be considered to be completed for the purposes
of taking over under Sub-Clause 10.1 [Taking Over the Works and Sections]
until this training has been completed in accordance with the Specification.

© FIDIC 2017
General Conditions
27
4.6
Co-operation The Contractor shall, as stated in the Specification or as instructed by the
Engineer, co-operate with and allow appropriate opportunities for carrying
out work by:

(a) the Employer's Personnel;

{b) any other contractors employed by the Employer; and
(c) the personnel of any legally constituted public authorities and private
utility companies,
who may be employed in the carrying out, on or near the Site, of any work
not included in the Contract. Such appropriate opportunities may include
the use of Contractor's Equipment, Temporary Works, access arrangements
which are the responsibility of the Contractor, and/or other Contractor's
facilities or services on the Site.

The Contractor shall be responsible for the Contractor's construction

activities on the Site, and shall use all reasonable endeavours to co-ordinate
these activities with those of other contractors to the extent (if any) stated in
the Specification or as instructed by the Engineer.

If the Contractor suffers delay and/or incurs Cost as a result of an instruction

under this Sub-Clause, to the extent (if any) that co-operation, allowance
of opportunities and coordination was Unforeseeable having regard to
that stated in the Specification, the Contractor shall be entitled subject to
Sub-Clause 20.2 [Claims For Payment and/or EOT] to EOT and/or payment
of such Cost Plus Profit.

4.7
Setting Out The Contractor shall set out the Works in relation to the items of reference
under Sub-Clause 2.5 [Site Data and Items of Reference].

4.7.1 Accuracy

The Contractor shall:

(a) verify the accuracy of all these items of reference before they are used
for the Works;
{b) promptly deliver the results of each verification to the Engineer;
(c) rectify any error in the positions, levels, dimensions or alignment of the
Works; and
(d) be responsible for the correct positioning of all parts of the Works.

4.7.2 Errors

If the Contractor finds an error in any items of reference, the Contractor shall
give a I\Jotice to the Engineer describing it:

{a) within the period stated in the Contract Data (if not stated, 28 days)
calculated from the Commencement Date, if the items of reference
are specified on the Drawings and/or in the Specification; or
{b) as soon as practicable after receiving the items of reference, if they
are issued by the Engineer under Sub-Clause 2.5 [Site Data and Items
of Reference].

4. 7 .3 Agreement or Determination of rectification measures. delay and/or Cost

After receiving a Notice from the Contractor under Sub-Clause 4.7.2

© FIDIC 2017 Conditions of Cmtract for Construction

28
 [Errors], the Engineer shall proceed under Sub-Clause 3. 7 [Agreement or
Determination] to agree or determine:

(a) whether or not there is an error in the items of reference;

(b) whether or not (taking account of cost and time) an experienced
contractor exercising due care would have discovered such an error
• when examining the Site, the Drawings and the Specification
before submitting the Tender; or LU
(_)

• if the items of referenceare specified on the Drawings and/or in ~

Cl
the Specification and the Contractor's Notice is given after the ::::)
(fJ
expiry of the period stated in sub-paragraph (a) of Sub-Clause
4.7.2; and
(c) what measures(if any) the Contractor is required to take to rectify the
error
(and, for the purpose of Sub-Clause 3. 7 .3 [Time limits], the date the Engineer
receivesthe Contractor's Notice under Sub-Clause 4. 7.2 [Errors] shall be the o
IL

date of commencement of the time limit for agreement under Sub-Clause

3.7.3).

If, under sub-paragraph (b) above, an experienced contractor would not

have discovered the error:

(i) Sub-Clause 13.3.1 [Variation by Instruction] shall apply to the

measuresthat the Contractor is required to take (if any); and
(ii) if the Contractor suffers delay and/or incurs Cost as a result of the
error, the Contractor shall be entitled subject to Sub-Clause 20.2
[Claims For Payment and/or E07] to EOT and/or payment of such
Cost Plus Profit.

4.8
Health and Safety
Obligations The Contractor shall:

(a) comply with all applicable health and safety regulationsand Laws;
(b) comply with all applicable health and safety obligations specified in
the Contract;
(c) comply with all directives issued by the Contractor's health and
safety officer (appointed under Sub-Clause 6.7 [Health and Safety of
Personnem;
(d) take care of the health and safety of all persons entitled to be on the
Site and other places (if any) where the Works are being executed;
(e) keep the Site, Works (and the other places (if any) where the Works
are being executed) clear of unnecessaryobstruction so as to avoid
danger to these persons;
(f) provide fencing, lighting, safe access, guarding and watching of:
(i) the Works, until the Works are taken over under Clause 10
[Employer's Taking Over]; and
(ii) any part of the Works where the Contractor is executing
outstanding works or remedying any defects during the DNP;
and
(g) provide any TemporaryWorks (including roadways, footways, guards
and fences) which. may be necessary,because of the execution of the
Works, for the use and protection of the public and of owners and
occupiers of adjacent land and property.
Within 21 days of the Commencement Date and before commencing any

General Conditions © FIDIC 2017

29
 construction on the Site, the Contractor shall submit to the Engineer for
information a health and safety manual which has been specifically prepared
for the Works, the Site and other places (if any)where the Contractor intends
to execute the Works. This manual shall be in addition to any other similar
document required under applicable health and safety regulations and Laws.

The health and safety manual shall set out all the health and safety
requirements:

(i) stated in the Specification;

(ii) that comply with all the Contractor's health and safety obligations
under the Contract; and
(iii) that are necessary to effect and maintain a healthy and safe working
environment for all persons entitled to be on the Site and other places
(/) (if any) where the Works are being executed.
2
er: This manual shall be revised as necessary by the Contractor or the
0
LL
Contractor's health and safety officer, or at the reasonable request of the
Engineer. Each revision of the manual shall be submitted promptly to the
Engineer.

In addition to the reporting requirement of sub-paragraph (g) of Sub-Clause

4.20 [Progress Reports], the Contractor shallsubmit to the Engineerdetails of
any accident as soon as practicable after its occurrence and, in the case of an
accident causing serious injury or death, shall informthe Engineer immediately.

The Contractor shall, as stated in the Specification and as the Engineer may
reasonably require, maintain records and make reports (in compliance with
the applicable health and safety regulations and Laws) concerning the health
and safety of persons and any damage to property.

4.9
Quality Management and
Compliance Verification
Systems 4.9.1 Quality Management System

The Contractor shall prepare and implement a OM System to demonstrate

compliance with the requirements of the Contract. The QM System shall be
specifically prepared for the Works and submitted to the Engineer within 28
days of the Commencement Date. Thereafter, whenever the OM System is
updated or revised, a copy shall promptly be submitted to the Engineer.

The OM System shall be in accordance with the details stated in the

Specification (if any) and shall include the Contractor's procedures:

(a) to ensure that all Notices and other communications under Sub-Clause
1.3 [Notices and Other Communications], Contractor's Documents,
as-built records (if applicable}, operation and maintenance manuals
(if applicable}, and contemporary records can be traced, with full
certainty, to the Works, Goods, work, workmanship or test to which
they relate;
(b) to ensure proper coordination and management of interfaces between
the stages of execution of the Works, and between Subcontractors;
and
(c) for the submission of Contractor's Documents to the Engineer for
Review.

© FIDIC 2017 Conditions of Contract for Ccnstruction

30
 The Engineer may Review the QM System and may give a Notice to the
Contractor stating the extent to which it does not comply with the Contract.
Within 14 days after receiving this Notice, the Contractor shall revise the QM
System to rectify such non-compliance. If the Engineer does not give such
a Notice within 21 days of the date of submission of the QM System, the
Engineer shall be deemed to have given a I\Jotice of No-objection.

The Engineer may, at any time, give a Notice to the Contractor stating the LU

extent to which the Contractor is failing to correctly implement the QM S?

<f
System to the Contractor's activities under the Contract. After receiving this 0'·
5
Notice, the Contractor shall immediately remedy such failure. ('.)

The Contractor shall carry out internal audits of the QM System regularly, and
at least once every 6 months. The Contractor shall submit to the Engineer
a report listing the results of each internal audit within 7 days of completion.
~2
Each report shall include, where appropriate, the proposed measures to 2.
a:
improve and/or rectify the QM System and/or its implementation. 0
LL ..

If the Contractor is required by the Contractor's quality assurance certification

to be subject to external audit, the Contractor shall immediately give a Notice
to the Engineer describing any failing(s) identified in any external audit. If the
Contractor is a JV, this obligation shall apply to each member of the JV.

4.9.2 Compliance Verification System

The Contractor shall prepare and implement a Compliance Verification

System to demonstrate that the design (if any), Materials, Employer-Sup-
plied Materials (if any), Plant, work and workmanship comply in all respects
with the Contract.

The Compliance Verification System shall be in accordance with the details

stated in the Specification (if any) and shall include a method for reporting the
results of all inspections and tests carried out by the Contractor. In the event
that any inspection or test identifies a non-compliance with the Contract.
Sub-Clause 7 .5 [Defects and Rejection] shall apply.

The Contractor shall prepare and submit to the Engineer a complete set
of compliance verification documentation for the Works or Section (as the
case may be), fully compiled and collated in the manner described in the
Specification or, if not so described, in a manner acceptable to the Engineer.

4.9.3 General provision

Compliance with the QM System and/or Compliance Verification System

shall not relieve the Contractor from any duty, obligation or responsibility
under or in connection with the Contract.

4.10
Use of Site Data The Contractor shall be responsible for interpreting all data referred to under
Sub-Clause 2.5 [Site Data and Items of Reference].

To the extent which was practicable (taking account of cost and time), the
Contractor shall be deemed to have obtained all necessary information as to
risks, contingencies and other circumstances which may influence or affect the
Tender or Works. To the same extent, the Contractor shall be deemed to have
inspected and examined the Site, access to the Site, its surroundings, the above
data and other available information, and to have been satisfied before submitting
the Tender as to all matters relevant to the execution of the Works, including:

General Conditions © FIDIC 2017

31
 (a) the form and nature of the Site, including sub-surface conditions;
(b) the hydrological and climatic conditions, and the effects of climatic
conditions at the Site;
(c) the extent and nature of the work and Goods necessary for the
execution of the Works;
(d) the Laws, procedures and labour practices of the Country; and
(e) the Contractor's requirements for access, accommodation, facilities,
personnel, power, transport, water and any other utilities or services.

4.11
Sufficiency of the
Accepted Contract Amount The Contractor shall be deemed to:

(;') (a) have satisfied himself/herself as to the correctness and sufficiency of

el0 the Accepted Contract Amount; and
LL (b) have based the Accepted Contract Amount on the data, interpretations,
necessary information, inspections, examinations and satisfaction as to
all relevant matters described in Sub-Clause 4.10 [Use of Site Data].
Unless otherwise stated in the Contract, the Accepted Contract Amount
shall be deemed to cover all the Contractor's obligations under the Contract
and all things necessaryfor the proper execution of the Works in accordance
with the Contract.

4.12
Unforeseeable Physical
Conditions In this Sub-Clause, "physical conditions" means natural physical conditions
and physical obstructions (natural or man-made) and pollutants, which the
Contractor encounters at the Site during execution of the Works, including
sub-surface and hydrological conditions but excluding climatic conditions at
the Site and the effects of those climatic conditions.

If the Contractor encounters physical conditions which the Contractor

considers to have been Unforeseeableand that will have an adverse effect
on the progress and/or increase the Cost of the execution of the Works, the
following procedure shall apply:

4.12.1 Contractor's Notice

After discovery of such physical conditions, the Contractor shall give a

Notice to the Engineer,which shall:

(a) be given as soon as practicable and in good time to give the Engineer
opportunity to inspect and investigatethe physicalconditions promptly
and before they are disturbed;
(b) describe the physical conditions, so that they can be inspected and/
or investigated promptly by the Engineer;
(c) set out the reasons why the Contractor considers the physical
conditions to be Unforeseeable;and
(d) describe the manner in which the physical conditions will have an
adverse effect on the progress and/or increase the Cost of the
execution of the Works.

4.12.2 Engineer'sinspection and investigation

The Engineer shall inspect and investigate the physical conditions within

© FIDIC 2017 Conditions of Contract for Coostruction

32
 7 days, or a longer period agreed with the Contractor, after receiving the
Contractor's Notice.

The Contractor shall continue execution of the Works, using such proper
and reasonable measures as are appropriate for the physical conditions and
to enable the Engineer to inspect and investigate them.

4.12.3 Engineer's instructions u:

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The Contractor shall comply with any instructions which the Engineer may 0.
5
give for dealing with the physical conditions and, if such an instruction o
constitutes a Variation, Sub-Clause 13.3.1 [Variation by Instruction] shall
apply.

4.12.4 Delay and/or Cost (/)

~
If and to the extent that the Contractor suffers delay and/or incurs Cost due 0
LL

to these physical conditions, having complied with Sub-Clauses 4.12.1 to

4.12.3 above, the Contractor shall be entitled subject to Sub-Clause 20.2
[Claims For Payment and/or EOT] to EOT and/or payment of such Cost.

4.12.5 Agreement or Determinationof Delay and/or Cost

The agreement or determination, under Sub-Clause 20.2.5 [Agreement or

determination of the Claim], of any Claim under Sub-Clause 4.12.4 [Delay
and/or Cost] shall include consideration of whether and (if so) to what extent
the physical conditions were Unforeseeable.

The Engineer may also review whether other physical conditions in similar
parts of the Works (if any) were more favourable than could reasonably
have been foreseen by the Base Date. If and to the extent that these more
favourable conditions were encountered, the Engineer may take account of
the reductions in Cost which were due to these conditions in calculating the
additional Cost to be agreed or determined under this Sub-Clause 4.12.5.
However,the net effect of all additions and reductions under this Sub-Clause
4.12.5 shall not result in a net reduction in the Contract Price.

The Engineer may take account of any evidence of the physical conditions
foreseen by the Contractor by the Base Date, which the Contractor may
include in the supporting particulars for the Claim under Sub-Clause 20.2.4
[Fully detailed Claim], but shall not be bound by any such evidence.

4.13 --·--··········-···--··-········--·---------

Rights of Way and Facilities The Contractor shall bear all costs and charges for special and/or temporary
rights-of-way which may be requiredfor the purposes of the Works, including
those for access to the Site.

The Contractor shall also obtain, at the Contractor's risk and cost, any
additional facilities outside the Site which may be required for the purposes
of the Works.

4.14 ·······························-··-·-·------

Avoidance of Interference The Contractor shall not interfereunnecessarilyor improperly with:

(a) the convenience of the public; or

(b) the access to and use and occupation of all roads and footpaths,
irrespective of whether they are public or in the possession of the
Employer or of others.

General Conditions © FIDIC 2017

33
 The Contractor shall indemnify and hold the Employer harmless against and
from all damages, losses and expenses (including legal fees and expenses)
resultingfrom any such unnecessaryor improper interference.

4.15
Access Route The Contractor shall be deemed to have been satisfied, at the Base Date,
as to the suitability and availability of the access routes to the Site. The
LU
(.)
Contractor shall take all necessary measures to prevent any road or bridge
z from being damaged by the Contractor's traffic or by the Contractor's
cs5 Personnel. These measures shall include the proper use of appropriate
o vehicles (conforming to legal load and width limits (if any) and any other
restrictions)and routes.

Except as otherwise stated in these Conditions:

U)

# (a) the Contractor shall (as between the Parties)be responsiblefor repair
0
LL of any damage caused to, and any maintenance which may be
required for the Contractor's use of, access routes;
(b) the Contractor shall provide all necessary signs or directions along
access routes, and shall obtain any permissions or permits which
may be requiredfrom the relevantauthorities, for the Contractor's use
of routes, signs and directions;
(c) the Employershall not be responsiblefor any third party claims which
may arise from the Contractor's use or otherwise of any access route;
(d) the Employer does not guarantee the suitability or availability of
particular access routes; and
(e) all Costs due to non-suitability or non-availability,for the use required
by the Contractor, of access routes shall be borne by the Contractor.

To the extent that non-suitability or non-availabilityof an access route arises

as a result of changes to that access route by the Employer or a third party
after the Base Date and as a resultthe Contractor suffersdelay and/or incurs
Cost, the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims
For Payment and/or E07] to EOT and/or payment of such Cost.

4.16
Transportof Goods The Contractor shall:

(a) give a Notice to the Engineer not less than 21 days before the date
on which any Plant, or a major item of other Goods (as stated in the
Specification),will be deliveredto the Site;
(b) be responsiblefor packing, loading,transporting, receiving,unloading,
storing and protecting all Goods and other things required for the
Works;
(c) be responsible for customs clearance, permits, fees and charges
related to the import, transport and handling of all Goods, including
all obligations necessaryfor their delivery to the Site; and
(d) indemnify and hold the Employer harmless against and from all
damages, losses and expenses (including legal fees and expenses)
resulting from the import, transport and handling of all Goods, and
shall negotiate and pay all third party claims arising from their import,
transport and handling.

4.17
Contractor'sEquipment The Contractor shall be responsible for all Contractor's Equipment. When
brouqnt on to the Site, Contractor's Equipment shall be deemed to be
exclusively intended for the execution of the Works. The Contractor shall

© FIDIC 2017 Conditions of Contract for Construction

34
 not remove from the Site any major items of Contractor's Equipment without
the Engineer's consent. However, consent shall not be required for vehicles
transporting Goods or Contractor's Personnel off Site.

In addition to any Notice given under Sub-Clause 4.16 [Transport of Goods],

the Contractor shall give a Notice to the Engineer of the date on which
any major item of Contractor's Equipment has been delivered to the Site.
This Notice shall be given within 7 days of the delivery date, shall identify
whether the item of Contractor's Equipment is owned by the Contractor or
a Subcontractor or another person and, if rented or leased, shall identify the
rental or leasing entity.

4.18
Protectionof
the Environment The Contractor shall take all necessary measuresto: (/)
L.
IT
0
(a) protect the environment {both on and off the Site); LL

{b) comply with the environmental impact statement for the Works (if
any); and
(c) limit damage and nuisance to people and property resulting from
pollution, noise and other results of the Contractor's operations and/
or activities.

The Contractor shall ensure that emissions, surface discharges, effluent and
any other pollutants from the Contractor's activities shall exceed neither the
values indicated in the Specification, nor those prescribed by applicable
Laws.

4.19
Temporary Utilities The Contractor shall, except as stated below, be responsible for the provision
of all temporary utilities,including electricity,gas, telecommunications,water
and any other services the Contractor may require for the execution of the
Works.

The following provisions of this Sub-Clause shall only apply if, as stated in
the Specification, the Employeris to provide utilitiesfor the Contractor's use.
The Contractor shall be entitled to use, for the purposes of the Works, the
utilitieson the Site for which details and prices are given in the Specification.
The Contractor shall, at the Contractor's risk and cost, provide any apparatus
necessary for the Contractor's use of these services and for measuring the
quantities consumed. The apparatus provided for measuring quantities
consumed shall be subject to the Engineer's consent. The quantities
consumed (if any) during each period of payment stated in the Contract
Data (if not stated, each month) shall be measured by the Contractor, and
the amount to be paid by the Contractor for such quantities (at the prices
stated in the Specification)shall be included in the relevantStatement.

4.20
Progress Reports Monthly progress reports, in the format stated in the Specification (if not
stated, in a format acceptable to the Engineer) shall be prepared by the
Contractor and submitted to the Engineer. Each progress report shall be
submitted in one paper-original, one electronic copy and additional paper
copies (if any) as stated in the Contract Data. The first report shall cover the
period up to the end of the first month following the Commencement Date.
Reports shall be submitted monthly thereafter,each within 7 days after the
last day of the month to which it relates.

© FIDIC 2017
General Conditions
35
 Reporting shall continue until the Date of Completion of the Works or, if
outstanding work is listed in the Taking-Over Certificate, the date on which
such outstanding work is completed. Unless otherwise stated in the
Specification, each progress report shall include:

(a) charts, diagrams and detailed descriptions of progress, including each

stage of (design by the Contractor, if any) Contractor's Documents,
procurement, manufacture, delivery to Site, construction, erection
l.LI
o and testing;
z
< (b) photographs and/or video recordings showing the status of
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0 manufacture and of progress on and off the Site;
(c) for the manufacture of each main item of Plant and Materials, the name
of the manufacturer, manufacture location, percentage progress, and
the actual or expected dates of:
VJ (i) commencement of manufacture,
2
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c5 (ii) Contractor's inspections,
LL
(iii) tests, and
(iv) shipment and arrival at the Site;
(d) the details described in Sub-Clause 6.10 [Contractor's Records];
(e) copies of quality management documents, inspection reports,
test results, and compliance verification documentation (including
certificates of Materials);
(n a list of Variations, and any Notices given (by either Party) under
Sub-Clause 20.2.1 [Notice of Claim];
(g) health and safety statistics, including details of any hazardous
incidents and activities relating to environmental aspects and public
relations; and
(h) comparisons of actual and planned progress, with details of any
events or circumstances which may adversely affect the completion
of the Works in accordance with the Programme and the Time for
Completion, and the measures being (or to be) adopted to overcome
delays.

However, nothing stated in any progress report shall constitute a Notice

under a Sub-Clause of these Conditions.

4.21
Security of the Site The Contractor shall be responsible for the security of the Site, and:

(a) for keeping unauthorised persons off the Site; and

(b) authorised persons shall be limited to the Contractor's Personnel,
the Employer's Personnel, and to any other personnel identified as
authorised personnel (including the Employer's other contractors
on the Site), by a Notice from the Employer or the Engineer to the
Contractor.

4.22
Contractor'sOperations
on Site The Contractor shall confine the Contractor's operations to the Site, and
to any additional areas which may be obtained by the Contractor and
acknowledged by the Engineer as working areas. The Contractor shall take
all necessary precautions to keep Contractor's Equipment and Contractor's
Personnel within the Site and these additional areas, and to keep them off
adjacent land.

Conditions of Contract for Construction

36 © FIDIC 2017
 At all times, the Contractor shall keep the Site free from all unnecessary
obstruction, and shall properly store or removefrom the Site any Contractor's
Equipment (subject to 4.17 [Contractor's Equipment]) and/or surplus
materials. The Contractor shall promptly clear away and remove from the
Site any wreckage, rubbish, hazardous waste and TemporaryWorks which
are no longer required.

Promptly after the issue of a Taking-Over Certificate, the Contractor shall w

0
clear away and remove, from that part of the Site and Works to which the z
Taking-OverCertificate refers, all Contractor's Equipment, surplus material, c5
wreckage, rubbish, hazardous waste and TemporaryWorks. The Contractor
shall leave that part of the Site and the Works in a clean and safe condition.
However, the Contractor may retain at locations on the Site agreed with the
Engineer,during the DNP, such Goods as are required for the Contractor to
fulfil obligations under the Contract. (/)
2
a:
4.23 0
LL.

Archaeological and
Geological Findings All fossils, coins, articles of value or antiquity, and structures and other
remains or items of geological or archaeological interest found on the Site
shall be placed under the care and authority of the Employer.The Contractor
shall take all reasonable precautions to prevent Contractor's Personnel or
other persons from removing or damaging any of these findings.

The Contractor shall, as soon as practicable after discovery of any such

finding, give a Notice to the Engineer in good time to give the Engineer
opportunity to promptly inspect and/or investigate the finding before it is
disturbed. This Notice shall describe the finding and the Engineershall issue
instructions for dealing with it.

If the Contractor suffers delay and/or incurs Cost from complying with the
Engineer'sinstructions,the Contractor shall be entitled subject to Sub-Clause
20.2 [Claims For Payment and/or E07] to EOT and/or payment of such
Cost.

5.1
Subcontractors The Contractor shall not subcontract:

(a) works with a total accumulated value greater than the percentage
of the Accepted Contract Amount stated in the Contract Data (if not
stated, the whole of the Works); or
{b} any part of the Works for which subcontracting is not permitted as
stated in the Contract Data.
The Contractor shall be responsible for the work of all Subcontractors, for
managing and coordinating all the Subcontractors' works, and for the acts
or defaults of any Subcontractor, any Subcontractor's agents or employees,
as if they were the acts or defaults of the Contractor.

The Contractor shall obtain the Engineer's prior consent to all proposed
Subcontractors, except:

(i) suppliers of Materials; or

(ii) a subcontract for which the Subcontractor is named in the
Contract.

General Conditions © FIDIC 2017

37
 Where the Contractor is required to obtain the Engineer's consent to a
proposed Subcontractor, the Contractor shall submit the name, address,
detailed particularsand relevantexperienceof such a Subcontractor and the
work intended to be subcontracted to the Engineer and further information
which the Engineer may reasonably require. If the Engineer does not
respond within 14 days after receivingthis submission (or further information
if requested), by giving a Notice objecting to the proposed Subcontractor,
the Engineershall be deemed to have given his/her consent.

The Contractor shall give a Notice to the Engineer not less than 28 days
~
l .. j before the intended date of the commencement of each Subcontractor's
work, and of the commencement of such work on the Site.

5.2
Nominated
Subcontractors 5.2.1 Definition of "nominated Subcontractor"

In this Sub-Clause, "nominated Subcontractor" means a Subcontractor

named as such in the Specification or whom the Engineer, under
Sub-Clause 13.4 [Provisional Sums], instructs the Contractor to employ as
a Subcontractor.

5.2.2 Objection to Nomination

The Contractor shall not be under any obligation to employ a nominated

Subcontractor whom the Engineer instructs and against whom the
Contractor raises reasonable objection by giving a Notice to the Engineer,
with detailed supporting particulars, no later than 14 days after receiving the
Engineer'sinstruction. An objection shall be deemed reasonable if it arises
from (among other things) any of the following matters, unless the Employer
agrees to indemnify the Contractor against and from the consequences of
the matter:

(a) there are reasons to believe that the Subcontractor does not have
sufficient competence, resources or financial strength;
(b) the subcontract does not specify that the nominated Subcontractor
shall indemnify the Contractor against and from any negligence or
misuse of Goods by the nominated Subcontractor, the nominated
Subcontractor's agents and employees; or
(c) the subcontract does not specify that, for the subcontracted work
(includingdesign, if any), the nominated Subcontractor shall:
(i) undertake to the Contractor such obligations and liabilities
as will enable the Contractor to discharge the Contractor's
corresponding obligations and liabilities under the Contract, and
(ii) indemnify the Contractor against and from all obligations and
liabilities arising under or in connection with the Contract and
from the consequences of any failure by the Subcontractor to
perform these obligations or to fulfil these liabilities.

5.2.3 Payments to nominated Subcontractors

The Contractor shall pay to the nominated Subcontractor the amounts due
in accordance with the subcontract. These amounts plus other charges shall
be included in the Contract Price in accordance with sub-paragraph (b) of
Sub-Clause 13.4 [Provisional Sums], except as stated in Sub-Clause 5.2.4
[Evidence of Payments].

© FJDIC 2017 Conditions of Contract for Construction

38
 5.2.4 Evidenceof Payments

Before issuing a Payment Certificate which includes an amount payable to

a nominated Subcontractor, the Engineer may request the Contractor to
supply reasonableevidence that the nominated Subcontractor has received
all amounts due in accordance with the previous Payment Certificates, less
applicable deductions for retention or otherwise. Unless the Contractor:
ur
(a) submits this reasonableevidence to the Engineer,or ')

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(b) (i) satisfies the Engineerin writing that the Contractor is reasonably 0

entitled to withhold or refuse to pay these amounts, and

(ii) submits to the Engineerreasonableevidence that the nominated
Subcontractor has been notified of the Contractor's entitlement,
then the Employer may (at the Employer'ssole discretion)pay, directly to the
(!)
nominated Subcontractor, part or all of such amounts previously certified :?.
(less applicable deductions) as are due to the nominated Subcontractor o::
0
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and for which the Contractor has failed to submit the evidence described in
sub-paragraphs (a) or (b) above.

Thereafter, the Engineer shall give a Notice to the Contractor stating the
amount paid directly to the nominated Subcontractor by the Employer and,
in the next IPC after this Notice, shall include this amount as a deduction
under sub-paragraph (b) of Sub-Clause 14.6.1 [The !PC].

nd Labour
6.1
Engagement of
Staff and Labour Except as otherwise stated in the Specification, the Contractor shall make
arrangementsfor the engagement of all Contractor's Personnel,and for their
payment, accommodation, feeding, transport and welfare.

6.2
Rates of Wages and
Conditions of Labour The Contractor shall pay rates of wages, and observe conditions of labour,
which comply with all applicable Laws and are not lower than those
established for the trade or industry where the work is carried out.

If no established rates or conditions are applicable, the Contractor shall pay

rates of wages and observe conditions which are not lower than the general
level of wages and conditions observed locally by employers whose trade or
industry is similar to that of the Contractor.

6.3
Recruitment of Persons The Contractor shall not recruit, or attempt to recruit, staff and labour from
amongst the Employer's Personnel.

Neitherthe Employernor the Engineershall recruit, or attempt to recruit, staff

and labour from amongst the Contractor's Personnel.

6.4
Labour Laws The Contractor shall comply with all the relevant labour Laws applicable
to the Contractor's Personnel, including Laws relating to their employment
(including wages and working hours), health, safety, welfare, immigration
and emigration, and shall allow them all their legal rights.

General Conditions © FIDIC 2017

39
 The Contractor shall require the Contractor's Personnel to obey all applicable
Laws, including those concerning health and safety at work.

6.5
Working Hours No work shall be carried out on the Site on locally recognised days of rest,
or outside the normal working hours stated in the Contract Data, unless:

l.LI (a) otherwise stated in the Contract;

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(b) the Engineer gives consent; or
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o
(c) the work is unavoidable or necessary for the protection of life or
property or for the safety of the Works, in which case the Contractor
shall immediately give a Notice to the Engineer with reasons and
describing the work required.

6.6
Facilities for
Staff and labour Except as otherwise stated in the Specification, the Contractor shall provide
and maintain all necessary accommodation and welfare facilities for the
Contractor's Personnel.

If such accommodation and facilities are to be located on the Site, except where
the Employer has given the Contractor prior permission, they shall be located
within the areas identified in the Contract. If any such accommodation or
facilities are found elsewhere within the Site, the Contractor shall immediately
remove them at the Contractor's risk and cost. The Contractor shall also
provide facilities for the Employer's Personnel as stated in the Specification.

6.7
Health and Safety
of Personnel In addition to the requirements of Sub-Clause 4.8 [Health and Safety
Obligations].the Contractor shall at all times take all necessary precautions to
maintain the health and safety of the Contractor's Personnel. In collaboration
with local health authorities, the Contractor shall ensure that:

(a) medical staff, first aid facilities, sick bay, ambulance services and any
other medical services stated in the Specification are available at all
times at the Site and at any accommodation for Contractor's and
Employer's Personnel; and
(b) suitable arrangements are made for all necessary welfare and hygiene
requirements and for the prevention of epidemics.

The Contractor shall appoint a health and safety officer at the Site, responsible
for maintaining health, safety and protection against accidents. This officer shall:

(i) be qualified, experienced and competent for this responsibility; and

(ii) have the authority to issue directives for the purpose of maintaining
the health and safety of all personnel authorised to enter and/or work
on the Site and to take protective measures to prevent accidents.

Throughout the execution of the Works, the Contractor shall provide whatever
is required by this person to exercise this responsibility and authority.

6.8
Contractor's
Superintendence From the Commencement Date until the issue of the Performance Certificate,
the Contractor shall provide all necessary superintendence to plan, arrange,
direct, manage, inspect, test and monitor the execution of the Works.

© FIDIC 2017 Conditions of Contract for Construction

40
 Superintendence shall be given by a sufficient number of persons:

(a) who are fluent in or have adequate knowledge of the language for
communications (defined in Sub-Clause 1.4 [Law and Language]);
and
(b) who have adequate knowledge of the operations to be carried out
(including the methods and techniques required, the hazards likely to
be encountered and methods of preventing accidents), UJ
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for the satisfactory and safe execution of the Works. <.'J.'..
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6.9
Contractor's Personnel The Contractor's Personnel (including Key Personnel, if any) shall be
appropriatelyqualified, skilled, experiencedand competent in their respective
trades or occupations.
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2
a:
The Engineermay requirethe Contractor to remove(or cause to be removed) &.?.
any person employed on the Site or Works, including the Contractor's
Representativeand Key Personnel (if any), who:

(a) persists in any misconduct or lack of care;

(b) carries out duties incompetently or negligently;
(c) fails to comply with any provision of the Contract;
(d) persists in any conduct which is prejudicial to safety, health, or the
protection of the environment;
(e) is found, based on reasonableevidence, to have engaged in corrupt,
fraudulent, collusive or coercive practice; or
(t) has been recruited from the Employer's Personnel in breach of
Sub-Clause 6.3 [Recruitment of Persons].

If appropriate, the Contractor shall then promptly appoint (or cause to

be appointed) a suitable replacement. In the case of replacement of the
Contractor's Representative, Sub-Clause 4.3 [Contractor's Representative]
shall apply. In the case of replacement of Key Personnel(if any), Sub-Clause
6.12 [Key Personne~ shall apply.

6.10
Contractor's Records Unless otherwise proposed by the Contractor and agreed by the Engineer,
in each progress report under Sub-Clause 4.20 [Progress Reports], the
Contractor shall include records of:

(a) occupations and actual working hours of each class of Contractor's

Personnel;
(b) the type and actual working hours of each of the Contractor's
Equipment;
(c) the types of TemporaryWorks used;
(d) the types of Plant installed in the Permanent Works; and
(e) the quantities and types of Materials used
for each work activity shown in the Programme, at each work location and
for each day of work.

6.11
Disorderly Conduct The Contractor shall at all times take all necessary precautions to prevent
any unlawful, riotous or disorderly conduct by or amongst the Contractor's
Personnel, and to preserve peace and protection of persons and property
on and near the Site.

General Conditions © FIDIC 2017

41
 6.12
Key Personnel If no Key Personnel are stated in the Specification this Sub-Clause shall not
apply.

The Contractor shall appoint the natural persons named in the Tenderto the
positions of Key Personnel. If not so named, or if an appointed person fails
to act in the relevant position of Key Personnel,the Contractor shall submit
U..1
to the Engineerfor consent the name and particulars of another person the
o Contractor proposes to appoint to such position. If consent is withheld or
z
~ subsequently revoked, the Contractor shall similarly submit the name and
s
0 particulars of a suitable replacement for such position.

If the Engineer does not respond within 14 days after receiving any such
submission, by giving a Notice stating his/her objection to the appointment
of such person (or replacement)with reasons,the Engineershall be deemed
to have given his/her consent.

The Contractor shall not, without the Engineer's prior consent, revoke the
appointment of any of the Key Personnel or appoint a replacement (unless
the person is unableto act as a resultof death, illness,disabilityor resignation,
in which case the appointment shall be deemed to have been revoked with
immediate effect and the appointment of a replacement shall be treated as
a temporary appointment until the Engineer gives his/her consent to this
replacement, or another replacement is appointed, under this Sub-Clause).

All Key Personnel shall be based at the Site {or, where Works are being
executed off the Site, at the location of the Works) for the whole time that the
Works are being executed. If any of the Key Personnel is to be temporarily
absent during execution of the Works, a suitable replacement shall be
temporarily appointed, subject to the Engineer'sprior consent.

All Key Personnelshall be fluent in the languagefor communications defined

in Sub-Clause 1.4 [Law and Language].

, Materials and Workmanship

7.1
Manner
of Execution The Contractor shall carry out the manufacture, supply, installation, testing
and commissioning and/or repair of Plant, the production, manufacture,
supply and testing of Materials,and all other operations and activities during
the execution of the Works:

(a) in the manner (if any) specified in the Contract;

(b) in a proper workmanlike and careful manner, in accordance with
recognised good practice; and
(c) with properly equipped facilitiesand non-hazardous Materials, except
as otherwise specified in the Contract.

7.2
Samples The Contractor shall submit the following samples of Materials,and relevant
information, to the Engineerfor consent prior to using the Materials in or for
the Works:

(a) manufacturer'sstandard samples of Materialsand samples specified

in the Contract, all at the Contractor's cost, and

© FIDIC 2017 Conditions of Contract for Construction

42
 (b) additional samples instructed by the Engineer as a Variation.

Each sample shall be labelled as to origin and intended use in the Works.

7.3
inspection The Employer's Personnel shall, during all the normal working hours stated
in the Contract Data and at all other reasonable times:
ui
o
(a) have full access to all parts of the Site and to all places from which z
natural Materials are being obtained; (.~
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(b) during production, manufacture and construction (at the Site and
elsewhere), be entitled to:
(i) examine, inspect, measure and test (to the extent stated in the
Specification) the Materials, Plant and workmanship,
(ii) check the progress of manufacture of Plant and production and
manufacture of Materials, and
(iii) make records (including photographs and/or video recordings);
and
(c) carry out other duties and inspections, as specified in these Conditions
and the Specification.

The Contractor shall give the Employer's Personnel full opportunity to carry
out these activities, including providing safe access, facilities, permissions
and safety equipment.

The Contractor shall give a Notice to the Engineer whenever any Materials,
Plant or work is ready for inspection, and before it is to be covered up, put
out of sight, or packaged for storage or transport. The Employer's Personnel
shall then either carry out the examination, inspection, measurement or
testing without unreasonable delay, or the Engineer shall promptly give a
Notice to the Contractor that the Employer's Personnel do not require to do
so. If the Engineer gives no such Notice and/or the Employer's Personnel do
not attend at the time stated in the Contractor's Notice (or such time as may
be agreed with the Contractor), the Contractor may proceed with covering
up, putting out of sight or packaging for storage or transport.

If the Contractor fails to give a Notice in accordance with this Sub-Clause,

the Contractor shall, if and when required by the Engineer, uncover the work
and thereafter reinstate and make good, all at the Contractor's risk and cost.

7.4 ---·····---·~~·---~·-···-~·-·····--···--···---··-··----····---········--·······~-··--

Testing by the Contractor This Sub-Clause shall apply to all tests specified in the Contract, other than
the Tests after Completion (if any).

The Contractor shall provide all apparatus, assistance, documents and

other information, temporary supplies of electricity and water, equipment,
fuel, consumables, instruments, labour, materials, and suitably qualified,
experienced and competent staff, as are necessary to carry out the specified
tests efficiently and properly. All apparatus, equipment and instruments shall
be calibrated in accordance with the standards stated in the Specification or
defined by applicable Laws and, if requested by the Engineer, the Contractor
shall submit calibration certificates before carrying out testing.

The Contractor shall give a Notice to the Engineer, stating the time and place
for the specified testing of any Plant, Materials and other parts of the Works.
This Notice shall be given in reasonable time, having regard to the location
of the testing, for the Employer's Personnel to attend.

General Conditions © FIDIC 2017

43
 The Engineer may, under Clause 13 [Variations and Adjustments], vary the
location or timing or details of specified tests, or instruct the Contractor
to carry out additional tests. If these varied or additional tests show that
the tested Plant, Materials or workmanship is not in accordance with the
Contract, the Cost and any delay incurred in carrying out this Variationshall
be borne by the Contractor.

The Engineer shall give a Notice to the Contractor of not less than 72 hours
of his/her intention to attend the tests. If the Engineer does not attend at
the time and place stated in the Contractor's Notice under this Sub-Clause,
the Contractor may proceed with the tests, unless otherwise instructed
by the Engineer. These tests shall then be deemed to have been made in
the Engineer's presence. If the Contractor suffers delay and/or incurs Cost
from complying with any such instruction or as a result of a delay for which
the Employer is responsible, the Contractor shall be entitled subject to
~ Sub-Clause 20.2 [Claims For Payment and/or EOT] to EOT and/or payment
CT:
()
LL
of Cost Plus Profit.

If the Contractor causes any delay to specified tests (including varied or

additional tests) and such delay causes the Employer to incur costs, the
Employer shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or EOT] to payment of these costs by the Contractor.

The Contractor shall promptly forward to the Engineerduly certified reports

of the tests. When the specified tests have been passed, the Engineershall
endorse the Contractor's test certificate, or issue a test certificate to the
Contractor, to that effect. If the Engineer has not attended the tests, he/she
shall be deemed to have accepted the readings as accurate.

Sub-Clause 7.5 [Defects and Rejection] shall apply in the event that any
Plant, Materials and other parts of the Works fails to pass a specified test.

7.5
Defects and Rejection If, as a result of an examination, inspection, measurement or testing, any
Plant, Materials, Contractor's design (if any) or workmanship is found to be
defective or otherwise not in accordance with the Contract, the Engineer
shall give a Notice to the Contractor describing the item of Plant, Materials,
design or workmanship that has been found to be defective. The Contractor
shall then promptly prepare and submit a proposal for necessary remedial
work.

The Engineer may Review this proposal, and may give a Notice to the
Contractor stating the extent to which the proposed work, if carried out,
would not result in the Plant, Materials, Contractor's design (if any) or
workmanship complying with the Contract. After receivingsuch a Notice the
Contractor shall promptly submit a revised proposal to the Engineer.If the
Engineergives no such Notice within 14 days after receivingthe Contractor's
proposal (or revised proposal), the Engineershall be deemed to have given
a Notice of No-objection.

If the Contractor fails to promptly submit a proposal (or revised proposal) for
remedialwork, or fails to carry out the proposed remedialwork to which the
Engineer has given (or is deemed to have given) a Notice of No-objection,
the Engineer may:

(a) instruct the Contractor under sub-paragraph (a) and/or (b) of

Sub-Clause 7.6 [Remedial Work]; or
(b) reject the Plant, Materials,Contractor's design (if any) or workmanship

© FIDIC 2017 Conditions of Contract for Construction

44
 by giving a Notice to the Contractor, with reasons, in which case
sub-paragraph (a) of Sub-Clause 11.4 [Failure to Remedy Defects]
shall apply.

After remedyingdefects in any Plant,Materials,design (if any) or workmanship,

if the Engineer requires any such items to be retested, the tests shall be
repeated in accordance with Sub-Clause 7.4 [Testing by the Contractor]
at the Contractor's risk and cost. If the rejection and retesting cause the w
()
Employer to incur additional costs, the Employer shall be entitled subject
:;f
to Sub-Clause 20.2 [Claims For Payment and/or EOT] to payment of these Cl
costs by the Contractor.
s
o

7.6
Remedial Work In addition to any previous examination,inspection, measurementor testing,
or test certificate or Notice of No-objection by the Engineer, at any time o:
before the issue of the Taking-OverCertificate for the Works the Engineer ~
0
may instruct the Contractor to: u,

(a) repair or remedy (if necessary,off the Site), or remove from the Site
and replace any Plant or Materials which are not in accordance with
the Contract;
{b) repair or remedy, or remove and re-execute, any other work which is
not in accordance with the Contract; and
(c) carry out any remedial work which is urgently required for the safety
of the Works, whether because of an accident. unforeseeableevent
or otherwise.

The Contractor shall comply with the instruction as soon as practicable and
not later than the time (if any) specified in the instruction, or immediately if
urgency is specified under sub-paragraph (c) above.

The Contractor shall bear the cost of all remedial work required under this
Sub-Clause, except to the extent that any work under sub-paragraph (c)
above is attributable to:

(i) any act by the Employer or the Employer's Personnel. If the

Contractor suffers delay and/or incurs Cost in carrying out such work,
the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims
For Payment and/or EOT] to EOT and/or payment of such Cost Plus
Profit; or
(ii) an ExceptionalEvent, in which case Sub-Clause 18.4 [Consequences
of an Exceptional Event] shall apply.

If the Contractor fails to comply with the Engineer'sinstruction, the Employer

may (at the Employer's sole discretion) employ and pay other persons to
carry out the work. Except to the extent that the Contractor would have
been entitled to payment for work under this Sub-Clause, the Employer
shall be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or
EOT] to payment by the Contractor of all costs arising from this failure.This
entitlement shall be without prejudice to any other rights the Employer may
have, under the Contract or otherwise.

7.7
Ownership of Plant
and Materials Each item of Plant and Materials shall, to the extent consistent with the
mandatory requirementsof the Laws of the Country, become the property of
the Employerat whichever is the earlierof the following times, free from liens
and other encumbrances:

GeneralConditions © FIDIC 2017

45
 (a) when it is delivered to the Site;
(b) when the Contractor is paid the value of the Plant and Materials under
Sub-Clause 8.11 [Payment for Plant and Materials after Employer's
Suspension]; or
(c) when the Contractor is paid the amount determined for the Plant and
Materialsunder Sub-Clause 14.5 [Plant and Materials intended for the
Works].

7.8
Royalties Unless otherwise stated in the Specification, the Contractor shall pay all
royalties, rents and other payments for:

(a) natural Materials obtained from outside the Site, and

(b) the disposal of materialfrom demolitions and excavationsand of other
(/)
surplus material (whether natural or man-made), except to the extent
~
0 that disposal areas within the Site are stated in the Specification.
u..

c encement, Delays and Suspension

8.1
Commencement of Works The Engineer shall give a Notice to the Contractor stating the Commencement
Date, not less than 14 days before the Commencement Date. Unless
otherwise stated in the ParticularConditions, the Commencement Date shall
be within 42 days after the Contractor receives the Letter of Acceptance.

The Contractor shall commence the execution of the Works on, or as soon
as is reasonably practicable after, the Commencement Date and shall then
proceed with the Works with due expedition and without delay.

8.2
Time for Completion The Contractor shall completethe whole of the Works, and each Section (if any),
within the Time for Completion for the Works or Section (as the case may be),
includingcompletionof all work which is stated in the Contract as being required
for the Works or Section to be considered to be completed for the purposes of
taking over under Sub-Clause 10.1 [Taking Over the Works and Sections].

8.3
Programme The Contractor shall submit an initial programme for the execution of the
Works to the Engineer within 28 days after receiving the Notice under
Sub-Clause 8.1 [Commencement of Works]. This programme shall be
prepared using programming software stated in the Specification (if not
stated, the programming software acceptable to the Engineer). The
Contractor shall also submit a revised programme which accurately reflects
the actual progress of the Works, whenever any programme ceases to
reflect actual progress or is otherwise inconsistent with the Contractor's
obligations.

The initial programme and each revised programme shall be submitted to

the Engineer in one paper copy, one electronic copy and additional paper
copies (if any) as stated in the Contract Data, and shall include:

(a) the Commencement Date and the Time for Completion, of the Works
and of each Section (if any);
(b) the date right of access to and possession of (each part of) the Site
is to be given to the Contractor in accordance with the time (or times)

©FIDIC2017 Conditions of Contract for Construction

46
 stated in the Contract Data. If not so stated, the dates the Contractor
requires the Employer to give right of access to and possession of
(each part of) the Site;
(c) the order in which the Contractor intends to carry out the Works,
including the anticipated timing of each stage of design (if any),
preparation and submission of Contractor's Documents, procurement,
manufacture, inspection, delivery to Site, construction, erection,
installation, work to be undertaken by any nominated Subcontractor
(as defined in Sub-Clause 5.2 [Nominated Subcontractors]) and testing;
(d) the Review periods for any submissions stated in the Specification or
required under these Conditions;
(e) the sequence and timing of inspections and tests specified in, or
required by, the Contract;
(f) for a revised programme: the sequence and timing of the remedial
(/)
work (if any) to which the Engineer has given a Notice of No-objection 'S

under Sub-Clause 7.5 [Defects and Rejection] and/or the remedial

a:
,·i
li.
work (if any) instructed under Sub-Clause 7.6 [Remedial Work];
(g) all activities (to the level of detail stated in the Specification), logically
linked and showing the earliest and latest start and finish dates for
each activity, the float (if any), and the critical path(s);
(h) the dates of all locally recognised days of rest and holiday periods (if
any);
(i) all key delivery dates of Plant and Materials;
0) for a revised programme and for each activity: the actual progress
to date, any delay to such progress and the effects of such delay on
other activities (if any); and
(k) a supporting report which includes:
(i) a description of all the major stages of the execution of the
Works;
(ii) a general description of the methods which the Contractor
intends to adopt in the execution of the Works;
(iii) details showing the Contractor's reasonable estimate of the
number of each class of Contractor's Personnel, and of each
type of Contractor's Equipment, required on the Site, for each
major stage of the execution of the Works;
(iv) if a revised programme, identification of any significant change(s)
to the previous programme submitted by the Contractor; and
(v) the Contractor's proposals to overcome the effects of any delay(s)
on progress of the Works.

The Engineer shall Review the initial programme and each revised programme
submitted by the Contractor and may give a Notice to the Contractor stating
the extent to which it does not comply with the Contract or ceases to reflect
actual progress or is otherwise inconsistent with the Contractor's obligations.
If the Engineer gives no such Notice:

- within 21 days after receiving the initial programme; or

- within 14 days after receiving a revised programme
the Engineer shall be deemed to have given a Notice of I\Jo-objection and
the initial programme or revised programme (as the case may be) shall be
the Programme.

The Contractor shall proceed in accordance with the Programme, subject to the
Contractor's other obligations under the Contract. The Employer's Personnel
shall be entitled to rely on the Programme when planning their activities.

General Conditions © FIDIC 2017

47
 Nothing in any programme, the Programme or any supporting report shall be
taken as, or relieve the Contractor of any obligation to give, a Notice under
the Contract.

If, at any time, the Engineer gives a Notice to the Contractor that the Programme
fails (to the extent stated) to comply with the Contract or ceases to reflect
actual progress or is otherwise inconsistent with the Contractor's obligations,
the Contractor shall within 14 days after receiving this Notice submit a revised
programme to the Engineer in accordance with this Sub-Clause.

8.4
Advance Warning Each Party shall advise the other and the Engineer, and the Engineer shall
advise the Parties, in advance of any known or probable future events or
circumstances which may:

(a) adversely affect the work of the Contractor's Personnel;

(b) adversely affect the performance of the Works when completed;
(c) increase the Contract Price; and/or
(d) delay the execution of the Works or a Section (if any).

The Engineer may request the Contractor to submit a proposal under

Sub-Clause 13.3.2 [Variation by Request tor Proposa~ to avoid or minimise
the effects of such event(s) or circumstance(s).

8.5
Extension of Time
for Completion The Contractor shall be entitled subject to Sub-Clause 20.2 [Claims
For Payment and/or E07] to Extension of Time if and to the extent that
completion for the purposes of Sub-Clause 10.1 [Taking Over the Works and
Sections] is or will be delayed by any of the following causes:

(a) a Variation (except that there shall be no requirement to comply with

Sub-Clause 20.2 [Claims For Payment and/or E07]);
(b) a cause of delay giving an entitlement to EOT under a Sub-Clause 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 climatic data made
available by the Employer under Sub-Clause 2.5 [Site Data and Items
of Reference] and/or climatic data published in the Country for the
geographical location of the Site;
(d) Unforeseeable shortages in the availability of personnel or Goods
(or Employer-Supplied Materials, if any) caused by epidemic or
governmental actions; or
(e) any delay, impediment or prevention caused by or attributable to
the Employer, the Employer's Personnel, or the Employer's other
contractors on the Site.

The Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or E07] to EOT if the measured quantity of any item of work in accordance
with Clause 12 [Measurement and Valuation] is greater than the estimated
quantity of this item in the Bill of Quantities or other Schedule by more than ten
per cent (10%) and such increase in quantities causes a delay to completion
for the purposes of Sub-Clause 10.1 [Tahng Over the Works and Sections].
The agreement or determination of any such Claim, under Sub-Clause 20.2.5
fAgreement or determination of the Claim], may include a review by the Engineer
of measured quantities of other items of work which are significantly less (by

© FIDIC 2017 Conditions of Contract for Construction

48
 more than 10%) than the corresponding estimated quantities in the Bill of
Quantities or other Schedule. To the extent that there are such lesser measured
quantities, the Engineer may take account of any favourable effect on the critical
path of the Programme. However, the net effect of all such consideration shall
not result in a net reduction in the Time for Completion

When determining each EOT under Sub-Clause 20.2 [Claims For Payment
and/or EOT], the Engineer shall review previous determinations under
Sub-Clause 3. 7 [Agreement or Determination] and may increase, but shall
not decrease, the total EOT.

If a delay caused by a matter which is the Employer's responsibility

is concurrent with a delay caused by a matter which is the Contractor's
responsibility, the Contractor's entitlement to EOT shall be assessed in
accordance with the rules and procedures stated in the Special Provisions(if
not stated, as appropriate taking due regard of all relevantcircumstances).

8.6
Delays Caused
by Authorities If:

(a) the Contractor has diligentlyfollowed the procedures laid down by the
relevantlegallyconstituted public authorities or private utility entities in
the Country;
(b) these authorities or entities delay or disrupt the Contractor's work;
and
(c) the delay or disruption was Unforeseeable,
then this delay or disruption will be considered as a cause of delay under
sub-paragraph (b) of Sub-Clause 8.5 [Extension of Time tor Completion].

8.7
Rate of Progress If, at any time:

(a) actual progress is too slow to complete the Works or a Section (if any)
within the relevantTime for Completion; and/or
(b) progress has fallen (or will fall) behind the Programme (or the initial
programme if it has not yet become the Programme)under Sub-Clause
8.3 [Programme],
other than as a result of a cause listed in Sub-Clause 8.5 [Extension of Time
tor Completion], then the Engineer may instruct the Contractor to submit,
under Sub-Clause 8.3 [Programme], a revised programme describing
the revised methods which the Contractor proposes to adopt in order to
expedite progress and complete the Works or a Section (if any) within the
relevantTime for Completion.

Unless the Engineergives a Notice to the Contractor stating otherwise, the

Contractor shall adopt these revised methods, which may require increases
in the working hours and/or in the numbers of Contractor's Personneland/or
the Goods, at the Contractor's risk and cost. If these revised methods cause
the Employerto incur additional costs, the Employershall be entitled subject
to Sub-Clause 20.2 [Claims For Payment and/or EOT] to payment of these
costs by the Contractor, in addition to Delay Damages (if any).

Sub-Clause 13.3.1 [Variation by Instruction] shall apply to revised methods,

including acceleration measures, instructed by the Engineer to reduce
delays resultingfrom causes listed under Sub-Clause 8.5 [Extension of Time
tor Completion].

General Conditions © FIDIC 2017

49
 8.8
Delay Damages If the Contractor fails to comply with Sub-Clause 8.2 [Time for Completion],
the Employer shall be entitled subject to Sub-Clause 20.2 [Claims For
Payment and/or E07] to payment of Delay Damages by the Contractor for
this default. Delay Damages shall be the amount stated in the Contract Data,
which shall be paid for every day which shall elapse between the relevant
Time for Completion and the relevant Date of Completion of the Works or
Section. The total amount due under this Sub-Clause shall not exceed the
maximum amount of Delay Damages (if any) stated in the Contract Data.

These Delay Damagesshall be the only damages due from the Contractor for
the Contractor's failureto comply with Sub-Clause 8.2 [Timefor Completion],
other than in the event of termination under Sub-Clause 15.2 [Termination for
Contractor's Default] before completion of the Works. These Delay Damages
shall not relieve the Contractor from the obligation to complete the Works,
or from any other duties, obligations or responsibilitieswhich the Contractor
6
LL
may have under or in connection with the Contract.

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.

8.9
Employer's Suspension The Engineer may at any time instruct the Contractor to suspend progress
of part or all of the Works, which instruction shall state the date and cause
of the suspension.

During such suspension,the Contractorshall protect,storeand securesuch part

or all of the Works(as the case may be) againstany deterioration,lossor damage.

To the extent that the cause of such suspension is the responsibilityof the
Contractor, Sub-Clauses 8.10 [Consequences of Employer's Suspension],
8.11 [Payment for Plant and Materials after Employer's Suspension] and
8.12 [Prolonged Suspension J shall not apply.

8.10
Consequences of
Employer's Suspension If the Contractor suffers delay and/or incurs Cost from complying with an
Engineer'sinstruction under Sub-Clause 8.9 [Employer's Suspension] and/
or from resuming the work under Sub-Clause 8.13 [Resumption of Work],
the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For
Payment and/or E07] to EOT and/or payment of such Cost Plus Profit.

The Contractor shall not be entitled to EOT, or to payment of the Cost

incurred, in making good:

(a) the consequences of the Contractor's faulty or defective (design, if

any) workmanship, Plant or Materials; and/or
(b) any deterioration, loss or damage caused by the Contractor's failure
to protect, store or secure in accordance with Sub-Clause 8.9
[Employer's Suspension J.
8.11
Payment for Plant and Materials
after Employer's Suspension The Contractor shall be entitled to payment of the value (as at the date of
suspension instructed under Sub-Clause 8.9 [Employer's Suspension]) of
Plant and/or Materials which have not been delivered to Site, if:

©FIDIC2017 Conditions of Contract for Construction

50
 (a) the work on Plant, or delivery of Plant and/or Materials, has been
suspended for more than 28 days and
{i) the Plant and/or Materials were scheduled, in accordance with
the Programme, to have been completed and ready for delivery
to the Site during the suspension period; and
(ii) the Contractor provides the Engineer with reasonable evidence
that the Plant and/or Materials comply with the Contract; and
{b} the Contractor has marked the Plant and/or Materials as the
Employer's property in accordance with the Engineer's instructions.
: :J
CJ
8.12
Prolonged Suspension If the suspension under Sub-Clause 8.9 [Employer's Suspension] has
continued for more than 84 days, the Contractor may give a Notice to the
Engineerrequesting permission to proceed.

If the Engineer does not give a Notice under Sub-Clause 8.13 [Resumption
of Work] within 28 days after receiving the Contractor's Notice under this
Sub-Clause, the Contractor may either:

(a) agree to a further suspension, in which case the Parties may agree
the EOT and/or Cost Plus Profit (if the Contractor incurs Cost), and/or
payment for suspended Plant and/or Materials, arising from the total
period of suspension;
or (and if the Parties fail to reach agreement under this sub-paragraph (a))

(b) after giving a (second) Notice to the Engineer,treat the suspension

as an omission of the affected part of the Works (as if it had been
instructed under Sub-Clause 13.3.1 [Variation by Instruction])
with immediate effect including release from any further obligation
to protect, store and secure under Sub-Clause 8.9 [Employer's
Suspension]. If the suspension affects the whole of the Works, the
Contractor may give a Notice of termination under Sub-Clause 16.2
[Termination by Contractor].

8.13
Resumptionof Work The Contractor shall resume work as soon as practicable after receiving a
Notice from the Engineerto proceed with the suspended work.

At the time stated in this Notice (if not stated, immediatelyafter the Contractor
receives this Notice), the Contractor and the Engineer shall jointly examine
the Works and the Plant and Materials affected by the suspension. The
Engineer shall record any deterioration, loss, damage or defect in the Works
or Plant or Materials which has occurred during the suspension and shall
provide this record to the Contractor. The Contractor shall promptly make
good all such deterioration, loss, damage or defect so that the Works, when
completed, shall comply with the Contract.

n Completion
9.1
Contractor's Obligations The Contractor shall carry out the Tests on Completion in accordance with
this Clause and Sub-Clause 7.4 [Testing by the Contractor], after submitting
the documents under Sub-Clause 4.4.2 f:A.s-Built Records] (if applicable)
and Sub-Clause 4.4.3 [Operation and Maintenance Manuals] (if applicable).

General Conditions © FIDIC 2017

51
 The Contractor shall submit to the Engineer,not less than 42 days before
the date the Contractor intends to commence the Tests on Completion,
a detailed test programme showing the intended timing and resources
requiredfor these tests.

The Engineer may Review the proposed test programme and may give a
Notice to the Contractor stating the extent to which it does not comply with
LLI
the Contract. Within 14 days after receivingthis Notice, the Contractor shall
,,
\..)
.. revise the test programme to rectify such non-compliance. If the Engineer
4
r.:J gives no such Notice within 14 days after receiving the test programme (or
5 revised test programme), the Engineer shall be deemed to have given a
(')
Notice of No-objection. The Contractor shall not commence the Tests on
Completion until a Notice of No-objection is given (or is deemed to have
been given) by the Engineer.

In addition to any date(s) shown in the test programme, the Contractor shall
give a Notice to the Engineer,of not less than 21 days, of the date after which
the Contractor will be ready to carry out each of the Tests on Completion.
The Contractor shall commence the Tests on Completion within 14 days
after this date, or on such day or days as the Engineer shall instruct, and
shall proceed in accordance with the Contractor's test programme to which
the Engineerhas given (or is deemed to have given)a Notice of No-objection.

As soon as the Works or Section have, in the Contractor's opinion, passed

the Tests on Completion, the Contractor shall submit a certified report of
the results of these tests to the Engineer.The Engineer shall Review such a
report and may give a Notice to the Contractor stating the extent to which
the results of the tests do not comply with the Contract. If the Engineerdoes
not give such a Notice within 14 days after receiving the results of the tests,
the Engineershall be deemed to have given a Notice of No-objection.

In considering the results of the Tests on Completion, the Engineer shall

make allowances for the effect of any use of (any part of) the Works by the
Employer on the performance or other characteristics of the Works.

9.2
Delayed Tests If the Contractor has given a Notice under Sub-Clause 9.1 [Contractor's
Obligations] that the Works or Section (as the case may be) are ready for
Tests on Completion, and these tests are unduly delayed by the Employer's
Personnelor by a cause for which the Employer is responsible, Sub-Clause
10.3 [Interferencewith Tests on Completion] shall apply.

If the Testson Completion are undulydelayed by the Contractor, the Engineer

may by giving a Notice to the Contractor require the Contractor to carry
out the tests within 21 days after receiving the Notice. The Contractor shall
carry out the tests on such day or days within this period of 21 days as the
Contractor may fix, for which the Contractor shall give a prior Notice to the
Engineerof not less than 7 days.

If the Contractor fails to carry out the Tests on Completion within this period
of 21 days:

(a) after a second Notice is given by the Engineer to the Contractor, the
Employer'sPersonnel may proceed with the tests;
(b) the Contractor may attend and witness these tests;
(c) within 28 days of these tests being completed, the Engineer shall
send a copy of the test results to the Contractor; and

52 © FIDIC 2017 Conditions of Contract for Construction

 (d) if the Employer incurs additional costs as a result of such testing,
the Employer shall be entitled subject to Sub-Clause 20.2 [Claims
For Payment and/or EOT] to payment by the Contractor of the costs
reasonablyincurred.

Whether or not the Contractor attends, these Tests on Completion shall be

deemed to have been carried out in the presence of the Contractor and the
results of these tests shall be accepted as accurate. U.J
0
z
9.3 (3
Retesting If the Works, or a Section, fail to pass the Tests on Completion, Sub-Clause
7.5 [Defects and Rejection] shall apply. The Engineeror the Contractor may
requirethese failed tests, and the Tests on Completion on any related work,
to be repeated under the same terms and conditions. Such repeated tests
shall be treated as Tests on Completion for the purposes of this Clause. o:
~
LL..
()
9.4 U...

Failure to Pass Tests

on Completion If the Works, or a Section, fail to pass the Tests on Completion repeated
under Sub-Clause 9.3 [Retesting], the Engineershall be entitled to:

(a) order further repetition of Tests on Completion under Sub-Clause 9.3

[Retesting];
(b) reject the Works if the effect of the failure is to deprive the Employerof
substantiallythe whole benefitof the Works in which eventthe Employer
shall have the same remedies as are provided in sub-paragraph (d) of
Sub-Clause 11.4 [Failure to Remedy Defects];
(c) reject the Section if the effect of the failure is that the Section cannot
be used for its intended purpose(s) under the Contract, in which
event the Employer shall have the same remedy as is provided in
sub-paragraph (c) of Sub-Clause 11.4 [Failure to Remedy Defects]; or
(d) issue a Taking-OverCertificate, if the Employer so requests.

In the event of sub-paragraph (d) above, the Contractor shall then proceed in
accordance with all other obligations under the Contract, and the Employer
shall be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or
EOT] to payment by the Contractor or a reduction in the Contract Price as
described under sub-paragraph (b) of Sub-Clause 11 .4 [Failure to Remedy
Defects], respectively. This entitlement shall be without prejudice to any
other rights the Employer may have, under the Contract or otherwise.

10.1
Taking Over the
Works and Sections Except as stated in Sub-Clause 9.4 [Failure to Pass Tests on Completion],
Sub-Clause 10.2 [Taking Over Parts] and Sub-Clause 10.3 [Interference with
Tests on Completion], the Works shall be taken over by the Employerwhen:

(a) the Works have been completed in accordance with the Contract,
including the passing of the Tests on Completion and except as
allowed in sub-paragraph (i) below;
(b) if applicable, the Engineer has given (or is deemed to have given)
a Notice of No-objection to the as-built records submitted under
Sub-Clause 4.4.2 [As-Built Records];

General Conditions © FIDIC 2017

53
 (c) if applicable, the Engineer has given (or is deemed to have given) a
Notice of No-objection to the operation and maintenance manuals
under Sub-Clause 4.4.3 [Operation and Maintenance Manuals];
(d) if applicable, the Contractor has carried out the training as described
under Sub-Clause 4.5 [Training]; and
(e) a Taking-Over Certificate for the Works has been issued, or is deemed
to have been issued in accordance with this Sub-Clause.
The Contractor may apply for a Taking-Over Certificate by giving a Notice to
the Engineer not more than 14 days before the Works will, in the Contractor's
opinion, be complete and ready for taking over. If the Works are divided into
Sections, the Contractor may similarly apply for a Taking-Over Certificate for
each Section.

If any Part of the Works is taken over under Sub-Clause 10.2 [Taking Over
~ Parts], the remaining Works or Section shall not be taken over until the
6
u..
conditions described in sub-paragraphs (a) to (e) above (where applicable)
have been fulfilled.

The Engineer shall, within 28 days after receiving the Contractor's Notice,
either:

(i) issue the Taking-Over Certificate to the Contractor, stating the date
on which the Works or Section were completed in accordance with
the Contract, except for any minor outstanding work and defects (as
listed in the Taking-Over Certificate) which will not substantially affect
the safe use of the Works or Section for their intended purpose (either
until or whilst this work is completed and these defects are remedied);
or
(ii) reject the application by giving a Notice to the Contractor, with
reasons. This I\Jotice shall specify the work required to be done, the
defects required to be remedied and/or the documents required to
be submitted by the Contractor to enable the Taking-Over Certificate
to be issued. The Contractor shall then complete this work, remedy
such defects and/or submit such documents before giving a further
Notice under this Sub-Clause.

If the Engineer does not issue the Taking-Over Certificate or reject the
Contractor's application within this period of 28 days, and if the conditions
described in sub-paragraphs (a) to (d) above (where applicable) have been
fulfilled, the Works or Section shall be deemed to have been completed
in accordance with the Contract on the fourteenth day after the Engineer
receives the Contractor's Notice of application and the Taking-Over
Certificate shall be deemed to have been issued.

10.2
Taking Over Parts The Engineer may, at the sole discretion of the Employer, issue a Taking-Over
Certificate for any part of the Permanent Works.

The Employer shall not use any part of the Works (other than as a temporary
measure, which is either stated in the Specification or with the prior
agreement of the Contractor) unless and until the Engineer has issued a
Taking-Over Certificate for this part. However, if the Employer does use any
part of the Works before the Taking-Over Certificate is issued the Contractor
shall give a Notice to the Engineer identifying such part and describing such
use, and:

(a) that Part shall be deemed to have been taken over by the Employer
as from the date on which it is used;

© FIDIC2017 Conditions of Contract for Construction

54
 (b) the Contractor shall cease to be liable for the care of such Part as
from this date, when responsibility shall pass to the Employer; and
(c) the Engineer shall immediately issue a Taking-Over Certificate for this
Part, and any outstanding work to be completed (including Tests
on Completion) and/or defects to be remedied shall be listed in this
certificate.

After the Engineer has issued a Taking-Over Certificate for a Part, the UJ
(_ _,,
'
Contractor shall be given the earliest opportunity to take such steps as z
<{
G
may be necessary to carry out the outstanding work (including Tests on :::)
Completion) and/or remedial work for any defects listed in the certificate. (D

The Contractor shall carry out these works as soon as practicable and, in
any case, before the expiry date of the relevant DNP.

If the Contractor incurs Cost as a result of the Employer taking over and/
or using a Part, the Contractor shall be entitled subject to Sub-Clause 20.2
[Claims For Payment and/or E01] to payment of such Cost Plus Profit.

If the Engineer issues a Taking-OverCertificate for any part of the Works, or

if the Employeris deemed to have taken over a Part under sub-paragraph (a)
above, for any period of delay after the date under sub-paragraph (a) above,
the Delay Damages for completion of the remainder of the Works shall be
reduced. Similarly,the Delay Damages for the remainder of the Section (if
any) in which this Part is included shall also be reduced. This reduction
shall be calculated as the proportion which the value of the Part (except
the value of any outstanding works and/or defects to be remedied) bears
to the value of the Works or Section (as the case may be) as a whole. The
Engineershall proceed under Sub-Clause 3.7 [Agreement or Determination]
to agree or determine this reduction (and for the purpose of Sub-Clause
3.7.3 [Time limits], the date the Engineer receives the Contractor's Notice
under this Sub-Clause shall be the date of commencement of the time limit
for agreement under Sub-Clause 3.7.3). The provisions of this paragraph
shall only apply to the daily rate of Delay Damages, and shall not affect the
maximum amount of these damages.

10.3
Interferencewith
Tests on Completion If the Contractor is prevented, for more than 14 days (either a continuous
period, or multiple periods which total more than 14 days), from carrying
out the Tests on Completion by the Employer's Personnel or by a cause for
which the Employer is responsible:

(a) the Contractor shall give a Notice to the Engineer describing such
prevention;
(b) the Employershall be deemed to havetaken over the Works or Section
(as the case may be) on the date when the Tests on Completion would
otherwise have been completed; and
(c) the Engineershall immediately issue a Taking-Over Certificate for the
Works or Section (as the case may be).

After the Engineer has issued this Taking-Over Certificate, the Contractor
shall carry out the Tests on Completion as soon as practicable and, in any
case, before the expiry date of the DNP. The Engineer shall give a Notice to
the Contractor,of not less than 14 days, of the date after which the Contractor
may carry out each of the Tests on Completion. Thereafter,Sub-Clause 9.1
[Contractor's Obligations] shall apply.

General Conditions © FIDIC 2017

55
 If the Contractor suffers delay and/or incurs Cost as a result of being
prevented from carrying out the Tests on Completion, the Contractor shall
be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or E07] to
EOT and/or payment of such Cost Plus Profit.

10.4
Surfaces Requiring
Except as otherwise stated in the Taking-OverCertificate, a certificate for a
JI:
Reinstatement
",_,
z
<l'. Section or Part of the Works shall not be deemed to certify completion of
[j
5 any ground or other surfaces requiring reinstatement.
CJ

fter Taking Over

fj)
~ 11.1
()
LL Completion of Outstanding Work
and Remedying Defects In order that the Works and Contractor's Documents, and each Section and/
or Part, shall be in the condition required by the Contract (fair wear and tear
excepted) by the expiry date of the relevant Defects Notification Period or as
soon as practicable thereafter,the Contractor shall:

(a) complete any work which is outstanding on the relevant Date of

Completion, within the time(s) stated in the Taking-Over Certificate or
such other reasonable time as is instructed by the Engineer; and
(b) execute all work required to remedy defects or damage, of which a
Notice is given to the Contractor by (or on behalf ot) the Employer on
or before the expiry date of the DNP for the Works or Section or Part
(as the case may be).

If a defect appears (including if the Works fail to pass the Tests after
Completion, if any) or damage occurs during the relevantDNP, a Notice shall
be given to the Contractor accordingly, by (or on behalf ot) the Employer.
Promptly thereafter:

(i) the Contractor and the Employer's Personnel shall jointly inspect the
defect or damage;
(ii) the Contractor shall then prepare and submit a proposal for necessary
remedial work; and
(iii) the second, third and fourth paragraphs of Sub-Clause 7.5 [Detects
and Rejection] shall apply.

11.2
Cost of Remedying
Defects All work under sub-paragraph (b) of Sub-Clause 11.1 [Completion of
Outstanding Work and Remedying Detects] shall be executed at the risk and
cost of the Contractor, if and to the extent that the work is attributable to:

(a) design (if any) of the Works for which the Contractor is responsible;
(b) Plant, Materials or workmanship not being in accordance with the
Contract;
(c) improper operation or maintenancewhich was attributable to matters
for which the Contractor is responsible (under Sub-Clauses 4.4.2
[As-Built Records], Sub-Clause 4.4.3 [Operation and Maintenance
Manuals] and/or Sub-Clause 4.5 [Training] (where applicable) or
otherwise); or

©FIDIC2017 Conditions of Contract for Construction

56
 (d) failure by the Contractor to comply with any other obligation under the
Contract.

If the Contractor considers that the work is attributable to any other cause,
the Contractor shall promptly give a Notice to the Engineerand the Engineer
shall proceed under Sub-Clause 3.7 [Agreement or Determination] to agree
or determine the cause (and, for the purpose of Sub-Clause 3.7.3 [Time
limits], the date of this Notice shall be the date of commencement of the time w
limit for agreement under Sub-Clause 3.7.3). If it is agreed or determined o
z
;);
that the work is attributable to a cause other than those listed above,
=.i
Sub-Clause 13.3.1 [Variation by Instruction] shall apply as if such work had (!)

been instructed by the Engineer.

11.3
Extension of Defects
Notification Period The Employer shall be entitled to an extension of the DNP for the Works, or
a Section or a Part:

(a) if and to the extent that the Works, Section, Part or a major item of
Plant (as the case may be, and after taking over) cannot be used for
the intended purpose(s) by reason of a defect or damage which is
attributable to any of the matters under sub-paragraphs (a) to (d) of
Sub-Clause 11.2 [Cost of Remedying Defects]; and
(b) subject to Sub-Clause 20.2 [Claims For Payment and/or EOT].

However, a DNP shall not be extended by more than a period of two years
after the expiry of the DNP stated in the Contract Data.

If delivery and/or erection of Plant and/or Materials was suspended under

Sub-Clause 8.9 [Employer's Suspension] (other than where the cause of
such suspension is the responsibilityof the Contractor) or Sub-Clause 16.1
[Suspension by Contractor], the Contractor's obligations under this Clause
shall not apply to any defects or damage occurring more than two years
after the DNP for the Works, of which the Plant and/or Materialsform part,
would otherwise have expired.

11.4
Failure to Remedy Defects If the remedyingof any defect or damage under Sub-Clause 11 .1 [Completion
of Outstanding Works and Remedying Defects] is unduly delayed by the
Contractor, a date may be fixed by (or on behalf of) the Employer,on or by
which the defect or damage is to be remedied. A Notice of this fixed date
shall be given to the Contractor by (or on behalf of) the Employer, which
Notice shall allow the Contractor reasonable time (taking due regard of all
relevant circumstances) to remedy the defect or damage.

If the Contractor fails to remedy the defect or damage by the date stated
in this Notice and this remedial work was to be executed at the cost of
the Contractor under Sub-Clause 11.2 [Cost of Remedying Defects], the
Employer may (at the Employer's sole discretion):

(a) carry out the work or have the work carried out by others (including
any retesting), in the manner required under the Contract and at the
Contractor's cost, but the Contractor shall have no responsibilityfor
this work. The Employer shall be entitled subject to Sub-Clause 20.2
[Claims For Payment and/or EQT] to payment by the Contractor of the
costs reasonablyincurred by the Employer in remedyingthe defect or
damage;

General Conditions © FIDIC 2017

57
 (b) accept the damaged or defective work, in which case the Employer
shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or EOT] to a reduction in the Contract Price. The reduction shall
be in full satisfaction of this failure only and shall be in the amount as
shall be appropriate to cover the reduced value to the Employer as a
result of this failure;
(c) require the Engineer to treat any part of the Works which cannot be
LLI used for its intended purpose(s) under the Contract by reason of this
()
z failure as an omission, as if such omission had been instructed under
(S Sub-Clause 13.3.1 [Variation by Instruction]; or
5
0 (d) terminate the Contract as a whole with immediate effect (and
Sub-Clause 15.2 [Termination for Contractor's Default] shall not apply)
if the defect or damage deprives the Employer of substantially the
whole benefit of the Works. The Employer shallthen be entitled subject
(!) to Sub-Clause 20.2 [Claims For Payment and/or EOT] to recover from
cf
0
the Contractor all sums paid for the Works, plus financing charges
LL and any costs incurred in dismantling the same, clearing the Site and
returning Plant and Materials to the Contractor.

The exercise of discretion by the Employer under sub-paragraph (c) or (d)

above shall be without prejudice to any other rights the Employer may have,
under the Contract or otherwise.

11.5 ----~····-·······----·

Remedying of Defective
Work off Site If, during the DNP, the Contractor considers that any defect or damage in
any Plant cannot be remedied expeditiouslyon the Site the Contractor shall
give a Notice, with reasons, to the Employer requesting consent to remove
the defective or damaged Plant off the Site for the purposes of repair. This
Notice shall clearly identify each item of defective or damaged Plant, and
shall give details of:

(a) the defect or damage to be repaired;

(b) the place to which defective or damaged Plant is to be taken for
repair;
(c) the transportation to be used (and insurance cover for such
transportation);
(d) the proposed inspections and testing off the Site;
(e) the planned duration required before the repaired Plant shall be
returned to the Site; and
(n the planned duration for reinstallation and retesting of the repaired
Plant (under Sub-Clause 7.4 [Testing by the Contractor] and/or
Clause 9 [Tests on Completion] if applicable).

The Contractor shall also provide any further details that the Employer may
reasonably require.

When the Employer gives consent (which consent shall not relieve the
Contractor from any obligation or responsibility under this Clause), the
Contractor may remove from the Site such items of Plant as are defective
or damaged. As a condition of this consent, the Employer may require the
Contractor to increase the amount of the Performance Security by the full
replacement cost of the defective or damaged Plant.

©FIDIC 2017 Conditions of Contract for Construction

58
11.6
Further Tests after
Remedying Defects Within 7 days of completion of the work of remedying of any defect or
damage, the Contractor shall give a Notice to the Engineer describing the
remedied Works, Section, Part and/or Plant and the proposed repeated
tests (under Clause 9 [Tests on Completion]). Within 7 days after receiving
this Notice, the Engineershall give a Notice to the Contractor either:
UJ
(a) agreeing with such proposed testing; or 0
~
(b) instructing the repeated tests that are necessary to demonstrate 0
_,
that the remedied Works, Section, Part and/or Plant comply with the e_9
Contract.

If the Contractor failsto give such a Notice within the 7 days, the Engineermay
give a Notice to the Contractor,within 14 days after the defect or damage is
remedied, instructing the repeated tests that are necessaryto demonstrate
that the remediedWorks, Section, Part and/or Plantcomply with the Contract.

All repeated tests under this Sub-Clause shall be carried out in accordance
with the terms applicable to the previous tests, except that they shall be
carried out at the risk and cost of the Party liable, under Sub-Clause 11.2
[Cost of Remedying Defects]. for the cost of the remedialwork.

11.7
Right of Access
after Taking Over Until the date 28 days after issue of the Performance Certificate, the
Contractor shall have the right of access to the Works as is reasonably
required in order to comply with this Clause, except as may be inconsistent
with the Employer'sreasonablesecurity restrictions.

Wheneverthe Contractor intends to access any part of the Works during the
relevant DNP:

(a) the Contractor shall request access by giving a Notice to the Employer,
describing the parts of the Works to be accessed, the reasonsfor such
access, and the Contractor's preferred date for access. This Notice
shall be given in reasonabletime in advance of the preferred date for
access, taking due regard of all relevant circumstances including the
Employer'ssecurity restrictions; and
(b) within 7 days after receiving the Contractor's Notice, the Employer
shall give a Notice to the Contractor either:
(i) stating the Employer'sconsent to the Contractor's request; or
(ii) proposing reasonable alternative date(s), with reasons. If the
Employerfails to give this Notice within the 7 days, the Employer
shall be deemed to have given consent to the Contractor's
access on the preferred date stated in the Contractor's Notice.

If the Contractor incurs additional Cost as a result of any unreasonabledelay

by the Employer in permitting access to the Works by the Contractor, the
Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or E071 to payment of any such Cost Plus Profit.

11.8
Contractor to Search The Contractor shall, if instructed by the Engineer,search for the cause of
any defect, under the direction of the Engineer.The Contractor shall carry
out the search on the date(s) stated in the Engineer's instruction or other
date(s) agreed with the Engineer.

GeneralConditions © FIDIC 2017

59
 Unless the defect is to be remedied at the cost of the Contractor under
Sub-Clause 11.2 [Cost of Remedying Defects], the Contractor shall be
entitled subject to Sub-Clause 20.2 [Claims For Payment and/or EQT] to
payment of the Cost Plus Profit of the search.

If the Contractor fails to carry out the search in accordance with this
Sub-Clause, the search may be carried out by the Employer's Personnel.
t.U The Contractor shall be given a Notice of the date when such a search will
(.)
·7
;::y
be carried out and the Contractor may attend at the Contractor's own cost. If
0 the defect is to be remedied at the cost of the Contractor under Sub-Clause
5 11.2 [Cost of Remedying Defects], the Employer shall be entitled subject
0
to Sub-Clause 20.2 [Claims For Payment and/or EOT] to payment by the
Contractor of the costs of the search reasonably incurred by the Employer.

11.9
Performance Certificate Performance of the Contractor's obligations under the Contract shall not
be considered to have been completed until the Engineer has issued the
Performance Certificate to the Contractor, stating the date on which the
Contractor fulfilled the Contractor's obligations under the Contract.

The Engineer shall issue the Performance Certificate to the Contractor (with
a copy to the Employer and to the DAAB) within 28 days after the latest of
the expiry dates of the Defects Notification Periods, or as soon thereafter as
the Contractor has:

(a) supplied all the Contractor's Documents; and

(b) completed and tested all the Works (includingremedyingany defects)
in accordance with the Contract.

If the Engineer fails to issue the Performance Certificate within this period of
28 days, the Performance Certificate shall be deemed to have been issued
on the date 28 days after the date on which it should have been issued, as
required by this Sub-Clause.

Only the Performance Certificate shall be deemed to constitute acceptance

of the Works.

11.10
Unfulfilled Obligations After the issue of the Performance Certificate, each Party shall remain liable
for the fulfilment of any obligation which remains unperformed at that time.
For the purposes of determining the nature and extent of unperformed
obligations, the Contract shall be deemed to remain in force.

However in relation to Plant, the Contractor shall not be liable for any defects
or damage occurring more than two years after expiry of the DNP for the
Plant except if prohibited by law or in any case of fraud, gross negligence,
deliberate default or reckless misconduct.

11.11
Clearance of Site Promptly after the issue of the Performance Certificate, the Contractor shall:

(a) remove any remaining Contractor's Equipment, surplus material,

wreckage, rubbish and Temporary Works from the Site;
(b) reinstate all parts of the Site which were affected by the Contractor's
activities during the execution of the Works and are not occupied by
the Permanent Works; and

© FIDIC 2017 Conditions of Contract for Construction

60
 (c) leavethe Site and the Works in the condition stated in the Specification
(if not stated, in a clean and safe condition).

If the Contractor fails to comply with sub-paragraphs (a), (b) and/or (c) above
within 28 days after the issue of the Performance Certificate, the Employer
may sell (to the extent permitted by applicable Laws) or otherwise dispose
of any remaining items and/or may reinstate and clean the Site (as may be
necessary)at the Contractor's cost.

The Employer shall be entitled subject to Sub-Clause 20.2 [Claims For

Payment and/or E071 to payment by the Contractor of the costs reasonably
incurred in connection with, or attributable to, such sale or disposal and
reinstating and/or cleaning the Site, less an amount equal to the moneys
from the sale (if any).
(!2
.2:_
a:
0
u,

ent and Valuation

12.1
Works to be Measured The Works shall be measured, and valued for payment, in accordance with
this Clause.

Whenever the Engineer requires any part of the Works to be measured on

Site, he/she shall give a Notice to the Contractor of not less than 7 days,
of the part to be measured and the date on which and place on Site at
which the measurement will be made. Unless otherwise agreed with the
Contractor, the measurement on Site shall be made on this date and the
Contractor's Representativeshall:

(a) either attend or send another qualified representative to assist the

Engineerand to endeavour to reach agreement of the measurement,
and
(b) supply any particulars requested by the Engineer.

If the Contractor fails to attend or send a representativeat the time and place
stated in the Engineer's Notice (or otherwise agreed with the Contractor),
the measurementmade by (or on behalf of) the Engineershall be deemed to
have been made in the Contractor's presence and the Contractor shall be
deemed to have accepted the measurementas accurate.

Any part of the Permanent Works that is to be measured from records

shall be identified in the Specification and, except as otherwise stated in
the Contract, such records shall be prepared by the Engineer. Whenever
the Engineer has prepared the records for such a part, he/she shall give a
Notice to the Contractor of not less than 7 days, stating the date on which
and place at which the Contractor's Representativeshall attend to examine
and agree the records with the Engineer.If the Contractor fails to attend or
send a representative at the time and place stated in the Engineer'sNotice
(or otherwise agreed with the Contractor), the Contractor shall be deemed
to have accepted the records as accurate.

If, for any part of the Works, the Contractor attends the measurement on
Site or examines the measurement records (as the case may be) but the
Engineer and the Contractor are unable to agree the measurement, then
the Contractor shall give a Notice to the Engineer setting out the reasons
why the Contractor considers the measurement on Site or records are
inaccurate. If the Contractor does not give such a Notice to the Engineer

General Conditions © FIDIC 2017

61
 within 14 days after attending the measurement on Site or examining the
measurement records, the Contractor shall be deemed to have accepted
the measurement as accurate.

After receiving a Contractor's Notice under this Sub-Clause, unless at

that time such measurement is already subject to the last paragraph of
Sub-Clause 13.3.1 [Variation by Instruction], the Engineershall:
U.J
o
z • proceed under Sub-Clause 3. 7 [Agreement or Determination] to
-r agree or determine the measurement;and
c
~ • for the purpose of Sub-Clause 3.7.3 [Time limits], the date on which
'-"
the Engineer receives the Contractor's Notice shall be the date of
commencement of the time limit for agreement under Sub-Clause
3.7.3.
("[)
2
CC
Until such time as the measurement is agreed or determined, the Engineer
0
LL
shall assess a provisionalmeasurementfor the purposes of Interim Payment
Certificates.

12.2
Method of Measurement The method of measurement shall be as stated in the Contract Data or, if
not so stated, that which shall be in accordance with the Bill of Quantities or
other applicable Schedule(s).

Except as otherwise stated in the Contract, measurement shall be made

of the net actual quantity of each item of the Permanent Works and no
allowance shall be made for bulking, shrinkage or waste.

12.3
Valuation of the Works Except as otherwise stated in the Contract, the Engineer shall value
each item of work by applying the measurement agreed or determined
in accordance with Sub-Clauses 12.1 [Works to be Measured] and 12.2
[Method of Measurement], and the appropriate rate or price for the item.

For each item of work, the appropriate rate or price for the item shall be the
rate or price specified for such item in the Bill of Quantitiesor other Schedule
or, if there is no such an item, specified for similar work.

Any item of work which is identified in the Bill of Quantitiesor other Schedule,
but for which no rate or price is specified, shall be deemed to be included in
other rates and prices in the Bill of Quantities or other Schedule(s).

A new rate or price shall be appropriate for an item of work if:

(a) the item is not identified in, and no rate or price for this item is
specified in, the Bill of Quantities or other Schedule and no specified
rate or price is appropriate because the item of work is not of similar
character, or is not executed under similar conditions, as any item in
the Contract;
(b) (i) the measured quantity of the item is changed by more than 10%
from the quantity of this item in the Bill of Quantities or other
Schedule,
(ii) this change in quantity multiplied by the rate or price specified
in the Bill of Quantities or other Schedule for this item exceeds
0.01% of the Accepted Contract Amount,
(iii) this change in quantity directly changes the Cost per unit quantity
of this item by more than 1 %, and

© FIDIC 2017 Conditions of Contract for Construction

62
 (iv) this item is not specified in the Bill of Quantitiesor other Schedule
as a "fixed rate item", "fixed charge" or similar term referringto a
rate or price which is not subject to adjustment for any change in
quantity; and/or
(c) the work is instructed under Clause 13 [Variationsand Adjustments]
and sub-paragraph (a) or (b) above applies.

Each new rate or price shall be derived from any relevant rates or prices
specified in the Bill of Quantities or other Schedule, with reasonable
adjustments to take account of the matters described in sub-paragraph (a),
(b) and/or (c), as applicable. If no specified rates or prices are relevantfor the
derivation of a new rate or price, it shall be derived from the reasonable Cost
of executing the work, together with the applicable percentage for profit
stated in the Contract Data (if not stated, five percent (5%)), taking account
of any other relevant matters.

If, for any item of work, the Engineerand the Contractor are unable to agree
the appropriate rate or price, then the Contractor shall give a Notice to
the Engineer setting out the reasons why the Contractor disagrees. After
receiving a Contractor's Notice under this Sub-Clause, unless at that time
such rate or price is already subject to the last paragraph of Sub-Clause
13.3.1 [Variation by Instruction], the Engineershall:

• proceed under Sub-Clause 3.7 [Agreement or Determination] to

agree or determine the appropriate rate or price; and
• for the purpose of Sub-Clause 3.7.3 [Time limits], the date on which
the Engineer receives the Contractor's Notice shall be the date of
commencement of the time limit for agreement under Sub-Clause
3.7.3.

Until such time as an appropriate rate or price is agreed or determined, the

Engineershall assess a provisional rate or price for the purposes of Interim
Payment Certificates.

12.4
Omissions Wheneverthe omission of any work forms part (or all) of a Variation;

(a) the value of which has not otherwise been agreed;

(b) the Contractor will incur (or has incurred) cost which, if the work had
not been omitted, would have been deemed to be covered by a sum
forming part of the Accepted Contract Amount;
(c) the omission of the work will result (or has resulted) in this sum not
forming part of the Contract Price; and
(d) this cost is not deemed to be included in the valuation of any
substituted work;
then the Contractor shall, in the Contractor's proposal under sub-paragraph
(c) of Sub-Clause 13.3.1 [Variation by Instruction], give details to the Engineer
accordingly, with detailed supporting particulars.

and Adjustments
13.1
Right to Vary Variationsmay be initiated by the Engineerunder Sub-Clause 13.3 [Variation
Procedure] at any time before the issue of the Taking-OverCertificate for the
Works.

General Coodltioos © FIDIC 2017

63
 Other than as stated under Sub-Clause 11.4 [Failure to Remedy Defects]. a
Variation shall not comprise the omission of any work which is to be carried
out by the Employer or by others unless otherwise agreed by the Parties.

The Contractor shall be bound by each Variationinstructed under Sub-Clause

13.3.1 [Variation by Instruction], and shall execute the Variation with due
expedition and without delay, unless the Contractor promptly gives a Notice
u: to the Engineer stating (with detailed supporting particulars)that:
(J
2:
4
g (a) the varied work was Unforeseeablehaving regard to the scope and
nature of the Works described in the Specification;
o
(b) the Contractor cannot readily obtain the Goods required for the
Variation; or
(c) it will adversely affect the Contractor's ability to comply with
i» Sub-Clause 4.8 [Health and Safety Obligations] and/or Sub-Clause
~ 4.18 [Protection of the Environment].
0
i..L

Promptly after receiving this Notice, the Engineer shall respond by giving a
Notice to the Contractor cancelling, confirming or varying the instruction.
Any instruction so confirmed or varied shall be taken as an instruction under
Sub-Clause 13.3.1 [Variation by instruction].

Each Variation may include:

{i) changes to the quantities of any item of work included in the Contract
{however, such changes do not necessarily constitute a Variation);
{ii) changes to the quality and other characteristics of any item of work;
{iii) changes to the levels, positions and/or dimensions of any part of the
Works;
(iv) the omission of any work, unless it is to be carried out by others
without the agreement of the Parties;
(v) any additional work, Plant, Materials or services necessary for the
Permanent Works, including any associated Tests on Completion,
boreholes and other testing and exploratory work; or
(vi) changes to the sequence or timing of the execution of the Works.

The Contractor shall not make any alteration to and/or modification of the
Permanent Works, unless and until the Engineer instructs a Variation under
Sub-Clause 13.3.1 [Variation by Instruction].

13.2
Value Engineering The Contractor may, at any time, submit to the Engineer a written proposal
which {in the Contractor's opinion) will, if adopted:

{a) accelerate completion;

(b) reduce the cost to the Employer of executing, maintaining or operating
the Works;
(c) improve the efficiency or value to the Employer of the completed
Works; or
{d) otherwise be of benefit to the Employer.

The proposal shall be prepared at the cost of the Contractor and shall
include the details as stated in sub-paragraphs (a) to {c) of Sub-Clause
13.3.1 [Variation by Instruction].

The Engineershall, as soon as practicable after receiving such a proposal,

respond by giving a Notice to the Contractor stating his/her consent or

© FIDIC2017 Conditions of Contract for Construction

64
 otherwise. The Engineer's consent or otherwise shall be at the sole discretion
of the Employer. The Contractor shall not delay any work while awaiting a
response.

If the Engineer gives his/her consent to the proposal, with or without

comments, the Engineer shall then instruct a Variation. Thereafter, the
Contractor shall submit any further particulars that the Engineer may
reasonably require, and the last paragraph of Sub-Clause 13.3.1 [Variation
by Instruction] shall apply which shall include consideration by the Engineer
of the sharing (if any) of the benefit, costs and/or delay between the Parties
stated in the ParticularConditions.

If a proposal under this Sub-Clause, to which the Engineer gives his/her

consent, includes a change in the design of part of the Permanent Works,
then unless otherwise agreed by both Parties: o:
(i) the Contractor shall design this part at his/her cost; and
!tCl
LL

(ii) sub-paragraphs (a) to (h) of Sub-Clause 4.1 [Contractor's General

Obligations] shall apply.

13.3
Variation Procedure Subject to Sub-Clause 13.1 [Right to Vary], Variationsshall be initiated by the
Engineerin accordance with either of the following procedures:

13.3.1 Variationby Instruction

The Engineer may instruct a Variation by giving a Notice (describing the

required change and stating any requirementsfor the recording of Costs) to
the Contractor in accordance with Sub-Clause 3.5 [Engineer's Instructions].

The Contractor shall proceed with execution of the Variationand shall within
28 days (or other period proposed by the Contractor and agreed by the
Engineer) of receiving the Engineer's instruction, submit to the Engineer
detailed particulars including:

(a) a description of the varied work performed or to be performed,

including details of the resources and methods adopted or to be
adopted by the Contractor;
(b) a programme for its execution and the Contractor's proposal for
any necessary modifications (if any) to the Programme according to
Sub-Clause 8.3 [Programme] and to the Time for Completion; and
(c) the Contractor's proposal for adjustment to the Contract Price by
valuing the Variation in accordance with Clause 12 [Measurement
and Valuation], with supporting particulars (which shall include
identification of any estimated quantities and, if the Contractor incurs
or will incur Cost as a result of any necessarymodification to the Time
for Completion, shall show the additional payment (if any) to which
the Contractor considers that the Contractor is entitled). If the Parties
have agreed to the omission of any work which is to be carried out
by others, the Contractor's proposal may also include the amount of
any loss of profit and other losses and damages suffered (or to be
suffered)by the Contractor as a result of the omission.

Thereafter, the Contractor shall submit any further particulars that the
Engineer may reasonablyrequire.

The Engineer shall then proceed under Sub-Clause 3. 7 [Agreement or

Determination] to agree or determine:

General Conditions © FIDIC 2017

65
 (i) EOT, if any; and/or
(ii) the adjustment to the Contract Price (including valuation of the
Variation in accordance with Clause 12 [Measurement and Valuation]
using measured quantities of the varied work)
(and, for the purpose of Sub-Clause 3.7.3 [Time limits], the date the
Engineer receives the Contractor's submission (including any requested
further particulars) shall be the date of commencement of the time limit for
agreement under Sub-Clause 3.7.3). The Contractor shall be entitled to
such EOT and/or adjustment to the Contract Price, without any requirement
to comply with Sub-Clause 20.2 [Claims For Payment and/or EOT].

13.3.2 Variationby Request for Proposal

The Engineer may request a proposal, before instructing a Variation, by

giving a Notice (describing the proposed change) to the Contractor.

The Contractor shall respond to this Notice as soon as practicable, by either:

(a) submitting a proposal, which shall include the matters as described

in sub-paragraphs (a) to (c) of Sub-Clause 13.3.1 [Variation by
Instruction]; or
(b) giving reasons why the Contractor cannot comply (if this is the case),
by referenceto the matters described in sub-paragraphs (a) to (c) of
Sub-Clause 13.1 [Right to Vary].

If the Contractor submits a proposal, the Engineer shall, as soon as

practicable after receiving it, respond by giving a Notice to the Contractor
stating his/her consent or otherwise. The Contractor shall not delay any
work whilst awaiting a response.

If the Engineer gives consent to the proposal, with or without comments,

the Engineershall then instruct the Variation. Thereafter,the Contractor shall
submit any further particulars that the Engineer may reasonablyrequire and
the last paragraph of Sub-Clause 13.3.1 [Variation by Instruction] shall apply.

If the Engineer does not give consent to the proposal, with or without
comments, and if the Contractor has incurred Cost as a result of submitting
it, the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For
Payment and/or E07] to payment of such Cost.

13.4
Provisional Sums Each Provisional Sum shall only be used, in whole or in part, in accordance
with the Engineer's instructions, and the Contract Price shall be adjusted
accordingly. The total sum paid to the Contractor shall include only such
amounts for the work, supplies or services to which the Provisional Sum
relates, as the Engineershall have instructed.

For each Provisional Sum, the Engineer may instruct:

(a) work to be executed (including Plant, Materials or services to be

supplied) by the Contractor, and for which adjustments to the
Contract Price shall be agreed or determined under Sub-Clause
13.3.1 [Variation by Instruction]; and/or
(b) Plant, Materials,works or services to be purchased by the Contractor
from a nominated Subcontractor (as defined in Sub-Clause 5.2
[Nominated Subcontractors]) or otherwise; and for which there shall
be included in the Contract Price:

© FIDIC2017 Conditions of Contract for Construction

66
 (i) the actual amounts paid (or due to be paid) by the Contractor;
and
(ii) a sum for overhead charges and profit, calculated as a percentage
of these actual amounts by applying the relevant percentage rate
(if any) stated in the applicable Schedule. If there is no such rate,
the percentage rate stated in the Contract Data shall be applied.

If the Engineer instructs the Contractor under sub-paragraph (a) and/or

(b) above, this instruction may include a requirement for the Contractor to
submit quotations from the Contractor's suppliers and/or subcontractors for
all (or some) of the items of the work to be executed or Plant, Materials,
works or services to be purchased. Thereafter, the Engineer may respond
by giving a Notice either instructing the Contractor to accept one of these
quotations (but such an instruction shall not be taken as an instruction under
Sub-Clause 5.2 [Nominated Subcontractors]) or revoking the instruction. If
the Engineer does not so respond within 7 days of receiving the quotations,
the Contractor shall be entitled to accept any of these quotations at the
Contractor's discretion.

Each Statement that includes a Provisional Sum shall also include all
applicable invoices, vouchers and accounts or receipts in substantiation of
the Provisional Sum.

13.5
Oaywork If a Daywork Schedule is not included in the Contract, this Sub-Clause shall
not apply.

For work of a minor or incidental nature, the Engineer may instruct that a
Variation shall be executed on a daywork basis. The work shall then be valued
in accordance with the Daywork Schedule, and the following procedure shall
apply.

Before ordering Goods for such work (other than any Goods priced in the
Daywork Schedule), the Contractor shall submit one or more quotations from
the Contractor's suppliers and/or subcontractors to the Engineer. Thereafter,
the Engineer may instruct the Contractor to accept one of these quotations
(but such an instruction shall not be taken as an instruction under Sub-Clause
5.2 [Nominated Subcontractors]). If the Engineer does not so instruct the
Contractor within 7 days of receiving the quotations, the Contractor shall be
entitled to accept any of these quotations at the Contractor's discretion.

Except for any items for which the Daywork Schedule specifies that payment
is not due, the Contractor shall deliver each day to the Engineer accurate
statements in duplicate (and one electronic copy), which shall include
records (as described under Sub-Clause 6.10 [Contractor's Records]) of the
resources used in executing the previous day's work.

One copy of each statement shall, if correct and agreed, be signed by the
Engineer and promptly returned to the Contractor. If not correct or agreed, the
Engineer shall proceed under Sub-Clause 3.7 [Agreement or Determination]
to agree or determine the resources (and for the purpose of Sub-Clause
3.7.3 [Time limits], the date the works which are the subject of the Variation
under this Sub-Clause are completed by the Contractor shall be the date of
commencement of the time limit for agreement under Sub-Clause 3. 7 .3).

In the next Statement, the Contractor shall then submit priced statements
of the agreed or determined resources to the Engineer, together with all
applicable invoices, vouchers and accounts or receipts in substantiation of

© FIDIC 2017
General Conditions
67
 any Goods used in the daywork (other than Goods priced in the Daywork
Schedule).

Unless otherwise stated in the Daywork Schedule, the rates and prices in the
Daywork Schedule shall be deemed to include taxes, overheads and profit.

13.6
LU Adjustments for
0
z Changes in Laws Subject to the following provisions of this Sub-Clause, the Contract Price
<I'
Cl
5 shall be adjusted to take account of any increase or decrease in Cost
o resultingfrom a change in:

(a) the Laws of the Country (including the introduction of new Laws and
the repeal or modification of existing Laws);
w (b) the judicial or official governmental interpretationor implementation of
2.
er: the Laws referredto in sub-paragraph (a) above;
o
LL
(c) any permit, permission, license or approval obtained by the Employer
or the Contractor under sub-paragraph (a) or (b), respectively, of
Sub-Clause 1.13 [Compliance with Laws]; or
(d) the requirementsfor any permit, permission, licence and/or approval
to be obtained by the Contractor under sub-paragraph (b) of
Sub-Clause 1 .13 [Compliance with Laws],
made and/or officially published after the Base Date, which affect the
Contractor in the performance of obligations under the Contract. In
this Sub-Clause "change in Laws" means any of the changes under
sub-paragraphs (a), (b), (c) and/or (d) above.

If the Contractor suffers delay and/or incurs an increase in Cost as a result of

any change in Laws, the Contractor shall be entitled subject to Sub-Clause
20.2 [Claims For Payment and/or Eon to EOT and/or payment of such
Cost.

If there is a decrease in Cost as a result of any change in Laws, the Employer

shall be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or
Eon to a reduction in the Contract Price.
If any adjustment to the execution of the Works becomes necessary as a
result of any change in Laws:

(i) the Contractor shall promptly give a Notice to the Engineer,or

(ii) the Engineershall promptly give a Notice to the Contractor
(with detailed supporting particulars).

Thereafter, the Engineer shall either instruct a Variation under Sub-Clause

13.3.1 [Variationby Instruction] or request a proposal under Sub-Clause
13.3.2 [Variationby Request for Proposa~.

13.7
Adjustments for
Changes in Cost If Schedule(s) of cost indexation are not included in the Contract, this
Sub-Clause shall not apply.

The amounts payable to the Contractor shall be adjusted for rises or falls in
the cost of labour, Goods and other inputs to the Works, by the addition or
deduction of the amounts calculated in accordance with the Schedule(s)of
cost indexation.

© FIDIC 2017 Conditions of Contract for Construction

68
 To the extent that full compensation for any rise or fall in Costs is not covered
by this Sub-Clause or other Clauses of these Conditions, the Accepted
Contract Amount shall be deemed to have included amounts to cover the
contingency of other rises and falls in costs.

The adjustment to be applied to the amount otherwise payable to the

Contractor, as certified in Payment Certificates, shall be calculated for each
of the currencies in which the Contract Price is payable. I\Jo adjustment shall
be applied to work valued on the basis of Cost or current prices.

Until such time as each current cost index is available, the Engineer shall
use a provisional index for the issue of Interim Payment Certificates. When
a current cost index is available, the adjustment shall be recalculated
accordingly.

If the Contractor fails to complete the Works within the Time for Completion,
adjustment of prices thereafter shall be made using either:

(a) each index or price applicable on the date 49 days before the expiry
of the Time for Completion of the Works; or
(b) the current index or price
whichever is more favourable to the Employer.

rice and Payment

14.1
The Contract Price Unless otherwise stated in the Particular Conditions:

(a) the Contract Price shall be the value of the Works in accordance
with Sub-Clause 12.3 [Valuation of the Works] and be subject to
adjustments, additions (including Cost or Cost Plus Profit to which
the Contractor is entitled under these Conditions) and/or deductions
in accordance with the Contract;
(b) the Contractor shall pay all taxes, duties and fees required to be paid
by the Contractor under the Contract, and the Contract Price shall
not be adjusted for any of these costs except as stated in Sub-Clause
13.6 [Adjustments for Changes in Laws];
(c) any quantities which may be set out in the Bill of Quantities or other
Schedule(s) are estimated quantities and are not to be taken as the
actual and correct quantities:
(i) of the Works which the Contractor is required to execute, or
(ii) for the purposes of Clause 12 [Measurement and Valuation]; and
(d) the Contractor shall submit to the Engineer, within 28 days after the
Commencement Date, a proposed breakdown of each lump sum
price (if any) in the Schedules. The Engineer may take account of
the breakdown when preparing Payment Certificates, but shall not be
bound by it.

14.2
Advance Payment If no amount of advance payment is stated in the Contract Data, this
Sub-Clause shall not apply.

After receiving the Advance Payment Certificate, the Employer shall make
an advance payment, as an interest-free loan for mobilisation (and design, if

General Conditions © FIDIC 2017

69
 any). The amount of the advance payment and the currencies in which it is
to be paid shall be as stated in the Contract Data.

14.2.1 Advance Payment Guarantee

The Contractor shall obtain (at the Contractor's cost) an Advance Payment
Guarantee in amounts and currencies equal to the advance payment, and
ii shall submit it to the Employer with a copy to the Engineer.This guarantee
(j
z shall be issued by an entity and from within a country (or other jurisdiction) to
<
C1 which the Employer gives consent, and shall be based on the sample form
~ included in the tender documents or on another form agreed by the Employer
(but such consent and/or agreement shall not relieve the Contractor from
any obligation under this Sub-Clause).

The Contractor shall ensure that the Advance Payment Guarantee is valid
and enforceable until the advance payment has been repaid, but its amount
may be progressively reduced by the amount repaid by the Contractor as
stated in the Payment Certificates.

If the terms of the Advance Payment Guarantee specify its expiry date, and
the advance payment has not been repaid by the date 28 days before the
expiry date:

(a) the Contractor shall extend the validity of this guarantee until the
advance payment has been repaid;
(b) the Contractor shall immediately submit evidence of this extension to
the Employer,with a copy to the Engineer;and
(c) if the Employer does not receive this evidence 7 days before the
expiry date of this guarantee, the Employer shall be entitled to claim
under the guarantee the amount of advance payment which has not
been repaid.

When submitting the Advance Payment Guarantee, the Contractor shall

include an application (in the form of a Statement) for the advance payment.

14.2.2 Advance Payment Certificate

The Engineer shall issue an Advance Payment Certificate for the advance
payment within 14 days after:

(a) the Employer has received both the Performance Security and the
Advance Payment Guarantee, in the form and issued by an entity
in accordance with Sub-Clause 4.2.1 [Contractor's Obligations] and
Sub-Clause 14.2.1 [Advance Payment Guarantee] respectively; and
(b) the Engineer has received a copy of the Contractor's application for
the advance payment under Sub-Clause 14.2.1 [Advance Payment
Guarantee].

14.2.3 Repayment of Advance Payment

The advance payment shall be repaid through percentage deductions in

Payment Certificates. Unless other percentages are stated in the Contract
Data:

(a) deductions shall commence in the IPC in which the total of all certified
interim payments in the same currency as the advance payment
(excluding the advance payment and deductions and release of
retention moneys) exceeds ten percent (10%) of the portion of the

© FIDIC 2017 Conditions of Contract for Construction

70
 Accepted Contract Amount payable in that currency less Provisional
Sums; and
(b) deductions shall be made at the amortisation rate of one quarter
(25%) of the amount of each IPC (excluding the advance payment
and deductions and release of retention moneys) in the currencies
and proportions of the advance payment, until such time as the
advance payment has been repaid.

If the advance payment has not been repaid before the issue of the
Taking-Over Certificate for the Works, or before termination under Clause
15 [Termination by Employer], Clause 16 [Suspension and Termination by
Contractor] or Clause 18 [Exceptional Events] (as the case may be), the
whole of the balance then outstanding shall immediately become due and
payable by the Contractor to the Employer.
(!)
"S
14.3 a'
0
Application for !.L

Interim Payment The Contractor shall submit a Statement to the Engineerafter the end of the
period of payment stated in the Contract Data (if not stated, after the end of
each month). Each Statement shall:

(a) be in a form acceptable to the Engineer;

(b) be submitted in one paper-original,one electronic copy and additional
paper copies (if any) as stated in the Contract Data; and
(c) show in detail the amounts to which the Contractor considers that the
Contractor is entitled, with supporting documents which shall include
sufficient detail for the Engineerto investigatethese amounts together
with the relevant report on progress in accordance with Sub-Clause
4.20 [Progress Reports].

The Statement shall include the following items, as applicable, which shall be
expressed in the various currencies in which the Contract Price is payable, in
the sequence listed:

(i) the estimated contract value of the Works executed, and the
Contractor's Documents produced, up to the end of the period of
payment (including Variations but excluding items described in
sub-paragraphs (ii) to (x) below);
(ii) any amounts to be added and/or deducted for changes in Laws
under Sub-Clause 13.6 [Adjustments for Changes in Laws], and for
changes in Cost under Sub-Clause 13. 7 [Adjustments for Changes in
Cost];
(iii) any amount to be deducted for retention, calculated by applying the
percentage of retention stated in the Contract Data to the total of the
amounts under sub-paragraphs (i), (ii) and (vi) of this Sub-Clause, until
the amount so retained by the Employerreachesthe limit of Retention
Money (if any) stated in the Contract Data;
(iv) any amounts to be added and/or deducted for the advance payment
and repayments under Sub-Clause 14.2 [Advance Payment];
(v) any amounts to be added and/or deducted for Plant and Materials
under Sub-Clause 14.5 [Plant and Materials intended for the Works];
(vi) any other additions and/or deductions which have become due under
the Contract or otherwise, including those under Sub-Clause 3. 7
[Agreement or Determination];
(vii) any amounts to be added for Provisional Sums under Sub-Clause
13.4 [Provisional Sums];

General Conditions © FIDIC 2017 71

 (viii) any amount to be added for release of Retention Money under
Sub-Clause 14.9 [Release of Retention Money];
(ix) any amount to be deducted for the Contractor's use of utilitiesprovided
by the Employer under Sub-Clause 4.19 [Temporary Utilities]; and
(x) the deduction of amounts certified in all previous PaymentCertificates.

14.4
,.1. 1
.»z Schedule of Payments If the Contract includes a Schedule of Payments specifying the instalments
<(
p in which the Contract Price will be paid then, unless otherwise stated in this
~-=) Schedule:
0

(a) the instalments quoted in the Schedule of Payments shall be treated

as the estimated contract values for the purposes of sub-paragraph
(i) of Sub-Clause 14.3 [Application for Interim Payment];
(!)
;f (b) Sub-Clause 14.5 [Plant and Materials intended for the Works] shall
ti: not apply; and
0
!.L
(c) if:
(i) these instalments are not defined by reference to the actual
progress achieved in the execution of the Works; and
(ii) actual progress is found by the Engineer to differ from that on
which the Schedule of Payments was based,
then the Engineer may proceed under Sub-Clause 3. 7 [Agreement or
Determination] to agree or determine revised instalments (and for the
purpose of Sub-Clause 3.7.3 [Time limits] the date when the difference
under sub-paragraph (ii) above was found by the Engineershall be the date
of commencement of the time limit for agreement under Sub-Clause 3.7.3).
Such revised instalments shall take account of the extent to which progress
differs from that on which the Schedule of Payments was based.

If the Contract does not include a Schedule of Payments, the Contractor

shall submit non-binding estimates of the payments which the Contractor
expects to become due during each period of 3 months. The first estimate
shall be submitted within 42 days after the Commencement Date. Revised
estimates shall be submitted at intervals of 3 months, until the issue of the
Taking-OverCertificate for the Works.

14.5
Plant and Materials
intended for the Works If no Plant and/or Materialsare listed in the Contract Data for payment when
shipped and/or payment when delivered, this Sub-Clause shall not apply.

The Contractor shall include, under sub-paragraph (v) of Sub-Clause 14.3

[Application for Interim Payment]:

an amount to be added for Plant and Materials which have been

shipped or delivered(as the case may be) to the Site for incorporation
in the PermanentWorks; and
an amount to be deducted when the contract value of such Plant
and Materials is included as part of the Permanent Works under
sub-paragraph (i) of Sub-Clause 14.3 [Application for Interim
Payment].

The Engineer shall proceed under Sub-Clause 3. 7 [Agreement or

Determination] to agree or determine each amount to be added for Plant
and Materials if the following conditions are fulfilled (and for the purpose of
Sub-Clause 3.7.3 [Time limits] the date these conditions are fulfilled shall be

© FIDIC 2017 Conditions of Contract for Construction

72
 the date of commencement of the time limit for agreement under Sub-Clause
3.7.3):

(a) the Contractor has:

(i) kept satisfactory records (including the orders, receipts, Costs
and use of Plant and Materials) which are available for inspection
by the Engineer;
(ii) submitted evidence demonstrating that the Plant and Materials
comply with the Contract (which may include test certificates
under Sub-Clause 7.4 [Testing by the Contractor] and/or
compliance verification documentation under Sub-Clause 4.9.2
[Compliance VerificationSystem])to the Engineer; and
(iii) submitted a statement of the Cost of acquiring and shipping or
delivering (as the case may be) the Plant and Materials to the
Site, supported by satisfactory evidence; (j)

~
and either: 0
I.I...

(b) the relevant Plant and Materials:

(i) are those listed in the Contract Data for payment when shipped;
(ii) have been shipped to the Country, en route to the Site, in
accordance with the Contract; and
(iii) are described in a clean shipped bill of lading or other evidence
of shipment, which has been submitted to the Engineer together
with:
• evidence of payment of freight and insurance;
• any other documents reasonably required by the Engineer;
and
• a written undertaking by the Contractor that the Contractor
will deliver to the Employer (prior to submitting the next
Statement) a bank guarantee in a form and issued by an
entity to which the Employer gives consent (but such consent
shall not relieve the Contractor from any obligation in the
following provisions of this sub-paragraph), in amounts and
currencies equal to the amount due under this Sub-Clause.
This guarantee shall be in a similar form to the form described
in Sub-Clause 14.2.1 [Advance Payment Guarantee] and
shall be valid until the Plant and Materials are properly stored
on Site and protected against loss, damage or deterioration;
or

(c) the relevant Plant and Materials:

(i) are those listed in the Contract Data for payment when delivered
to the Site, and
(ii) have been delivered to and are properly stored on the Site, are
protected against loss, damage or deterioration, and appear to
be in accordance with the Contract.

The amount so agreed or determined shall take account of the evidence

and documents required under this Sub-Clause and of the contract value
of the Plant and Materials. If sub-paragraph (b) above applies, the Engineer
shall have no obligation to certify any payment under this Sub-Clause
until the Employer has received the bank guarantee in accordance with
sub-paragraph (b)(iii) above. The sum to be certified by the Engineer in an IPC
shall be the equivalent of eighty percent (80%) of this agreed or determined
amount. The currencies for this certified sum shall be the same as those in
which payment will become due when the contract value is included under

General Conditions © FIDIC 2017

73
 sub-paragraph (i) of Sub-Clause 14.3 [Application for Interim Payment]. At
that time, the Payment Certificate shall include the applicable amount to
be deducted which shall be equivalent to, and in the same currencies and
proportions as, this additional amount for the relevant Plant and Materials.

14.6 -·--- ---····· --~·

Issue of IPC No amount will be certified or paid to the Contractor until:

(a) the Employer has receivedthe Performance Security in the form, and
issued by an entity, in accordance with Sub-Clause 4.2.1 [Contractor's
obligations]; and
(b) the Contractor has appointed the Contractor's Representative in
accordance with Sub-Clause 4.3 [Contractor's Representative].

!JJ 14.6.1 The IPC

~
0
u .. The Engineershall,within 28 days after receiving a Statement and supporting
documents, issue an IPC to the Employer, with a copy to the Contractor:

(a) stating the amount which the Engineerfairly considers to be due; and
{b) including any additions and/or deductions which have become due
under Sub-Clause 3.7 [Agreement or Determination] or under the
Contract or otherwise,
with detailed supporting particulars {which shall identify any difference
between a certified amount and the corresponding amount in the Statement
and give the reasons for such difference).

14.6.2 Withholding (amounts in) an IPC

Before the issue of the Taking-Over Certificate for the Works, the Engineer
may withhold an IPC in an amount which would {after retention and other
deductions) be less than the minimum amount of the IPC (if any) stated in
the Contract Data. In this event, the Engineershall promptly give a Notice to
the Contractor accordingly.

An IPC shall not be withheld for any other reason, although:

(a) if any thing supplied or work done by the Contractor is not in

accordance with the Contract, the estimated cost of rectification or
replacement may be withheld until rectification or replacement has
been completed;
{b) if the Contractor was or is failing to perform any work, service or
obligation in accordance with the Contract, the value of this work
or obligation may be withheld until the work or obligation has been
performed. In this event, the Engineer shall promptly give a Notice
to the Contractor describing the failure and with detailed supporting
particulars of the value withheld; and/or
(c) if the Engineer finds any significant error or discrepancy in the
Statement or supporting documents, the amount of the IPC may
take account of the extent to which this error or discrepancy has
prevented or prejudiced proper investigation of the amounts in the
Statement until such error or discrepancy is corrected in a subsequent
Statement.

For each amount so withheld, in the supporting particulars for the IPC the
Engineershall detail his/her calculation of the amount and state the reasons
for it being withheld.

©FIDIC 2017 Conditions of Contract for Construction

74
 14.6.3 Correction or modification

The Engineer may in any Payment Certificate make any correction or

modification that should properly be made to any previous Payment
Certificate. A Payment Certificate shall not be deemed to indicate the
Engineer'sacceptance, approval, consent or Notice of No-objection to any
Contractor's Document or to (any part of) the Works.
i.Ll
0
If the Contractor considers that an IPC does not include any amounts to z
<
c
which the Contractor is entitled, these amounts shall be identified in the next
Statement (the "identified amounts" in this paragraph). The Engineer shall
then make any correction or modification that should properly be made in
the next Payment Certificate. Thereafter,to the extent that:

(a) the Contractor is not satisfied that this next Payment Certificate
includes the identified amounts; and
(b) the identified amounts do not concern a matter for which the
Engineer is already carrying out his/her duties under Sub-Clause 3.7
[Agreement or Determination]
the Contractor may, by giving a Notice, refer this matter to the Engineer
and Sub-Clause 3.7 [Agreement or Determination] shall apply (and, for the
purpose of Sub-Clause 3. 7 .3 [Time limits], the date the Engineerreceivesthis
Notice shall be the date of commencement of the time limit for agreement
under Sub-Clause 3.7.3).

14.7
Payment The Employer shall pay to the Contractor:

(a) the amount certified in each Advance Payment Certificate within the
period stated in the Contract Data (if not stated, 21 days) after the
Employer receivesthe Advance Payment Certificate;
(b) the amount certified in each IPC issued under:
(i) Sub-Clause 14.6 [Issue of /PC], within the period stated in the
Contract Data (if not stated, 56 days) after the Engineer receives
the Statement and supporting documents; or
(ii) Sub-Clause 14. 13 [Issue of FPC], within the period stated in the
Contract Data (if not stated, 28 days) after the Employer receives
the IPC; and
(c) the amount certified in the FPCwithin the period stated in the Contract
Data (if not stated, 56 days) after the Employer receivesthe FPC.

Payment of the amount due in each currency shall be made into the bank
account, nominated by the Contractor, in the payment country (for this
currency) specified in the Contract.

14.8
Delayed Payment If the Contractor does not receive payment in accordance with Sub-Clause
14. 7 [Payment], the Contractor shall be entitled to receivefinancing charges
compounded monthly on the amount unpaid during the period of delay.
This period shall be deemed to commence on the expiry of the time for
payment specified in Sub-Clause 14. 7 [Payment], irrespective (in the case
of sub-paragraph (b) of Sub-Clause 14. 7) of the date on which any IPC is
issued.

Unless otherwise stated in the Contract Data, these financing charges shall
be calculated at the annual rate of three percent (3%) above:

General Conditions © FIDIC2017

75
 (a) the average bank short-term lending rate to prime borrowers prevailing
for the currency of payment at the place of payment, or
(b) where no such rate exists at that place, the same rate in the country
of the currency of payment. or
(c) in the absence of such a rate at either place, the appropriate rate fixed
by the law of the country of the currency of payment.

The Contractor shall by request be entitled to payment of these financing

charges by the Employer, without:

(i) the need for the Contractor to submit a Statement or any formal
Notice (including any requirement to comply with Sub-Clause
20.2 (Claims For Payment and/or E07]) or certification; and
(ii) prejudice to any other right or remedy.

14.9
Release of
Retention Money After the issue of the Taking-Over Certificate for:

(a) the Works, the Contractor shall include the first half of the Retention
Money in a Statement; or
(b) for a Section, the Contractor shall include the relevant percentage of
the first half of the Retention Money in a Statement.

After the latest of the expiry dates of the Defects Notification Periods,
the Contractor shall include the second half of the Retention Money in a
Statement promptly after such latest date. If a Taking-OverCertificate was
(or was deemed to have been) issued for a Section, the Contractor shall
include the relevantpercentage of the second half of the Retention Money in
a Statement promptly after the expiry date of the DNP for the Section.

In the next !PC after the Engineerreceivesany such Statement, the Engineer
shall certify the release of the corresponding amount of Retention Money.
However,when certifying any releaseof Retention Money under Sub-Clause
14.6 [issue of /PC], if any work remains to be executed under Clause
11 [Defects after Taking Over], the Engineer shall be entitled to withhold
certification of the estimated cost of this work until it has been executed.

The relevant percentage for each Section shall be the percentage value of
the Section as stated in the Contract Data. If the percentage value of a
Section is not stated in the Contract Data, no percentage of either half of the
Retention Money shall be releasedunder this Sub-Clause in respect of such
Section.

14.10
Statement at Completion Within 84 days after the Date of Completion of the Works, the Contractor
shall submit to the Engineer a Statement at completion with supporting
documents, in accordance with Sub-Clause 14.3 [Application for Interim
Payment], showing:

(a) the value of all work done in accordance with the Contract up to the
Date of Completion of the Works
(b) any further sums which the Contractor considers to be due at the
Date of Completion of the Works; and
(c) an estimate of any other amounts which the Contractor considers
have or will become due after the Date of Completion of the Works
under the Contract or otherwise. These estimated amounts shall be

©FIDIC2017 Conditions of Contract for Construction

76
 shown separately (to those of sub-paragraphs (a) and (b) above) and
shall include estimated amounts for:
(i) Claims for which the Contractor has submitted a Notice under
Sub-Clause 20.2 [Claims For Payment and/or E07];
(ii) any matter referred to the DAAB under Sub-Clause 21.4
[Obtaining DMB's Decision]; and
(iii) any matter for which a NOD has been given under Sub-Clause
21.4 [Obtaining DMB's Decision].

The Engineer shall then issue an IPC in accordance with Sub-Clause 14.6
[Issue of /PC].

14.11
Final Statement Submission by the Contractor of any Statement under the following .»
provisions of this Sub-Clause shall not be delayed by reason of any referral :i
a:
under Sub-Clause 21.4 [Obtaining DMB's Decision] or any arbitration under 0
LL

Sub-Clause 21.6 [Arbitration].

14.11.1 Draft Final Statement

Within 56 days after the issue of the PerformanceCertificate, the Contractor

shall submit to the Engineer,a draft final Statement.

This Statement shall:

(a) be in the same form as Statements previously submitted under

Sub-Clause 14.3 [Application for Interim Payment];
(b) be submitted in one paper-original,one electronic copy and additional
paper copies (if any) as stated in the Contract Data; and
(c) show in detail, with supporting documents:
(i) the value of all work done in accordance with the Contract;
(ii) any further sums which the Contractor considers to be due at
the date of the issue of the Performance Certificate, under the
Contract or otherwise; and
(iii) an estimate of any other amounts which the Contractor considers
have or will become due after the issue of the Performance
Certificate, under the Contract or otherwise, including estimated
amounts, by referenceto the mattersdescribed in sub-paragraphs
(c) (i) to (iii) of Sub-Clause 14.10 [Statement at Completion].
These estimated amounts shall be shown separately(to those of
sub-paragraphs (i) and (ii) above).

Except for any amount under sub-paragraph (iii) above, if the Engineer
disagrees with or cannot verify any part of the draft final Statement, the
Engineershall promptly give a Notice to the Contractor.The Contractor shall
then submit such further information as the Engineermay reasonablyrequire
within the time stated in this Notice, and shall make such changes in the
draft as may be agreed between them.

14.11. 2 Agreed Final Statement

If there are no amounts under sub-paragraph (iii) of Sub-Clause 14.11 .1

[Draft Final Statement], the Contractor shall then prepare and submit to
the Engineer the final Statement as agreed (the "Final Statement" in these
Conditions).

General Conditions © FIDIC2017

77
 However if:

(a) there are amounts under sub-paragraph (iii) of Sub-Clause 14.11.1

[Draft Final Statement]; and/or
(b) following discussions between the Engineer and the Contractor, it
becomes evident that they cannot agree any amount(s) in the draft
final Statement,
UJ
(.) the Contractor shall then prepare and submit to the Engineera Statement,
z identifying separately: the agreed amounts, the estimated amounts and
tS the disagreed amount(s) (the "Partially Agreed Final Statement" in these
5
(:)
Conditions).

14.12
Discharge When submitting the Final Statement or the PartiallyAgreed Final Statement
(asthe case may be), the Contractor shall submit a discharge which confirms
that the total of such Statement represents full and final settlement of all
moneys due to the Contractor under or in connection with the Contract.
This discharge may state that the total of the Statement is subject to any
payment that may become due in respect of any Dispute for which a DAAB
proceeding or arbitration is in progress under Sub-Clause 21.6 [Arbitration]
and/or that it becomes effective after the Contractor has received:

(a) full payment of the amount certified in the FPC; and

(b) the Performance Security.

If the Contractor failsto submit this discharge, the discharge shall be deemed
to have been submitted and to have become effective when the conditions
of sub-paragraphs (a) and (b) have been fulfilled.

A discharge under this Sub-Clause shall not affect either Party's liability
or entitlement in respect of any Dispute for which a DAAB proceeding or
arbitration is in progress under Clause 21 [Disputes and Arbitration].

14.13
Issue of FPC Within 28 days after receiving the Final Statement or the Partially Agreed
Final Statement (as the case may be), and the discharge under Sub-Clause
14.12 [Discharge], the Engineer shall issue to the Employer (with a copy to
the Contractor), the Final Payment Certificate which shall state:

(a) the amount which the Engineerfairly considers is finallydue, including

any additions and/or deductions which have become due under
Sub-Clause 3. 7 [Agreement or Determination] or under the Contract
or otherwise; and
(b) after giving credit to the Employer for all amounts previously paid by
the Employer and for all sums to which the Employer is entitled, and
after giving credit to the Contractor for all amounts (if any) previously
paid by the Contractor and/or received by the Employer under the
Performance Security, the balance (if any) due from the Employer to
the Contractor or from the Contractor to the Employer, as the case
may be.

If the Contractor has not submitted a draft final Statement within the time
specified under Sub-Clause 14 .11 .1 [Draft Final Statement], the Engineer
shall request the Contractor to do so. Thereafter, if the Contractor fails to
submit a draft final Statement within a period of 28 days, the Engineer shall
issue the FPC for such an amount as the Engineerfairly considers to be due.

© FIDIC 2017 Conditions of Contract for Construction

78
 If:

(i) the Contractor has submitted a Partially Agreed Final Statement

under Sub-Clause 14.11.2 [Agreed Final Statement]; or
(ii) no Partially Agreed Final Statement has been submitted by the
Contractor but, to the extent that a draft final Statement submitted
by the Contractor is deemed by the Engineerto be a PartiallyAgreed
Final Statement
the Engineer shall proceed in accordance with Sub-Clause 14.6 [Issue of
IPC) to issue an IPC.

14.14 ···········-··-·······-·-----

Cessation of
Employer's Liability The Employer shall not be liable to the Contractor for any matter or thing (!)
under or in connection with the Contract or execution of the Works, except ~
to the extent that the Contractor shall have included an amount expresslyfor §
!.L
it in:

(a) the Final Statement or PartiallyAgreed Final Statement; and

(b) (except for matters or things arising after the issue of the Taking-Over
Certificate for the Works) the Statement under Sub-Clause 14.10
[Statement at Completion].

Unless the Contractor makes or has made a Claim under Sub-Clause 20.2
[Claims For Payment and/or E07] in respect of an amount or amounts under
the FPC within 56 days of receiving a copy of the FPC the Contractor shall
be deemed to have accepted the amounts so certified. The Employer shall
then have no further liabilityto the Contractor, other than to pay the amount
due under the FPC and return the PerformanceSecurity to the Contractor.

However, this Sub-Clause shall not limit the Employer's liability under the
Employer'sindemnificationobligations, or the Employer's liability in any case
of fraud, gross negligence, deliberate default or reckless misconduct by the
Employer.

14.15
Currencies of Payment The Contract Price shall be paid in the currency or currencies named in the
Contract Data. If more than one currency is so named, payments shall be
made as follows:

(a} if the Accepted Contract Amount was expressed in Local Currency

only or in ForeignCurrency only:
(i) the proportions or amounts of the Local and ForeignCurrencies,
and the fixed rates of exchange to be used for calculating the
payments, shall be as stated in the Contract Data, except as
otherwise agreed by both Parties;
(ii) payments and deductions under Sub-Clause 13.4 [Provisional
Sums] and Sub-Clause 13.6 [Adjustments for Changes in Laws]
shall be made in the applicable currencies and proportions; and
(iii) other payments and deductions under sub-paragraphs (i) to (iv) of
Sub-Clause 14.3 [Application for Interim Payment] shall be made
in the currencies and proportions specified in sub-paragraph (a)
(i) above;
(b) whenever an adjustment is agreed or determined under Sub-Clause
13.2 [Value Engineering] or Sub-Clause 13.3 [Variation Procedure],
the amount payable in each of the applicable currencies shall be

General Condrtions © FIDIC 2017

79
 specified. For this purpose, reference shall be made to the actual or
expected currency proportions of the Cost of the varied work, and to
the proportions of various currencies specified in sub-paragraph (a)(i)
above;
(c) payment of Delay Damages shall be made in the currencies and
proportions specified in the Contract Data;
{d) other payments to the Employer by the Contractor shall be made in
LU
() the currency in which the sum was expended by the Employer, or in
z<f such currency as may be agreed by both Parties;
d
5 (e) if any amount payable by the Contractor to the Employer in a
o
particular currency exceeds the sum payable by the Employer to the
Contractor in that currency, the Employer may recover the balance
of this amount from the sums otherwise payable to the Contractor in
other currencies; and
(~ if no rates of exchange are stated in the Contract Data, they shall be
those prevailingon the Base Date and published by the central bank
of the Country.

n by Employer
15.1
Notice to Correct If the Contractor fails to carry out any obligation under the Contract the
Engineer may, by giving a Notice to the Contractor, require the Contractor
to make good the failure and to remedy it within a specified time ("Notice to
Correct" in these Conditions).

The Notice to Correct shall:

(a) describe the Contractor's failure;

(b) state the Sub-Clause and/or provisions of the Contract under which
the Contractor has the obligation; and
(c) specify the time within which the Contractor shall remedy the failure,
which shall be reasonable, taking due regard of the nature of the
failure and the work and/or other action required to remedy it.

After receiving a Notice to Correct the Contractor shall immediately respond

by giving a Notice to the Engineer describing the measures the Contractor
will take to remedy the failure, and stating the date on which such measures
will be commenced in order to comply with the time specified in the Notice
to Correct.

The time specified in the Notice to Correct shall not imply any extension of
the Time for Completion.

Termination for
Contractor's Default Termination of the Contract under this Clause shall not prejudice any other
rights of the Employer under the Contract or otherwise.

15.2.1

The Employer shall be entitled to give a Notice (which shall state that it is
given under this Sub-Clause 15.2.1) to the Contractor of the Employer's
intention to terminate the Contract or, in the case of sub-paragraph (~, (g) or
{h) below a Notice of termination, if the Contractor:

© FIDIC 2017 Conditions of Contract for Construction

80
 (a) fails to comply with:
(i) a Notice to Correct;
(ii) a binding agreement, or final and binding determination, under
Sub-Clause 3. 7 [Agreement or Determination]; or
(iii) a decision of the DMB under 21.4 [Obtaining DMB's Decision]
(whether binding or final and binding)
and such failure constitutes a material breach of the Contractor's obligations
under the Contract;

(b) abandons the Works or otherwise plainly demonstrates an intention

not to continue performance of the Contractor's obligations under the
Contract;
(c) without reasonable excuse fails to proceed with the Works in
accordance with Clause 8 [Commencement, Delays and Suspension]
or, if there is a maximum amount of Delay Damages stated in the
Contract Data, his failure to comply with Sub-Clause 8.2 [77me for
Completion] is such that the Employer would be entitled to Delay
Damages that exceed this maximum amount;
(d) without reasonable excuse fails to comply with a Notice of rejection
given by the Engineer under Sub-Clause 7.5 [Defects and Rejection]
or an Engineer's instruction under Sub-Clause 7.6 [Remedial Work],
within 28 days after receiving it;
(e) fails to comply with Sub-Clause 4.2 [Performance Security];
(fj subcontracts the whole, or any part of, the Works in breach of
Sub-Clause 5.1 [Subcontractors], or assigns the Contract without the
required agreement under Sub-Clause 1.7 [Assignment];
(g) becomes bankrupt or insolvent; goes into liquidation, administration,
reorganisation, winding-up or dissolution; becomes subject to
the appointment of a liquidator, receiver, administrator, manager
or trustee; enters into a composition or arrangement with the
Contractor's creditors; or any act is done or any event occurs which
is analogous to or has a similar effect to any of these acts or events
under applicable Laws;
or if the Contractor is a JV:

(i) any of these matters apply to a member of the JV, and

(ii) the other member(s) do not promptly confirm to the Employer
that, in accordance with Sub-Clause 1.14(a) [Joint and Several
Liability], such member's obligations under the Contract shall be
fulfilled in accordance with the Contract; or
(h) is found, based on reasonableevidence, to have engaged in corrupt,
fraudulent, collusive or coercive practice at any time in relation to the
Works or to the Contract.

15 .2 .2 Termination

Unless the Contractor remedies the matter described in a Notice given

under Sub-Clause 15.2.1 [Notice] within 14 days of receiving the Notice,
the Employer may by giving a second Notice to the Contractor immediately
terminate the Contract. The date of termination shall be the date the
Contractor receives this second Notice.

However, in the case of sub-paragraph (t), (g) or (h) of Sub-Clause 15.2.1

[Notice], the Employer may by giving a Notice under Sub-Clause 15.2.1
immediatelyterminate the Contract and the date of termination shall be the
date the Contractor receivesthis Notice.

General Conditions © FIDIC 2017 81

 15.2.3 After termination

After termination of the Contract under Sub-Clause 15.2.2 [Termination], the

Contractor shall:

(a) comply immediately with any reasonable instructions included in a

Notice given by the Employer under this Sub-Clause:
LU (i) for the assignment of any subcontract; and
(_)
2:. (ii) for the protection of life or property or for the safety of the Works;
(~
5 {b) deliver to the Engineer:
(_')
(i) any Goods required by the Employer,
(ii) all Contractor's Documents, and
(iii) all other design documents made by or for the Contractor to the
(/) extent, if any, that the Contractor is responsible for the design of
if
0
part of the PermanentWorks under Sub-Clause4.1 [Contractor's
LL General Obligations]; and
(c) leave the Site and, if the Contractor does not do so, the Employer
shall have the right to expel the Contractor from the Site.

15.2.4 Completion of the Works

After termination under this Sub-Clause, the Employer may complete the
Works and/or arrange for any other entities to do so. The Employer and/or
these entities may then use any Goods and Contractor's Documents (and
other design documents, if any) made by or on behalf of the Contractor to
complete the Works.

After such completion of the Works, the Employer shall give another Notice
to the Contractor that the Contractor's Equipment and Temporary Works
will be released to the Contractor at or near the Site. The Contractor shall
then promptly arrange their removal, at the risk and cost of the Contractor.
However,if by this time the Contractor has failed to make a payment due to
the Employer,these items may be sold (to the extent permitted by applicable
Laws) by the Employer in order to recover this payment. Any balance of the
proceeds shall then be paid to the Contractor.

15.3
Valuation after Termination
for Contractor's Default After termination of the Contract under Sub-Clause 15.2 [Termination
for Contractor's Default], the Engineer shall proceed under Sub-Clause
3.7 [Agreement or Determination] to agree or determine the value of the
Permanent Works, Goods and Contractor's Documents, and any other
sums due to the Contractor for work executed in accordance with the
Contract (and, for the purpose of Sub-Clause 3.7.3 [Time limits], the date
of termination shall be the date of commencement of the time limit for
agreement under Sub-Clause 3. 7 .3).

This valuation shall include any additions and/or deductions, and the balance
due (if any}, by referenceto the matters described in sub-paragraphs (a) and
(b) of Sub-Clause 14.13 [Issue of FPC].

This valuation shall not include the value of any Contractor's Documents,
Materials,Plant and PermanentWorks to the extent that they do not comply
with the Contract.

Conditions of Contract for Construction

82 © FIDIC2017
15.4
Payment after Termination
for Contractor's Default The Employer may withhold payment to the Contractor of the amounts
agreed or determined under Sub-Clause 15.3 [Valuation after Termination for
Contractor's Default] until all the costs, lossesand damages (if any)described
in the following provisions of this Sub-Clause have been established.

After termination of the Contract under Sub-Clause 15.2 [Termination for UJ

()
Contractor's Default], the Employer shall be entitled subject to Sub-Clause z
20.2 [Claims For Payment and/or EOT] to payment by the Contractor of: ~
5
(J
(a) the additional costs of execution of the Works, and all other costs
reasonably incurred by the Employer (including costs incurred
in clearing, cleaning and reinstating the Site as described under
Sub-Clause 11.11 [Clearance of Site]), after allowing for any sum due
to the Contractor under Sub-Clause 15.3 [Valuation after Termination
for Contractor's Default];
(b) any losses and damages suffered by the Employer in completing the
Works; and
(c) Delay Damages, if the Works or a Section have not been taken over
under Sub-Clause 10.1 [Taking Over the Works and Sections] and
if the date of termination under Sub-Clause 15.2 [Termination tor
Contractor's Default] occurs after the date corresponding to the Time
for Completion of the Works or Section (as the case may be). Such
Delay Damages shall be paid for every day that has elapsed between
these two dates.

15.5
Termination for
Employer's Convenience The Employershall be entitled to terminate the Contract at any time for the
Empbyer'sconvenience,by givinga Noticeof suchterminationto the Contractor
(whichNotice shall state that it is given under this Sub-Clause15.5).

After giving a Notice to terminate under this Sub-Clause, the Employer shall
immediately:

(a) have no right to further use any of the Contractor's Documents,

which shall be returned to the Contractor, except those for which the
Contractor has received payment or for which payment is due under
a Payment Certificate;
(b) if Sub-Clause 4.6 [Co-operation] applies, have no right to allow the
continued use (if any) of any Contractor's Equipment, Temporary
Works, access arrangementsand/or other of the Contractor's facilities
or services; and
(c) make arrangements to return the Performance Security to the
Contractor.

Termination under this Sub-Clause shall take effect 28 days after the later
of the dates on which the Contractor receives this Notice or the Employer
returns the Performance Security. Unless and until the Contractor has
received payment of the amount due under Sub-Clause 15.6 [Valuation after
Termination for Employer's Convenience], the Employer shall not execute
(any part on the Works or arrange for (any part on the Works to be executed
by any other entities.

After this termination, the Contractor shall proceed in accordance with

Sub-Clause 16.3 [Contractor's Obligations After Termination].

General Conditioos © FIDIC 2017

83
15.6
Valuation after Termination
for Employer's Convenience After termination under Sub-Clause 15.5 [Termination for Employer's
Convenience] the Contractor shall, as soon as practicable, submit detailed
supporting particulars (as reasonably required by the Engineer) of:

(a) the value of work done, which shall include:

(i) the matters described in sub-paragraphs (a) to (e) of Sub-Clause
18.5 [Optional Termination], and
(ii) any additions and/or deductions, and the balance due (if any), by
reference to the matters described in sub-paragraphs (a) and (b)
of Sub-Clause 14.13 [Issue of FPC]; and
(b) the amount of any loss of profit or other losses and damages suffered
by the Contractor as a result of this termination.

The Engineer shall then proceed under Sub-Clause 3. 7 ~greement or

Determination] to agree or determine the matters described in sub-paragraphs (a)
and (b) above {and, for the purpose of Sub-Clause 3.7.3 [Time limits], the date the
Engineer receives the Contractor's particulars under this Sub-Clause shall be the
date of commencement of the time limit for agreement under Sub-Clause 3. 7 .3).

The Engineer shall issue a Payment Certificate for the amount so agreed or
determined, without the need for the Contractor to submit a Statement.

15.7
Payment after Termination
for Employer's Convenience The Employer shall pay the Contractor the amount certified in the Payment
Certificate under Sub-Clause 15.6 [Valuation after Termination for Employer's
Convenience] within 112 days after the Engineer receives the Contractor's
submission under that Sub-Clause.

Sus e !llfJ
n and Termination by Contractor
16.1
Suspension by Contractor If:

(a) the Engineer fails to certify in accordance with Sub-Clause 14.6 [Issue
of IPC];
(b) the Employer fails to provide reasonable evidence in accordance with
Sub-Clause 2.4 [Employer's Financial Arrangements];
(c) the Employer fails to comply with Sub-Clause 14.7 [Payment]; or
{d) the Employer fails to comply with:
(i) a binding agreement, or final and binding determination under
Sub-Clause 3.7 [Agreement or Determination]; or
(ii) a decision of the DMB under 21.4 [Obtaining DMB's Decision]
(whether binding or final and binding)
and such failure constitutes a material breach of the Employer's obligations
under the Contract,

the Contractor may, not less than 21 days after giving a Notice to the
Employer (which Notice shall state that it is given under this Sub-Clause
16.1 ), suspend work (or reduce the rate of work) unless and until the
Employer has remedied such a default.

© FIDIC 2017 Conditions of Contract for Construction

84
 This action shall not prejudice the Contractor's entitlements to financing
charges under Sub-Clause 14.8 [Delayed Payment] and to termination
under Sub-Clause 16.2 [Termination by Contractor].

If the Employer subsequently remedies the default as described in the

above Notice before the Contractor gives a Notice of termination under
Sub-Clause 16.2 [Termination by Contractor], the Contractor shall resume
normal working as soon as is reasonablypracticable.

If the Contractor suffers delay and/or incurs Cost as a result of suspending

work (or reducing the rate of work) in accordance with this Sub-Clause, the
Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For Payment
and/or EOT] to EOT and/or payment of such Cost Plus Profit.

16.2 (!)
2
Termination by Contractor Terminationof the Contract under this Clause shall not prejudice any other
rights of the Contractor, under the Contract or otherwise.
2s
LL

16.2.1 Notice

The Contractor shall be entitled to give a Notice (which shall state that it is
given under this Sub-Clause 16.2.1) to the Employer of the Contractor's
intention to terminate the Contract or, in the case of sub-paragraph (g)(ii), (h),
(i) or {j) below a Notice of termination, if:

(a) the Contractor does not receive the reasonable evidence within 42
days after giving a Notice under Sub-Clause 16.1 [Suspension by
Contractor] in respect of a failure to comply with Sub-Clause 2.4
[Employer's Financial Arrangements];
(b) the Engineer fails, within 56 days after receiving a Statement and
supporting documents, to issue the relevant Payment Certificate;
(c) the Contractor does not receive the amount due under any Payment
Certificate within 42 days after the expiry of the time stated in
Sub-Clause 14.7 [Payment];
(d) the Employerfails to comply with:
(i) a binding agreement, or final and binding determination under
Sub-Clause 3.7 [Agreement or Determination]; or
(ii) a decision of the DAAB under 21.4 [Obtaining DMB's Decision]
(whether binding or final and binding)
and such failure constitutes a material breach of the Employer's obligations
under the Contract;

(e) the Employersubstantiallyfails to perform, and such failureconstitutes

a material breach of, the Employer's obligations under the Contract;
(f) the Contractor does not receivea Notice of the Commencement Date
under Sub-Clause 8.1 [Commencement of Works] within 84 days
after receiving the Letter of Acceptance;
(g) the Employer:
(i) fails to comply with Sub-Clause 1.6 [Contract Agreement], or
(ii) assigns the Contract without the required agreement under
Sub-Clause 1. 7 [Assignment];
(h) a prolonged suspension affects the whole of the Works as described
in sub-paragraph (b) of Sub-Clause 8.12 [Prolonged Suspension];
(i) the Employer becomes bankrupt or insolvent; goes into liquidation,
administration, reorganisation, winding-up or dissolution; becomes

General Conditions © FIDIC 2017

85
 subject to the appointment of a liquidator, receiver, administrator,
manager or trustee; enters into a composition or arrangement with
the Employer'screditors; or any act is done or any event occurs which
is analogous to or has a similar effect to any of these acts or events
under applicable Laws; or
0) the Employer is found, based on reasonable evidence, to have
engaged in corrupt, fraudulent, collusive or coercive practice at any
time in relation to the Works or to the Contract.

16.2.2 Termination

Unless the Employer remedies the matter described in a Notice given

under Sub-Clause 16.2.1 [Notice] within 14 days of receiving the Notice,
the Contractor may by giving a second Notice to the Employer immediately
(fj terminate the Contract. The date of termination shall then be the date the
:?.~ Employer receivesthis second Notice.
rr
0
LL

However, in the case of sub-paragraph (g)(ii), (h), (i) or 0) of Sub-Clause

16.2.1 [Notice], by giving a Notice under Sub-Clause 16.2.1 the Contractor
may terminate the Contract immediatelyand the date of termination shall be
the date the Employer receives this Notice.

If the Contractor suffers delay and/or incurs Cost during the above period of
14 days, the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims
For Payment and/or EOT] to EOT and/or payment of such Cost Plus Profit.

16.3
Contractor'sObligations
After Termination After termination of the Contract under Sub-Clause 15.5 [Termination for
Employer's Convenience], Sub-Clause 16.2 [Termination by Contractor] or
Sub-Clause 18.5 [Optional Termination], the Contractor shall promptly:

(a) cease all further work, except for such work as may have been
instructed by the Engineer for the protection of life or property or for
the safety of the Works. If the Contractor incurs Cost as a result of
carrying out such instructed work the Contractor shall be entitled
subject to Sub-Clause 20.2 [Claims For Payment and/or EOT] to be
paid such Cost Plus Profit;
(b) deliver to the Engineer all Contractor's Documents, Plant, Materials
and other work for which the Contractor has received payment; and
(c) remove all other Goods from the Site, except as necessary for safety,
and leave the Site.

16.4 ---··---··----- ---·······--

Payment after
Terminationby Contractor After termination under Sub-Clause 16.2 [Termination by Contractor], the
Employer shall promptly:

(a) pay the Contractor in accordance with Sub-Clause 18.5 [Optional

Termination]; and
(b) subject to the Contractor's compliance with Sub-Clause 20.2 [Claims
For Payment and/or EOT], pay the Contractor the amount of any loss
of profit or other losses and damages suffered by the Contractor as a
result of this termination.

© FIDIC 2017 Conditions of Contract for Construction

86
 Car e Works and Indemnities
17.1
Responsibility for
Care of the Works Unless the Contract is terminated in accordance with these Conditions or
otherwise, subject to Sub-Clause 17.2 [Liability for Care of the Works] the
Contractor shall take full responsibilityfor the care of the Works, Goods and
Contractor's Documents from the Commencement Date until the Date of
Completion of the Works, when responsibilityfor the care of the Works shall
pass to the Employer.If a Taking-OverCertificate is issued (or is deemed to
be issued) for any Section or Part, responsibilityfor the care of the Section
or Part shall then pass to the Employer.

If the Contract is terminated in accordance with these Conditions or (j)

otherwise, the Contractor shall cease to be responsible for the care of the ~~
c;
Works from the date of termination. o
I.I...

After responsibilityhas accordingly passed to the Employer,the Contractor

shall take responsibilityfor the care of any work which is outstanding on the
Date of Completion, until this outstanding work has been completed.

If any loss or damage occurs to the Works, Goods or Contractor's Documents,

during the period when the Contractor is responsiblefor their care, from any
cause whatsoever except as stated in Sub-Clause 17.2 [Liability for Care of
the Works], the Contractor shall rectify the loss or damage at the Contractor's
risk and cost, so that the Works, Goods or Contractor's Documents (as the
case may be) comply with the Contract.

17.2
Liability for
Care of the Works The Contractor shall be liable for any loss or damage caused by the
Contractor to the Works, Goods or Contractor's Documents after the issue
of a Taking-OverCertificate. The Contractor shall also be liable for any loss or
damage, which occurs after the issue of a Taking-OverCertificate and which
arose from an event which occurred before the issue of this Taking-Over
Certificate, for which the Contractor was liable.

The Contractor shall have no liabilitywhatsoever,whether by way of indemnity

or otherwise, for loss or damage to the Works, Goods or Contractor's
Documents caused by any of the following events (except to the extent
that such Works, Goods or Contractor's Documents have been rejected
by the Engineer under Sub-Clause 7.5 [Defects and Rejection] before the
occurrence of any of the following events):

(a) interference, whether temporary or permanent, with any right of way,

light, air, water or other easement (other than that resulting from the
Contractor's method of construction) which is the unavoidable result
of the execution of the Works in accordance with the Contract;
(b) use or occupation by the Employer of any part of the Permanent
Works, except as may be specified in the Contract;
(c) fault, error, defect or omission in any element of the design of the
Works by the Employeror which may be contained in the Specification
and Drawings (and which an experienced contractor exercising due
care would not have discovered when examining the Site and the
Specification and Drawings before submitting the Tender), other
than design carried out by the Contractor in accordance with the
Contractor's obligations under the Contract;

General Conditions © FIDIC 2017

87
 (d) any operation of the forces of nature (other than those allocated to the
Contractor in the Contract Data) which is Unforeseeable or against
which an experienced contractor could not reasonably have been
expected to have taken adequate preventative precautions;
(e) any of the events or circumstances listed under sub-paragraphs (a) to
(t) of Sub-Clause 18.1 [Exceptional Events]; and/or
(D any act or default of the Employer'sPersonnelor the Employer'sother
contractors.

Subject to Sub-Clause 18.4 [Consequences of an Exceptional Event], if any

of the events described in sub-paragraphs (a) to (D above occurs and results
in damage to the Works, Goods or Contractor's Documents the Contractor
shall promptly give a Notice to the Engineer.Thereafter,the Contractor shall
rectify any such loss and/or damage that may arise to the extent instructed
(fJ by the Engineer.Such instruction shall be deemed to have been given under
">
rr~ Sub-Clause 13.3.1 [Variation by Instruction].
(j
LL

If the loss or damage to the Works or Goods or Contractor's Documents

results from a combination of:

(i) any of the events described in sub-paragraphs (a) to (D above, and

(ii) a cause for which the Contractor is liable,
and the Contractor suffers a delay and/or incurs Cost from rectifyingthe loss
and/or damage, the Contractor shall subject to Sub-Clause 20.2 [Claims for
Payment and/or E01] be entitled to a proportion of EOT and/or Cost Plus
Profit to the extent that any of the above events have contributed to such
delays and/or Cost.

17.3
Intellectual and Industrial
Property Rights In this Sub-Clause, "infringement" means an infringement (or alleged
infringement)of any patent, registered design, copyright, trademark, trade
name, trade secret or other intellectualor industrial property right relating to
the Works; and "claim" means a third party claim (or proceedings pursuing a
third party claim) alleging an infringement.

Whenever a Party receivesa claim but fails to give notice to the other Party
of the claim within 28 days of receiving it, the first Party shall be deemed to
have waived any right to indemnity under this Sub-Clause.

The Employershall indemnifyand hold the Contractor harmless against and

from any claim (including legal fees and expenses) alleging an infringement
which is or was:

(a) an unavoidable result of the Contractor's compliance with the

Specification and Drawings and/or any Variation;or
(b) a result of any Works being used by the Employer:
(i) for a purpose other than that indicated by, or reasonably to be
inferredfrom, the Contract, or
(ii) in conjunction with any thing not supplied by the Contractor,
unless such use was disclosed to the Contractor before the Base
Date or is stated in the Contract.

The Contractor shall indemnify and hold the Employer harmless against
and from any other claim (including legal fees and expenses) alleging an
infringementwhich arises out of or in relation to:

© FIDIC Conditions of Contract for Construction

88 2017
 (i) the Contractor's execution of the Works; or
(ii) the use of Contractor's Equipment.

If a Party is entitled to be indemnifiedunder this Sub-Clause, the indemnifying

Party may (at the indemnifyingParty's cost) assume overall responsibilityfor
negotiating the settlement of the claim, and/or any litigation or arbitration
which may arise from it. The other Party shall, at the request and cost of the
indemnifying Party, assist in contesting the claim. This other Party (and the
Contractor's Personnel or the Employer's Personnel, as the case may be)
shall not make any admission which might be prejudicialto the indemnifying
Party, unless the indemnifying Party failed to promptly assume overall
responsibilityfor the conduct of any negotiations, litigation or arbitration after
being requested to do so by the other Party.

17.4 (!)

Indemnitiesby Contractor The Contractor shall indemnify and hold harmless the Employer, the ~
CJ
Employer's Personnel, and their respective agents, against and from all u.

third party claims, damages, losses and expenses (including legal fees and
expenses)in respect of:

(a) bodily injury, sickness, disease or death of any person whatsoever

arising out of or in the course of or by reason of the Contractor's
execution of the Works, unless attributable to any negligence, wilful
act or breach of the Contract by the Employer, the Employer's
Personnel,or any of their respective agents; and
(b) damage to or loss of any property, real or personal (other than the
Works), to the extent that such damage or loss:
(i) arises out of or in the course of or by reason of the Contractor's
execution of the Works, and
(ii) is attributable to any negligence, wilful act or breach of the
Contract by the Contractor, the Contractor's Personnel, their
respective agents, or anyone directly or indirectly employed by
any of them.

To the extent, if any, that the Contractor is responsible for the design of
part of the Permanent Works under Sub-Clause 4.1 [Contractor's General
Obligations], and/or any other design under the Contract, the Contractor
shall also indemnify and hold harmless the Employer against all acts, errors
or omissions by the Contractor in carrying out the Contractor's design
obligations that result in the Works (or Section or Part or major item of Plant,
if any), when completed, not being fit for the purpose(s)for which they are
intended under Sub-Clause 4.1 [Contractor's General Obligations].

17.5
Indemnities by Employer The Employer shall indemnify and hold harmless the Contractor, the
Contractor's Personnel, and their respective agents, against and from all
third party claims, damages, losses and expenses (including legal fees and
expenses)in respect of:

(a) bodily injury, sickness, disease or death, or loss of or damage to any

property other than the Works, which is attributable to any negligence,
wilful act or breach of the Contract by the Employer,the Employer's
Personnel, or any of their respective agents; and
{b) damage to or loss of any property, real or personal (other than the
Works), to the extent that such damage or loss arises out of any event
described under sub-paragraphs (a) to If) of Sub-Clause 17.2 [Liability
for Care of the Works].

General Conditions © RDIC 2017

89
 17.6 ··································· ·······---------- ------------

Shared Indemnities The Contractor's liabilityto indemnify the Employer,under Sub-Clause 17 .4

[Indemnities by Contractor] and/or under Sub-Clause 17 .3 [Intellectual and
Industrial Property Rights], shall be reduced proportionately to the extent
that any event described under sub-paragraphs (a) to (f) of Sub-Clause 17 .2
[Liability for Care of the Works] may have contributed to the said damage,
loss or injury.

Similarly, the Employer'sliabilityto indemnifythe Contractor,under Sub-Clause

1 7 .5 [Indemnities by Employer], shall be reduced proportionatelyto the extent
that any event for which the Contractor is responsible under Sub-Clause
17.1 [Responsibility for Care of the Works] and/or under Sub-Clause 17.3
[Intellectual and Industrial Property Rights] may have contributed to the said
damage, loss or injury.
UJ

ff
o
u,

Exe p I Events
18.1
Exceptional Events "Exceptional Event" means an event or circumstance which:

(i) is beyond a Party's control;

(ii) the Party could not reasonablyhave provided against before entering
into the Contract;
(iii) having arisen, such Party could not reasonably have avoided or
overcome; and
(iv) is not substantiallyattributable to the other Party.

An Exceptional Event may comprise but is not limited to any of the following
events or circumstances provided that conditions (i) to (iv) above are satisfied:

(a) war, hostilities (whether war be declared or not), invasion, act of

foreign enemies;
(b) rebellion, terrorism, revolution, insurrection, militaryor usurped power,
or civil war;
(c) riot, commotion or disorder by persons other than the Contractor's
Personneland other employeesof the Contractor and Subcontractors;
(d) strike or lockout not solely involving the Contractor's Personnel and
other employees of the Contractor and Subcontractors;
(e) encountering munitions of war, explosive materials, ionising radiation
or contamination by radio-activity, except as may be attributable
to the Contractor's use of such munitions, explosives, radiation or
radio-activity; or
(f) natural catastrophes such as earthquake, tsunami, volcanic activity,
hurricane or typhoon.

18.2
Notice of
an Exceptional Event If a Party is or will be prevented from performing any obligations under the
Contract due to an Exceptional Event (the "affected Party" in this Clause),
then the affected Party shall give a Notice to the other Party of such an
Exceptional Event, and shall specify the obligations, the performance of
which is or will be prevented (the "prevented obligations" in this Clause).

This Notice shall be given within 14 days after the affected Party became
aware, or should have become aware, of the Exceptional Event, and

© FIDIC 2017 Conditions of Contract for Construction

90
 the affected Party shall then be excused performance of the prevented
obligations from the date such performance is prevented by the Exceptional
Event. If this Notice is received by the other Party after this period of 14
days, the affected Party shall be excused performance of the prevented
obligations only from the date on which this Notice is received by the other
Party.

Thereafter, the affected Party shall be excused performance of the prevented u,

obligations for so long as such Exceptional Event prevents the affected Party o
~
from performing them. Other than performanceof the prevented obligations, Cl

the affected Party shall not be excused performance of all other obligations
under the Contract.

However, the obligations of either Party to make payments due to the other
Party under the Contract shall not be excused by an Exceptional Event. U)
~
(1..

18.3 ····-----··-·-···-----·-·······----··--- -········----------- ·---

f?.
Duty to Minimise Delay Each Party shall at all times use all reasonableendeavours to minimise any
delay in the performance of the Contract as a result of an ExceptionalEvent.

If the Exceptional Event has a continuing effect, the affected Party shall give
further Notices describing the effect every 28 days after giving the first Notice
under Sub-Clause 18.2 [Notice of an Exceptional Event].

The affected Party shall immediatelygive a Notice to the other Partywhen the
affected Party ceases to be affected by the ExceptionalEvent. If the affected
Party fails to do so, the other Party may give a Notice to the affected Party
stating that the other Party considers that the affected Party's performance
is no longer prevented by the Exceptional Event, with reasons.

18.4
Consequences of
an Exceptional Event If the Contractor is the affected Party and suffers delay and/or incurs Cost
by reason of the Exceptional Event of which he/she gave a Notice under
Sub-Clause 18.2 [Notice of an Exceptional Event], the Contractor shall be
entitled subject to Sub-Clause 20.2 [Claims For Payment and/or E01] to:

(a) EOT; and/or

(b) if the Exceptional Event is of the kind described in sub-paragraphs
(a) to (e) of Sub-Clause 18.1 [Exceptional Events] and, in the case of
sub-paragraphs (b) to (e) of that Sub-Clause, occurs in the Country,
payment of such Cost.

18.5
Optional Termination If the execution of substantially all the Works in progress is prevented for a
continuous period of 84 days by reason of an Exceptional Event of which
Notice has been given under Sub-Clause 18.2 [Notice of an Exceptional
Event], or for multiple periods which total more than 140 days due to the
same Exceptional Event, then either Party may give to the other Party a
Notice of termination of the Contract.

In this event, the date of termination shall be the date 7 days after the Notice is
received by the other Party, and the Contractor shall proceed in accordance
with Sub-Clause 16.3 [Contractor's Obligations After Termination].

After the date of termination the Contractor shall, as soon as practicable,

submit detailed supporting particulars (as reasonably required by the
Engineer)of the value of the work done, which shall include:

General Conditions © FIDIC 2017

91
 (a) the amounts payable for any work carried out for which a price is
stated in the Contract;
(b) the Cost of Plant and Materials ordered for the Works which have
been delivered to the Contractor, or of which the Contractor is liable
to accept delivery. This Plant and Materials shall become the property
of (and be at the risk of) the Employer when paid for by the Employer,
and the Contractor shall place the same at the Employer's disposal;
LU
o (c) any other Cost or liability which in the circumstances was reasonably
2: incurred by the Contractor in the expectation of completing the
<(
~J Works;
=:;
o
(d) the Cost of removal of Temporary Works and Contractor's Equipment
from the Site and the return of these items to the Contractor's place
of business in the Contractor's country (or to any other destination(s)
at no greater cost); and
U)
2 {e) the Cost of repatriation of the Contractor's staff and labour employed
a:
o wholly in connection with the Works at the date of termination.
LL

The Engineer shall then proceed under Sub-Clause 3. 7 [Agreement or

Determination] to agree or determine the value of work done (and, for the
purpose of Sub-Clause 3.7.3 [Time limits], the date the Engineer receives
the Contractor's particulars under this Sub-Clause shall be the date of
commencement of the time limit for agreement under Sub-Clause 3.7.3).

The Engineer shall issue a Payment Certificate, under Sub-Clause 14.6

[Issue of /PC], for the amount so agreed or determined, without the need for
the Contractor to submit a Statement.

18.6
Release from Performance
under the Law In addition to any other provision of this Clause, if any event arises outside
the control of the Parties (including, but not limited to, an Exceptional Event)
which:

(a) makes it impossible or unlawful for either Party or both Parties to fulfil
their contractual obligations; or
{b) under the law governing the Contract, entitles the Parties to be
released from further performance of the Contract,
and if the Parties are unable to agree on an amendment to the Contract that
would permit the continued performance of the Contract, then after either
Party gives a Notice to the other Party of such event:

(i) the Parties shall be discharged from further performance, and without
prejudice to the rights of either Party in respect of any previous breach
of the Contract; and
(ii) the amount payable by the Employer to the Contractor shall be the
same as would have been payable under Sub-Clause 18.5 [Optional
Termination], and such amount shall be certified by the Engineer, as if
the Contract had been terminated under that Sub-Clause.

19.1
General Requirements Without limiting either Party's obligations or responsibilities under the
Contract, the Contractor shall effect and maintain all insurances for which
the Contractor is responsible with insurers and in terms, both of which shall

© FIDIC 2017 Conditions of Contract for Construction

92
 be subject to consent by the Employer. These terms shall be consistent
with terms (if any) agreed by both Parties before the date of the Letter of
Acceptance.

The insurances required to be provided under this Clause are the minimum
required by the Employer, and the Contractor may, at the Contractor's own
cost. add such other insurances that the Contractor may deem prudent.
w
()
Whenever required by the Employer, the Contractor shall produce the z
<l
insurance policies which the Contractor is required to effect under the
~
Contract. As each premium is paid, the Contractor shall promptly submit CD
either a copy of each receipt of payment to the Employer(with a copy to the
Engineer),or confirmation from the insurers that the premium has been paid.

If the Contractor failsto effect and keep in force any of the insurancesrequired (/)
under Sub-Clause 19.2 [Insurances to be provided by the Contractor] then, ~
a:
and in any such case, the Employer may effect and keep in force such 0
IL
insurances and pay any premium as may be necessary and recover the
same from the Contractor from time to time by deducting the amount(s)so
paid from any moneys due to the Contractor or otherwise recover the same
as a debt from the Contractor. The provisions of Clause 20 [Employer's and
Contractor's Claims] shall not apply to this Sub-Clause.

If either the Contractor or the Employerfails to comply with any condition of

the insurances effected under the Contract, the Party so failing to comply
shall indemnify the other Party against all direct losses and claims (including
legal fees and expenses) arising from such failure.

The Contractor shall also be responsiblefor the following:

(a) notifying the insurers of any changes in the nature, extent or

programme for the execution of the Works; and
(b) the adequacy and validity of the insurances in accordance with the
Contract at all times during the performance of the Contract.

The permitted deductible limits allowed in any policy shall not exceed the
amounts stated in the Contract Data (if not stated, the amounts agreed with
the Employer).

Where there is a shared liability the loss shall be borne by each Party in
proportion to each Party's liability, provided the non-recovery from insurers
has not been caused by a breach of this Clause by the Contractor or the
Employer. In the event that non-recovery from insurers has been caused by
such a breach, the defaulting Party shall bear the loss suffered.

19.2
Insurance to be provided
by the Contractor The Contractor shall provide the following insurances:

19.2.1 The Works

The Contractor shall insure and keep insured in the joint names of the
Contractor and the Employer from the Commencement Date until the date
of the issue of the Taking-OverCertificate for the Works:

(a) the Works and Contractor's Documents, together with Materials and
Plant for incorporation in the Works, for their full replacement value.

General Conditions © FIDIC 2017

93
 The insurance cover shall extend to include loss and damage of any
part of the Works as a consequence of failure of elements defectively
designed or constructed with defective materialor workmanship; and
(b) an additional amount of fifteen percent (15%) of such replacement
value (or such other amount as may be specified in the Contract Data)
to cover any additional costs incidental to the rectification of loss or
damage, including professional fees and the cost of demolition and
removal of debris.

s The insurance cover shall cover the Employerand the Contractor against all
0 loss or damage from whatever cause arising until the issueof the Taking-Over
Certificate for the Works. Thereafter, the insurance shall continue until the
date of the issue of the PerformanceCertificate in respect of any incomplete
work for loss or damage arising from any cause occurring before the date
of the issue of the Taking-OverCertificate for the Works, and for any loss or
damage occasioned by the Contractor in the course of any operation carried
out by the Contractor for the purpose of complying with the Contractor's
obligations under Clause 11 [Defects after Taking Over] and Clause 12 [Tests
after Completion].

However,the insurance cover provided by the Contractor for the Works may
exclude any of the following:

(i) the cost of making good any part of the Works which is defective
(includingdefective materialand workmanship)or otherwise does not
comply with the Contract, provided that it does not exclude the cost
of making good any loss or damage to any other part of the Works
attributable to such defect or non-compliance;
(ii) indirect or consequential loss or damage including any reductions in
the Contract Price for delay;
(iii) wear and tear, shortages and pilferages;and
(iv) unless otherwise stated in the Contract Data, the risks arising from
Exceptional Events.

19.2.2 Goods

The Contractor shall insure, in the joint names of the Contractor and the
Employer, the Goods and other things brought to Site by the Contractor
to the extent specified and/or amount stated in the Contract Data (if not
specified or stated, for their full replacementvalue including delivery to Site).

The Contractor shall maintain this insurance from the time the Goods are
deliveredto the Site until they are no longer required for the Works.

19.2.3 Liabilityfor breach of professionalduty

To the extent, if any, that the Contractor is responsible for the design of
part of the Permanent Works under Sub-Clause 4.1 [Contractor's General
Obligations]. and/or any other design under the Contract, and consistent with
the indemnities specified in Clause 17 [Care of the Works and Indemnities]:

(a) the Contractor shall effect and maintain professional indemnity

insurance against liability arising out of any act, error or omission by
the Contractor in carrying out the Contractor's design obligations in
an amount not less than that stated in the Contract Data (if not stated,
the amount agreed with the Employer); and
{b) if stated in the Contract Data, such professionalindemnity insurance

©FIDIC2017 Conditions of Contract for Construction

94
 shall also indemnify the Contractor against liability arising out of
any act, error or omission by the Contractor in carrying out the
Contractor's design obligations under the Contract that results in
the Works (or Section or Part or major item of Plant, if any), when
completed, not being fit for the purpose(s)for which they are intended
under Sub-Clause 4.1 [Contractor's General Obligations].

The Contractor shall maintain this insurance for the period specified in the i.Jj

Contract Data. o
z
~
=:i
19.2.4 Injuryto persons and damage to property o

The Contractor shall insure, in the joint names of the Contractor and the
Employer, against liabilities for death or injury to any person, or loss of or
damage to any property (otherthan the Works)arising out of the performance
of the Contract and occurring beforethe issue of the PerformanceCertificate,
other than loss or damage caused by an Exceptional Event.

The insurance policy shall include a cross liability clause such that the
insurance shall apply to the Contractor and the Employer as separate
insureds.

Such insurance shall be effected before the Contractor begins any work on
the Site and shall remain in force until the issue of the PerformanceCertificate
and shall be for not less than the amount stated in the Contract Data (if not
stated, the amount agreed with the Employer).

19.2.5 Injuryto employees

The Contractor shall effect and maintain insurance against liabilityfor claims,
damages, losses and expenses (including legal fees and expenses) arising
out of the execution of the Works in respect of injury, sickness, disease or
death of any person employed by the Contractor or any of the Contractor's
other personnel.

The Employer and the Engineer shall also be indemnified under the policy
of insurance, except that this insurance may exclude losses and claims to
the extent that they arise from any act or neglect of the Employer or of the
Employer's Personnel.

The insurance shall be maintained in full force and effect during the whole
time that the Contractor's Personnel are assisting in the execution of the
Works. For any person employed by a Subcontractor, the insurance may be
effected by the Subcontractor, but the Contractor shall be responsible for
the Subcontractor's compliance with this Sub-Clause.

19.2.6 Other insurances required by Laws and by local practice

The Contractor shall provide all other insurances required by the Laws of
the countries where (any part of) the Works are being carried out, at the
Contractor's own cost.

Other insurances required by local practice (if any) shall be detailed in

the Contract Data and the Contractor shall provide such insurances in
compliance with the details given, at the Contractor's own cost.

General Conditions © FIDIC 2017

95
 and Contractor's Claims
20.1
Claims A Claim may arise:

(a) if the Employerconsiders that the Employeris entitled to any additional

U .. i
payment from the Contractor (or reduction in the Contract Price)and/
o or to an extension of the DNP;
2'.
<.(
Cl {b) if the Contractor considers that the Contractor is entitled to any
5
o additional payment from the Employer and/or to EOT; or
(c) if either Party considers that he/she is entitled to another entitlement
or relief against the other Party. Such other entitlement or relief
may be of any kind whatsoever (including in connection with any
certificate, determination, instruction, Notice, opinion or valuation
of the Engineer)except to the extent that it involves any entitlement
referred to in sub-paragraphs (a) and/or {b) above.

In the case of a Claim under sub-paragraph (a) or {b) above, Sub-Clause

20.2 [Claims For Payment and/or EOT] shall apply.

In the case of a Claim under sub-paragraph (c) above, where the other Party
or the Engineer has disagreed with the requested entitlement or relief (or is
deemed to have disagreed if he/she does not respond within a reasonable
time), a Dispute shall not be deemed to have arisen but the claiming Party
may, by giving a Notice refer the Claim to the Engineerand Sub-Clause 3. 7
[Agreementor Determination]shall apply. This Notice shall be given as soon
as practicable after the claiming Party becomes aware of the disagreement
( or deemed disagreement)and includedetails of the claiming Party'scase and
the other Party's or the Engineer'sdisagreement (or deemed disagreement).

20.2
Claims For Payment
and/or EOT If either Party considers that he/she is entitled to any additional payment by
the other Party (or, in the case of the Employer,a reduction in the Contract
Price) and/or to EOT (in the case of the Contractor) or an extension of the
DNP (in the case of the Employer)under any Clause of these Conditions or
otherwise in connection with the Contract, the following Claim procedure
shall apply:

20.2.1 Notice of Claim

The claiming Party shall give a Notice to the Engineer,describing the event
or circumstance giving rise to the cost, loss, delay or extension of DNP for
which the Claim is made as soon as practicable, and no later than 28 days
after the claiming Party became aware, or should have become aware, of
the event or circumstance (the "Notice of Claim" in these Conditions).

If the claiming Party fails to give a Notice of Claim within this period of 28
days, the claiming Party shall not be entitled to any additional payment,
the Contract Price shall not be reduced (in the case of the Employer as the
claiming Party), the Time for Completion (in the case of the Contractor as
the claiming Party) or the DNP (in the case of the Employer as the claiming
Party) shall not be extended, and the other Party shall be discharged from
any liability in connection with the event or circumstance giving rise to the
Claim.

© FIDIC 2017 Conditions of Contract for Construction

96
 20.2.2 Engineer'sinitial response

If the Engineerconsiders that the claiming Party has failed to give the Notice
of Claim within the period of 28 days under Sub-Clause 20.2.1 [Notice of
Claim] the Engineer shall, within 14 days after receiving the Notice of Claim,
give a Notice to the claiming Party accordingly (with reasons).

If the Engineer does not give such a Notice within this period of 14 days, w
o
the Notice of Claim shall be deemed to be a valid Notice. If the other Party z
<1'.
disagrees with such deemed valid Notice of Claim the other Party shall give (J

a Notice to the Engineer which shall include details of the disagreement.

Thereafter,the agreement or determination of the Claim under Sub-Clause
20.2.5 [Agreement or determination of the Claim] shall include a review by
the Engineer of such disagreement.
(/)
If the claimingPartyreceivesa Notice from the Engineerunder this Sub-Clause 2
a:
and disagreeswith the Engineeror considersthere are circumstances which 0
LL

justify late submission of the Notice of Claim,the claimingParty shall includein

its fully detailed Claim under Sub-Clause20.2.4 [Fully detailed claim] details of
such disagreementor why such late submission is justified(as the case may be).

20.2.3 Contemporary records

In this Sub-Clause 20.2, "contemporary records" means records that are

prepared or generated at the same time, or immediately after, the event or
circumstance giving rise to the Claim.

The claiming Party shall keep such contemporary records as may be

necessaryto substantiate the Claim.

Without admitting the Employer's liability, the Engineer may monitor the
Contractor's contemporary records and/or instruct the Contractor to
keep additional contemporary records. The Contractor shall permit the
Engineer to inspect all these records during normal working hours (or at
other times agreed by the Contractor), and shall if instructed submit copies
to the Engineer. Such monitoring, inspection or instruction (if any) by the
Engineershall not imply acceptance of the accuracy or completeness of the
Contractor's contemporary records.

20.2.4 Fully detailed Claim

In this Sub-Clause 20.2, "fully detailed Claim" means a submission which

includes:

(a) a detailed description of the event or circumstance giving rise to the

Claim;
(b) a statement of the contractual and/or other legal basis of the Claim;
(c) all contemporary records on which the claiming Party relies; and
(d) detailed supporting particulars of the amount of additional payment
claimed (or amount of reduction of the Contract Price in the case of
the Employer as the claiming Party), and/or EOT claimed (in the case
of the Contractor) or extension of the DNP claimed (in the case of the
Employer).

Within either:

(i) 84 days after the claiming Party became aware, or should have
become aware, of the event or circumstance giving rise to the Claim,

General Conditions © FIDIC 2017

97
 or
(ii) such other period (if any) as may be proposed by the claiming Party
and agreed by the Engineer
the claiming Party shall submit to the Engineera fully detailed Claim.

If within this time limit the claiming Party fails to submit the statement under
sub-paragraph (b) above, the Notice of Claim shall be deemed to have
lapsed, it shall no longer be considered as a valid Notice, and the Engineer
shall, within 14 days after this time limit has expired, give a Notice to the
claiming Party accordingly.

If the Engineer does not give such a Notice within this period of 14 days,
the Notice of Claim shall be deemed to be a valid Notice. If the other Party
disagrees with such deemed valid Notice of Claim the other Party shall give
(f)
2. a Notice to the Engineer which shall include details of the disagreement.
rr·
6 Thereafter,the agreement or determination of the Claim under Sub-Clause
u,
20.2.5 [Agreement or determination of the Claim] shall include a review by
the Engineer of such disagreement.

If the claiming Partyreceivesa Notice from the Engineerunderthis Sub-Clause

20.2.4 and if the claiming Party disagrees with such Notice or considers
there are circumstances which justify late submission of the statement under
sub-paragraph (b) above, the fully detailed claim shall include details of the
claiming Party'sdisagreementor why such late submission is justified (as the
case may be).

If the event or circumstance giving rise to the Claim has a continuing effect,
Sub-Clause 20.2.6 [Claims of continuing effect] shall apply.

20.2.5 Agreement or determination of the Claim

After receiving a fully detailed Claim either under Sub-Clause 20.2.4 [Fully
detailed Claim], or an interim or final fully detailed Claim (as the case may
be) under Sub-Clause 20.2.6 [Claims of continuing effect]. the Engineershall
proceed under Sub-Clause 3.7 [Agreement or Determination] to agree or
determine:

(a) the additional payment (if any) to which the claiming Party is entitled
or the reduction of the Contract Price (in the case of the Employer as
the claiming Party); and/or
(b) the extension (if any) of the Time for Completion (before or after its
expiry) under Sub-Clause 8.5 [Extension of Time for Completion] (in
the case of the Contractor as the claiming Party), or the extension (if
any) of the DNP (before its expiry) under Sub-Clause 11.3 [Extension
of Defects Notification Period] (in the case of the Employer as the
claiming Party),
to which the claiming Party is entitled under the Contract.

If the Engineer has given a I\Jotice under Sub-Clause 20.2.2 [Engineer's

initial response] and/or under Sub-Clause 20.2.4 [Fully detailed Claim],
the Claim shall nevertheless be agreed or determined in accordance with
this Sub-Clause 20.2.5. The agreement or determination of the Claim shall
include whether or not the Notice of Claim shall be treated as a valid Notice
taking account of the details (if any) included in the fully detailed claim of the
claiming Party's disagreement with such Notice(s)or why late submission is
justified (as the case may be). The circumstances which may be taken into
account (but shall not be binding) may include:

©FIDIC 2017 Conditions of Contract for Construction

98
 • whether or to what extent the other Party would be prejudiced by
acceptance of the late submission;
• in the case of the time limit under Sub-Clause 20.2.1 [Notice of
Claim], any evidence of the other Party's prior knowledge of the event
or circumstance giving rise to the Claim, which the claiming Party may
include in its supporting particulars; and/or
• in the case of the time limit under Sub-Clause 20.2.4 [Fully detailed
Claim], any evidence of the other Party's prior knowledge of the w
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contractual and/or other legal basis of the Claim, which the claiming z
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Party may include in its supporting particulars. 5
('.)

If, having received the fully detailed Claim under Sub-Clause 20.2.4 [Fully
detailed Claim], or in the case of a Claim under Sub-Clause 20.2.6 [Claims
of continuing effect] an interim or final fully detailed Claim (as the case may
be), the Engineer requires necessary additional particulars: (/)

fro
(i) he/she shall promptly give a Notice to the claiming Party, describing u,

the additional particulars and the reasons for requiring them;

(ii) he/she shall nevertheless give his/her response on the contractual or
other legal basis of the Claim, by giving a Notice to the claiming Party,
within the time limit for agreement under Sub-Clause 3. 7 .3 [Time limits];
(iii) as soon as practicable after receiving the Notice under sub-paragraph
(i) above, the claiming Party shall submit the additional particulars;
and
(iv) the Engineer shall then proceed under Sub-Clause 3. 7 [Agreement or
Determination]toagreeordeterminethemattersundersub-paragraphs
(a) and/or (b) above (and, for the purpose of Sub-Clause 3.7.3 [Time
limits], the date the Engineer receives the additional particulars from
the claiming Party shall be the date of commencement of the time
limit for agreement under Sub-Clause 3.7.3).

20.2.6 Claims of continuing effect

If the event or circumstance giving rise to a Claim under this Sub-Clause

20.2 has a continuing effect:

(a) the fully detailed Claim submitted under Sub-Clause 20.2.4 [Fully
detailed Claim] shall be considered as interim;
(b) in respect of this first interim fully detailed Claim, the Engineer shall
give his/her response on the contractual or other legal basis of the
Claim, by giving a Notice to the claiming Party, within the time limit for
agreement under Sub-Clause 3. 7 .3 [Time limits];
(c) after submitting the first interim fully detailed Claim the claiming Party
shall submit further interim fully detailed Claims at monthly intervals,
giving the accumulated amount of additional payment claimed (or the
reduction of the Contract Price, in the case of the Employer as the
claiming Party), and/or extension of time claimed (in the case of the
Contractor as the claiming Party) or extension of the DNP (in the case
of the Employer as the claiming Party); and
(d) the claiming Party shall submit a final fully detailed Claim within 28 days
after the end of the effects resulting from the event or circumstance, or
within such other period as may be proposed by the claiming Party and
agreed by the Engineer. This final fully detailed Claim shall give the total
amount of additional payment claimed (or the reduction of the Contract
Price, in the case of the Employer as the claiming Party), and/or extension
of time claimed (in the case of the Contractor as the claiming Party) or
extension of the DNP (in the case of the Employer as the claiming Party).

General Conditions © FIDIC 2017

99
 20.2.7 General requirements

After receivingthe Notice of Claim, and until the Claim is agreed or determined
under Sub-Clause 20.2.5 [Agreement or determination of the Claim], in each
Payment Certificate the Engineer shall include such amounts for any Claim
as have been reasonably substantiated as due to the claiming Party under
the relevant provision of the Contract.
LU
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z The Employershall only be entitled to claim any payment from the Contractor
<1'
c5 and/or to extend the DNP, or set off against or make any deduction from any
:'j
C) amount due to the Contractor, by complying with this Sub-Clause 20.2.

The requirementsof this Sub-Clause20.2 are in addition to those of any other

Sub-Clausewhich may apply to the Claim. If the claiming Partyfails to comply
(J)
with this or any other Sub-Clause in relation to the Claim, any additional
2 payment and/or any EOT (in the case of the Contractor as the claiming Party)
6
LL or extensionof the DNP (in the case of the Employeras the claiming Party),
shall take account of the extent (if any) to which the failure has prevented or
prejudicedproper investigationof the Claim by the Engineer.

Di and Arbitration
21.1
Constitution of the DAAB Disputes shall be decided by a DMB in accordance with Sub-Clause 21 .4
[Obtaining OMB's Decision]. The Parties shall jointly appoint the member(s)
of the DMB within the time stated in the Contract Data (if not stated, 28
days) after the date the Contractor receivesthe Letter of Acceptance.

The DMB shall comprise, as stated in the Contract Data, either one suitably
qualified member (the "sole member") or three suitably qualified members
(the "members"). If the number is not so stated, and the Partiesdo not agree
otherwise, the DMB shall comprise three members.

The sole member or three members (as the case may be) shall be selected
from those named in the list in the Contract Data, other than anyone who is
unable or unwilling to accept appointment to the DMB.

If the DMB is to comprise three members, each Party shall select one
member for the agreement of the other Party. The Parties shall consult both
these members and shall agree the third member, who shall be appointed to
act as chairperson.

The DMB shall be deemed to be constituted on the date that the Parties
and the sole member or the three members (as the case may be) of the
DMB have all signed a DMB Agreement.

The terms of the remuneration of either the sole member or each of the
three members, including the remuneration of any expert whom the DMB
consults, shall be mutually agreed by the Parties when agreeing the terms of
the DMB Agreement. Each Party shall be responsiblefor paying one-half of
this remuneration.

If at any time the Parties so agree, they may appoint a suitably qualified
person or persons to replace any one or more members of the DMB.
Unless the Parties agree otherwise, a replacement DMB member shall be
appointed if a member declines to act or is unable to act as a result of death,

© FIDIC2017 Conditions of Contract for Construction

100
 illness, disability, resignation or termination of appointment. The replacement
member shall be appointed in the same manner as the replaced member was
required to have been selected or agreed, as described in this Sub-Clause.

The appointment of any member may be terminated by mutual agreement

of both Parties, but not by the Employer or the Contractor acting alone.

Unless otherwise agreed by both Parties, the term of the DAAB (including LU
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the appointment of each member) shall expire either: z
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(a) on the date the discharge shall have become, or deemed to have t:
(')
become, effective under Sub-Clause 14.12 [Discharge]; or
(b) 28 days after the DAAB has given its decision on all Disputes, referred
to it under Sub-Clause 21.4 [Obtaining DAAB's Decision] before such
discharge has become effective, (!)
:.?
whichever is later. a:
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However, if the Contract is terminated under any Sub-Clause of these

Conditions or otherwise, the term of the DAAB (includingthe appointment of
each member) shall expire 28 days after:

(i) the DAAB has given its decision on all Disputes, which were referred
to it (under Sub-Clause 21.4 [Obtaining DAAB's Decision]) within 224
days after the date of termination; or
(ii) the date that the Parties reach a final agreement on all matters
(including payment) in connection with the termination
whichever is earlier.

21.2 ···-···········-········-----
·--- -----···········-····---------·--·----

Failure to Appoint
DAAB Member(s) If any of the following conditions apply, namely:

(a) if the DAAB is to comprise a sole member, the Parties fail to agree the
appointment of this member by the date stated in the first paragraph
of Sub-Clause 21 . 1 [Constitution of the DAAB]; or
(b) if the DAAB is to comprise three persons, and if by the date stated in
the first paragraph of Sub-Clause 21.1 [Constitution of the DAAB]:
(i) either Party fails to select a member (for agreement by the other
Party);
(ii) either Party fails to agree a member selected by the other Party;
and/or
(iii) the Parties fail to agree the appointment of the third member (to
act as chairperson) of the DAAB;
(c) the Parties fail to agree the appointment of a replacement within 42
days after the date on which the sole member or one of the three
members declines to act or is unable to act as a result of death,
illness, disability,resignation,or termination of appointment; or
(d) if, after the Parties have agreed the appointment of the member(s)
or replacement, such appointment cannot be effected because
one Party refuses or fails to sign a DAAB Agreement with any such
member or replacement (as the case may be) within 14 days of the
other Party's request to do so,
then the appointing entity or official named in the Contract Data shall, at the
request of either or both Partiesand after due consultation with both Parties,
appoint the member(s)of the DAAB (who, in the case of sub-paragraph {d)

General Conditions © FIDIC 2017

101
 above, shall be the agreed member(s) or replacement). This appointment
shall be final and conclusive.

Thereafter, the Parties and the member(s) so appointed shall be deemed to

have signed and be bound by a DAAB Agreement under which:

(i) the monthly services fee and daily fee shall be as stated in the terms
of the appointment; and
(ii) the law governing the DAAB Agreement shall be the governing law of
the Contract defined in Sub-Clause 1.4 [Law and Language].

Each Party shall be responsible for paying one-half of the remuneration of

the appointing entity or official. If the Contractor pays the remuneration in full,
the Contractor shall include one-half of the amount of such remuneration in
(!)
a Statement and the Employer shall then pay the Contractor in accordance
~:
rr with the Contract. If the Employer pays the remuneration in full, the Engineer
(5 shall include one-half of the amount of such remuneration as a deduction
LL
under sub-paragraph (b) of Sub-Clause 14.6.1 [The /PC].

21.3
Avoidance of Disputes If the Parties so agree, they may jointly request (in writing, with a copy to
the Engineer) the DAAB to provide assistance and/or informally discuss and
attempt to resolve any issue or disagreement that may have arisen between
them during the performance of the Contract. If the DAAB becomes aware of
an issue or disagreement, it may invite the Parties to make such a joint request.

Such joint request may be made at any time, except during the period that
the Engineer is carrying out his/her duties under Sub-Clause 3.7 [Agreement
or Determination] on the matter at issue or in disagreement unless the Parties
agree otherwise.

Such informal assistance may take place during any meeting, Site visit or
otherwise. However, unless the Parties agree otherwise, both Parties shall be
present at such discussions. The Parties are not bound to act on any advice
given during such informal meetings, and the DAAB shall not be bound in any
future Dispute resolution process or decision by any views or advice given
during the informal assistance process, whether provided orally or in writing.

21.4
Obtaining DAAB's Decision If a Dispute arises between the Parties then either Party may refer the Dispute
to the DAAB for its decision (whether or not any informal discussions have
been held under Sub-Clause 21.3 [Avoidance of Disputes]) and the following
provisions shall apply.

21.4.1 Reference of a Dispute to the DAAB

The reference of a Dispute to the DAAB (the "reference" in this Sub-Clause

21.4) shall:

(a) if Sub-Clause 3. 7 [Agreement or Determination] applied to the subject

matter of the Dispute, be made within 42 days of giving or receiving
(as the case may be) a NOD under Sub-Clause 3.7.5 [Dissatisfaction
with Engineer's determination]. If the Dispute is not referred to the
DAAB within this period of 42 days, such NOD shall be deemed to
have lapsed and no longer be valid;
{b} state that it is given under this Sub-Clause;
(c) set out the referring Party's case relating to the Dispute;

© FIDIC 2017 Conditions of Contract for Construction

102
 (d) be in writing, with copies to the other Party and the Engineer;and
(e) for a DAAB of three persons, be deemed to have been received by
the DAAB on the date it is received by the chairperson of the DAAB.

The referenceof a Dispute to the DAAB under this Sub-Clause shall, unless
prohibited by law, be deemed to interrupt the running of any applicable
statute of limitation or prescription period.

21.4.2 The Parties' obligations after the reference

Both Parties shall promptly make available to the DAAB all information,
access to the Site, and appropriate facilities, as the DAAB may require for
the purposes of making a decision on the Dispute.

Unlessthe Contract has already been abandoned or terminated, the Parties

shall continue to perform their obligations in accordance with the Contract.

21.4.3 The DAAB's decision

The DAAB shall complete and give its decision within:

(a) 84 days after receiving the reference; or

(b) such period as may be proposed by the DAAB and agreed by both
Parties.

However, if at the end of this period, the due date(s) for payment of any
DAAB member's invoice(s)has passed but such invoice(s)remains unpaid,
the DAAB shall not be obliged to give its decision until such outstanding
invoice(s) have been paid in full, in which case the DAAB shall give its
decision as soon as practicable after payment has been received.

The decision shall be given in writing to both Parties with a copy to the
Engineer, shall be reasoned, and shall state that it is given under this
Sub-Clause.

The decision shall be binding on both Parties, who shall promptly comply
with it whether or not a Party gives a NOD with respect to such decision
under this Sub-Clause.The Employershall be responsiblefor the Engineer's
compliance with the DAAB decision.

If the decision of the DAAB requiresa payment of an amount by one Party to

the other Party

(i) subject to sub-paragraph (ii) below, this amount shall be immediately

due and payable without any certification or Notice; and
(ii) the DAAB may (as part of the decision), at the request of a Party
but only if there are reasonablegrounds for the DAAB to believethat
the payee will be unable to repay such amount in the event that the
decision is reversed under Sub-Clause 21.6 [Arbitration], require
the payee to provide an appropriate security (at the DAAB's sole
discretion) in respect of such amount.

The DAAB proceeding shall not be deemed to be an arbitration and the

DAAB shall not act as arbitrator(s).

General Condrtions © FIDIC 2017

103
 21.4.4 Dissatisfaction with DAAB's decision

If either Party is dissatisfied with the DAAB's decision:

(a) such Party may give a NOD to the other Party, with a copy to the
DAAB and to the Engineer;
(b) this NOD shall state that it is a "Notice of Dissatisfaction with the
l.1..1 DAAB's Decision" and shall set out the matter in Dispute and the
o reason(s)for dissatisfaction; and
2:
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() (c) this NOD shall be given within 28 days after receiving the DAAB's
:J
0 decision.

If the DAAB fails to give its decision within the period stated in Sub-Clause
21.4.3 [The DMB's decision], then either Party may, within 28 days after
(!) this period has expired, give a NOD to the other Party in accordance with
2
rr sub-paragraphs (a) and (b) above.
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Except as stated in the last paragraph of Sub-Clause 3. 7 .5 [Dissatisfaction

with Engineer's determination]. in Sub-Clause 21.7 [Failure to Comply with
DMB's Decision] and in Sub-Clause 21.8 [No DMB In Place]. neither Party
shall be entitledto commence arbitrationof a Dispute unless a NOD in respect
of that Dispute has been given in accordance with this Sub-Clause 21.4.4.

If the DAAB has given its decision as to a matter in Dispute to both Parties,
and no NOD under this Sub-Clause 21.4.4 has been given by either Party
within 28 days after receiving the DAAB's decision, then the decision shall
become final and binding on both Parties.

If the dissatisfied Party is dissatisfied with only part(s)of the DAAB's decision:

(i) this part(s) shall be clearly identified in the NOD;

(ii) this part(s), and any other parts of the decision that are affected by
such part(s) or rely on such part(s)for completeness, shall be deemed
to be severablefrom the remainder of the decision; and
(iii) the remainder of the decision shall become final and binding on both
Parties as if the NOD had not been given.

21.5
Amicable Settlement Where a NOD has been given under Sub-Clause 21.4 [Obtaining DMB's
Decision], both Parties shall attempt to settle the Dispute amicably before
the commencement of arbitration. However, unless both Parties agree
otherwise, arbitration may be commenced on or after the twenty-eighth
(28th) day after the day on which this NOD was given, even if no attempt at
amicable settlement has been made.

21.6 --~-------·-·-··-----·····-··- ·····················--····----··-·----

Arbitration Unless settled amicably, and subject to Sub-Clause 3. 7 .5 [Dissatisfaction

with Engineer's determination], Sub-Clause 21.4.4 [Dissatisfaction with
DMB's decision], Sub-Clause 21. 7 [Failure to Comply with DMB's Decision]
and Sub-Clause 21.8 [No DMB In Place], any Dispute in respect of which
the DAAB's decision (if any) has not become final and binding shall be finally
settled by internationalarbitration. Unless otherwise agreed by both Parties:

(a) the Dispute shall be finally settled under the Rules of Arbitration of the
International Chamber of Commerce;
(b) the Dispute shall be settled by one or three arbitrators appointed in
accordance with these Rules; and

© FIDIC2017 Conditions of Contract for Construction

104
 (c) the arbitration shall be conducted in the ruling language defined in
Sub-Clause 1.4 [Law and Language].

The arbitrator(s) shall have full power to open up, review and revise any
certificate, determination (other than a final and binding determination),
instruction, opinion or valuation of the Engineer, and any decision of the
DAAB (other than a final and binding decision) relevant to the Dispute.
Nothing shall disqualify the Engineer from being called as a witness and u:
giving evidence before the arbitrator(s)on any matter whatsoever relevantto ~
the Dispute. ~
:5
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In any award dealing with costs of the arbitration, the arbitrator(s)may take
account of the extent (if any) to which a Party failed to cooperate with the
other Party in constituting a DAAB under Sub-Clause 21.1 [Constitution of
the DMB] and/or Sub-Clause 21.2 [Failureto Appoint DMB Member(s)]. (/)
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Neither Party shall be limited in the proceedings before the arbitrator(s)to '-.,
U ..

the evidence or arguments previously put before the DAAB to obtain its
decision, or to the reasonsfor dissatisfaction given in the Party's NOD under
Sub-Clause 21.4 [Obtaining DMB's Decision]. Any decision of the DAAB
shall be admissible in evidence in the arbitration.

Arbitration may be commenced before or after completion of the Works. The

obligations of the Parties, the Engineerand the DAAB shall not be altered by
reason of any arbitration being conducted during the progress of the Works.

If an award requires a payment of an amount by one Party to the other

Party,this amount shall be immediatelydue and payable without any further
certification or Notice.

21.7
Failure to Comply
with DAAB's Decision In the eventthat a Partyfailsto comply with any decision of the DAAB.whether
binding or final and binding, then the other Party may, without prejudice to
any other rights it may have, refer the failure itself directly to arbitration under
Sub-Clause 21.6 [Arbitration] in which case Sub-Clause 21.4 [Obtaining
DMB's Decision] and Sub-Clause 21.5 [Amicable Settlement] shall not
apply to this reference. The arbitral tribunal (constituted under Sub-Clause
21.6 [Arbitration]) shall have the power, by way of summary or other
expedited procedure, to order, whether by an interim or provisionalmeasure
or an award (as may be appropriate under applicable law or otherwise),the
enforcement of that decision.

In the case of a binding but not final decision of the DAAB, such interim or
provisionalmeasureor award shall be subject to the express reservationthat
the rights of the Parties as to the merits of the Dispute are reserveduntil they
are resolved by an award.

Any interim or provisional measure or award enforcing a decision of the

DAAB which has not been complied with, whether such decision is binding
or final and binding, may also include an order or award of damages or other
relief.

21.8
No DAAB In Place If a Dispute arises between the Parties in connection with, or arising out of,
the Contract or the execution of the Works and there is no DAAB in place
(or no DAAB is being constituted), whether by reason of the expiry of the
DAAB's appointment or otherwise:

© FIDIC 2017
General Conditions
105
 (a) Sub-Clause 21.4 [Obtaining DMB's Decision] and Sub-Clause 21.5
[Amicable Settlement] shall not apply; and
(b) the Dispute may be referred by either Party directly to arbitration under
Sub-Clause 21.6 [Arbitration] without prejudice to any other rights the
Party may have.

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©FIOIC2017
106 Conditions of Contract for Construction
 APPENDIX

General Conditions of Dispute Avoidance/Adjudication

Agreement

1
Definitions 1.1 "General Conditionsof DisputeAvoidance/ AqiudicationAgreement''
or "GCs" means this document entitled "General Conditions of Dispute
Avoidance/AdjudicationAgreement", as published by FIDIC.

1.2 In the DAA Agreement (as defined below) and in the GCs, words and
expressions which are not otherwise defined shall have the meanings (/)
"5
assigned to them in the Contract (as defined in the DAA Agreement). a:
0
u ...

1.3 "Dispute Avoidance/Adjudication Agreement"or "DAA Agreement"

means a tripartite agreement by and between:

(a) the Employer;

(b) the Contractor; and
(c) the DAAB Member who is defined in the DAA Agreement as being
either:
(i) the sole member of the DAAB, or
(ii) one of the three members (or the chairman)of the DAAB.

1.3 "DAAB's Activities"means the activities carried out by the DAAB in

accordance with the Contract and the GCs, including all InformalAssistance,
meetings (including meetings and/or discussions between the DAAB
members in the case of a three-member DAAB), Site visits, hearings and
decisions.

1 .4 "DAAB Rules" means the document entitled "DAAB ProceduralRules"

published by FIDICwhich are annexed to, and form part of, the GCs.

1 .5 "InformalAssistance" means the informal assistance given by the DAAB

to the Parties when requested jointly by the Parties under Sub-Clause 21.3
[Avoidance of Disputes] of the Conditions of Contract.

1 .6 "Term of the DAAB" means the period starting on the Effective Date (as
defined in Sub-Clause 2.1 below) and finishing on the date that the term of
the DAAB expires in accordance with Sub-Clause 21.1 [Constitution of the
DMB] of the Conditions of Contract.

1 .7 "Notification"
means a notice in writing given under the GCs, which shall
be:

(a) (i) a paper-original signed by the DAAB Member or the authorised

representativeof the Contractor or of the Employer (as the case
may be); or
(ii) an electronic original generated from the system of electronic
transmission agreed between the Parties and the DAAB, which
electronic original is transmitted by the electronic address
uniquelyassigned to the DAAB Member or each such authorised
representative(as the case may be);

General Cond~ions © FIDIC 2017

107
 (b) delivered by hand (against receipt}, or sent by mail or courier (against
receipt), or transmitted using the system of electronic transmission
under sub-paragraph (a)(ii) above; and
(c) delivered, sent or transmitted to the address for the recipient's
communications as stated in the DAA Agreement. However, if the
recipient gives a Notification of another address, all Notifications shall
be deliveredaccordingly after the sender receivessuch Notification.
iu
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z 2
c3 General Provisions 2.1 The DAA Agreement shall take effect:
5
o
(a) in the case of a sole-member DAAB, on the date when the Employer,
the Contractor and the DAAB Member have each signed (or, under
the Contract, are deemed to have signed) the DAA Agreement; or
(b) in the case of a three-member DAAB, on the date when the Employer,
the Contractor, the DAAB Member and the Other Members have
each signed (or under the Contract are deemed to have signed) a
DAA Agreement.

(the "Effective Date" in the GCs).

2.2 Immediately after the Effective Date, either or both Parties shall give a
Notification to the DAAB Member that the DAA Agreement has come into
effect. If the DAAB Member does not receive such a notice within 182 days
after entering into the DAA Agreement, it shall be void and ineffective.

2.3 The employment of the DAAB Member is a personal appointment. No

assignment of, or subcontracting or delegationof the DAAB Member's rights
and/or obligations under the DAA Agreement is permitted.

3
Warranties 3.1 The DAAB Member warrants and agrees that he/she is, and will remain at
all times during the Term of the DAAB, impartial and independent of the
Employer, the Contractor, the Employer's Personnel and the Contractor's
Personnel (including in accordance with Sub-Clause 4.1 below).

3.2 If, after signing the DAAAgreement (or after he/she is deemed to have signed
the DAAAgreement under the Contract), the DAAB Member becomes aware
of any fact or circumstance which might:

(a) call into question his/her independence or impartiality;and/or

{b} be, or appear to be, inconsistentwith his/her warranty and agreement
under Sub-Clause 3.1 above
the DAAB Member warrants and agrees that he/she shall immediately
disclose this in writing to the Parties and the Other Members (if any).

3.3 When appointing the DAAB Member, each Party relies on the DAAB
Member's representationsthat he/she is:

(a) experienced and/or knowledgeable in the type of work which the

Contractor is to carry out under the Contract;
(b) experienced in the interpretation of construction and/or engineering
contract documentation; and
(c) fluent in the languagefor communications stated in the Contract Data
(or the language as agreed between the Parties and the DAAB).

© FIDIC 2017 Conditions of Contract for Construction

108
4
Independence and
Impartiality 4.1 Further to Sub-Clauses 3.1 and 3.2 above, the DAAB Member shall:

(a) have no financialinterest in the Contract, or in the project of which the

Works are part, except for payment under the DAA Agreement;
(b) have no interest whatsoever (financialor otherwise)in the Employer,the
Contractor, the Employer's Personnelor the Contractor's Personnel;
(c) in the ten years before signing the DAA Agreement, not have
been employed as a consultant or otherwise by the Employer, the
Contractor, the Employer's Personnel or the Contractor's Personnel;
(d) not previously have acted, and shall not act, in any judicial or arbitral
capacity in relation to the Contract;
(e) have disclosed in writing to the Employer, the Contractor and the
(n
Other Members (if any), before signing the DAA Agreement (or before 2
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he/she is deemed to have signed the DAA Agreement under the 0
U.
Contract) and to his/her best knowledge and recollection, any:
(i) existing and/or past professional or personal relationships with
any director, officer or employee of the Employer,the Contractor,
the Employer'sPersonnelor the Contractor's Personnel(including
as a dispute resolution practitioner on another project),
(ii) facts or circumstances which might call into question his/her
independence or impartiality,and
(iii) previous involvement in the project of which the Contract forms
part;
(0 not, while a DAAB Member and for the Term of the DAAB:
(i) be employed as a consultant or otherwise by, and/or
(ii) enter into discussions or make any agreement regarding future
employment with
the Employer,the Contractor, the Employer's Personnel or the Contractor's
Personnel, except as may be agreed by the Employer,the Contractor and
the Other Members (if any); and/or

(g) not solicit, accept or receive (directly or indirectly) any gift, gratuity,
commission or other thing of value from the Employer,the Contractor,
the Employer's Personnel or the Contractor's Personnel, except for
payment under the DAA Agreement.

5 ·················-·--·--··-- -------··--··--··········--------

General Obligations
of the DAAB Member 5.1 The DAAB Member shall:

(a) comply with the GCs, the DAAB Rules and the Conditions of Contract
that are relevantto the DAAB's Activities;
(b) not give advice to the Employer, the Contractor, the Employer's
Personnel or the Contractor's Personnel concerning the conduct of
the Contract, except as required to carry out the DAAB's Activities;
(c) ensure his/her availability during the Term of the DAAB (except in
exceptional circumstances, in which case the DAAB Member shall
give a Notification without delay to the Parties and the Other Members
(if any) detailing the exceptional circumstances)for all meetings, Site
visits, hearings and as is necessary to comply with sub-paragraph (a)
above;
(d) become, and shall remain for the duration of the Term of the DAAB,
knowledgeable about the Contract and informed about:

General Conditions © FIDIC 2017

109
 (i) the Parties' performance of the Contract;
(ii) the Site and its surroundings; and
(iii) the progress of the Works (and of any other parts of the project
of which the Contract forms part)
including by visiting the Site, meeting with the Parties and by studying all
documents received from either Party under Rule 4.3 of the DAAB Rules
LLI
(which shall be maintainedin a current working file, in hard-copy or electronic
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(e) be availableto give Informal Assistance when requested jointly by the
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Parties.

6
(/)
General Obligations
~ of the Parties 6.1 Each Party shall comply with the GCs, the DAAB Rules and the Conditions
0 of Contract that are relevant to the DAAB's Activities. The Employer and the
LL

Contractor shall be responsible for compliance with this provision by the

Employer's Personnel and the Contractor's Personnel,respectively.

6.2 Each Party shall cooperate with the other Party in constituting the DAAB,
under Sub-Clause 21.1 [Constitution of the OMB] and/or Sub-Clause 21.2
[Failure to Appoint OMB Member(s)] of the Conditions of Contract, without
delay.

6.3 In connection with the DAAB's Activities, each Party shall:

(a) cooperate in good faith with the DAAB; and

(b) fulfil its duties, and exercise any right or entitlement, under the
Contract, the GCs and the DAAB Rules and/or otherwise
in the manner necessaryto achievethe objectives under Rule 1 of the DAAB
Rules.

6.4 The Parties, the Employer's Personnel and the Contractor's Personnelshall
not request advice from or consultation with the DAAB Member regarding
the Contract, except as required for the DAAB Member to carry out the
DAAB's Activities.

6.5 At all times when interactingwith the DAAB, each Party shall not compromise
the DAAB's warranty of independence and impartiality under Sub-Clause
3.1 above.

6.6 In addition to providing documents under Rule 4.3 of the DAAB Rules, each
Party shall ensure that the DAAB Member remains informed as is necessary
to enable him/her to comply with sub-paragraph (d) of Sub-Clause 5.1
above.

7
Confidentiality 7.1 Subject to Sub-Clause 7 .4 below, the DAAB Member shall treat the details
of the Contract, all the DAAB'sActivities and the documents provided under
Rule 4.3 of the DAAB Rules as private and confidential, and shall not publish
or disclose them without the prior written consent of the Parties and the
Other Members (if any).

7 .2 Subject to Sub-Clause 7 .4 below, the Employer, the Contractor, the

Employer's Personnel and the Contractor's Personnel shall treat the details
of all the DAAB's Activities as private and confidential.

© FIDIC 2017 Conditions of Contract for Construction

110
 7.3 Each person's obligation of confidentiality under Sub-Clause 7.1 or
Sub-Clause 7.2 above (as the case may be) shall not apply where the
information:

(a) was already in that person's possession without an obligation of

confidentiality before receipt under the DAA Agreement;
(b) becomes generally available to the public through no breach of the
GCs; or w
0
(c) is lawfully obtained by the person from a third party which is not z
<1'.
bound by an obligation of confidentiality. C1
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7.4 If a DAAB Member is replaced under the Contract, the Parties and/or the
Other Members (if any) shall disclose details of the Contract, the documents
provided under Rule 4.3 of the DAAB Rules and previous DAAB's Activities
(including decisions, if any) to the replacement DAAB Member as is necessary (!)
'S
in order to:
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(a) enable the replacement DAAB Member to comply with sub-paragraph

(d) of Sub-Clause 5.1 above; and
(b) ensure consistency in the manner in which the DAAB's Activities are
conducted following such replacement.

8
The Parties' undertaking
and indemnity 8.1 The Employer and the Contractor undertake to each other and to the DAAB
Member that the DAAB Member shall not:

(a) be appointed as an arbitrator in any arbitration under the Contract;

(b) be called as a witness to give evidence concerning any Dispute in any
arbitration under the Contract; or
(c) be liable for any claims for anything done or omitted in the discharge
or purported discharge of the DAAB Member's functions, except in
any case of fraud, gross negligence, deliberate default or reckless
misconduct by him/her.

8.2 The Employer and the Contractor hereby jointly and severally indemnify and
hold the DAAB Member harmless against and from all damages, losses and
expenses (including legal fees and expenses) resulting from any claim from
which he/she is relieved from liability under Sub-Clause 8.1 above.

9 --------·-----····------

Fees and Expenses 9.1 The DAAB Member shall be paid as follows, in the currency named in the
DAA Agreement:

(a) a monthly fee, which shall be a fixed fee as payment in full for:
(i) being available on 28-days' notice for all meetings, Site visits and
hearings under the DAAB Rules (and, in the event of a request
under Rule 3.6 of the DAAB Rules, being available for an urgent
meeting or Site visit);
(ii) becoming and remaining knowledgeable about the Contract,
informed about the progress of the Works and maintaining
a current working file of documents, in accordance with
sub-paragraph (d) of Clause 5.1 above;
(iii) all office and overhead expenses including secretarial services,
photocopying and office supplies incurred in connection with his/
her duties; and

General Conditions © FIDIC 2017

111
 (iv) all services performed hereunder except those referred to in
sub-paragraphs (b) and (c) of this Clause.

This fee shall be paid monthly with effect from the last day of the month in
which the Effective Date occurs until the end of the month in which the Term
of the DAAB expires, or the DAAB Member declines to act or is unable to
act as a result of death, illness,disability,resignationor termination of his/her
LU
DAA Agreement.
(.)
7
~
n If no monthly fee is stated in the DAA Agreement, the matters described in
5
CJ sub-paragraphs (i) to (iv) above shall be deemed to be covered by the daily
fee under sub-paragraph (b) below;

{b) a daily fee, which shall be considered as payment in full for each day:
(i) or part of a day, up to a maximum of two days' travel time in each
direction, for the journey between the DAAB Member's home
and the Site, or another location of a meeting with the Parties
and/or the Other Members (if any);
(ii) spent on attending meetings and making Site visits in accordance
with Rule 3 of the DAAB Rules,and writing reports in accordance
with Rule 3.10 of the DAAB Rules;
(iii) spent on giving InformalAssistance;
(iv) spent on attending hearings (and, in case of a three-member
DAAB, attending meeting(s) between the DAAB Members in
accordance with sub-paragraph (a) of Rule 8.2 of the DAAB
Rules, and communicating with the Other Members), and
preparing decisions; and
(v) spent in preparation for a hearing, and studying written
documentation and arguments from the Parties submitted in
accordance with sub-paragraph (c) of Rule 7 .1 of the DAAB
Rules;
(c) all reasonable expenses, including necessary travel expenses (air
fare in business class or equivalent, hotel and subsistence and other
direct travel expenses, including visa charges) incurred in connection
with the DAAB Member's duties, as well as the cost of telephone
calls (and video conference calls, if any, and internet access), courier
charges and faxes. The DAAB Member shall provide the Parties with
a receipt for each item of expenses;
(d) any taxes properly levied in the Country on payments made to the
DAAB Member (unless a national or permanent resident of the
Country) under this Sub-Clause 9.1.

9.2 Subject to Sub-Clause 9.3 below, the amounts of the DAAB Member's
monthly fee and daily fee, under Sub-Clause 9.1 above, shall be as specified
in the DAA Agreement signed (or, under the Contract, deemed to have been
signed) by the Parties and the DAAB Member.

9.3 If the Parties and the DAAB Member have agreed all other terms of the DAA
Agreement but fail to jointly agree the amount of the monthly fee or the daily
fee in the DAA Agreement {the "non-agreed fee" in this Sub-Clause):

(a) the DAA Agreement shall nevertheless be deemed to have been

signed by the Parties and the DAAB Member, except that the fee
proposed by the DAAB Member shall only temporarily apply;
(b) either Party or the DAAB Member may apply to the appointing
entity or official named in the Contract Data to set the amount of the
non-agreed fee;

©FIDIC 2017 Conditions of Contract for Construction

112
 (c) the appointing entity or official shall, as soon as practicable and in
any case within 28 days after receiving any such application, set the
amount of the non-agreed fee, which amount shall be reasonable
taking due regard of the complexity of the Works, the experience
and qualifications of the DAAB Member, and all other relevant
circumstances;
(d) once the appointing entity or official has set the amount of the
non-agreed fee, this amount shall be final and conclusive, shall
replace the fee under sub-paragraph (a) above, and shall be deemed
to have applied from the Effective Date; and
(e) thereafter, after giving credit to the Parties for all amounts previously
paid in respect of the non-agreed fee, the balance (if any) due from
the DAAB Member to the Parties or from the Parties to the DAAB
Member, as the case may be, shall be paid.

9.4 The DAAB Member shall submit invoices for payment of the monthly fee
and air fares quarterly in advance. Invoices for other expenses and for daily
fees shall be submitted following the conclusion of a meeting, Site visit or
hearing; and following the giving of a decision or an informal written note
(under Rule 2.1 of the DAAB Rules). All invoices shall be accompanied by
a brief description of the DAAB's Activities performed during the relevant
period and shall be addressed to the Contractor.

9.5 The Contractor shall pay each of the DAAB Member's invoices in full within
28 days after receiving each invoice. Thereafter, the Contractor shall apply
to the Employer (in the Statements under the Contract) for reimbursement of
one-half of the amounts of these invoices. The Employer shall then pay the
Contractor in accordance with the Contract.

9.6 If the Contractor fails to pay to the DAAB Member the amount to which he/
she is entitled under the DAA Agreement within the period of 28 days stated
at Sub-Clause 9.5 above, the DAAB Member shall inform the Employer
who shall promptly pay the amount due to the DAAB Member and any
other amount which may be required to maintain the function of the DAAB.
Thereafter the Employer shall, by written request, be entitled to payment
from the Contractor of:

(a) all sums paid in excess of one-half of these amounts;

{b) the reasonable costs of recovering these amounts from the Contractor;
and
(b) financing charges calculated at the rate specified in Sub-Clause 14.9
[Delayed Payment] of the Conditions of Contract.

The Employer shall be entitled to such payment from the Contractor without
any requirement to comply with Sub-Clause 20.2 [Claims For Payment and/
or EOT] of the Conditions of Contract, and without prejudice to any other
right or remedy.

9. 7 If the DAAB Member does not receive payment of the amount due within 56
days after submitting a valid invoice, the DAAB Member may:

(a) not less than 7 days after giving a Notification to the Parties and the
Other Members (if any), suspend his/her services until the payment is
received; and/or
{b) resign his/her appointment by giving a Notification under Sub-Clause
10.1 below.

General Conditions © FIDIC 2017

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 10
Resignation
and Termination 10.1 The DAAB Member may resign at any time for any reason, by giving a
Notificationof not less than 28 days (or other period as may be agreed by the
Parties)to the Partiesand to the Other Members (if any). Duringthis period the
Partiesshalltake the necessarysteps to appoint, without delay, a replacement
DAAB Member in accordance with Sub-Clause 21 .1 [Constitution of the
OMB] of the Conditions of Contract (and, if applicable, Sub-Clause 21 .2
[Failure to Appoint DMB Member(s)]of the Conditionsof Contract).

10.2 On expiry of the period stated in Sub-Clause 10.1 above, the resigning
DAAB Member's DAA Agreement shall terminate with immediate effect.
However (except if the DAAB Member is unable to act as a result of illness
or disability) if, on the date of the DAAB Member's notice under Sub-Clause
(fJ
10.1 above, the DAAB is dealing with any Dispute under Sub-Clause 21.4
2
a: [Obtaining OMB 's Decision] of the Conditions of Contract, the DAAB
0
u, Member's resignation shall not take effect and his/her DAA Agreement shall
not terminate until after the DAAB has given all the corresponding decisions
in accordance with the Contract.

10.3 At any time the Parties may jointly terminate the DAA Agreement by giving a
Notification of not less than 42 days to the DAAB Member.

10.4 If the DAAB Member fails, without justifiable excuse, to comply with
Sub-Clause 5.1 above, the Partiesmay, without prejudiceto their other rights
or remedies,jointly terminate his/her DAA Agreement by giving a Notification
(by recorded delivery) to the DAAB Member. This notice shall take effect
when it is received by the DAAB Member.

10.5 If either Party fails, without justifiable excuse, to comply with Clause 6 above,
the DAAB Member may, without prejudiceto his/her other rights or remedies,
terminate the DAA Agreement by giving a Notification to the Parties. This
notice shall take effect when received by both Parties.

10.6 Any resignation or termination under this Clause shall be final and binding
on the Parties and the DAAB Member. However, a notice given under
Sub-Clause 10.3 or 10.4 above by either the Employer or the Contractor,
but not by both, shall be of no effect.

10.7 Subject to sub-paragraph (b) of Sub-Clause 11.5 below, in the event

of resignation or termination under this Clause the DAAB Member shall
neverthelessbe entitled to payment of any fees and/or expenses under his/
her DAA Agreement that remain outstanding as of the date of termination of
his/her DAA Agreement.

10.8 After resignation by the DAAB Member or termination of his/her DAA

Agreement under this Clause, the DAAB Member shall:

(a) remain bound by his/her obligation of confidentialityunder Sub-Clause

7 .1 above; and
(b) return the original of any document in his/her possession to the
Party who submitted such document in connection with the DAAB's
Activities, at that Party's written request and cost.

10.9 Subject to any mandatory requirements under the governing law of the
DAA Agreement, termination of the DAA Agreement under this Clause shall
require no action of whatsoever kind by the Partiesor the DAAB Member (as
the case may be) other than as stated in this Clause.

© FIDIC 2017 Conditions of Contract for Construction

114
11
Challenge 11.1 The Parties shall not object against the DAAB Member, except that either
Party, or in the case of a three-member DAAB the Other Members jointly,
shall be entitled to do so for an allegedlack of independenceor impartialityor
otherwise in which case Rule 10 Objection Procedureand Rule 11 Challenge
Procedureof the DAAB Rulesshall apply.

11.2 The decision issued under Rule 11 of the DAAB Rules (the "Decision on the UJ

Challenge" in the GCs) shall be final and conclusive. ~

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C)

1 i .3 At any time before the Decision on the Challenge is issued, the challenged
DAAB Member may resign under Sub-Clause 10.1 above and, in such case,
the challenging Party shall inform the InternationalChamber of Commerce
(ICC). However,Sub-Clause 10.2 shall not apply to such resignationand the
resigning DAAB Member's DAA Agreement shall terminate with immediate
effect.

11.4 Unless the challenged DAAB Member has resigned, or his/her DAA
Agreement has been terminated under Sub-Clause 10.3 above, the DAAB
Member and the Other Members (if any) shall continue with the DAAB's
Activities until the Decision on the Challenge is issued.

1 i .5. If the Decision on the Challenge is that the challenge is successful:

(a) the challenged DAAB Member's appointment, and his/her DAA

Agreement,shall be deemed to have been terminated with immediate
effect on the date of the notificationof the Decisionon the Challengeby
ICC;
(b) the challenged DAAB Member shall not be entitled to any fees or
expenses under his/her DAA Agreement from the date of the
notification of the Decision on the Challenge by ICC;
(c) any decision under Sub-Clause 21.4.3 [The DMB's decision] of the
Conditions of Contract, given by the DAAB:
(i) after the challenge was referred under Rule 11 of the DAAB
Rules; and
(ii) before the resignation (if any) of the challenged DAAB Member
under Sub-Clause 11 .3 above, or his/her DAAB Agreement is
terminated under sub-paragraph (a) above or under Sub-Clause
10.3 above
shall become void and ineffective. In the case of a sole-member
DAAB, all other DAAB's Activities during this period shall also become
void and ineffective. In the case of a three-member DAAB, all other
DAAB's Activities during this period shall remain unaffected by the
Decision on the Challenge except if there has been a challenge to all
three members of the DAAB and such challenge is successful;
(d) the successfullychallenged DAAB Member shall be removed from the
DAAB; and
(e) the Parties shall,without delay, appoint a replacement DAAB Member
in accordance with Sub-Clause 21 . 1 [Constitutionof the DMB] of the
Conditions of Contract.

12 ·················-···-·····------------

Disputes under
the DAA Agreement Any dispute arising out of or in connection with the DAA Agreement, or the
breach, termination or invaliditythereof, shall be finally settled by arbitration
under the Rules of Arbitration of the International Chamber of Commerce

© FIDIC 2017
General Conditions
115
 2017 by one arbitrator appointed in accordance with these Rules of
Arbitration, and Article 30 and the Expedited Procedure Rules at Appendix
VI of these Rules of Arbitration shall apply.

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116 © FIDIC 2017 Conditions of Contract for Construction

 Annex DAAB PROCEDURAL RULES

Rule 1
Objectives 1.1 The objectives of these Rules are:

(a) to facilitate the avoidance of Disputes that might otherwise arise

between the Parties; and
(b) to achieve the expeditious, efficient and cost effective resolution of
any Dispute that arises between the Parties.
1.2 These Rules shall be interpreted, the DAAB's Activities shall be conducted
and the DAAB shall use its powers under the Contract and these Rules, in
the manner necessaryto achieve the above objectives.
c:
Rule2 2
0:
Avoidance of Disputes 2.1 WhereSub-Clause21 .3 [Avoidance of Disputes] of the Conditions of Contract ()
u.
applies, the DAAB (in the case of a three-member DAAB, all three DAAB
Members acting together) may give InformalAssistance during discussions
at any meeting with the Parties (whether face-to-face or by telephone or by
video conference) or at any Site visit or by an informal written note to the
Parties.

Rule3
Meetings and Site Visits 3.1 The purpose of meetings with the Parties and Site visits by the DAAB is to
enable the DAAB to:

(a) become and remain informed about the matters described in

sub-paragraphs (d)(i) to (d)(iii) of Sub-Clause 5.1 of the GCs;
(b) become aware of, and remain informed about. any actual or potential
issue or disagreement between the Parties; and
(c) give InformalAssistance if and when jointly requested by the Parties.

3.2 As soon as practicable after the DAAB is appointed, the DAAB shall convene
a face-to-face meeting with the Parties. At this meeting, the DAAB shall
establish a schedule of planned meetings and Site visits in consultation with
the Parties, which schedule shall reflect the requirementsof Rule 3.3 below
and shall be subject to adjustment by the DAAB in consultation with the
Parties.

3.3 The DAAB shall hold face-to-face meetings with the Parties, and/or visit the
Site, at regular intervals and/or at the written request of either Party. The
frequency of such meetings and/or Site visits shall be:

(a) sufficient to achieve the purpose under Rule 3.1 above;

(b) at intervalsof not more than 140 days unless otherwise agreed jointly
by the Parties and the DAAB; and
(c) at intervals of not less than 70 days, subject to Rules 3.5 and 3.6
below and except as required to conduct a hearing as described
under Rule 7 below, unless otherwise agreed jointly by the Parties
and the DAAB.

3.4 In addition to the face-to-face meetings referred to in Rules 3.2 and 3.3
above, the DAAB may also hold meetings with the Parties by telephone or
video conference as agreed with the Parties (in which case each Party bears
the risk of interrupted or faulty telephone or video conference transmission
and reception).

General Conditions © FIDIC 2017

117
 3.5 At times of critical construction events (which may include suspension of
the Works or termination of the Contract), the DAAB shall visit the Site at
the written request of either Party. This request shall describe the critical
construction event. If the DAAB becomes aware of an upcoming critical
construction event. it may invite the Parties to make such a request.

3.6 Either Party may request an urgent meeting or Site visit by the DAAB. This
i.iJ
shall be a written request and shall give reasons for the urgency of the
f",
z meeting or Site visit. If the DAAB agrees that such a meeting or Site visit is
a urgent, the DAAB Members shall use all reasonableendeavours to:

(a) hold a meeting with the Parties by telephone or video conference

(as agreed with the Parties under Rule 3.4 above) within 3 days after
receivingthe request; and
(b) if requestedand (having giventhe other Partyopportunityat this meeting
to respondto or oppose this request)the DAABagreesthat a Site visit is
necessary,visit the Site within 14 days after the date of this meeting.

3. 7 The time of, and agenda for, each meeting and Site visit shall be set by the
DAAB in consultation with the Parties.

3.8 Each meeting and Site visit shall be attended by the Employer,the Contractor
and the Engineer.

3.9 Each meeting and Site visit shall be co-ordinated by the Contractor in
co-operation with the Employer and the Engineer. The Contractor shall
ensure the provision of appropriate:

(a) personal safety equipment, security controls (if necessary) and site
transport for each Site visit;
(b) meeting room/conference facilities and secretarial and copying
services for each face-to-face meeting; and
(c) telephone conference or video conference facilities for each meeting
by telephone or video conference.

3.10 At the conclusion of each meeting and Site visit and, if possible before
leaving the venue of the face-to-face meeting or the Site (as the case may
be) but in any event within 7 days, the DAAB shall prepare a report on its
activities during the meeting or Site visit and shall send copies of this report
to the Parties and the Engineer.

Rule4
Communications
and Documentation 4.1 The languageto be used:

(a) in all communications to and from the DAAB and the Parties (and, in
the case of a three-member DAAB, between the DAAB Members):
(b) in all reports and decisions issued by the DAAB; and
(c) during all Site visits, meetings and hearings relating to the DAAB's
Activities

shall be the language for communications defined in Sub-Clause 1 .4 [Law

and Language]of the Conditions of Contract, unless otherwise agreed jointly
by the Parties and the DAAB.

4.2 All communications and/or documents sent between the DAAB and a
Party shall simultaneously be copied to the other Party. In the case of a

©FIDIC 2017 Conditions of Contract for Construction

118
 three-member DAAB, the sending Party shall send all communications and/
or documents to the chairman of the DAAB and simultaneouslysend copies
of these communications and/or documents to the Other Members.

4.3 The Parties shall provide the DAAB with a copy of all documents which the
DAAB may request, including:

(a) the documents forming the Contract;

(b) progress reports under Sub-Clause 4.20 [Progress Reports] of the
Conditions of Contract;
(c) the initialprogramme and each revised programme under Sub-Clause
8.3 [Programme] of the Conditions of Contract;
(d) relevant instructions given by the Engineer, and Variations under
Clause 13.3 [Variation Procedure] of the Conditions of Contract;
(/)
(e) Statements submitted by the Contractor, and all certificates issued by
the Engineerunder the Contract; ~
C}
LL
{f) relevant Notices;
(g) relevant communications between the Parties and between either
Party and the Engineer

and any other document relevant to the performance of the Contract and/
or necessaryto enable the DAAB to become and remain informed about the
matters described in sub-paragraphs (d)(i) to {d){iii) of Sub-Clause 5.1 of the
GCs.

Rule5 ---••••••••••••••-M-----------·-·---

Powers of the DAAB 5.1 In addition to the powers granted to the DAAB under the Conditions of
Contract, the General Conditions of the DAA Agreement and elsewhere in
these Rules, the Parties empower the DAAB to:

(a) establish the procedure to be applied in making Site visits and/or

giving InformalAssistance;
{b) establish the procedure to be applied in giving decisions under the
Conditions of Contract;
(c) decide on the DAAB's own jurisdiction, and the scope of any Dispute
referredto the DAAB;
(d) appoint one or more experts (including legal and technical expert(s)),
with the agreement of the Parties;
(e) decide whether or not there shall be a hearing (or more than one
hearing, if necessary)in respect of any Dispute referredto the DAAB;
(f) conduct any meeting with the Partiesand/or any hearingas the DAAB
thinks fit, not being bound by any rules or procedures for the hearing
other than those contained in the Contract and in these Rules;
(g) take the initiative in ascertaining the facts and matters required for a
DAAB decision;
(h) make use of a DAAB Member's own specialist knowledge, if any;
(i) decide on the payment of financing charges in accordance with
the Contract;
0) decide on any provisional relief such as interim or conservatory
measures;
(k) open up, review and revise any certificate, decision, determination,
instruction, opinion or valuation of (or acceptance, agreement,
approval, consent, disapproval, No-objection, permission, or similar
act by) the Engineerthat is relevant to the Dispute; and
{I) proceed with the DAAB's Activities in the absence of a Party who,

© FIDIC
General Conditions 2017
119
 after receiving a Notification from the DAAB, fails to comply with
Sub-Clause 6.3 of the GCs.

5.2 The DAAB shall have discretion to decide whether and to what extent any
powers granted to the DAAB, under the Conditions of Contract, the GCs
and these Rules, may be exercised.

Rule6
Disputes 6.1 If any Dispute is referred to the DAAB in accordance with Sub-Clause
21.4.1 [Referenceof a Dispute to the DMB] of the Conditions of Contract,
the DAAB shall proceed in accordance with Sub-Clause 21.4 [Obtaining
DMB's Decision] of the Conditions of Contract and these DAAB Rules, or
as otherwise agreed by the Parties in writing.

6.2 The DAAB shall act fairly and impartiallybetween the Parties and, taking due
regard of the period under Sub-Clause 21.4.3 [The DMB's decision] of the
Conditions of Contract and other relevantcircumstances, the DAAB shall:

(a) give each Party a reasonable opportunity (consistent with the

expedited nature of the DAAB proceeding)of putting forward its case
and responding to the other Party's case; and
(b) adopt a procedure in coming to its decision that is suitable to the
Dispute, avoiding unnecessarydelay and/or expense.

Rule7
Hearings 7.1 In addition to the powers under Rule 5.1 above, and except as otherwise
agreed in writing by the Parties, the DAAB shall have power to:

(a) decide on the date and place for any hearing, in consultation with the
Parties;
{b) decide on the duration of any hearing;
(c) request that written documentation and arguments from the Parties
be submitted to it prior to the hearing;
(d) adopt an inquisitorialprocedure during any hearing:
{e) request the production of documents, and/or oral submissions by
the Parties, at any hearing that the DAAB considers may assist in
exercising the DAAB's power under sub-paragraph (g) of Rule 5.1
above;
(f) request the attendance of persons at any hearing that the DAAB
considers may assist in exercising the DAAB's power under
sub-paragraph (g) of Rule 5.1 above;
(g) refuse admission to any hearing, or audience at any hearing, to any
persons other than representativesof the Employer, the Contractor
and the Engineer;
(h) proceed in the absence of any party who the DAAB is satisfied
receivedtimely notice of the hearing;
(i) adjourn any hearing as and when the DAAB considers further
investigation by one Party or both Parties would benefit resolution
of the Dispute, for such time as the investigation is carried out, and
resume the hearing promptly thereafter.

7.2 The DAAB shall not express any opinions during any hearing concerning the
merits of any arguments advanced by either Party in respect of the Dispute.

7.3 The DAAB shall not give any InformalAssistance during a hearing, but if the
Parties request InformalAssistance during any hearing:

© FIDIC 2017 Conditions of Contract for Construction

120
 (a) the hearing shall be adjourned for such time as the DAAB is giving
InformalAssistance;
(b) if the hearing is so adjourned for longer than 2 days, the period
under Sub-Clause 21.4.3 [The OMB's decision] of the Conditions
of Contract shall be temporarily suspended until the date that the
hearing is resumed; and
(c) the hearing shall be resumed promptly after the DAAB has given such
InformalAssistance.

Rule8
The DAAB's Decision 8.1 The DAAB shall make and give its decision within the time allowed under
Sub-Clause 21.4 [Obtaining DAAB's Decision]of the Conditions of Contract,
or other time as may be proposed by the DAAB and agreed by the Parties in
writing.
(/)

8.2 In the case of a three-member DAAB:

[~
0
U...

(a) it shall meet in private (after the hearing, if any) in order to have
discussions and to start preparation of its decision;
(b) the DAAB Members shall use all reasonable endeavours to reach a
unanimous decision;
(c) if it is not possible for the DAAB Members to reach a unanimous
decision, the applicable decision shall be made by a majority of
the DAAB Members, who may require the minority DAAB Member
to prepare a separate written report (with reasons and supporting
particulars)which shall be issued to the Parties; and
{d) if a DAAB Member fails to:
(i) attend a hearing {if any) or a DAAB Members' meeting; or
(ii) fulfil any required function (other than agreeing to a unanimous
decision)
the Other Members shall neverthelessproceed to make a decision, unless:

• such failure has been caused by exceptional circumstances,

of which the Other Members and the Parties have received a
Notification from the DAAB Member;
• the DAAB Member has suspended his services under
sub-paragraph (a) of Sub-Clause 9. 7 of the GCs; or
• otherwise agreed by the Parties in writing.
8.3 If, after giving a decision, the DAAB finds (and, in the case of a three-member
DAAB, they agree unanimously or by majority) that the decision contained
any error:

(a) of a typographical or clerical nature; or

(b) of an arithmetical nature
the chairman of the DAAB or the sole DAAB Member (as the case may be)
shall, within 14 days after giving this decision, advise the Parties of the error
and issue an addendum to its original decision in writing to the Parties.

8.4 If, within 14 days of receiving a decision from the DAAB, either Party finds
a typographical, clerical or arithmetical error in the decision, that Party may
request the DAAB to correct such error. This shall be a written request and
shall clearly identify the error.

8.5 If, within 14 days of receivinga decision from the DAAB, either Party believes
that such decision contains an ambiguity,that Party may request clarification

General Conditions © FIDIC 2017

121
 from the DAAB. This shall be a written request and shall clearly identify the
ambiguity.

8.6 The DAAB shall respond to a request under Rule 8.4 or Rule 8.5 above within
14 days of receiving the request. The DAAB may decline (at its sole discretion
and with no requirement to give reasons) any request for clarification under
Rule 8.5. If the DAAB agrees (in the case of a three-member DAAB they
agree unanimously or by majority) that the decision did contain the error or
ambiguity as described in the request, it may correct its decision by issuing an
addendum to its original decision in writing to the Parties, in which case this
addendum shall be issued together with the DAAB's response under this Rule.

8.7 If the DAAB issues an addendum to its original decision under Rule 8.3
or 8.6 above, such an addendum shall form part of the decision and the
period stated in sub-paragraph (c) of Sub-Clause 21.4.4 [Dissatisfaction
with OMB's decision] of the Conditions of Contract shall be calculated from
the date the Parties receive this addendum.

Rule9
In the event of
Termination of
DAA Agreement 9.1 If, on the date of termination of a DAAB Member's DAA Agreement arising
from resignation or termination under Clause 10 of the GCs, the DAAB
is dealing with any Dispute under Sub-Clause 21.4 [Obtaining DMB's
Decision] of the Conditions of Contract:

(a) the period under Sub-Clause 21.4.3 [The DAAB's decision] of the
Conditions of Contract shall be temporarily suspended; and
{b) when a replacement DAAB Member is appointed in accordance
with Sub-Clause 21.1 [Constitution of the DMB] of the Conditions
of Contract, the full period under Sub-Clause 21.4.3 [The DMB's
decision] of the Conditions of Contract shall apply from the date of
this replacement DAAB Member's appointment.
9.2 In the case of a three-member DAAB and if one DAAB Member's DAA
Agreement is terminated as a result of resignation or termination under
Clause 10 of the GCs, the Other Members shall continue as members of the
DAAB except that they shall not conduct any hearing or make any decision
prior to the replacement of the DAAB Member unless otherwise agreed
jointly by the Parties and the Other Members.

Rule 10
Objection Procedure 10.1 The following procedure shall apply to any objection against a DAAB
Member:

(a) the objecting Party shall, within 7 days of becoming aware of the facts
and/or events giving rise to the objection, give a Notification to the
DAAB Member of its objection. This Notification shall:
(i) state that it is given under this Rule;
(ii) state the reason(s) for the objection;
(iii) substantiate the objection by setting out the facts, and describing
the events, on which the objection is based, with supporting
particulars; and
(iv) be simultaneously copied to the other Party and the Other
Members;
(b) within 7 days after receiving a notice under sub-paragraph (a) above,
the objected DAAB Member shall respond to the objecting Party.

©FIDIC2017 Conditions of Contract for Construction

122
 This response shall be simultaneouslycopied to the other Party and
the Other Members. If no response is given by the DAAB Member
within this period of 7 days, the DAAB Member shall be deemed to
have given a response denying the matters on which the objection is
based;
(c) within 7 days after receiving the objected DAAB Member's response
under sub-paragraph (b) above (or, if there is no such response, after
expiry of the period of 7 days stated in sub-paragraph {b) above) w
()
the objecting Party may formally challenge a DAAB member in z
<
accordance with Rule 11 below; o
(d) if the challenge is not referred within the period of 7 days stated in 0
sub-paragraph (c) above, the objecting Party shall be deemed to have
agreed to the DAAB Member remaining on the DAAB and shall not
be entitled to object and/or challenge him/her thereafter on the basis
of any of the facts and/or evidence stated in the notice given under (})

sub-paragraph (a) above; ~

0
LL
Rule 11 -·· · --- · · ·--··········---· ·······-·--·------- --- ------·-----

Challenge Procedure 11.1 If and when the objecting Party challenges a DAAB Member, within 21 days
of learning of the facts upon which the challenge is based, the provisions
of this Rule shall apply. Any challenge is to be decided by the International
Chamber of Commerce (ICC) and administered by the ICC International
Centre for ADR.

11.2 The procedure for such challenge and information on associated charges to
be paid are set out at http://fidic.org and http://iccwbo.org.

General Conditions © FIDIC 2017

123
 INDEX OF SUB-CLAUSES
Sub-Clause Page

Accepted Contract Amount, Sufficiency of the 4.11 32

Access after Taking Over, Right of 11.7 59
Access Route 4.15 34
i.U
() Access to the Site, Right of 2.1 14
z
<J'.
D
Adjustments for Changes in Cost 13.7 68
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C) Adjustments for Changes in Laws 13.6 68
Advance Payment 14.2 69
Advance Warning 8.4 48
Agreement, Contract 1.6 10
Agreement or Determination 3.7 19
Amicable Settlement 21.5 104
Arbitration 21.6 104
Archaeological and Geological Findings 4.23 37
Assignment 1.7 10
Assistance 2.2 14
Authorities, Delays Caused by 8.6 49
Avoidance of Interference 4.14 33

Care of the Works, Responsibility for 17.1 87

Care of the Works, Liability for 17.2 87
Certificate, Performance 11.9 60
Claims 20.1 96
Claims For Payment and/or EOT 20.2 96
Clearance of Site 11.11 60
Commencement of Works 8.1 46
Completion of Outstanding Work and Remedying Defects 11 .1 56
Completion, Statement at 14.10 76
Completion, Time for 8.2 46
Conditions, Unforeseeable Physical 4.12 32
Confidentiality 1.12 12
Contract Termination 1.16 14
Contract Price, The 14.1 69
Contractor to Search 11.8 59
Contractor's Claims 20.1 96
Contractor's Documents 4.4 26
Contractor's Documents, Employer's Use of 1.10 11
Contractor's Equipment 4.17 34
Contractor's General Obligations 4.1 22
Contractor's Obligations after Termination 16.3 86
Contractor's Obligations: Tests on Completion 9.1 51
Contractor's Operations on Site 4.22 36
Contractor's Personnel 6.9 41
Contractor's Records 6.10 41
Contractor's Representative 4.3 25
Contractor's Superintendence 6.8 40
Co-operation 4.6 28
Cost, Adjustments for Changes in 13.7 68

© FIDIC 2017 Conditions of Contract for Construction

124
 Currencies of Payment 14.15 79

DAAB - see Dispute Avoidance/Adjudication Board

Daywork 13.5 67
Defective Work off Site, Remedying of 11.5 58
Defects, Failure to Remedy 11.4 57
Defects and Rejection 7.5 44 w
o
Defects Notification Period, Extension of 11.3 57 z
<(
Defects, Remedying of 11.1 56 0
=)
o
Definitions 1.1
Delay Damages 8.8 50
Delayed Drawings or Instructions 1.9 11
Delays Caused by Authorities 8.6 49 (j)

Discharge 14.12 78 2
a:
6.11 0
Disorderly Conduct 41 U.

Dispute Avoidance/Adjudication Board, Constitution of the 21.1 100

Dispute Avoidance/Adjudication Board's Decision,
Failure to Comply with 21.7 105
Dispute Avoidance/Adjudication Board's Decision, Obtaining 21.4 102
Dispute Avoidance/Adjudication Board, No DAAB In Place 21.8 105
Dispute Avoidance/Adjudication Board Member(s),
Failure to Appoint 21.2 101
Disputes, Avoidance of 21.3 102
Documents, Care and Supply of 1.8 10
Documents, Contractor's Use of Employer's 1.11 12
Documents, Employer's Use of Contractor's 1.10 11
Documents, Priority of 1.5 9
Duty to Minimise Delay 18.3 91

Employer-Supplied Materials and Employer's Equipment 2.6 16

Employer's Claims: Currencies of Payment 14.15 79
Employer's Documents, Contractor's Use of 1.11 12
Employer's Financial Arrangements 2.4 15
Employer's Liability, Cessation of 14.14 79
Employer's Personnel and Other Contractors 2.3 15
Engineer, The 3.1 16
Engineer, Delegation by the 3.4 17
Engineer, Replacement of 3.6 18
Engineer's Duties and Authority 3.2 16
Engineer's Instructions 3.5 18
Engineer's Representative 3.3 17
Environment, Protection of the 4.18 35
Exceptional Events 18.1 90
Exceptional Event, Notice of an 18.2 90
Exceptional Event, Consequences of an 18.4 91
Extension of Defects Notification Period 11.3 57
Extension of Time for Completion 8.5 48

Failure to Pass Tests on Completion 9.4 52

FPC, Issue of 14.13 78

General Conditions © FIDIC 2017

125
 Goods, Transport of 4.16 34

Health and Safety Obligations 4.8 29

Health and Safety of Personnel 6.7 40

Indemnities by Contractor 17.4 89

u.; Indemnities by Employer 17.5 89
0
.z Indemnities, Shared 17.6 90
~ Inspection 7.3 43
-··
,,•
("
Insurance to be provided by the Contractor 19.2 93
Insurance: General Requirements 19.1 92
Instructions, Delayed Drawings or 1.9 11
Intellectual and Industrial Property Rights 17.3 88
("!)
2
er: Interference, Avoidance of 4.14 34
r-,
;,-.,.----'
Interference with Tests on Completion 10.3 59
Interim Payment, Application for 14.3 71
Interpretation 1.2 7
Issue of FPC 14.13 82
Issue of IPC 14.6 74

Joint and Several Liability 1.14 13

Labour, Engagement of Staff and 6.1 39

Labour, Facilities for Staff and 6.6 43
Law and Language 1.4 9
Laws, Adjustments for Changes in 13.7 68
Laws, Compliance with 1.13 12
Laws, Labour 6.4 39
Liability, Cessation of Employer's 14.14 79
Liability, Joint and Several 1.14 14
Liability, Limitation of 1.15 13

Manner of Execution 7.1 42

Meetings 3.8 21
Method of Measurement 12.2 62
Nominated Subcontractors 5.2 38
Notice to Correct 15.1 80
Notices and Other Communications 1.3 8

Obligations, Unfulfilled 11.10 60

Obligations, Contractor's General 4.1 22
Omissions 12.4 63

Payment 14.7 75
Payment after Termination by the Contractor 16.4 86
Payment, Currencies of 14.15 79
Payment, Delayed 14.8 75
Payments, Schedule of 14.4 72
Performance Certificate 11.9 60
Performance Security 4.2 23

© FIDIC 2017 Conditions of Contract for Construction

126
 Personnel, Key 6.12 42
Personnel, Contractor's 6.9 41
Personnel and other Contractors, Employer's 2.3 15
Persons, Recruitment of 6.3 39
Plant and Materials intended for the Works 14.5 72
Plant and Materials, Ownership of 7.7 45
Priority of Documents 1.5 9 LU
o
Programme 8.3 46 L~
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Progress, Rate of 8.7 49 ::J
('.)
Progress Reports 4.20 35
Provisional Sums 13.4 66

Quality Management and Compliance Verification Systems 4.9 30 (/)

£
Records, Contractor's 6.10 41 0
u,

Release from Performance under the Law 18.6 92

Remedial Work 7.6 45
Remedy Defects, Failure to 11.4 57
Remedying Defects 11 .1 56
Remedying Defects, Cost of 11.2 56
Replacement of the Engineer 3.6 19
Representative, Contractor's 4.3 25
Representative, Engineer's 3.3 18
Responsibility for Care of the Works 17.1 87
Resumption of Work 8.13 51
Retention Money, Release of 14.9 76
Retesting after Failure of Tests on Completion 9.3 53
Right to Vary 13.1 63
Rights of Way and Facilities 4.13 33
Royalties 7.8 46

Samples 7.2 42
Schedule of Payments 14.4 72
Search, Contractor to 11.8 63
Security of the Site 4.21 36
Security, Performance 4.2 23
Setting Out 4.7 28
Site, Clearance of 11 .11 60
Site, Contractor's Operations on 4.22 36
Site Data, Use of 4.10 31
Site Data and Items of Reference 2.5 16
Site, Right of Access to the 2.1 15
Site, Security of the 4.21 36
Staff and Labour, Engagement of 6.1 39
Staff and Labour, Facilities for 6.6 40
Statement at Completion 14.10 76
Statement, Final 14.11 77
Subcontractors 5.1 37
Subcontractors, nominated 5.2 38
Superintendence, Contractor's 6.8 40

© FIDIC 2017
General Conditions
127
 Surfaces Requiring Reinstatement 10.4 56
Suspension, Consequences of Employer's 8.10 50
Suspension by Contractor 16.1 84
Suspension, Employer's 8.9 50
Suspension, Payment for Plant and Materials after Employer's 8.11 50
Suspension, Prolonged 8.12 51
U..1
o
z Taking Over Parts 10.2 54
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Taking Over the Works and Sections 10.1 53
0
Taking Over: Surfaces Requiring Reinstatement 10.4 56
Temporary Utilities 4.19 35
Termination, Optional 18.5 91
Termination by Contractor 16.2 85
(!)
:?
re Termination by Contractor, Payment after 16.4 86
()
u.. Termination for Contractor's Default 15.2 80
Termination for Contractor's Default, Valuation after 15.3 82
Termination for Contractor's Default, Payment after 15.4 83
Termination for Employer's Convenience 15.5 83
Termination for Employer's Convenience, Valuation after 15.6 84
Termination for Employer's Convenience, Payment after 15.7 84
Termination, Contractor's Obligations After 16.3 86
Testing by the Contractor 7.4 46
Tests after Remedying Defects, Further 11.6 59
Tests on Completion, Contractor's Obligations 9.1 51
Tests on Completion, Delayed 9.2 52
Tests on Completion, Failure to Pass 9.4 53
Tests on Completion, Interference with 10.3 55
Time for Completion 8.2 46
Time for Completion, Extension of 8.5 48
Training 4.5 27
Transport of Goods 4.16 34

Unforeseeable Physical Conditions 4.12 32

Unfulfilled Obligations 11.10 60

Valuation of the Works 12.3 62

Value Engineering 13.2 64
Variation Procedure 13.3 65

Wages and Conditions of Labour, Rates of 6.2 39

Working Hours 6.5 40
Works, Valuation of the 12.3 62
Works to be Measured 12.1 61

128 © FIDIC 2017 Conditions of Contract for Construction

 GENERAL CONDITIONS

GUIDANCE FOR THE

PREPARATION OF
PARTICULAR CONDITIONS
AND ANNEXES: FORMS
OF SECURITIES

FIDIC® Conditions of Contract for

FORMS OF LETTER OF
CONSTRUCTION TENDER, LETTER OF
ACCEPTANCE,CONTRACT
AGREEMENT AND
FOR BUILDING AND ENGINEERING WORKS DISPUTE ADJUDICATION/
AVOIDANCE AGREEMENT
DESIGNED BY THE EMPLOYER

Guidance for The Preparation of

Particular Conditions

FffiERAffiN INTERNA110NALE DES IN<?ENIEURS-CONSEILS

INTERNA110NAL FEDERAIDN OF CONSUL11NG ENGINEERS ~
FIDIC
INTERNA110NALE VERBNIGUNG BERATENDER INGENIEURE
FffiERACIO'\I INTERNACIONAL DE INGENIEROS CONSULTORES ~
 Guidance U)
z

for the Preparation of Particular Conditions <t8

~SI
WC)
(J()

CONTENTS
INTRODUCTORY GUIDANCE NOTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

CONTRACT DATA ....................................................... 3

INTRODUCTION ....................................................... 8

NOTES ON THE PREPARATION OF TENDER DOCUMENTS 10

NOTES ON THE PREPARATION OF SPECIAL PROVISIONS 13

er:
2
0::
CJ
U...

1 General Provisions . 14
2 The Employer . 18

3 The Engineer . 20
4 The Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5 Subcontracting . 28
6 Staff and Labour . 29
7 Plant, Materials and Workmanship . 32
8 Commencement, Delays and Suspension . 33
9 Tests on Completion . 35
10 Employer's Taking Over . 35
11 Defects after Taking Over . 35
12 Measurement and Valuation . 36
13 Variations and Adjustments . 36
14 Contract Price and Payment . 37
15 Termination by Employer . 44
16 Suspension and Termination by Contractor . 45
17 Care of the Works and Indemnities . 45
18 Exceptional Events . 46
19 Insurance . 46
20 Employer's and Contractor's Claims . 46
21 Disputes and Arbitration 47

ADVISORY NOTES TO USERS OF FIDIC CONTRACTS WHERE THE PROJECT IS TO

INCLUDE BUILDING INFORMATION MODELLING SYSTEMS 53

ANNEXES FORMS OF SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

© FIDIC 2017
1
 Particular Conditions Part A - Contract Data

INTRODUCTORY GUIDANCE NOTES

These Introductory Guidance Notes are for use in completing the Contract Data and shall not form
part of the Contract Data.

Certain Sub-Clauses in the General Conditions require that specific information is provided in the
Contract Data.

The Employer should amend as appropriate and complete all data and should insert "Not Applicable"
in the space next to any Sub-Clause which the Employer does not wish to use.
c:
2
0.:
0 The Employer should insert "Tenderer to Complete" in the space next to any Sub-Clause which
u,
the Employer wishes Contract Data to be completed by the tenderers. Except where indicated
"Tenderer to Complete" tenderers shall not amend the Contract Data as provided by the Employer.

All italicised text and any enclosing square brackets are for use in preparing the Contract Data and
should be deleted from the final version of the Contract Data.

Failure by the Employer to provide the information and details required in the Contract Data could
mean either that the documents forming the Contract are incomplete with vital information missing,
or that the fall-back provisions to be found in some of the Sub-Clauses in the General Conditions
will automatically take effect.

©FIDIC2017 Conditions of Contract for Construction

2
CONTRACT DATA c:
z
-10
<(,:::::
Sub-Clause Data to be given Data rr- L....

~~
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oo
1.1.19 .......... where the Contract allows for Cost Plus Profit,
percentage profit to be added to the Cost: .. ___ %

1.1.27 . Defects Notification Period (DNP): . ___ days

1.1.31 .......... Employer's name and address: .

1.1.35 .. Engineer's name and address: .

1.1.85 .......... Time for Completion: . ___ days

1 .3 (a)(ii) ....... agreed methods of electronic transmission: ..

1.3(d) .. address of Employer for communications: ..

1.3(d) . address of Engineer for communications: ..

1.3(d) . address of Contractor for communications: ..

1.4 .. Contract shall be governed by the law of:

1.4 . ruling language: .

1.4 . language for communications: ..

1.8 .. number of additional paper copies of Contractor's

Documents .

1.15 .. total liability of the Contractor to the Employer under or in

connection with the Contract: . ___ (sum)

2.1 . after receiving the Letter of Acceptance, the Contractor

shall be given right of access to all or part of the Site
within: . ___ days
© FIDIC 2017
3
 Sub-Clause Data to be given Data

2.4 . Employer's financial arrangements: .

4.2 .. Performance Security (as percentages of the Accepted

Contract Amount in Currencies):
percent: . ___ %
currency: .
percent: . ___ %
currency: .

Cf)
'S
rt 4.7.2 .. period for notification of errors in the items of reference . ___ days
0
LL

4.19 . period of payment for temporary utilities . ___ days

4.20 .. number of additional paper copies of progress reports ..

5.1 (a) . maximum allowable accumulated value of work

subcontracted (as a percentage of the Accepted
Contract Amount) . ___ %

5.1(b) . parts of the Works for which subcontracting is not

permitted: .

6.5 .. normal working hours on the Site ..

8.3 . number of additional paper copies of programmes ........

8.8 . Delay Damages payable for each day of delay ..

8.8 . maximum amount of Delay Damages ..

12.2 method of measurement: ..

12.3 percentage profit: .. .. .. .. .. . .. .. . .. .. .. . .. .. .. .. .. .. .. .. .. .. .. . .. . .. . .. . . .. as stated under 1 .1 .19

above

13.4(b)(ii) . percentage rate to be applied to Provisional Sums for

overhead charges and profit . ___ %

14.2 . total amount of Advance Payment (as a percentage of

Accepted Contract Amount) . ___ %

14.2 .. currency or currencies of Advance Payment .

© FIDIC Conditions of Contract for Construction

4 2017
 Sub-Clause Data to be given Data

14.2.3 . percentage deductions for the repayment of the Advance

Payment . ___ %

14.3 . period of payment ..

14.3(b) . number of additional paper copies of Statements .

14.3(iii) . percentage of retention . ___ %

14.3(iii) . limit of Retention Money (as a percentage of Accepted

Contract Amount) . ___ %

14.5(b)(i) ...... Plant and Materials for payment when shipped ..

14.5(c)(i) . Plant and Materials for payment when delivered to the

Site

14.6.2 .. minimum amount of Interim Payment Certificate (IPC) ....

14.?(a) ......... period for payment of Advance Payment to the

Contractor . ___ days

14.?(b)(i) . period for the Employer to make interim payments to the

Contractor under Sub-Clause 14.6 [Interim Payment) .... ___ days

14.?(b)(ii)...... period for the Employer to make interim payments to the

Contractor under Sub-Clause 14.13 [Final Payment) ..... ___ days

14.?(c) . period for the Employer to make final payment to the

Contractor . ___ days

14.8 .. financing charges for delayed payment (percentage

points above the average bank short-term lending rate
as referred to under sub-paragraph (a)) .. ___ %

14.11.1(b) .... number of additional paper copies of draft Final

Statement. .

14.15 . currencies for payment of Contract Price:

14.15(a)(i) ..... proportions or amounts of Local and Foreign Currencies

are:
Local .
Foreign .
© FIDIC 2017
5
 Sub-Clause Data to be given Data

14.15(c) . currencies and proportions for payment of Delay

Damages .

14.15(n ........ rates of exchange .

17.2(d) . forces of nature, the risks of which are allocated to the

Contractor .

(!)
es-;
rt
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LL 19.1 .. permitted deductible limits:
insurance required for the Works .
insurance required for Goods .
insurance required for liability for breach of
professional duty .
insurance required against liability for fitness for
purpose (if any is required) .
insurance required for injury to persons and
damage to property ..
insurance required for injury to employees .

other insurances required by Laws and by local practice:

19.2(1)(b) ..... additional amount to be insured (as a percentage of the

replacement value, if less or more than 15%) . ___ %

19.2(1 )(iv) ..... list of Exceptional Risks which shall not be excluded from
the insurance cover for the Works ..

19.2.2 .. extent of insurance required for Goods .

amount of insurance required for Goods ..

19.2.3(a) ...... amount of insurance required for liability for breach of

professional duty .

19.2.3(b) ...... insurance required against liability for fitness for purpose yes/no
(delete as appropriate)

19.2.3 .......... period of insurance required for liability for breach of

professional duty .

©FIDIC2017 Conditions of Contract for Construction

6
 Sub-Clause Data to be given Data
c:
z

19.2.4 . amount of insurance required for injury to persons and

damage to property .
Ii
oo

19.2.6 . other insurances required by Laws and by local practice

(give details) .

21.1 . time for appointment of DAAB .

21.1 . the DAAB shall comprise . ___ members

(/)

21.1 . list of proposed members of DAAB fr

0
- proposed by Employer................................................ 1. _ U. .

2. _
3. _

- proposed by Contractor.............................................. 1. _
2. _
3. _

21.2 . Appointing entity (official) for DAAB members .

(Unless otherwise
stated here, it shall be
the President of FIDIC
or a person appointed
by the President)

Definition of Sections (if any):

Description of parts of Value: Percentage* of Time for Completion Delay Damages

the Works that shall be Accepted Contract (Sub-Clause 1.1.84) (Sub-Clause 8.8)
designated a Section Amount
for the purposes of the (Sub-Clause 14.9)
Contract
(Sub-Clause 1.1 . 73)

* These percentages shall also be applied to each half of the Retention Money under Sub-Clause 14. 9.

© FIDIC 2017
7
 (!)
z
Particular Conditions Part B - Special Provisions
-10
~E
wO
iuB
oo INTRODUCTION

The terms of the Conditions of Contract for Construction have been prepared by the Federation
Internationale des lnqenieurs-Conseils (FIDIC) and are recommended for general use for the
construction of building or engineering works, where tenders are invited on an international basis.

Modifications to the General Conditions may well be required to account for local legal requirements,
particularly if they are to be used on domestic contracts.

Under the usual arrangements for this type of contract, the Contractor is responsible for the
sn construction, in accordance with the design of the Employer, of building and/or engineering works.
"'3~
fr'. These Conditions allow for the possibility that the Contractor may be required to design a small
0 proportion or a minor element of the Permanent Works, but they are not intended for use where
LL

significant design input by the Contractor is required or the Contractor is required to design a large
proportion or any major elements of the Permanent Works. In this latter case, it is recommended
that the Employer consider using FIDIC's Conditions of Contract for Plant and Design-Build, Second
Edition 2017 (or, alternatively and if suitable for the circumstances of the project, FIDIC's Conditions
of Contract for EPC/Turnkey Projects, Second Edition 2017).

The guidance hereafter is intended to assist drafters of the Special Provisions (Particular Conditions
- Part B) by giving options for various sub-clauses where appropriate. In some cases example
wording is included between lines, while in other instances only an aide-memoire is given.

FIDIC stronglyrecommendsthat the Employer,the Contractorand all drafters of the

Special Provisionstake all due regard of the five FIDIC Golden Principles:

GP1: The duties, rights, obligations,roles and responsibilitiesof all the Contract
Participants must be generally as implied in the General Conditions, and
appropriateto the requirementsof the project.

GP2: The ParticularConditionsmustbe draftedclearlyand unambiguously.

GP3: The ParticularConditionsmust not change the balance of risk/rewardallocation

providedfor in the General Conditions.

GP4: All time periods specifiedin the Contract for Contract Participantsto perform
their obligationsmustbe of reasonableduration.

GP5: All formal disputesmust be referredto a Dispute Avoidance/ AdjudicationBoard

(or a DisputeAdjudicationBoard, if applicable)for a provisionally
bindingdecision
as a conditionprecedentto arbitration.

These FIDIC golden principlesare describedand explainedin the publicationFIDIC's

Golden Principles(http://http://fidic.org/bookshop
t}, and are necessaryto ensure that
modificationsto the General Conditions:
- are limited to those necessaryfor the particular features of the Site and the
project,and necessaryto complywith the applicablelaw;

- do not change the essentialfair and balanced characterof a FIDIC contract;and

- the Contractremains recognisableas a FIDIC contract.

Before incorporating any new or changed sub-clauses, the wording must be carefully checked to
ensure that it is wholly suitable for the particular circumstances. Unless it is considered suitable,
example wording should be amended before use.

© FIDIC 2017 Conditions of Contract for Construction

8
Where any amendments or additions are made to the General Conditions, great care must be
taken to ensure that the wording does not unintentionally alter the meaning of other clauses in the
Conditions of Contract, does not inadvertently change the obligations assigned to the Parties or the
balance of risks shared between them and/or does not create any ambiguity or misunderstanding in
the rest of the Contract documents.

Each time period stated in the General Conditions is what FIDIC believes is reasonable, realistic and
achievable in the context of the obligation to which it refers, and reflects the appropriate balance
between the interests of the Party required to perform the obligation, and the interests of the other
Party whose rights are dependent on the performance of that obligation. If consideration is given
to changing any such stated time period in the Special Provisions (Particular Conditions - Part B),
care should be taken to ensure that the amended time period remains reasonable, realistic and
achievable in the particular circumstances.

There are a number of Sub-Clauses in the General Conditions which require data to be provided by
(/)
the Employer and/or the Contractor and inserted into the Contract Data (Particular Conditions - Part
~
A). However, there are no Sub-Clauses in the General Conditions which require data or information 0
IL
to be included in the Special Provisions (Particular Conditions - Part B).

Provisions found in the Contract documents under Special Provisions (Particular Conditions - Part B)
indicate that the General Conditions have been amended or supplemented.

In describing the Conditions of Contract in the tender documents, the following text can be used:

"The Conditions of Contract comprise the "General Conditions", which form part of
the "Conditions of Contract for Construction" Second Edition 2017 published by the
Federation Internationale des lngenieurs-Conseils (FIDIC), the Contract Data (Particular
Conditions - Part A) and the following "Special Provisions" (Particular Conditions - Part
B), which include amendments and additions to such General Conditions."

The provisions of the Special Provisions (Particular Conditions - Part B) will always over-rule and
supersede the equivalent provisions in the General Conditions, and it is important that the changes are
easily identifiable by using the same clause numbers and titles as appear in the General Conditions.
Furthermore, it is necessary to add a statement in the tender documents for a contract that:

"The provisions to be found in the Special Provisions (Particular Conditions - Part B) take
precedence over the equivalent provisions found under the same Sub-Clause number(s)
in the General Conditions, and the provisions of the Contract Data (Particular Conditions
- Part A) take precedence over the Special Provisions (Particular Conditions - Part B)."

t Please Note: all web links referred to in these guidance notes are up-to-date as of the date of this
publication but it is recommended that users of these guidance notes check online, at the time that
they wish to reference the relevant document, for the most up-to-date version of the document.

© FIDIC 2017
9
 NOTES ON THE PREPARATION OF TENDER DOCUMENTS

When preparing the tender documents and planning the tender process, Employers should read
the publication FIDIC Procurement Procedures Guide tst edition 2011 (http://fidic.org/books/
fidic-procurement-procedures-guide-1st-ed-2011) which presents a systematic approach to the
procurement of engineering and building works for projects of all sizes and complexity, and gives
invaluablehelp and advice on the contents of the tender documents, and the procedures for receiving
and evaluating tenders. This publication provides internationally acceptable, comprehensive,
best practice procedures designed to increase the probability of receiving responsive, clear and
competitive tenders using FIDICforms of contract. FIDICintends to update the FIDIC Procurement
Procedures Guide (planned for publication at a later date) to make specific reference to these
Conditions of Contract for Construction, Second Edition 2017.

The tender documents should be prepared by suitably qualified engineerswho are familiar with the
so technical aspects of the required works and the particular requirementsand contractual provisions
& of a construction project. Furthermore,a review by suitably-qualifiedlawyers is advisable.
E2
The tender documents issued to tenderers should normally include the following:
- Letter of invitation to tender

- Instructions to Tenderers (including advice on any matters which the Employer wishes
tenderers to include in their Tenders but which do not form part of the Specification and/
or Drawings)

- Form of Letter of Tender and required appendices (if any)

- Conditions of Contract: General and Particular

- General information and data

- Technicalinformation and data (includingthe data referredto in Sub-Clause 2.5 [Site Data
and Items of Reference]of the General Conditions)

- the Specification

- the Drawings

- Schedules from the Employer

- details of schedules and other information required from tenderers

- required forms of agreement, securities and guarantees.

The publication FIDIC Procurement Procedures Guide referred to above provides useful guidance
as to the content and format of each of the above.

For this type of contract where the Works are normallyvalued by measurement,the Bill of Quantities
will usually be the most important Schedule. A Daywork Schedule may also be necessary to cover
minor works to be executed at cost. In addition, each of the tenderers should receive the data
referred to in Sub-Clause 2.5 [Site Data and Items of Reference], and the Instructions to Tenderers
should advise them of any special matters which the Employer wishes them to take into account
when pricing the Works but which are not to form part of the Contract.

When the Employer accepts the Letter of Tender, the Contract (which then comes into full force and
effect) includes these completed Schedules.

The following Sub-Clauses make express referenceto matters to be stated in the Specification and/
or Drawings. However, it may also be necessary under other Sub-Clauses for the Employer to give
specific information in the Specification {for example, under Sub-Clause 7.2 [Samples]).

© FIDIC 2017 Conditions of Contract for Construction

10
 1.8 Care and Supply of Documents

1.13 Compliance with Laws

2.1 Right of Access to the Site

2.5 Site Data and Items of Reference

2.6 Employer-Supplied Materials and Employer's Equipment

4.1 Contractor's General Obligations

4.4 Contractor's Documents

4.5 Training

4.6 Co-operation
(j)

4.8 Health and Safety Obligations rfo

LL
4.9 Quality Management and Compliance VerificationSystems

4.16 Transport of Goods

4.18 Protection of the Environment

4.19 Temporary Utilities

4.20 Progress Reports

5.2 Nominated Subcontractors

6.1 Engagementof Staff and Labour

6.6 Facilitiesfor Staff and Labour

6. 7 Health and Safety of Personnel

6. 12 Key Personnel

7 .3 Inspection

7.4 Testing by the Contractor

7 .8 Royalties

8.3 Programme

9.1 Contractor's Obligations

10.2 Taking Over Parts

11.11 Clearance of Site.

Many Sub-Clausesin the GeneralConditions make referenceto data being contained in the Contract
Data (Particular Conditions - Part A). This data must be provided in the tender documents, and
these Conditions of Contract assume that all such data will be provided by the Employer,except as
expressly noted in the example form of Contract Data included in this publication. If the Employer
requirestenderers to provide any of the other information required in the Contract Data, the tender
documents must make this clear.

If the Employer requires tenderers to provide additional data or information, a convenient way of
doing this is to provide a suitably worded questionnairewith the tender documents.

The Instructionsto Tenderersmay need to specify any constraints on the completion of the Contract
Data and/or Schedules, and/or specify the extent of other information which each tenderer is to

©FIDIC 2017
11
 include with his/her Tender. If each tenderer is to produce a tender security and/or a parent company
guarantee, these requirements should be included in the Instructions to Tenderers: example forms
are included at the end of this publication.

The Instructions to Tenderers may require the tenderer to provide information on the matters referred
to in some or all of the following Sub-Clauses:
4.3 Contractor's Representative

6.12 Key Personnel

19 Insurance

It is important for the Parties to understand which of the documents included in the tender dossier,
and which of the documents submitted by tenderers, will form part of the Contract and therefore
have continuing effect. For example, the Instructions to Tenderers are not, by definition, a part of
o:
the Contract. They are simply instructions and information on the preparation and submission of the
20 tender, and they should not contain anything of a binding or contractual nature.
u,

Finally, when planning the overall programme for the project, Employers must remember to allow a
realistic time for:
- tenderers to prepare and submit a responsive Tender (avoiding time that is either too short
which can reduce competition and result in inadequate submittals, or too long which can
be wasteful to all parties involved); and

- the review and evaluation of tenders and the award of the Contract to the successful
tenderer. This will be the minimum time which tenderers should be asked to hold their
tenders valid and open to acceptance.

© FIOIC 2017 Conditions of Contract for Construction

12
NOTES ON THE PREPARATION OF SPECIAL PROVISIONS

It is very important that Employers (and all drafters of the Special Provisions) work with their
professional advisers to review specific terminology in the General Conditions for compliance and
consistency with accepted practice in the legal jurisdiction they are operating in.

For example:
• under a number of legal systems (notably in some common law jurisdictions) the term "gross
negligence" has no clear definition and, as such, is often avoided in legal documents; and

• under English law, the term "indemnity" or "indemnify" has a specific meaning, entitling
the indemnified party to recover certain losses that may not otherwise be recoverable at
law. For example, a Contractor's indemnity may be construed to permit the Employer to
recover losses or damages that might otherwise be considered indirect or consequential,
(!)
whereas for some events which may arise both Parties' losses or damages are intended
to be limited by Sub-Clause 1 .15 [Limitation of Liability] to direct damages only. r±
CJ
U...

The following references and examples show some of the Sub-Clauses in the General Conditions
which may need amending to suit the needs of the project or the requirements of the Employer. The
selected Sub-Clauses and the example wording are included as examples only. They also include,
as an aide-memoire, references to other documents such as the Specification and/or Drawings and
the Contract Data, where particular issues may need to be addressed.

The selected Sub-Clauses do not necessarily require changing and the example wording may not
suit the needs of a particular project or Employer. It is the responsibility of the drafter of the Special
Provisions to ensure that the selection of the Sub-Clauses and the choice of wording is appropriate
to the project concerned.

Furthermore, there may be other Sub-Clauses, not mentioned below, which need to be amended.
Great care must be taken when amending the wording of Sub-Clauses from the General Conditions,
or adding new provisions, to ensure that the balance of obligations and rights of the Parties are not
unintentionally compromised.

© FIDIC 2017
13
 Clause 1 General Provisions
Sub-Clause 1.1 Definitions

The opening words of Sub-Clause 1 .1 mean that the definitions apply, not only to the Conditions
of Contract, but to all the documents of the Contract. Therefore, the Employer should take care
(particularly when drafting the Specification) and the Contractor should take care (particularly when
drafting the documents of the Tender) to use terms in accordance with those as defined in the
definitions.

Regarding the definition of "Base Date" under Sub-Clause 1.1.4, if the Employer makes significant
data/information available to tend ere rs 28 days or less before the due date for submission of tenders,
then it is recommended that the Employer consider extending that date so that such information is
provided before the Base Date for the purposes of the Contract conditions (including Sub-Clause
2.5 [Site Data and Items of Reference] and Sub-Clause 4.12 [Unforeseeable Physical Conditions]).
('/)
~
o:
0 The defined term "Site". under Sub-Clause 1.1. 7 4, is used for a number of different purposes in
LL
the General Conditions (for example: insurances and security) and so, if it is anticipated that any
item(s) of equipment, Plant, Materials and Temporary Works are to be located or stored in places
other than where the Permanent Works are to be executed, it is recommended that consideration
be given to specifying such places in the Contract (by the Employer in the Specification and/or by
the Contractor in the Tender).

In general, changes should not be made to the definitions as this could have serious consequences
on the interpretation of the documents of the Contract, particularly the Conditions of Contract.

However, there are limited circumstances where it may be desirable to amend some of the definitions.
For example:

1 .1 .4 the Base Date could be defined as a particular calendar date

1 .1 .42 one particular Foreign Currency may be required
1 . 1 .52 a different currency may be required to be the contract Local Currency

Also, some of the defined terms in the General Conditions may not be appropriate and may need
changing or developing.

For example, if the extent of the Site crosses the border between two countries, it is recommended
that consideration be given to the following changes:

EXAMPLE 1.1.20

" "Country" means either xxxxx or yyyyy depending on the location to

which the reference will apply."

EXAMPLE 1.1.52

" "Local Currency" means the currency of (insert name of Country) or

(insert name of Country)."

Sub-Clause 1.1.82 "Tests after Completion"

If the Contract specifies that the Contractor shall design any part of the Permanent Works and if,
after such part has been taken over, the Employer wishes to carry out Tests after Completion on that
part, detailed requirements regarding these tests should be stated in the Specification.

The Specification should describe the tests the Employer will carry out to verify that the part designed
by the Contractor fulfils the Employer's performance requirements, which requirements should also
be stated in the Specification.

© FIDIC 2017 Conditions of Contract for Construction

14
 Further, it is recommended that consideration be given to including provisions in the Special
(;J
Provisions that are based on those of Clause 12 in FIDIC's Conditions of Contract for Plant & z
Design-Build Projects, Second Edition 2017. iB
If it is necessary to introduce new terminology into the text of the Special Provisions, each term
should be carefully and properly defined, using a clear Sub-Clause numbering system for the
new/additional defined terms. It is recommended, that the numbering of new definitions does
not interfere with the numbering as originally included in the General Conditions. For example:

EXAMPLE New definition B 1 .1 .x

" "Safety Regulations" means the Employer's safety regulations

existing on the Site which the Contractor is required to follow."

In some jurisdictions, it may be advisable to add additional definitions to clarify certain terms/ a:
expressions which appear in the General Conditions but are not defined. A typical example
;g
LL
0
might be: LL

EXAMPLE New definition B 1 .1 . 'n'

" "Gross Negligence" means any act or omission of a party

which is contrary to the most elementary rules of diligence which
a conscientious employer or contractor would have observed
in similar circumstances, and/or which show serious reckless
disregard for the consequences of such an act or omission. It
involves materially more want of care than mere inadvertence or
simple negligence."

Sub-Clause 1.2 Interpretation

In relation to the meaning of "consent" under sub-paragraph (g), it should be noted that
this does not mean "approve" or "approval" which, under some legal jurisdictions, may be
interpreted as accepting or acceptance that the requested matter is wholly satisfactory -
following which the requesting party may no longer have any responsibility or liability for it.

Sub-Clause 1.3 Notices and Other Communications

If Notices are only to be given in paper format by post, then consideration may be given to
increasing the particular timescales for Notices in the Conditions of Contract to allow extra
days for the Notice to be delivered to the recipient.

Sub-Clause 1.5 Priorityof Documents

An order of precedence is usually necessary, in case a conflict is subsequently found between

the documents of the Contract.

If the Specification is to comprise a number of documents, it may be useful to amend

sub-paragraph (g) of this Sub-Clause 1 .5 by adding an order of precedence between the
documents of the Specification.

If no order of precedence of any of the documents of the Contract is to be prescribed, this

Sub-Clause may be varied:

EXAMPLE Delete Sub-Clause 1 .5 and substitute:

"The documents forming the Contract are to be taken as mutually

explanatory of one another. If an ambiguity or discrepancy is found,
the priority shall be such as may be accorded by the governing
law. The Engineer has authority to issue any instruction which he/
she considers necessary to resolve an ambiguity or discrepancy."

© FIDIC 2017
15
 Sub-Clause 1.6 Contract Agreement

The form of the Contract Agreement should be included in the tender documents as an
annex to the Special Provisions: an example form is included at the end of this publication (in
the section "Sample Forms").

If lengthy tender negotiations were necessary, it is recommended that consideration be given

to recording in the Contract Agreement: the Accepted Contract Amount, the Base Date and/
or the Commencement Date.

Entry into a formal Contract Agreement may be mandatory under the applicable law. In such
a case, the words "unless they agree otherwise" should be deleted from the text.

Sub-Clause 1.10 Employer's Use of Contractor'sDocuments

(f)
Additional provisions may be required if all rights to particular items of computer software (for
example) are to be assigned to the Employer. These provisions should take account of the
~
0
u. applicable law.

Sub-Clause 1.13 Compliance with Laws

In respect of sub-paragraphs (b) and (c) of this Sub-Clause, if (in addition to the provisions of
Sub-Clause 4.18 [Protection of the Environment]) the applicable law requires the Contractor
to apply for and/or comply with particular environmental permits, these permits should be
stated in the Specification together with the Contractor's obligations associated with each
permit.

Sub-Clause 1.14 Joint and Several Liability

If it is likely that one or more of the tenderers will be a Joint Venture, detailed requirements for
the JV may need to be specified in addition to those listed in the definition of "JV Undertaking"
under Sub-Clause 1 .1 .4 7. For example, it may be desirable for each member of the JV
to produce a parent company guarantee: an example form is included at the end of this
publication (in the section "Sample Forms").
These requirements should be included in the Instructions to Tenderers. Normally the
Employer will wish the leader of the JV to be appointed at an early stage, providing a single
point of contact thereafter, and will not wish to be involved in a dispute between the members
of a JV.

The Employer should scrutinise the JV Undertaking carefully and, where relevant, check if the
project's financing institution(s) has/have to give consent.

Sub-Clause 1.15 Limitationof Liability

If it is required that the limitation of each Party's liability to the other Party is to include certain
"indirect or consequential loss or damage" and is also to take into account liabilities which
are to be insured under Clause 19 [Insurance]. the Contract Data and this Sub-Clause may
be varied:

EXAMPLE In the Contract Data, add the following:

" 1 .15 Amount of Sum A:

Amount of Sum B:
Amount of Sum C:

Delete Sub-Clause 1 .15 and substitute:

"Except as stated in this Sub-Clause, neither Party shall be liable
to the other Party for loss of use of any Works, loss of profit, loss
of any contract or for any indirect or consequential loss or damage
which may be suffered by the other Party in connection with the
Contract.

© FIDIC 2017 Conditions of Contract for Construction

16
 The Contractor's liability to the Employer under or in connection
«:
with the Contract shall be limited as follows: z
,,,
(a) for failure to comply with Sub-Clause 8.2 [Time for ;;re:
Completion]. the limit shall be the maximum amount of
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Delay Damages stated in the Contract Data; CJ C..)

(b) for loss of profit, loss of any contract or loss of use of any
part of the Permanent Works (after taking over under the
Contract), caused by:
(i) defects attributable to the Contractor, the limit shall
be the sum A stated in the Contract Data;
(ii) damage to the Works caused by the Contractor, the
limit shall be the sum B stated in the Contract Data;
(iii) damage caused by the Contractor to the Employer's
property other than the Works, the limit shall be fifty
o:
percent (50%) of the sum B stated in the Contract 2
Data; and ~
'-'
I.L

(iv) any other matter attributable to the Contractor, the

limit shall be fifty percent (50%) of the sum A stated in
the Contract Data;
(c) for damage caused by the Contractor to the Works, the limit
shall be the required value of cover of the insurance under
Sub-Clause 19.2.1 [The Works];
(d) for damage caused by the Contractor to the Employer's
property other than the Works, the limit shall be the required
value of cover of the insurance under Sub-Clause 19.2.4
[Injury to persons and damage to property];
(e) for death or injury to the Employer's personnel or the
Engineer's personnel by a cause attributable to the
Contractor,the limit shall be the requiredvalue of cover of the
insurance under Sub-Clause 19.2.5 [Injury to employees];
(D for the Contractor's indemnity to the Employer for third
party claims under the first paragraph of Sub-Clause 17.4
[Indemnities by Contractor], there shall be no limit; and
(g) for the Contractor's indemnity to the Employer under the
second paragraph of Sub-Clause 1 7.4 [Indemnities by
Contractor]. the limit shall be the required value of cover of
the insurance under Sub-Clause 19.2.3 [Liability for breach
of professional duty];
(h) for all matters other than those described in sub-paragraphs
(b) to (g) above and other than those under Sub-Clause 17 .3
[Intellectual and Industrial Property Rights]. the limit shall be
the sum C stated in the Contract Data.

The Employer's liability to the Contractor under or in connection

with the Contract shall be limited as follows:
(i) for loss of profit, loss of any contract or any other
direct loss caused by termination of the contract
under Sub-Clause 15.5 [Termination for Employer's
Convenience] and Sub-Clause 16.2 [Termination by
Contractor], the limit shall be twenty percent (20%) of
the Accepted Contract Amount;
(ii) for damage caused by the Employer or Employer's
Personnel to the Temporary Works or Plant and
Materials not included in the Permanent Works, the
limit shall be thirty percent (30%) of the requiredvalue

© FIDIC 2017
17
~,u:

LU()
oo
(iii)
of cover of the insurance under Sub-Clause 19.2.1
[The Works];
for damage caused by the Employer or Employer's
Personnel to the Contractor's Equipment, Materials,
Plant and/or Temporary Works, the limit shall be
the required value of cover of the insurance under
Sub-Clause 19.2.2 [Goods];
(iv) for death or injury to the Contractor's Personnel by a
cause attributable to the Employer the limit shall be
the required value of cover of the insurance under
Sub-Clause 19.2.5 [Injury to employees];
(v) for the Employer'sindemnity to the Contractor for third
party claims under Sub-Clause 17 .5 [Indemnities by
Employer], there shall be no limit; and
U)
(vi) for all matters other than those described in
o
tf sub-paragraph (i) to (v) above and other than under
LL
Sub-Clause 17 .3 [Intellectual and Industrial Property
Rights], the limitshall be in accordancewith Sub-Clause
14.14 [Cessation of Employer's Liability] as may be
amended under Sub-Clause 21.4 [Obtaining OMB's
Decision], Sub-Clause 21.5 [Amicable Settlement] or
Sub-Clause 21.6 [Arbitration].

This Sub-Clause shall not limit liability in any case of fraud, gross
negligence, deliberate default or reckless misconduct by the
defaulting Party."

Clause 2 The Employer

Sub-Clause 2.1 Right of Access to the Site

It may be necessary for the Contractor to have early access to the Site for the purposes of
survey and sub-surface investigations. If so, the details of such early right of access should
be stated in the Specification, including any restrictions on such access and whether or not
it shall be exclusive to the Contractor.

If right of access to, and possession of, the Site cannot be granted by the Employer in the
normal way, details should be stated in the Specification and appropriate amendments made
to the first paragraph of this Sub-Clause and, if necessary, to the second paragraph.

Sub-Clause 2.3 Employer's Personnel and Other Contractors

The provisions concerning co-operation between contractors should be reflected in the

Employer's contracts with any other contractors working on or near the Site.

Sub-Clause 2.6 Employer-Supplied Materials and Employer's Equipment

If Employer-Supplied Materials are listed in the Specification for the Contractor's use in the
execution of the Works, the following provisions may be added:

EXAMPLE After the last paragraph of Sub-Clause 2.6, add:

"The Employer shall supply to the Contractor the Employer-Sup-

plied Materials listed in the Specification, at the time(s) stated in the
Specification (if not stated, within the times that shall be required
to enable the Contractor to proceed with execution of the Works
in accordance with the Programme).

© FIDIC2017 Conditions of Contract for Construction

18
 When made available by the Employer, the Contractor shall visually
inspect the Employer-Supplied Materials and shall promptly give a
Notice to the Engineer of any shortage, defect or default in them.
Thereafter, the Contractor shall rectify such shortage, defect or
default to the extent instructed by the Engineer. Such instruction
shall be deemed to have been given under Sub-Clause 13.3.1
[Variation by Instruction].

After this visual inspection, the Employer-Supplied Materials shall

come under the care, custody and control of the Contractor. The
Contractor's obligations of inspection, care, custody, and control
shall not relievethe Employer of liabilityfor any shortage, defect or
default not apparent from a visual inspection."

In the last paragraph of Sub-Clause 17.1 [Responsibility for Care of (!)

the Works] after the two instances of "Goods" add 2
6
L! ...

", Employer-Supplied Materials,".

If Employer's Equipment is listed in the Specification for the Contractor's use in the execution
of the Works, the following provisions may be added:

EXAMPLE After the last paragraph of Sub-Clause 2.6, add:

"The Employer shall make the Employer's Equipment listed in the

Specification availableto the Contractor at the time(s) stated in the
Specification (if not stated, within the times that shall be required
to enable the Contractor to proceed with execution of the Works in
accordance with the Programme).

Unless expressly stated otherwise in the Specification, the

Employer's Equipment shall be provided for the exclusive use of
the Contractor.

When made availableby the Employer, the Contractor shall visually

inspect the Employer's Equipment and shall promptly give a
Notice to the Engineer of any shortage, defect or default in them.
Thereafter, the Contractor shall rectify such shortage, defect or
default to the extent instructed by the Engineer.Such instruction
shall be deemed to have been given under Sub-Clause 13.3.1
[Variation by Instruction].

The Contractor shall be responsible for the Employer's Equipment

while it is under the Contractor's control and/or any of the
Contractor's Personnel is operating it, driving it, directing it, using
it, or in control of it.

The Contractor shall not remove from the Site any items of the
Employer's Equipment without the consent of the Employer.
However, consent shall not be required for vehicles transporting
Goods or Contractor's Personnelto or from the Site."
In the last paragraph of Sub-Clause 17 .1 [Responsibility for Care of
the Works] after the two instances of "Goods" add:

", Employer's Equipment",

© FIDIC 2017
19
 Clause 3 The Engineer
Sub-Clause 3.1 The Engineer

It is recommended that the engineer who was appointed by the Employer to carry out the
Employer'sdesign of the Works is retained by the Employerto act as the Engineer under the
Contract for services during construction of the Works.

In the appointment of the Engineer,it is recommended that the Employer and the Engineer
use the form of agreement FIDICClients/Consultants Model Services Agreement fifth Edition,
2017 (http://fidic.org/books/clientconsultant-model-services-agreement-5U,-ed-
2017-white-book).

Sub-Clause 3.2 Engineer's Duties and Authority

(I) In performing the Engineer'sduties and in exercising his/her authority under the Contract, the
> Engineershould take due regard of:
fr
o
LL a) FIDIC's Code of Ethicsfor consulting engineers:http://fidic.org/about-fidic/fidic-policies/
fidic-code-ethicst;
and
b) the duty to prevent corruption and bribery as described in the publications:
FIDIC Guidelines for Integrity Management (FIM) in the consulting
industry, Part 1- Policies and principles first edition, 2011 (http://fidic.
org/books/integrity-management-system-fims-guidelines-1 st-ed-
2011-part1t) and
FIDIC Guidelines for Integrity Management System in the Consulting
Industry tst Ed (2015) Part 2, FIMS Procedures(http://fidic.org/books/
guidelines-integrity-management-system-consulting-industry-1 st-ed-
2015-part-2t ).
If there are any requirements for Employer's consent, this Sub-Clause requires that these
should be set out in the Special Provisions and so the following provisions should be added
to this Sub-Clause:

EXAMPLE "The Engineer shall obtain the consent of the Employer before
taking action under the following Sub-Clauses of these Conditions:

(a) Sub-Clause _
(b) Sub-Clause *"

* [Insert Sub-Clause number (not Sub-Clause 3. 7 [Agreement

or Determination] - please see below) and describe the specific
procedure to be followed by the Engineer,where appropriate].

This list should be extended or reduced as necessary. If the obligation to obtain the Employer's
consent only applies beyond certain limits, financial or otherwise, the example wording should
be varied accordingly.
It should be noted that any such requirementshall not be applied to any action by the Engineer
under Sub-Clause 3. 7 [Agreement or Determination], as stated in Sub-Clause 3.2 [Engineer's
Duties and Authority] of the General Conditions.

Sub-Clause 3.4 Delegation by the Engineer

The Engineer's assistants may include: design engineers, other construction professionals,
technicians, inspectors and/or specialist independent engineers and/or inspectors appointed
to monitor and review the execution of the Works (including inspecting and/or testing items
of Plant and/or Materials).
If it is anticipated that the Engineer's assistants may not all be fluent in the language for
communications defined in Sub-Clause 1 .4 [Law and Language]. consideration should be
given to amending this Sub-Clause:

© FIDIC 2017 Conditions of Contract for Construction

20
 EXAMPLE In the second paragraph of Sub-Clause 3.4, after "Sub-Clause
1.4 [Law and Language]" add the following:

"If any assistants are not fluent in this language the Engineer shall
make competent interpreters available during all working hours, in
a number sufficient for those assistants to properly perform their
assigned duties and/or exercise their delegated authority."

Sub-Clause 3.5 Engineer's Instructions

If the applicable law prevents the Contractor from complying with any Engineer's instruction
that may have an adverse effect on the health and safety of the Contractor's Personnel,
sub-paragraph (b) of this Sub-Clause may be amended:

EXAMPLE At the end of sub-paragraph (b) of Sub-Clause 3.5, add the

(/)
following:
~
0
"or will adversely affect the health and safety of the Contractor's LL.

Personnel".

If the Conditions of Contract are to allow for the giving of oral instructions by the Engineer, this
Sub-Clause may be amended:

EXAMPLE At the end of Sub-Clause 3.5, add the following:

"If the Engineer or a delegated assistant:

(a) gives an oral instruction;
{b) receives a written confirmation of the instruction, from the
Contractor, within two working days after giving the oral
instruction; and
(c) does not reply by issuing a written rejection and/or instruction
within two working days after receiving the confirmation
then the Contractor's confirmation shall constitute the written instruction
of the Engineer or delegated assistant (as the case may be)."

Sub-Clause 3.7 Agreement or Determination

The Engineer shall not delegate any of his/her duties under this Sub-Clause to the Engineer's
Representative (if appointed} or to any assistant, as stated under Sub-Clause 3.4 [Delegation
by the Engineer].

The opening words of this Sub-Clause state that the Engineer "shall act neutrally between the
Parties" when carrying out his/her duties under this Sub-Clause and "shall not be deemed
to act for the Employer". By these statements it is intended that, although the Engineer is
appointed by the Employer and acts for the Employer in most other respects under the
Contract, when acting under this Sub-Clause the Engineer treats both Parties even-handedly,
in a fair-minded and unbiased manner.

Sub-Clause 3.8 Meetings

It may be useful to give information in the Specification of a planned timetable of meetings

such as management meetings, site meetings, technical meetings, and progress meetings.

© FIDIC 2017
21
 Clause 4 The Contractor
Sub-Clause 4.1 Contractor'sGeneral Obligations

In some projects there may be an item or items of Temporary Works for which the Contractor will
not be fully responsible. For example, an Employer-designed temporary diversion of an existing
road or waterway may be necessary to facilitate the Works. In this case, and in order for the second
sentence of the third paragraph to apply ("Except to the extent specified in the Contract ... "), the
item(s) ofTemporary Works and the extent of the Employer's responsibility should be clearly stated
in the Contract (by the Employer in the Specification, or by the Contractor in the Tender).

Sub-Clause 4.2 PerformanceSecurity

The acceptable form(s) of Performance Security should be included in the tender documents.
Example forms are included at the end of this publication (in the section "Sample Forms"). They
(!) incorporate two sets of Uniform Rules published by the International Chamber of Commerce
2 (the "ICC", which is based at 33-43 Avenue du President Wilson, 75116 Paris, France}, which
6
LL also publishes guides to these Uniform Rules.

These example forms and the wording of the Sub-Clause may have to be amended to comply
with applicable law.

EXAMPLE At the end of the first paragraph of Sub-Clause 4.2.1 [Contractor's

Obligations], insert:

"If the Performance Security is in the form of a bank guarantee, it shall

be issued either (i) by a bank located in the Country, or (ii) directly by a
foreign bank to which the Employer gives consent. If the Performance
Security is not in the form of a bank guarantee, it shall be issued by a
financial entity registered, or licensed to do business, in the Country."

The example forms of Performance Security that are included at the end of this publication (in
the section "Sample Forms") provide for the option to reduce the amount of the Performance
Security following issue of the Taking-Over Certificate for the whole of the Works under Clause
10. If neither of the example forms is to be used, consideration should be given to adding
provisions for this option to Sub-Clause 4.2.1.

Sub-clause4.3 Contractor'sRepresentative

If the Contractor's Representative is known at the time of submission of the tender, the tenderer
may propose that person in his/her tender. The tenderer may wish to propose alternatives,
especially if the contract award seems likely to be delayed.

The "main engineering discipline applicable to the Works" in which the Contractor's
Representative is required to be qualified, experienced and competent should be the
engineering discipline of the Works which is of highest value proportionate to the value of the
Works. If it is necessary to stipulate that the Contractor's Representative shall be qualified,
experienced and competent in a particular engineering discipline in relation to the Works, the
following amendment will need to be made to this Sub-Clause:

EXAMPLE In the second paragraph of Sub-Clause 4.3 delete "the main

engineering discipline applicable to the Works" and replace with:

[Insert description of engineering discipline],

If it is necessary that the Contractor's Representative shall also be fluent in a particular

language other than the language for communications defined in Sub-Clause 1.4 [Law and
Language], the following amendment may be made:

© FIDIC2017 Conditions of Contract for Construction

22
 EXAMPLE At the end of the second paragraph of Sub-Clause 4.3, add:
(j)
z
_Jo
"The Contractor's Representative shall also be fluent in <(.:::::
________ (insert name of language)." ff.io
(£~
(90

If it is permissible that the Contractor's Representative is not fluent in the language for
communications defined in Sub-Clause 1 .4 [Law and Language], consideration should be
given to amending this Sub-Clause:

EXAMPLE Insert at the end of the second paragraph of Sub-Clause 4.3:

"If the Contractor's Representative is not fluent in this language the

Contractor shall make competent interpreter(s) available during
all working hours, sufficient for the Contractor's Representative
to properly perform his/her duties and exercise his/her authority (/)
under the Contract." &
0
!.L.

If it is permissible that the Contractor's Representative's delegates are not all fluent in the
language for communications defined in Sub-Clause 1 .4 [Law and Language], consideration
should be given to amending this Sub-Clause:

EXAMPLE Insert at the end of the last paragraph of Sub-Clause 4.3:

"If any of these persons is not fluent in this language the Contractor
shall make competent interpreters available during all working
hours, in a number sufficient for those persons to properly perform
their delegated powers, functions and/or authority."

Sub-clause 4.4 Contractor'sDocuments

Sub-Clause 4.4.1 Preparation and Review

It is important that the Specification should clearly specify which Contractor's Documents the
Employer requires the Contractor to prepare, which may not necessarily include (for example)
all the technical documents which the Contractor's Personnel will need in order to execute
the Works.

Further, if there are Contractor's Documents that the Contractor must submit to the Engineer
for review, it is important that they are clearly identified in the Specification.

If a different Review Period than that stated under Sub-Clause 4.4.1 is considered necessary,
or different Review Periods are considered necessary for different (types on Contractor's
Documents, such different Review Period(s) should be clearly stated in the Specification.

Sub-Clause 4.4.3 Operation and Maintenance Manuals

If the Contractor is required to supply spare parts under the Contract, these should be
detailed in the Specification, which should also specify the required guarantee period for
these spare parts.

Sub-Clause 4.5 Training

If the Works include Plant that comprises (in whole or in part) new or innovative technology
in the Country or at the Employer's location, it is recommended that the Parties consider
including in the Contract provision for training (by the Employer in the Specification and/or
by the Contractor in the Tender) of the Employer's Personnel at the location of another plant
facility, or at a number of other plant facilities, that are similar in nature to the Works.

© FIDIC 2017
23
 Sub-Clause 4.8 Health and Safety Obligations

If the Contractor is sharing occupation of the Site with others, it may not be appropriate for
him/her to provide some of the listed items. In these circumstances:
this Sub-Clause should be amended to specify exactly what health and safety
obligations are the Contractor's under the Contract, and

the health and safety obligations which are to be fulfilled by the Employer and/or
others should be stated in the Specification
so that it is clear which Party is responsible for what in respect of the health and safety
obligations for the Site and for the Works.

Sub-Clause 4.9.1 Quality Management System

In the performance of the Contractor's obligations under this Sub-Clause, it is recommended

(/) that the Contractor and the Engineertake due regard of the FIDIC publication Improving the
;0 Quality of Construction - a guide for actions, 2004 (http://fidic.org/books/improving-quality-
o
LL. construction-2004t).

If the Employer requiresthe Contractor to have a Quality Manager employed on the Site, such
position should be stated in the Specification as one of the positions of Key Personnel.

If the Employer requiresthe Contractor to interface with others and/or with the Employer,the
Specification should clearlydescribe all such interfacesand should specify the extent in which
the Contractor shall allow for such interfaces in the OM System.

Sub-Clause 4.12 Unforeseeable Physical Conditions

In the case of a construction project which involves significant sub-surface works, it is

recommended that the Employer consider the allocation of the risk of encountering adverse
sub-surface conditions when the tender documents are being prepared.

If this risk is to be shared between the Parties, this Sub-Clause will need to be amended:

EXAMPLE In Sub-Clause 4.12.4 [Delay and/or Cost], delete the words

"payment of such cost" and substitute with

"payment of_ percent(_%) of such Cost {the balance of_

percent(_%) shall be borne by the Contractor)."

In order to assist the Engineerin performing his duties under Sub-Clause 14.12.5 [Agreement
or Determination of Delay and/or Cost] in the event that Unforeseeablephysical conditions are
encountered by the Contractor, the Employer may consider including the physicaVgeological/
sub-surface conditions that are known at the Base Date in the Contract - in the form of a
"'Baseline Report".

Sub-Clause 4.16 Transportof Goods

In some cases, the Contractor may be requiredto get permission prior to delivery of Goods to
the Site. In such cases those Goods for which permission is required should be stated in the
Specification, and the following wording may be added to this Sub-Clause:

EXAMPLE Insert at the end of Sub-Clause 4.16:

"The Contractor shall obtain the Engineer's permission prior to

delivering to the Site any item of Goods which is identified in the
Specification as requiring such permission. No such Goods shall
be delivered without this permission, which shall not relieve the
Contractor from any duty, obligation or responsibility under or in
connection with the Contract."

© FIDIC 2017 Conditions of Contract for Construction

24
 Sub-Clause 4.17 Contractor's Equipment
(J)
z
If the Contractor is not to provide all the Contractor's Equipment necessary to execute
~~
the Works, the Employer's obligations should be specified: please see Sub-Clause 2.6 l.i.J --,
zz
[Employer-Supplied Materials and Employer's Equipment] and the guidance notes for wo
C)U
Sub-Clause 2.6 above.

If vesting of Contractor's Equipmentto the Employeris required,and such vesting is consistent

with the Laws of the Country, further paragraphs may be added to this Sub-Clause:

EXAMPLE At the end of Sub-Clause 4.17, add the following paragraphs:

"Each item of Contractor's Equipment shall become the property

of the Employer (free from liens and other encumbrances) when it
arrives on the Site.
c:
This vesting of property from the Contractor to the Employer shall ~
n;
0
not: I.L..

(a) affect the responsibilityor liabilityof the Employer under the

Contract;
(b) prejudice the Contractor's right to exclusive use of all items
of Contractor's Equipment for the purpose of the Works;
and/or
(c) relieve the Contractor from any duty, obligation or
responsibilityto operate and maintainall items of Contractor's
Equipment.

The property in each item of Contractor's Equipment shall be

deemed to re-vest in the Contractor (free from liens and other
encumbrances) when he/she is entitled to remove it from the Site
or to receive the Taking-OverCertificate for the Works, whichever
is the earlier."

Sub-Clause 4.18 Protection of the Environment

If the applicable environmental law requires the Contractor to prepare project-specific

environmental management plans, for review by the Engineer and/or the Employer and
approval by regulatory authorities, these plans should be clearly described in detail in the
Specification together with the review/approvalprocess associated with each plan.

Sub-Clause 4.19 Temporary Utilities

If services are to be available on the Site for the Contractor to use, details of such services
should be stated in the Specification, including a description of each utility, the capacity of
each utility that is available for the Contractor's use, its location and the price per unit of
consumption.

Sub-Clause 4.21 Securityof the Site

If the Contractor is sharing occupation of the Site with others, it may not be appropriatefor the
Contractor to be responsiblefor its security.In these circumstances,it is recommendedthat:
a) this Sub-Clause should be amended to specify exactly what security obligations are
the Contractor's under the Contract,

and

b) the security obligations which are to be fulfilled by the Employer and/or others should
be stated in the Specification
so that it is clear which Party is responsiblefor what in respect of the security of the Site.

©FIDIC 2017
25
 Sub-Clause 4.22 Contractor's Operations on Site

If the Contractor is sharing occupation of the Site with others, it is recommended that this
Sub-Clause is amended by identifyingand allocating responsibilityfor clearance and removal
from the Site of anywreckage,rubbish, hazardouswaste, temporaryworks and surplus material.

AdditionalSub-Clause Milestones

If the Employer wishes to have certain parts of the Works completed within certain times
but does not wish to take over such parts when completed (as distinct from the parts of the
Works which the Employerwishes to take over after completion, which should be defined as
Sections in the Contract Data), such parts of the Works should be clearly described in the
Specification as 'Milestones' and it is recommended that the following provisions are added
to the Contract Data and to the Conditions of Contract:

(/J.
EXAMPLEPROVISIONSFOR MILESTONES
[t In the Contract Data, add the following:
0
u.
"4.24 Definitionof Milestones:

Description of a Time for Completion Delay Damages

part of the Plant or (as a percentage of
of the Works that final Contract Price
shall be designated per day of delay)
a Milestone for the
purposes of the
Contract
__ days - %
__ days - %
__ days - %
__ days - %

Maximum amount of Delay Damages for Milestones (percent of

final Contract Price) ..... __ o/o. "

Insert two new definitions under Sub-Clause 1.1:

" "Milestone" means a part of the Plant and/or a part of the Works
stated in the Contract Data (if any), and described in detail in the
Specification as a Milestone,which is to be completed by the time
for completion stated in Sub-Clause 4.24 [MilestoneWorks] but is
not to be taken over by the Employerafter completion.

"Milestone Certificate" means the certificate issued by the

Engineerunder Sub-Clause 4.24 [Milestones]. "

Add new Sub-Clause 4.24 ... Milestones

"If no Milestonesare specified in the Contract Data, this Sub-Clause

shall not apply.

The Contractor shall complete the works of each Milestone

(including all work which is stated in the Specification as being
required for the Milestone to be considered complete) within the
time for completion of the Milestone, as stated in the Contract
Data, calculated from the Commencement Date.

The Contractor shall include, in the initial programme and each

revised programme, under sub-paragraph (a) of Sub-Clause 8.3
[Programme],the time for completion for each Milestone.

©FIDIC2017 Conditions of Contract for Construction

26
 Sub-paragraph (d) of Sub-Clause 8.4 [Advance Warning) and
Sub-Clause 8.5 [Extension of the Time for Completion] shall
apply to each Milestone, such that "Time for Completion" under
Sub-Clause 8.5 shall be read as the time for completion of a
Milestone under this Sub-Clause.

The Contractor may apply, by Notice to the Engineer, for a Milestone

Certificate not earlier than 14 days before the works of a Milestone
will, in the Contractor's opinion, be complete. The Engineer shall,
within 28 days after receiving the Contractor's Notice:
(a) issue the Milestone Certificate to the Contractor, stating the
date on which the works of the Milestone were completed
in accordance with the Contract, except for any minor
outstanding work and defects (as shall be listed in the
Milestone Certificate); or
(!)

(b) reject the application, giving reasons and specifying the work 2
a:
required to be done and defects required to be remedied 0
l.l. ..

by the Contractor to enable the Milestone Certificate to be

issued.

The Contractor shall then complete the work referred to in

sub-paragraph (b) of this Sub-Clause before issuing a further
Notice of application under this Sub-Clause.

If the Engineer fails either to issue the Milestone Certificate or to

reject the Contractor's application within the above period of 28
days, and if the works of a Milestone are complete in accordance
with the Contract, the Milestone Certificate shall be deemed to
have been issued on the date which is 14 days after the date
stated in the Contractor's Notice of application.

If Delay Damages for a Milestone are stated in the Contract Data,

and if the Contractor fails to complete the works of the Milestone
within the time for completion of the Milestone (with any extension
under this Sub-Clause):
(i) the Contractor shall, subject to Sub-Clause 20.1
[Claims], pay Delay Damages to the Employer for this
default;
(ii) such Delay Damages shall be the amount stated in
the Contract Data, for every day which shall elapse
between the time for completion for the Milestone
(with any extension under this Sub-Clause) and the
date stated in the Milestone Certificate;
(iii) these Delay Damages shall be the only damages due
from the Contractor for such default; and
(iii) the total amount of Delay Damages for all Milestones
shall not exceed the maximum amount stated in the
Contract Data (this 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)."

If certain payment(s) to the Contractor is/are to be made on completion of each Milestone,

such payment(s) should be specified in a Schedule of Payments in the Contract and
consideration should be given to amending Sub-Clause 14.4 [Schedule of Payments] to
make express referenceto the Milestone payments.

© FIDIC 2017
27
 (/)
Clause 5 Subcontracting
·7

<i;8 Sub-Clause 5.1 Subcontractors

fuo
tits
C:)O It may be appropriate and/or desirable, taking account of the circumstances and locality of the
project, to encourage the Contractor to employ local contractors in the execution of the Work:

EXAMPLE At the end of the second paragraph of Sub-Clause 5.1 , add:

"The Contractor shall give reasonable opportunity to contractors

from the Country to tender for subcontracts for the Works, and
shall use reasonable endeavours to employ such contractors as
Subcontractors."

If no consent by the Engineer to Subcontractors is required, the last three paragraphs of this
Sub-Clause may be deleted. If less consent by the Engineer to Subcontractors is preferable,
this Sub-Clause may be amended:

EXAMPLE After sub-paragraph (ii) of Sub-Clause 5.1 , add:

"or
(iii) a Subcontractor where the value of his/her subcontract is less
than one percent (1 %) of the Accepted Contract Amount."

If the Engineer's consent is required to the suppliers of certain Materials, this Sub-Clause may
be amended:

EXAMPLE At the end of the third paragraph of Sub-Clause 5.1, add:

"However, the Engineer's prior consent shall be required for the

suppliers of the following Materials:

(insert details: for example, specific manufactured or prefabricated

items of Materials)

If the Employer requires that all the Contractor's subcontracts should provide for assignment of
the subcontract to the Employer in the event that Sub-Clause 15.2 [Termination for Contractor's
Default] applies, the following amendment will need to be made to this Sub-Clause:

EXAMPLE Insert at the end of the last paragraph of Sub-Clause 5.1:

"All subcontracts relating to the Works shall include provisions which

entitle the Employer to require the subcontract to be assigned to
the Employer under sub-paragraph (a) of Sub-Clause 15.2.3 [After
Termination]."

If the Employer requires that the Contractor assigns the benefit of the relevant subcontract in
the event that a Subcontractor's obligations continue after expiry of the DNP relating to that
Subcontractor's work, the following amendment will need to be made to this Sub-Clause:

EXAMPLE Insert at the end of the last paragraph of Sub-Clause 5.1 :

"If a Subcontractor's obligations to the Contractor extend

beyond the expiry date of the DNP which is applicable to the
Subcontractor's work and if the Contractor receives an instruction

© FIDIC 2017 Conditions of Contract for Construction

28
 from the Engineer to do so not less than 7 days before this expiry
date, the Contractor shall assign the benefit of such obligations
to the Employer. Unless otherwise stated in the assignment, the
Contractor shall have no liability to the Employer for work carried
out by the Subcontractor after the assignment takes effect."

Sub-Clause 5.2 Nominated Subcontractors

Normally the Contractor will select and employ subcontractor(s), (subject to any constraints
stated in the Contract), but this Sub-Clause provides for the situation where the Employer
may wish to select a particular subcontractor or subcontractors to be employed by the
Contractor in the execution of the Works.

If this is the case, it is recommendedthat the Employernamesthe particularsubcontractor(s)in

the Specificationso that tenderersare aware of this requirementbeforesubmittingtheir tenders (!)
~s;
- although this Sub-Clause also makes provisionfor the Engineerto instruct the Contractor to ix:
employ a subcontractor or subcontractors selected by the Employerafter contract award. o
I.L

It should be noted that:

a) once the Contractor has employed a subcontractor who has been nominated by the
Employer, the second paragraph of Sub-Clause 5.1 [Subcontractors] applies; and

b) sub-paragraph (b) of Sub-Clause 13.4 [ProvisionalSums] should provide for payment

to the Contractor for works or services to be purchased by the Contractor from a
nominated Subcontractor.
If the Employer anticipates that a Subcontractor is to be instructed under Sub-Clause 13.3
[VariationProcedure] but is not to be a nominated Subcontractor, this Sub-Clause should be
amended describing the particular circumstances.

Clause 6 Staff and Labour

Sub-Clause 6.3 Recruitmentof Persons

It may be necessary to review and revise this Sub-Clause (or delete it in its entirety) if
the relevant labour Laws applicable to the Contractor's Personnel and/or the Employer's
Personnel do not permit any restriction on the right of any worker to seek other positions.

Sub-Clause 6.6 Facilities for Staff and Labour

If the Employer plans to make any facilities and/or accommodation (for example, office
accommodation) available for the Contractor's occupation and/or use, the Employer's
obligations to do so and details of such facilities and/or accommodation should be stated in
the Specification. See also the guidance under Clause 17 [Careof the Works and Indemnities]
below for the suggested additional sub-clause in respect of responsibility for care of such
facilities and/or accommodation.

Sub-Clause 6.8 Contractor'sSuperintendence

If it is permissible that the Contractor's superintending staff are not all fluent in the language
for communications defined in Sub-Clause 1 .4 [Law and Language], then consideration
should be given to amending this Sub-Clause:

EXAMPLE Insert at the end of sub-paragraph (a) of Sub-Clause 6.8:

"or, if not, the Contractor shall make competent interpreters

availableduring all working hours, in a number sufficient for those
persons to properly perform their superintendenceduties."

© FIDIC 2017
29
 If it is necessary to stipulate that the Contractor's superintending staff shall be fluent in a
(/)
z particular language, the following sentence should be added.

II
CDO
EXAMPLE Insert at the end of Sub-Clause 6.8:

"A reasonable proportion of the Contractor's superintending staff

shall have a working knowledge of

[Insert name of language],

or the Contractor shall make interpreters available on Site during all

working hours in a number deemed sufficient by the Engineer."

Sub-Clause 6.12 Key Personnel

VJ
2 If it is permissible that all Key Personnel are not fluent in the language for communications
rr
0 defined in Sub-Clause 1.4 [Law and Language], then consideration should be given to
u,
amending this Sub-Clause:

EXAMPLE Insert at the end of the last paragraph of Sub-Clause 6.12:

"If any of the Key Personnel are not fluent in this language the
Contractor shall make competent interpreter(s) available during all
working hours, sufficient for that person to properly perform his/her
duties under the Contract."

AdditionalSub-Clauses

It may be necessary, appropriate and/or desirable to include additional sub-clauses to take

account of the circumstances and locality of the Site:

EXAMPLE SUB-CLAUSE FOR FOREIGN PERSOt\11\IEL

"The Contractor may bring into the Country any foreign personnel who
are necessary for the execution of the Works to the extent allowed
by the applicable Laws. The Contractor shall ensure that these
personnel are provided with the required residence visas and work
permits. The Employer shall, if requested by the Contractor, use all
reasonable endeavours in a timely and expeditious manner to assist
the Contractor in obtaining any local, state, national, or government
permission required for bringing in the Contractor's personnel.

The Contractor shall be responsible for the return of these personnel

to the place where they were recruited or to their domicile. In the event
of the death in the Country of any of these personnel or members of
their families, the Contractor shall similarly be responsible for making
the appropriate arrangements for their return or burial."

EXAMPLE SUB-CLAUSE FOR SUPPLY OF FOODSTUFFS

"The Contractor shall arrange for the provision of a sufficient supply

of suitable food as may be stated in the Specification at reasonable
prices for the Contractor's Personnel for the purposes of or in
connection with the Contract."

EXAMPLE SUB-CLAUSE FOR SUPPLY OF WATER

"The Contractor shall, having regard to local conditions, provide on

the Site an adequate supply of drinking and other water for the use
of the Contractor's Personnel."

© FIDIC2017 Conditions of Contract for Construction

30
 EXAMPLE SUB-CLAUSE FOR MEASURES AGAINST INSECT AND PEST NUISANCE

"The Contractor shall at all times take the necessary precautions

to protect the Contractor's Personnel employed on the Site from
insect and pest nuisance, and to reduce the danger to their health.
The Contractor shall comply with all the regulations of the local
health authorities, including use of appropriate insecticide."

EXAMPLE SUB-CLAUSE FOR ALCOHOLIC LIQUOR OR DRUGS

"The Contractor shall not, other than in accordance with the Laws
of the Country, import, sell, give, barter or otherwise dispose of
any alcoholic liquor or drugs, or permit or allow importation, sale,
gift, barter or disposal thereto by the Contractor's Personnel."

EXAMPLE SUB-CLAUSE FOR ARMS AND AMMUNITION (})

'-;;
r±0
"The Contractor shall not give, barter, or otherwise dispose of, u,
to any person, any arms or ammunition of any kind, or allow the
Contractor's Personnel to do so."

EXAMPLE SUB-CLAUSE FOR FESTIVALS AND RELIGIOUS CUSTOMS

"The Contractor shall respect the Country's recognised festivals,

days of rest and religious or other customs."

EXAMPLE SUB-CLAUSE FOR FUNERAL ARRANGEMENTS

"The Contractor shall be responsible, to the extent required by

local regulations, for making any funeral arrangements for any
of the Contractor's local employees who may die while engaged
upon the Works."

EXAMPLE SUB-CLAUSE FOR FORCED LABOUR

"The Contractor shall not employ forced labour, which consists of

any work or service, not voluntarily performed, that is exacted from
an individual under threat of force or penalty, and includes any kind
of involuntary or compulsory labour, such as indentured labour,
bonded labour or similar labour-contracting arrangements."

EXAMPLE SUB-CLAUSE FOR CHILD LABOUR

"The Contractor shall not employ children (any natural persons

under the age of eighteen years) in a manner that is economically
exploitative, or is likely to be hazardous, or to interfere with the
child's education, or to be harmful to the child's health or physical,
mental, spiritual, moral, or social development. Where the relevant
labour Laws of the Country have provisions for employment of
minors, the Contractor shall follow those Laws applicable to the
Contractor."

EXAMPLE SUB-CLAUSE FOR EMPLOYMENT RECORDS OF WORKERS

"The Contractor shall keep complete and accurate records of

the employment of labour at the Site. The records shall include
the names, ages, genders, hours worked and wages paid to all
workers. These records shall be summarised on a monthly basis
and submitted to the Engineer. These records shall be included in
the details to be submitted by the Contractor under Sub-Clause
6.10 [Contractor's Records]."

© FIDIC 2017
31
 EXAMPLE SUB-CLAUSE FOR WORKERS' ORGANISATIONS

"In countries where the relevant labour Laws recognise workers'

rights to form and to join workers' organisations of their choosing
without interference and to bargain collectively, the Contractor
shall comply with such Laws. Where the relevant labour Laws
substantially restrict workers' organisations, the Contractor
shall enable alternative means for the Contractor's Personnel to
express their grievances and protect their rights regarding working
conditions and terms of employment. In either case described
above, and where the relevant labour Laws are silent, the
Contractor shall not discourage the Contractor's Personnel from
forming or joining workers' organisations of their choosing or from
bargaining collectively, and shall not discriminate or retaliate against
the Contractor's Personnel who participate, or seek to participate,
in such organisations and bargain collectively. The Contractor shall
engage with such workers' representatives. Workers' organisations
are expected to fairly represent the workers in the workforce."

EXAMPLE SUB-CLAUSE FOR NON-DISCRIMINATION AND EQUAL OPPORTUNITY

"The Contractor shall not make employment decisions on the basis

of personal characteristics unrelated to inherent job requirements.
The Contractor shall base the employment relationship on the
principle of equal opportunity and fair treatment, and shall not
discriminate with respect to aspects of the employment relationship,
including recruitment and hiring, compensation (including wages
and benefits), working conditions and terms of employment,
access to training, promotion, termination of employment or
retirement, and discipline. In countries where the relevant labour
Laws provide for non-discrimination in employment, the Contractor
shall comply with such Laws. When the relevant labour Laws are
silent on non-discrimination in employment, the Contractor shall
meet the requirements under this Sub-Clause. Special measures of
protection or assistance to remedy past discrimination or selection
for a particular job based on the inherent requirements of the job
shall not be deemed discrimination."

Clause 7 Plant, Materials and Workmanship

Sub-Clause 7. 7 Ownershipof Plant and Materials

If the Contractor is to provide high-value items of Plant and/or Materials under the Contract,
consideration may be given to amending this Sub-Clause:

EXAMPLE Insert at the end of Sub-Clause 7. 7:

"No Plant and/or Materials that is the property of the Employer shall
be removed from the Site. If it becomes necessary to:

(i) remove any item of such Plant from the Site for the purposes
of repair, the Contractor shall give a Notice, with reasons, to
the Engineer requesting consent to remove the defective or
damaged item off the Site. This Notice shall clearly identify
the item of defective or damaged Plant, and shall give details
of: the defect or damage to be repaired; the place to which
defective or damaged item of Plant is to be taken for repair;
the transportation to be used (and insurance cover for such
transportation); the proposed inspections and testing off the

© FIDIC 2017 Conditions of Contract for Construction

32
 Site; and the planned duration required before the repaired
item of Plant shall be returned to the Site. The Contractor
shall also provide any further details that the Employer may
reasonably require; or
(ii). replace any item(s) of such Plant and/or Materials, the
Contractor shall give a Notice, with reasons, to the Engineer
clearly identifying the item(s) of Plant and/or Materials to be
replaced, and giving details of the due date of delivery to
the Site of the replacement item(s).

Where any item of Plant and/or Materials has become the property
of the Employer under this Sub-Clause before it has been delivered
to the Site, the Contractor shall ensure that such an item is not
moved except for its delivery to the Site.
(!)
2
The Contractor shall indemnify and hold the Employer harmless rr
against and from the consequences of any defect in title or E?
encumbrance or charge (except any reasonable restriction
arising from the intellectual property rights of the manufacturer or
producer) on any item of Plant and/or Materials that has become
the property of the Employer under this Sub-Clause."

AdditionalSub-Clause

If the Contract is being financed by an institution whose rules or policies require a restriction
on the use of its funds, a further sub-clause may be added:

EXAMPLESUB-CLAUSE FOR GOODS FROM ELIGIBLE SOURCE COUNTRIES

"All Goods shall have their origin in eligible source countries as

defined in
[Insert name of published guidelines for procurement].

Goods shall be transported by carriers from these eligible source

countries, unless exempted by the Employer in writing on the
basis of potential excessivecosts or delays. Surety, insurance and
banking services shall be provided by insurers and bankers from
the eligible source countries."

Clause 8 Commencement, Delays and Suspension

Sub-Clause 8.2 Time for Completion

If the Works are to be completed and taken over in stages it is important that each stage is
defined as a Section, and the Time for Completion of each Section is stated, in the Contract
Data (please also see the guidance below under Sub-Clause 10.1 [Taking Over the Works
and Sections].

Sub-Clause 8.3 Programme

It is strongly recommended that the programming software that is preferableto the Engineer
(in his/her monitoring of the Contractor's progress in executing the Works) be clearly identified
in the Specification, and that such software is drawn to the attention of tenderers in the
Instructions to Tender.

For less complex projects, the Employer may consider simplifying the requirements for
the Contractor's programme as listed in sub-paragraphs (a) to (k) in this Sub-Clause (for
example, by replacing sub-paragraphs (a) to (k) in this Sub-Clause with sub-paragraphs (a) to

© FIDIC 2017
33
 (d) as they appear under Sub-Clause 8.3 [Programme] of FIDIC's Conditions of Contract for
(/)
z Construction, First Edition 1999).
&fr:f:
LUO Sub-Clause 8.5 Extension ofTime for Completion
0:;6
oo Sub-paragraph (c) of this Sub-Clause entitles the Contractor to an extension of the Time for
Completion for "exceptionally adverse climatic conditions". It may be preferable to set out in
the Specificationwhat constitutes an "exceptionally adverse" event - for example, by reference
to availableweather statistics and return periods. It may also be appropriate to compare the
adverse climatic conditions that have been encountered with the frequency with which events
of similar adversity have previously occurred at or near the Site. For example, an exceptional
degree of adversity might be regarded as one which has a probability of occurrence of once
every four or five times the Time for Completion of the Works (for example, once every eight
to ten years for a two-year contract).

(fJ The final paragraphof this Sub-Clause provides that the rules and proceduresfor assessingthe
2
ff. Contractor's entitlement to an EOT where there is concurrency between delays attributable to
()
LL both Partiesshall be stated in the Special Provisions.This provision has been drafted by FIDIC
in this manner because there is no one standard set of rules/procedures in use internationally
(though, for example the approach given in the Delay and Disruption Protocol published by
the Society of Construction Law (UK):
https://www.sci.org.uk/sites/defau1Vfiles/SCL_Delay _Protocol_2nd_Edition_Final. pdft is
increasinglybeing adopted internationally)and different rules/procedures may apply in different
legal jurisdictions.)

In preparing the Special Provisions, therefore, it is strongly recommended that the Employer
be advised by a professionalwith extensiveexperience in construction programming, analysis
of delays and assessment of extension of time in the context of the governing law of the
Contract.

Sub-Clause 8.8 Delay Damages

Under the laws of many countries or other jurisdictions, the amount of these pre-defined
damages must be a reasonable estimate of the anticipated or actual loss caused to the
Employer by the delay. Therefore if the Delay Damages are fixed at an unreasonably large
amount, they may be unenforceable in common law jurisdictions or subject to downward
adjustment in civil law jurisdictions.

If the Accepted Contract Amount is to be quoted as the sum of figures in more than one
currency, it may be preferable to define these damages (per day) as a percentage to be
applied to each of these figures. If the Accepted Contract Amount is expressed in the Local
Currency, the damages per day may either be defined as a percentage or be defined as a
figure in Local Currency: see Sub-Clause 14.1 S(c).

AdditionalSub-Clause

Incentivesfor earlycompletion may be included (in addition to sub-paragraph (a) of Sub-Clause

13.2 [Value Engineering] which refers to accelerated completion):

EXAMPLESUB-CLAUSE FOR INCENTIVESFOR EARLYCOMPLETIOI\J

"The Contractor shall be entitled to a bonus payment if the

Works and/or each Section is completed earlierthan the Time for
Completion for the Works or Section (as the case may be). The
amount of bonus for early completion of the Works and/or each
Section is stated in the Specification.

For the purposes of calculating any bonus payment, the applicable

Time for Completion stated in the Contract Data is fixed and no
adjustments of this time by reason of granting an EOT will be
allowed."

© FIDIC 2017 Conditions of Contract for Construction

34
Clause 9 Tests on Completion c:
_l()
z
Sub-Clause 9.1 Contractor's Obligations
~~
LU()
The Specification should describe the tests which the Contractor is to carry out before being entitled (9(_)

to a Taking-Over Certificate. It may also be appropriate for the Contractor's Proposal to include
detailed arrangements, instrumentation, etc.

If the Works are to be tested and taken over in Sections, it is strongly recommended that consideration
is given to testing requirements in the Specification that take due account of the effect of other parts
of the Works being incomplete.

For less complex projects, the Employer may consider simplifying the testing requirements under
this Sub-Clause.
(!)

Clause 10 Employer's Taking Over 2

g;
LL

Sub-Clause 10.1 Taking Over the Works and Sections

If the Works are to be completed and taken over in stages it is important that each stage is
defined as a Section in the Contract Data. Precise geographical definitions are advisable, and
the Contract Data should include a table to also define for each Section:
• the relevant percentage for release of Retention Money,

• the Time for Completion, and

• the applicable Delay Damages.

An example form of such table is shown in the example form of Contract Data included in this
publication.

Clause 11 Defects after Taking Over

Sub-Clause 11.3 Extension of Defects NotificationPeriod

Depending on the complexity of the project and the nature of the Works, the Employer may
consider amending the period of "two years" stated at the end of the first paragraph of this
Sub-Clause to be a longer or a shorter period.

Sub-Clause 11.10 Unfulfilled Obligations

It may be necessary to review the effect of this Sub-Clause in relation to the period of liability
imposed by the applicable law.
In particular, the second paragraph of this Sub-Clause may require amending to take account
of the applicable law.

AdditionalSub-Clause

If the Works include the Plant that comprises (in whole or in part) new or innovative technology
in the Country or at the Employer's location, consideration may be given to including in the
Specification a requirement for the Contractor to provide supervisory assistance to the
Employer's permanent operating personnel in the operation and maintenance of the Plant
during the DNP of the Works.

EXAMPLE SUB-CLAUSE FOR SUPERVISORY ASSISTANCE DURING DNP

"The Contractor shall provide supervisory assistance to the Employer

during the DNP for the Works. Such supervisory assistance shall
be as described in the Specification for the purpose of supporting
the Employer's operation and maintenance of the Plant for the
period of [insert number of months] after the Date of Completion."

©FIDIC2017
35
 Clause 12 Measurement and Valuation
Sub-Clause 12.1 Works to be Measured

If any part of the PermanentWorks is to be measuredaccording to records of its construction,

this part should be identified,and the records to be made should be stated in the Specification.
If the Contractor is to be responsible for any such records, this should be specified in the
Contract (by the Employer in the Specification or by the Contractor in the Tender).

Clause 13 Variations and Adjustments

Variationscan be initiated by any of three ways:

a) the Contractor may initiate his own proposals under Sub-Clause 13.2 [Value
Engineering). which are intended to benefit both Parties;

b) the Engineer may instruct Variations under Sub-Clause 13.3.1 [Variation by

Instruction]; or

c) the Engineermay request a proposal from the Contractor under Sub-Clause 13.3.2
[Variation by Request for Proposa~.

Sub-Clause 13.4 Provisional Sums

ProvisionalSums may be required for parts of the Works which are not required to be priced
at the risk of the Contractor. For example, a Provisional Sum may be necessary to cover
goods or serviceswhich the Employerwishes to select after award of the Contract, or to deal
with a major uncertainty regarding sub-surface conditions. It is essential to define the scope
of each ProvisionalSum (it is recommended that this be included in a Schedule prepared by
the Employer), since the amount of each ProvisionalSum corresponding to the defined scope
will then be excluded from the other elements of the Accepted Contract Amount.

Sub-Clause 13.7 Adjustmentsfor Changes in Cost

The provision for adjustments under this Sub-Clause may be required if it would be
unreasonablefor the Contractor to bear the risk of escalating costs due to inflation.

If the amounts payableto the Contractorare to be adjustedfor rises or falls in the cost of labour,
Goods and other inputsto the Works,for this Sub-Clauseto apply it is importantthat a Schedule
(or Schedules) of cost indexation is (are) included in the Contract and that such Schedule(s)
includea formulaor formulaefor calculationof the applicable adjustmentunderthis Sub-Clause.

It is recommended that the Employer be advised by a professional with experience in

construction costs and the inflationary effect on construction costs when preparing the
contents of the Schedule(s)of cost indexation.

SCHEDULE OF COST INDEXATION: EXAMPLE FORMULA FOR ADJUSTMENT FOR

CHANGE IN COST

Pn = a+b Ln +c En +d Mn + ......
Lo Eo Mo

where:
"Pn" is the adjustment multiplier to be applied to the estimated
contract value in the relevant currency of the work carried out in
period "n", this period being a month;

"a" is a fixed coefficient, representing the non-adjustable portion in

contractual payments;

© FIDIC 2017 Conditions of Contract for Construction

36
 "b", "c", "d", . . . are coefficients representing the estimated
o:
proportion of each cost element related to the execution of z
_jQ
the Works, such tabulated cost elements may be indicative of <(.::::

resources such as labour, equipment and materials;

R:i;:!.,o?:
UJ()
oo
(particular care should be taken in the calculation of the weightings/
coefficients ("a", "b", "c", .. .), the total of which must not exceed
unity)

"Ln", "En", "Mn", ... are the current cost indices or reference
prices (stated in the Schedule of cost indexation) for period "n",
expressed in the relevant currency of payment, each of which is
applicable to the relevant tabulated cost element on the date 49
days prior to the last day of the period (to which the particular
Payment Certificate relates); and (!)

~
"Lo", "Eo", "Mo", ... are the base cost indices or referenceprices, 0
I.I...
expressed in the relevant currency of payment, each of which is
applicableto the relevanttabulated cost element on the Base Date.

The weightings (coefficients) for each of the factors of cost

stated in the following table(s) of adjustment data shall only be
adjusted if they have been rendered unreasonable,unbalanced or
inapplicable, as a result of Variations.

Table(s) of adjustment data for payments each month/[YEARJ

(delete as appropriate) in (currency)

Coefficient; Countryof Source of Value on stated

scope of index origin; index; date(s)*
currencyof Title/definition Value....... Date
index

a= 0.10 Fixed

b=_Labour
C=
d=
8=

* These values and dates confirm the definition of each index, but
do not define Base Date indices

Clause 14 Contract Price and Payment

The procedures and timing for making payments under this Clause 14 should be checked
to ensure that they are acceptable to both the Employer and any financing institution the
Employer may be using to fund the project.

Sub-Clause 14.1 The ContractPrice

When writing the Special Provisions,consideration should be given to the amount and timing
of payment(s)to the Contractor. A positive cash-flow is clearly of benefit to the Contractor,
and tenderers will take account of the interim payment procedures when preparing their
tenders.

Cost-plus contracts, under which the actual Cost is determined and Cost Plus Profit is paid
to the Contractor, are unusual and only used when (for reasons of urgency or otherwise)the

©RDIC 2017
37
 Employer is willing to accept the risks involved. If the Contractor is to be paid Cost Plus Profit,
Clause 12 should be replaced by provisions describing the method of determining the Cost
and the Contract Price. As a result, the provisions in the General Conditions which entitle the
Contractor to payment of additional Cost will generally be of no effect.

Additional Sub-Clauses may be required to cover any exceptions to the provisions set out in
Sub-Clause 14.1 , and any other matters relating to payment.

Lump sum contracts may be suitable if the tender documents include details which are
sufficiently complete for construction and for significant Variations to be unlikely. From the
information supplied in the tender documents, the Contractor can prepare any other details
necessary, and construct the Works, without having to refer back to the Engineer for clarification
or further information. However, as noted in the Introduction above, if significant design input
by the Contractor is required, it is recommended that the Employer consider using FIDIC's
Conditions of Contract for Plant and Design-Build, Second Edition 2017 (or, alternatively and
U)
s,; if suitable for the circumstances of the project, Fl DI C's Conditions of Contract for EPC/T urn key
r?
0 Projects, Second Edition 2017).
LL

For a lump sum contract, the tender documents should include a schedule of payments
(see Sub-Clause 14.4 [Schedule of Payments]).

EXAMPLEPROVISIONSFOR A LUMP SUM CONTRACT

Deletethe second paragraph of Sub-Clause 8.5 [Extension of Time

for Completion].

Delete Clause 12 [Measurement and Valuation].

Under Sub-Clause 13.3.1 [Variation by Instruction]:

- in sub-paragraph (c) delete the words "by valuing the Variation
in accordance with Clause 12 [Measurement and Valuation], with
supporting particulars (which shall include identification of any
estimated quantities and, if the Contractor incurs or will incur
Cost as a result of any necessary modification to the Time for
Completion, shall show the additional payment (if any) to which the
Contractor considers that the Contractor is entitled)" and replace
with:
"with supporting particulars. Whenever the omission of any work
forms part (or all) of a Variation,and if:
• the Contractor has incurred or will incur cost which, if the
work had not been omitted, would have been deemed to
be covered by a sum forming part of the Accepted Contract
Amount; and
• the omission of the work has resulted or will result in this
sum not forming part of the Contract Price
this cost may be included in the Contractor's proposal (and, if so,
shall be clearly identified). If the Parties have agreed to the omission
of any work which is to be carried out by others, the Contractor's
proposal may also include the amount of any loss of profit and other
losses and damages suffered (or to be suffered) by the Contractor
as a result of the omission"; and
- in sub-paragraph (ii): delete the words "(including valuation of
the Variation in accordance with Clause 12 [Measurement and
Valuation] using measured quantities of the varied work)" and
replace with:
"and the Schedule of Payments (if any)".

© FIDIC 2017 Conditions of Contract for Construction

38
 Delete sub-paragraph (a) of Sub-Clause 14.1 and replace with:
"(a) the Contract Price shall be the lump sum Accepted Contract
Amount and be subject to adjustments in accordance with the
Contract;".

Delete sub-paragraph (c) of Sub-Clause 14.1 and replace with:

"(c) any quantities which may be set out in a Schedule are
estimated quantities and are not to be taken as the actual and
correct quantities of the Works which the Contractor is required to
execute; and".

If the Contractor is not required to pay import duties on Goods imported by the Contractor into
the Country, an additional Sub-Clause should be added and sub-paragraph (b) of Sub-Clause
14.1 [The Contract Price] of the General Conditions should be amended accordingly:
(/)
:~
a:
EXAMPLESUB-CLAUSEFOR EXEMPTIONFROM DUTIES 0
LL

"All Goods imported by the Contractor into the Country shall be

exempt from customs and other import duties, if the Employer's
prior written approval is obtained for import. The Employer
shall endorse the necessary exemption documents prepared
by the Contractor for presentation in order to clear the Goods
through Customs, and shall also provide the following exemption
documents:

(describe the necessary documents, which the Contractor will be

unable to prepare)

If exemption is not then granted, the customs duties payable and

paid shall be reimbursed by the Employer.

All imported Goods, which are not incorporated in or expended in

connection with the Works, shall be exported on completion of the
Contract.

If not exported, the Goods will be assessedfor duties as applicable

to the Goods involvedin accordance with the Laws of the Country.

However, exemption may not be availablefor:

(a) Goods which are similar to those locally produced, unless

they are not available in sufficient quantities or are of a
different standard to that which is necessaryfor the Works;
and
(b) any element of duty or tax inherent in the price of goods or
services procured in the Country, which shall be deemed to
be included in the Accepted Contract Amount.
Port dues, quay dues and, except as set out above, any element
of tax or duty inherent in the price of goods or services shall be
deemed to be included in the Accepted Contract Amount."

If expatriate staff are exempted from paying local income tax, a suitable Sub-Clause should
be added and sub-paragraph (b) of Sub-Clause 14.1 [The Contract Price] of the General
Conditions should be amended accordingly. However, advice should be sought from a
qualified tax expert before drafting any such additional Sub-Clause.

© ROIG 2017
39
 EXAMPLE SUB-CLAUSE FOR EXEMPTION FROM TAXES

"Expatriate (foreign) personnel shall not be liable for income tax

levied in the Country on earnings paid in any foreign currency, or
for income tax levied on subsistence, rentals and similar services
directly furnished by the Contractor to Contractor's Personnel, or
for allowances in lieu. If any Contractor's Personnel have part of
their earnings paid in the Country in a foreign currency, they may
export (after the conclusion of their term of service on the Works)
any balance remaining of their earnings paid in foreign currencies.

The Employer shall seek exemption for the purposes of this

Sub-Clause. If it is not granted, the relevant taxes paid shall be
reimbursed by the Employer."

Sub-Clause 14.2 Advance Payment

When writing the Particular Conditions, consideration should be given to the benefits of the
Employer making an advance payment to the Contractor. Unless this Sub-Clause is not to
apply, the advance payment and the currencies in which it is to be paid must be specified in
the Contract Data. The rate of deduction for the repaymentsshould be checked to ensure that
repayment is achieved before the Contractor's completion of the Works. The typical figures
in sub-paragraphs (a) and (b) of Sub-Clause 14.2.3 [Repayment of Advance Payment] of the
General Conditions are based on the assumption that the advance payment is less than 22%
of the Accepted Contract Amount.

The acceptable form of Advance Payment Guarantee should be included in the tender
documents, annexed to the Particular Conditions: an example form is included at the end of
this publication (in the section "Sample Forms").

If the Employerwishes to provide the advance payment in instalments, the Contract Data and
this Sub-Clause will need to be amended.

EXAMPLE The Contract Data:

delete the words "14.2 Amount of Advance Payment (percent

of Accepted Contract Amount): " and replace with:
"14.2 .Total Advance Payment _% of the Accepted
Contract Amount
14.2 Number and timing of instalments: _

delete the words "14.2 .......... Currencies of payment if different to

the currencies quoted in the Contract " and replace with:

"14.2 ......... Currencies and proportions ..... _% in _

_ %in _

Delete the second sentence of the second paragraph of Sub-Clause 14.2

and replace with:

"The total amount of the advance payment, the number and timing
of instalments,and the applicable currencies and proportions shall
be as stated in the Contract Data.".

Sub-Clause 14.2.1 [Advance Payment Guarantee]:

delete the words "equal to the advance payment" from the first
sentence and replace with: "equal to the total amount of the advance
payment".

© FIDIC 2017 Conditions of Contract for Construction

40
 in the second paragraph before "the advance payment has been
repaid" add the words: "the total amount of".

in the third paragraph before "the advance payment has not been
repaid" add the words: "the total amount of".

in sub-paragraph (a) before "the advance payment has been repaid"

add the words: "the total amount of".

in the last sentence, before "the advance payment" add the words:
"the first instalment of'.

Sub-Clause 14.2.2 [Advance Payment Certificate]:

in the first sentence before "the advance payment" add the words:
"the first instalment of".
(/)
2
a:
delete sub-paragraph (b) replace with: "(b) the Engineer has received 0
U...
a copy of the Contractor's application for the first instalment of the
advance payment".

at the end of this Sub-Clause add the following wording: "Thereafter,

the Engineer shall issue an Advance Payment Certificate for each
subsequent instalment of the advance payment, which the Contractor
is entitled to under the Contract, within 14 days after the Engineer has
received the Contractor's application (in the form of a Statement) for
that instalment of advance payment."

Sub-Clause 14.2.3 [Repayment of Advance Payment]:

in the last sentence before "the advance payment has not been
repaid" add the words: "the total amount of".

Sub-Clause 14.4 Schedule of Payments

The General Conditions contains provisions for interim payments to the Contractor, which
may be based on a Schedule of Payments. If another basis is to be used for determining
interim valuations, details should be added in the Special Provisions.

If payments are to be specified in a Schedule of Payments, the "minimum amount of interim

certificates" may be omitted from the Contract Data, and consideration may be given to the
Schedule of Payments being in one of the following forms:

a) an amount, or percentage of the estimated final Contract Price, for each month
(or other period} during the Time for Completion (but this can prove unreasonable
if the Contractor's progress differs significantly from the expectation on which the
Schedule was based); or

b) amounts based on the actual progress achieved by the Contractor in executing the Works,
which necessitates careful definition of the payment milestones (but disagreements may
arise when the work required for a payment milestone is nearly achieved but the balance
of the work, albeit minor, cannot be completed until some months later).
The figures inserted by a tenderer in the Schedule of Payments may be compared with his/
her tender programme (if any}, in order to assess whether they are reasonably consistent with
each other.

Sub-Clause 14.7 Payment

Periods for payment should be long enough for the Employer to meet, but not so long as to
prejudice the Contractor's positive cash-flow.

© FIDIC 2017
41
 If the country or countries of payment need to be specified, details may be included in a
Schedule.

Sub-Clause 14.8 Delayed Payment

As an alternative to the second paragraph of this Sub-Clause, consideration may be given

to the payment of the Contractor's actual financing Costs, taking account of local financing
arrangements.

Sub-Clause 14.9 Release of Retention Money

If part of the Retention Money is to be releasedand substituted by an appropriate guarantee,

an additional Sub-Clause may be added. The acceptable form(s) of guarantee should be
included in the tender documents, annexed to the Particular Conditions: an example form
is included at the end of this publication (in the section "Sample Forms"). Also, a limit of
Retention Money should be stated in the Contract Data.

EXAMPLESUB-CLAUSE FOR RELEASEOF RETENTION

When the Retention Money has reached three-fifths (60%) of

the limit of Retention Money stated in the Contract Data, after
the Employer has received the guarantee referred to below the
Engineershall certify and the Employer shall make payment of half
(50%) of the limit of Retention Money to the Contractor.

The Contractor shall obtain (at the Contractor's cost) a guarantee

in amounts and currencies equal to half (50%) of the limit of
Retention Money stated in the Contract Data, and shall submit it to
the Employer with a copy to the Engineer.This guarantee shall be
issued by an entity and from within a country (or other jurisdiction)
to which the Employer gives consent, and shall be based on the
sample form included in the tender documents or on another form
agreed by the Employer (but such consent and/or agreement
shall not relieve the Contractor from any obligation under this
Sub-Clause).

The Contractor shall ensure that the guarantee is valid and

enforceable until the Contractor has executed the Works, as
specified for the Performance Security in Sub-Clause 4.2.1. If the
terms of the guarantee specify an expiry date, and the Contractor
has not so executed the Works by the date 28 days before the
expiry date, the Contractor shallextend the validityof the guarantee.

The release of Retention Money under this Sub-Clause shall be in

lieu of the releaseof the second half of the Retention Money under
the second paragraph of Sub-Clause 14.9 [Release of Retention
Money].

Sub-Clause 14.15 Currencies of Payment

If all payments are to be made in Local Currency,this currency must be named in the Letter
of Tender, and this Sub-Clause may be replaced:

EXAMPLESUB-CLAUSE FORA SINGLECURRENCYCONTRACT

All paymentsmade in accordance with the Contract shall be in Local

Currency. The Local Currency payments shall be fully convertible,
except those for local costs. The percentage attributed to local
costs shall be as stated in the Contract Data.

© FIDIC 2017 Conditions of Contract for Construction

42
 Financing Arrangements
U)
z

Ii
For major contracts in some markets, there may be a need to secure finance from entities
such as aid agencies, development banks, export credit agencies, or other international
financing institutions. If financing is to be procured from any of these sources, the Special C'iC)
Provisionsmay need to incorporate the financing institution's special requirements.The exact
wording will depend on the relevant institution, so reference will need to be made to the
institution to ascertain its requirements,and to seek approval of the draft tender documents.

These requirementsmay include tendering procedures which need to be adopted in order to

render the eventual contract eligible for financing, and/or additional Sub-Clauses which may
need to be incorporated into the Special Provisions.The following examples indicate some of
the topics which the institution's requirementsmay cover:

• prohibition from discrimination against the shipping companies of any one country;
(!)
'5
• ensuring that the Contract is subject to a widely-accepted neutral law; cc
0
u ...
• provisionfor arbitration under recognised internationalrules and at a neutral location;

• giving the Contractor the r\ght to suspend/terminate in the event of default under the
financing arrangements;

• restricting the right to reject Plant;

• specifying the payments due in the event of termination;

• specifying that the Contract does not become effective until certain conditions
precedent have been satisfied, including pre-disbursement conditions for the
financing arrangements; and

• obliging the Employer to make payments from his own resources if, for any reason,
the funds under the financing arrangements are insufficient to meet the payments
due to the Contractor, whether due to a default under the financing arrangementsor
otherwise.
The financing institution may wish the Contract to include references to the financing
arrangements, especially if funding from more than one source is to be arranged to finance
different elements of supply. It is not unusual for the Special Provisions to include particular
provisions identifying different categories of Works and specifying the documents to be
presented to the relevantfinancing institution to obtain payment. If the financing institution's
requirementsare not met, it may be difficult (or even impossible)to secure suitable financing
for the project, and/or the institution may decline to provide finance for part or all of the
Contract.

Where the financing is not tied to the export of goods and servicesfrom any particularcountry
but is simply provided by commercial banks lending to the Employer,those banks may wish
to satisfy themselves regarding the extent of the Contractor's rights under the Contract.

Alternatively, the Contractor may be prepared to initiate financing arrangements for the
Contract and retain responsibilityfor them, although the Contractor would probably be unable
or unwillingto provide finance from the Contractor's own resources.The Contractor's financing
bank's requirementsare then likely to affect the Contractor during contract negotiations. For
example, the financing bank may require the Employer to make interim payments, although
a large proportion of the Contract Price might be withheld until the Works are complete.
Since the Contractor would then have to arrange financing to cover the shortfall between
the payments and the Contractor's outgoings, the Contractor (and the financing bank) would
probably require some form of security from the Employer, guaranteeingpayment when due.

It may be appropriate for the Employer,when preparing the tender documents, to anticipate
the latter requirement by undertaking to provide a guarantee for the element of payment
which the Contractor is to receive when the Works are complete. The acceptable form(s) of

© FIDIC 2017
43
 guarantee should be included in the tender documents, annexed to the Particular Conditions:
an example form is included at the end of this publication (in the section "Sample Forms"). The
following Sub-Clause may be added.

EXAMPLE SUB-CLAUSE FOR CONTRACTOR FINANCE

"The Employer shall obtain (at the Employer's cost) a payment

guarantee in the amount and currencies, and provided by an
entity, as stated in the Contract Data. The Employer shall deliver
the guarantee to the Contractor within 28 days after both Parties
have entered into the Contract Agreement. The guarantee shall
be in the form annexed to these Special Provisions, or in another
form acceptable to the Contractor. Unless and until the Contractor
receives the guarantee, the Engineer shall not give the notice under
Sub-Clause 8.1 [Commencement of Works].
w
2
!T The guarantee shall be returned to the Employer at the earliest of
o
LL
the following dates:

(a) when the Contractor has been paid the Accepted Contract
Amount;
(b) when obligations under the guarantee expire or have been
discharged; or
(c) when the Employer has performed all obligations under the
Contract."

Clause 15 Termination by Employer

Sub-Clause 15.2 Termination for Contractor'sDefault

Before inviting tenders, the Employer should verify that the wording of this Sub-Clause, and
each anticipated ground for termination, is consistent with the law governing the Contract.

Sub-Clause 15.2.1 Notice

Sub-paragraph (h) in this Sub-Clause is intended to include situations, where the Contractor
or any of the Contractor's employees, agents, Subcontractors or Contractor's Personnel gives
or offers to give (directly or indirectly) to any person any bribe, gift, gratuity, commission or
other thing of value, as an inducement or reward for showing or forbearing to show favour or
disfavour to any person in relation to the Contract. However, this is not intended to include
lawful inducements and rewards by the Contractor to the Contractor's Personnel.

Sub-Clause 15.2.3 After termination

If the Employer has made available any Employer-Supplied Materials and/or Employer's
Equipment in accordance with Sub-Clause 2.6, consideration should be given to an additional
sub-paragraph under this Sub-Clause:

EXAMPLE Insert the following new sub-paragraph at the end of sub-paragraph (b) of
Sub-Clause 15.2.3:

"(iv) all Employer-Supplied Materials and/or Employer's Equipment made

available to the Contractor in accordance with Sub-Clause 2.6 [Em-
ployer-Supplied Materials and Employer's Equipment], and".

Sub-Clause 15.5 Termination for Employer'sConvenience

In many jurisdictions under the applicable law it may not be permissible for the Employer to
terminate the Contract for convenience (termination of the Contract only being permitted
in the event of default on the part of the Contractor and, thereafter, arranging an equitable,

©FIDIC 2017 Conditions of Contract for Construction

44
 non-discriminatory and transparent procurement process to select a replacement contractor).
Therefore, before inviting tenders the Employer should verify that the wording of this
Sub-Clause is consistent with the law governing the Contract.

Clause 16 Suspension and Termination by Contractor

Sub-Clause 16.2 Termination by Contractor

Before inviting tenders, the Employer should verify that the wording of this Sub-Clause is
consistent with the law governing the Contract.

Sub-Clause 16.2.1 Notice

Sub-paragraph 0) in this Sub-Clause is intended to include situations, where the Employer

or any of the Employer's employees, agents or Employer's Personnel gives or offers to give
(directly or indirectly) to any person any bribe, gift, gratuity, commission or other thing of
value, as an inducement or reward for showing or forbearing to show favour or disfavour
to any person in relation to the Contract. However, this is not intended to include lawful
inducements and rewards by the Employerto the Employer's Personnel.

Sub-Clause 16.3 Contractor'sObligations Aftertermination

If the Employer has made available any Employer-Supplied Materials and/or Employer's
Equipment in accordance with Sub-Clause 2.6, consideration should be given to amending
this Sub-Clause:

EXAMPLE Delete sub-paragraph (c) in Sub-Clause 16.3 and replace with:

"(c) deliver to the Engineer all Employer-Supplied Materials and/or

Employer'sEquipment made availableto the Contractor in accordance
with Sub-Clause 2.6 [Employer-Supplied Materials and Employer's
Equipment]; and
(d) remove all other Goods from the Site, except as necessaryfor safety,
and leave the Site."

Clause 17 Care of the Works and Indemnities

Sub-Clause 17.4 Indemnities by Contractor

In respect of the Contractor's obligation to indemnify under the second paragraph of this
Sub-Clause,it should be noted that this applies only to the extent, if any, that the Contractor is
requiredto carry out any design of the PermanentWorks under the Contract. If this is the case:
a) as this liabilityis not excluded under the first paragraphof Sub-Clause 1 .15 [Limitation
of Liability], the Contractor has no liability for any indirect or consequential loss or
damage suffered by the Employer as a result of any negligence by the Contractor in
designing the Works to be fit for purpose;

b) as this liability is not excluded under the second paragraph of Sub-Clause 1 .15
[Limitation of Liability], it falls within the Contractor's limitation of liability under
Sub-Clause 1.15; and

c) this liability may be covered by the insurance to be taken out by the Contractor
under Sub-Clause 19.2.3 [Liability for breach of professional duty], in which case a
statement to this effect should be included in the Contract Data.

AdditionalSub-Clause

If the Contractor is to be allowed to use and/or occupy any of the Employer'sfacilities and/
or accommodation temporarily during the Contract, it is recommended that an additional
sub-clause be added to Clause 17 to cover the responsibilityfor care of such facilities and/
or accommodation:

©FIDIC2017
45
 EXAMPLE SUB-CLAUSE FOR CONTRACTOR'S USE OF EMPLOYER'S FACILITIES/
ACCOMMODATION

"The Contractor shall take full responsibility for the care of the items
of the Employer's facilities and/or accommodation listed below, from
the date of use and/or occupation by the Contractor until the date
on which such use and/or occupation is re-vested in the Employer.

[List of items and details]

If any loss or damage happens to any of the above items during a

time when the Contractor is responsible for its care, arising from
any cause other than a cause for which the Employer is responsible
or liable, the Contractor shall promptly rectify the loss or damage at
the Contractor's risk and cost."

Clause 18 Exceptional Events

Sub-Clause 18.1 Exceptional Events

In respect of sub-paragraph (f) of this Sub-Clause, it should be noted that any event of
"exceptionally adverse climatic conditions" is excluded from the definition of what constitutes an
Exceptional Event. While this means that there is no right for either Party to suspend the Works
in the case of an event of "exceptionally adverse climatic conditions", if this type of event has the
effect of delaying completion and taking-over of the Works or Section the Contractor shall be
entitled to EOT under sub-paragraph (c) of Sub-Clause 8.5 [Extension of Time].

Clause 19 Insurance
If the Employer wishes to change the insurance provisions of this Clause - for example
by providing some of the insurance cover under the Employer's own policy(ies) - it will be
necessary to review and revise the relevant Sub-Clause(s) under this Clause 19.

If this is the case, it is strongly recommended that:

a) the tender documents include details of such insurances as an annex to the Special
Provisions so that tenderers can estimate what other insurances they may wish to
have for their own protection. The details should include the conditions of insurance,
limits, exceptions and deductibles; preferably in the form of a copy of each insurance
policy; and

b) the Employer is advised by a professional with extensive experience in construction

insurance and liability in the preparation of the wording of the revised sub-clauses. If
the insurance provisions are changed without due care and attention, there is a risk
that the Employer will inadvertently carry liabilities for which the Employer is neither
prepared nor covered by insurance.

Clause 20 Employer's and Contractor's Claims

Sub-Clause 20.1 Claims

In respect of any Claim under sub-paragraph (c) of this Sub-Clause, it should be noted that
"another entitlement or relief ... or the execution of the Works" may include such matters as:

interpretation of a provision of the Contract,

rectification of an ambiguity or discrepancy found in the Contract documents,

a declaration in favour of the claiming Party,

© FIDIC 2017 Conditions of Contract for Construction

46
 access to the Site or to places where the Works are being (or to be) carried out, and/
or

any other matter of entitlement under the Conditions of Contract or in connection

with, or arising out of, the Contract that does not involve payment by one Party to
the other Party and/or EOT and/or extension of the DNP.
Consideration may be given to replacing the words "within a reasonable time" in the last
paragraph of this Sub-Clause by a specified time period.

Clause 21 Disputes and Arbitration

Sub-Clause 21.1 Constitution of the DAAB

It is generally accepted that construction projects depend for their success on the avoidance
of Disputes between the Employer and the Contractor and, if Disputes do arise, the timely U)
resolution of such Disputes. rt
0
L!...
Therefore, the Contract should include the provisions under Clause 21 which, while not
discouraging the Parties from reaching their own agreement on Disputes as the Works
proceed, allow them to bring contentious matters to an independent and impartial dispute
avoidance/adjudication board ("DAAB") for resolution.

The provisions of this Sub-Clause are intended to provide for the appointment of the DAAB,
and FIDIC strongly recommends that the DAAB be appointed, as a 'standing DAAB'
- that is, a DAAB that is appointed at the start of the Contract who visits the Site on a regular
basis and remains in place for the duration of the Contract to assist the Parties:
a) in the avoidance of Disputes,

and

b) in the 'real-time' resolution of Disputes if and when they arise

to achieve a successful project.

It is for this reason that, under the first paragraph of this Sub-Clause, the Parties are under a joint
obligation to appoint the mernber(s) of the DAAB within 28 days after the Contractor receives the
Letter of Acceptance if no other time is stated in the Contract Data. That said, it is preferable that
the member(s) of the DAAB are appointed before the Letter of Acceptance is issued.
At an early stage in the Employer's planning of the project, consideration should be given
as to whether a sole-member DAAB or a three-member DAAB is preferable for a particular
project, taking account of its size, duration and the fields of expertise which will be involved.

This Sub-Clause provides for two alternative arrangements for the DAAB:

a sole-member DAAB of one natural person, who has entered into a tripartite
agreement with both Parties;

or

a three-member DAAB of three natural persons, each of whom has entered into a
tripartite agreement with both Parties.
The tripartite agreement above is referred to as the DMB Agreement under the Conditions
of Contract. It is recommended that the form of this agreement be one of the two alternative
example forms included at the end of this publication (in the section "Sample Forms"), as
appropriate to the arrangement adopted.

It should be noted that both forms of the DAAB Agreement incorporate (by reference) the General
Conditions of Dispute Avoidance/AdjudicationAgreement with its Annex DMB Procedural
Rules, which are included as the Appendix to the General Conditions in this publication.

©FIDJC2017
47
 Under either of these alternative forms of DAAB Agreement, each natural person of the DAAB
is referred to as a OAAB Member.

A very important factor in the success of the dispute avoidance/adjudication procedure is

the Parties' confidence in the agreed individual(s) who will serve on the DAAB. Therefore, it is
essential that candidates for this position are not imposed by either Party on the other Party.
The appointment of the DAAB is facilitated by the provision in the Contract Data for each Party
to name potential DAAB Members. It is important that the Employer and the Contractor each
avail himself/herself, of the opportunity at the tender stage of the Contract to name potential
DAAB members in the Contract Data.

The Contract Data includes two lists for potential DAAB Members to be named: one for the
Employer to list three names, the other for the Contractor to list three names. This ensures
that both Parties have equal opportunity to put forward (the same number of) names for
potential DAAB Members, and so avoid any question that DAAB Member(s) may be imposed
on one Party by the other Party.

This provides a total of six potential DAAB Members from which the sole member or three
members (as the case may be) can be selected by the Parties. If it is considered necessary to
have a wider selection of DAAB Member(s) to choose from, then provision may be made for
longer lists in the Contract Data for both the Contractor and the Employer to name (the same
number of) additional DAAB Members.

If the Parties cannot agree on any DAAB member, Sub-Clause 21.2 [Failure to Appoint DAAB
Member(s)] applies and the selection and appointment of the DAAB member{s) should be
made by a wholly impartial entity with an understanding of the nature and purpose of a DAAB.
The President of FIDIC is prepared to perform this role if this authority has been delegated in
accordance with the example wording in the Contract Data. FIDIC maintains a list of approved
and experienced adjudicators for this specific purpose: The F/0/C President's List of Approved
Dispute Adjudicators (http://fidic.org/president-listt).

If no potential DAAB members' names are given in the Contract Data, consideration should
be given to stating a time period in the Contract Data that is greater than the default period of
28 days stated in the first paragraph of this Sub-Clause.

The period of 224 days stated in sub-paragraph (i) of this Sub-Clause has been arrived at by
taking account of certain time allowances, as follows:

date of termination + 28 days to give a Notice of Claim under Sub-Clause 20.2.1 [Notice
of Claim]

+ 84 days to submit detailed particulars for the Claim under Sub-Clause 20.2.4 [Fully
detailed Claim]

+ 84 days for the Engineer's agreement/determination of the Claim under Sub-Clause 3. 7

[Agreement or Determination]

+ 28 days for a NOD under Sub-Clause 3. 7 [Agreement or Determination]

= 224 days after the date of termination.

As noted above, FIDIC strongly recommends that the DAAB be appointed at the start of the
Contract and remain in place for the duration of the Contract. However, as an alternative to the
'standing DAAB' envisaged under this Sub-Clause, the Parties may prefer the dispute board
to be appointed on an 'ad-hoc' basis. In such case, the dispute board would be appointed
when a Dispute arises, its appointment would be limited to resolution of the Dispute, it would
have no role to play in the avoidance of Disputes between the Parties, and its appointment
would cease when it had given its decision on that Dispute. Should a new Dispute arise, a
new ad-hoc DAAB would be appointed. Given that such a dispute board would have no

©FIDIC2017 Conditions of Contract for Construction

48
 role in dispute avoidance, it is more correctly referred to as a "Dispute Adjudication Board"
or "DAB". If the Parties wish to provide for an 'ad-hoc DAB', rather than the recommended
'standing DAAB', then the following amendments will be needed:

EXAMPLE Delete the definitions under Sub-Clause 1.1.22 and 1.1.23 and
replace with:
" "Dispute Adjudication Board" or "DAB" means the person or
three persons (as the case may be) so named in the Contract, or
appointed under Clause 21."

and replace all references in the Conditions of Contract to "DAAB"

with "DAB".

Sub-Clause 21.1, plus the Appendix General Conditions of

Dispute Avoidance/Adjudication Agreement with its Annex DAAB
(/)
Procedural Rules,should be amended to comply with the wording :?.
0::
contained in the corresponding provisions of FIDIC'sConditions of Cl
LL
Contract for Plant and Design-Build, First Edition 1999.

Delete Sub-Clause 21.3 [Avoidanceof Disputes];

in the first paragraph of Sub-Clause 21 .4 [Obtaining DMB's

Decision]:
• after the words "If a Dispute arises between the Parties
then," add:
"after a DAB has been appointed";
• delete the words "(whether or not any informal discussions
have been held under Sub-Clause 21.3 [Avoidance of
Disputes])";and
delete sub-paragraph (a) of Sub-Clause 21.4.1 [Reference of a
Dispute to the DMB].

To facilitate the appointment of the member(s) of an 'ad-hoc DAB', it is important that the
Employer and the Contractor each avail themselvesof the opportunity at the tender stage of
the Contract to name three potential members in the Contract Data.

Sub-Clause 21.5 Amicable Settlement

In circumstances where the DAAB has given its decision but one or both Parties is/are
dissatisfied with the decision, the provisions of this Sub-Clause are intended to encourage
the Parties to settle a Dispute amicably,without the need for arbitration.

Ratherthan considering the 28 day period stated in this Sub-Clause as a 'cooling-off period',
FIDIC recommends that the Parties avail themselves of this opportunity to actively engage
with each other with a view to settling their Dispute.

Such active engagement may be by, for example:

• direct negotiation by senior executivesfrom each of the Parties;

• mediation (pleasesee below);

• expert determination (using, for example, the Expert Rules published by the
InternationalChamber of Commerce (the "ICC", which is based at 33-43 Avenue du
President Wilson, 75116 Paris, France) https://iccwbo.org/publication/icc-expert-
rules-english-version/ '):

• or other form of alternativedispute resolution that is not as formal, time-consuming

and costly as arbitration.

© FIDIC 2017
49
 In this regard, it is recommended that consideration be given by the Parties to agree to a
longer time period than the period of 28 days stated in this Sub-Clause in an effort to arrive at
an amicable settlement procedure chosen by the Parties.

Amicable settlement procedures typically depend for their success on the consensual
involvement of both Parties, on confidentiality and on both Parties' acceptance of the particular
procedure. Therefore, while it is recommended that both Parties engage actively to settle the
Dispute amicably, neither Party should seek to impose the procedure on the other Party.

If the Parties wish to adopt a mediation procedure in their attempt to settle the Dispute amicably,
then consideration may be given to the Mediation Rules, 2017 published by the International
Chamber of Commerce (the "ICC", which is based at 33-43Avenue du President Wilson, 75116
Paris, France) https://iccwbo.org/dispute-resolution-services/mediation/mediation-rules/ t

or, alternatively, to the following mediation rules:

(j)

ft0 EXAMPLE MEDIATION RULES

LL

Appointmentof Mediator

If the Parties are unable to agree on the choice of an independent and

impartial mediator, or if the chosen mediator is unable or unwilling to
act, then either Party may immediately apply to the appointing entity
or official named in the Contract Data to appoint a mediator.

Once the mediator has been appointed, the Dispute shall immediately
be referred to the mediator by the Parties or by either Party.

Obligationsof the Parties

In addition to the Parties' obligations as set out in the provisions

that follow below, during the mediation process the Parties shall
engage with the mediator and with each other in co-operation, in a
timely manner and in good faith.

Agreement of the MediationTimetable

The mediator shall, within 7 days of his/her appointment, or

other period as may be proposed by the mediator and agreed
by both Parties, consult with the Parties to agree a timetable for
the exchange of any relevant information, the date/time/venue of
the mediation meeting, and the procedure to be adopted for the
negotiations. The agreement of the timetable shall have regard to
the period stated under Sub-Clause 21 .5 [Amicable Settlement]
of the Conditions of Contract or as may be amended by the
agreement of the Parties.

Confidentiality

The Parties' negotiations facilitated by the mediator shall be conducted

on a strictly private and confidential basis. Neither Party shall disclose
to any third party any detail of the mediation process, including but not
limited to: the fact of the mediation, the identity of the mediator, any
matter discussed during the mediation process, any information or
document exchanged with the mediator, any negotiations during the
mediation meeting and/or the outcome of the mediation.

The mediation, and/or any negotiations taking place during the

mediation meeting, shall not be referred to by either Party in any
concurrent or subsequent proceedings, unless such negotiations
conclude with a written legally binding agreement.

© FIDIC Conditions of Contract for Construction

50 2017
 Written Agreement to be Binding

If the Parties accept the mediator's recommendations, or

otherwise reach agreement on the settlement of the Dispute, such
agreement shall be recorded in writing and, once signed by the
designated representative(s)of both Parties, shall be binding on
the Parties.

Mediator'sOpinion

If no agreement is reached by the Parties after negotiations

have been facilitated by the mediator, either Party may invite the
mediator to provide to both Partiesa non-binding opinion in writing.
Such opinion shall not be used in evidence in any concurrent or
subsequent proceedings.
(I)
Costsof Mediation --;;
10
(~
~!
The Parties will bear their own costs of participating in the LL

mediation, including but not limited to the costs of preparing and

submitting evidence to the mediator and attending the mediation
meeting.

Each Party shall be responsible for paying one-half of the

remuneration of the mediator (and, if the mediator has been
appointed by the appointing entity or official named in the Contract
Data, the remunerationof such appointing entity or official).
However, if the mediator finds that a Party has initiated the
mediation, or has engaged in the mediation, in a frivolous or
vexatious manner, then the mediator shall have the power to
order that Party to pay the reasonablecosts of the other Party for
preparing for and attending the mediation meeting. If these costs
cannot be agreed, they will be assessed by the mediator, whose
assessment shall be binding on the Parties.

Sub-Clause 21.6 Arbitration

The Contract should include provisions for the resolution by international arbitration of any
Dispute which is not settled amicably by the Parties. In internationalcontracts, international
commercial arbitration has numerousadvantages over litigation in national courts and is likely
to be more acceptable to the Parties.

Careful consideration should be given to ensuring that the internationalarbitration rules that
are chosen are compatible with the provisions of Clause 21 and with the other elements to
be set out in the Contract Data. The Arbitration Rules published by the InternationalChamber
of Commerce (the "ICC", which is based at 33-43 Avenue du President Wilson, 75116 Paris,
France) https://iccwbo.org/dispute-resolution-services/arbitration/rules-of-arbitration/tare
frequently incorporated by referencein internationalcontracts.
It is important that the Parties agree on the number of arbitrators and the language of
arbitration. In the absence of specific stipulations as to the number of arbitrators and the
place of arbitration in the Contract, the InternationalCourt of Arbitration of the ICC will decide
these matters.

If the arbitration rules published by the United Nations Commissionon InternationalTrade Law
("UNCITRAL"which is based at the Vienna InternationalCentre,A-1400 Vienna,Austria)http://
www.uncitral.org/ pdfI english/texts/ arbitration/ arb-rules-revised/arb-ru les-revised-201 O-e,
pdf" or other non-ICC arbitration rules are preferred, it may be necessary to designate, in
the Contract Data, an institution to appoint the arbitrators or to administer the arbitration,
unless the institution is named (and their role specified) in the arbitration rules. It may also
be necessary to ensure, before so designating an institution in the Contract Data, that the
institution is prepared to appoint or administer.
© FIDIC 2017
51
 For major projects tendered internationally, it is desirable that the place of arbitration be
(/]
:z situated in a country other than that of the Employeror Contractor. This country should have a

I!
oo
modern and liberal arbitration law and should have ratified a bilateral or multilateralconvention
(such as the 1958 New York Convention on the Recognition and Enforcement of Foreign
Arbitral Awards), or both, that would facilitate the enforcement of an arbitral award in the
states of the Parties.

It may be considered desirable in some cases for other Parties to be joined into any
arbitration between the Parties or for two or more pending arbitrations to be consolidated,
thereby creating a multi-party arbitration. While the ICC Arbitration Rules address multi-party
arbitration, such arbitration may in some cases be feasible only if the parties have included
multi-party arbitration clauses in their contracts. Such clauses require skilful drafting, and
usually need to be prepared on a case-by-case basis

It is not unusual that the arbitration of a complex dispute is concluded sometime after
e:
2 performance of the Contractor's obligations under the Contract has been completed, in which
rr
C) case it may not be fair and reasonable in the circumstances for any arbitral award which
u ..
requires the payment of an amount by one Party to the other Party to be in the currencies of
payment and in the proportions provided for under Sub-Clause 14.15 [Currencies of Payment].
For example, the Contractor may no longer have any need for local currency after completion
of the Works; or the local currency may have declined in value in the interim or be a 'blocked
currency' that, consequently,cannot be removed from the country concerned.

©FlDIC 2017 Conditions of Contract for Construction

52
AdvisoryNotes to Users of FIDIC Contracts Where the Project is
to Include Building Information ModellingSystems

Building Information Modelling (BIM), is a process which is changing many elements of

the design profession, the construction industry and, possibly, even the operation and
maintenance of a facility.

BIM is one of the digital data technologiesused in all aspects of project planning, investigation,
design, construction and operation. Digital data technologies include systems for: data
acquisition; document management;design and process management; estimating, planning,
and scheduling; contract management; performance management; and building information
modelling.

BIM has varying degrees of complexity ranging from rather isolated use of computer aided
U)
design tools to full sharing of models and information by the entire project team. Currently, 2:
a:
BIM is more often used and better understood in developed countries, many of which are
h!
encouraging or even mandating its use to improve quality, accuracy and delivery times for
projects as well as to provide cost savings. BIM has the potential to dramatically improve
productivity in the construction industry and reduce operational costs of facilities as well.

BIM is not a set of contract conditions; it is a mechanism to provide an environment where

all parties have access to information relevantto their role in the design and construction of a
project. Wherever possible, a combined (sometimescalled federated or collaborative)model
is developed for all parties to share, even if, as is often the case, various designers have used
different computer aided design programs to develop their respectivedesigns. Drawings and
specifications are held in a common database accessible to everyone. These can be used
for clash detection, coordination of designs, communication of changes, and construction
sequencing.

Coordination of goals and effort is essential and is generally achieved by a BIM Protocol
and a BIM Execution Plan, both key documents to access and understand work in this
environment. A designer needs to understand and work to the Levels of Design (or Detail)
(LOO) that will be spelled out in these documents to ensure that there is sufficient detail at
each level to allow all designs to progress efficiently and avoid unnecessary changes.

BIM is founded on a team approach and successful projects utilising BIM encourage
collaboration. FIDICcontracts are designed to be fair to all parties and are considered suitable
for use with projectsfeaturingthe use of BIM - providingthat the parties recognisethe difference
in approach and use the contract appropriately.This starts with proper planning and, unless
an employer has appropriate expertise in house, they are well advised to retain an engineer
who is appropriatelyqualifiedto assist them in the solicitation of interest, proposals, selection
and negotiation of contracts with the selected project team. Legal advice is also necessary,of
course, especiallyduring the latter steps. The request for proposal (RFP) must clearly outline
what the client's (employer's)expectations of the consultant are. The expectations should
focus on the specific BIM goals and benefits desired. If properly developed, the RFP will
help the proposers be responsiveand the employer select the consultant (or in the case of a
design build project, the project team) best qualified to deliver the desired BIM outcome. This
process will in turn help all parties develop appropriate contract terms and conditions. Ideally
the selection process would use FIDIC'sQuality Based Selection (OBS)guideline.

It should be noted that the improved quality of information in projects utilising BIM can result
in a significant reduction in variations. It is worth thinking about how the traditional roles of
Contractor and Employer fit into this structure. In general, BIM is well suited for integrated
project delivery, including Design Build and especially Design Build Operate projects where
early proactive involvementof the design engineer,contractor and employer are essential. If
advanced levelsof BIM are anticipated for the project, the possibility of adding operation and
maintenance elements of the constructed facility might be considered.

© FIDIC 2017
53
 For advanced levels of BIM where fully open sharing of information is required, a qualified
individual needs to be assigned the duty of managing the combined model. This should be
separate from the project manager's role to ensure clear delineation of project responsibilities.
This may require special outsourcing, if such skills are not available from the employer or
engineer. Managing the BIM elements of a project may also involve risks that are beyond the
normal coverage of professional indemnity (Pl) insurance policies. Specialist advice should be
sought from Pl insurers if there is any doubt on coverage for this role. The competence and
responsibilities of this position need to be understood and should include experience in data
back-up and integrity, continuity planning and cyber security.

All parties involved in a project utilising BIM should take special care in checking their assigned
scope and contract to ensure that they are aware of their BIM related responsibilities. The
risks that FIDIC has identified in working in a BIM environment arise from these key features:

U) • misunderstanding of scope of services

2.
n:
0
LL
• use of data for an inappropriate purpose and reliance on inappropriate data

• ineffective information, document or data management

• cyber security and responsibility for "holding" the models or data

• definition of deliverables, approval, and delivery

To manage these and other digital technology related risks, the consultant is encouraged to
clearly define adequately their proposed services, addressing such issues as:
• the systems and versions or releases they propose and the management processes
they will adopt

• access rights and limitations of the client, other consultants and contractors

• reliance other parties in the project may place on data in the digital environment

• limitations in terms of uptime and access and potential exclusion of liability for
downtime

• potential exclusion of liability in the event of cyber attack

• potential exclusion or limitations on professional liability in respect of the actions of

others

• access to the current and previous issues of the combined model and to the complete
audit trail of changes to the model
At the completion of the project the model may need to be brought up to as-built status.
This involves not only the drawing elements but also the embedded data. Experience shows
that this is a significant effort, so responsibilities for completing this task should be clear and
appropriate allowances provided.

The process for the delivery of contractual notices should be checked to determine if this will
be through the common data environment or by more traditional means.

If sub-contractors are to be utilised, they should be bound by the BIM Protocol and Execution
Plan.

The dispute resolution processes in the agreement should be appropriate, considering the
collaborative nature of the BIM process. Professionals with engineering, construction and
legal expertise should be consulted in this regard.

Legal counsel should review the contract to ensure that it does not create an unintended joint
venture which may be a risk in some jurisdictions.

© FIDIC 2017 Conditions of Contract tor Construction

54
 If there is a fitness for purpose clause, make sure that it is clear who is responsible for
ensuring compliance and how responsibility for rectification is spread between participants.
Make sure that audit trails for modifications to the composite or federated model are controlled
by a process which can generate an audit trail that is preserved during and after completion.
The audit trail should be accessible by appropriate parties during and after project completion.
Given that there will be many parties involved in the design and construction effort, ensure
that there are appropriate limits of liability in place for each participant and for the project as
a whole.

For construction or building projects involving BIM, in addition to considering the general
principles as introduced above, the following (non-exhaustive) list of Sub-Clauses of the
General Conditions of Contract for Construction [ ©FIDIC 2017 Second Edition ] should be
thoroughly reviewed when drafting the Particular Conditions:

Sub-Clause No. Sub-Clause Title

U)
'>
1 .1 Definitions a'
0
1.3 Notices and Other Communications LL

1.5 Priority of Documents

1.10 Employer's Use of Contractor's Documents
1.11 Contractor's Use of Employer's Documents
1.15 Limitation of Liability
2.3 Employer's Personnel and Other Contractors
2.5 Site Data and Items of Reference
3.2 Engineer's Duties and Authority
4.1 Contractor's General Obligations
4.4 Contractor's Documents
4.6 Co-operation
4.7 Setting Out
4.9 Quality Management and Compliance Verification Systems
4.20 Progress Reports
6.8 Contractor's Superintendence
6.10 Contractor's Records
8.3 Programme
9.1 Contractor's Obligations [rests on Completion)
13.3 Variation Procedure
17.3 Intellectual and Industrial Property Rights
17.4 Indemnities by Contractor
17.5 Indemnities by Employer
17.6 Shared Indemnities
19.2.6 Other insurances required by Laws and by local practice

FIDIC intends to publish a "Technology Guideline" and a "Definition of Scope Guideline

Specific to BIM" with the aim of providing further detailed support. These documents are
under preparation and expected to be released shortly after the publication of the updates of
the 1999 suite of FIDIC contract forms.

© FIDIC 2017
55
 Annexes FORMS OF SECURITIES

Acceptable form(s) of security should be included in the tender documents: for Annex A and/or
B, in the Instructions to Tenderers; and for Annexes C to G, annexed to the Particular Conditions.
The following example forms, which (except for Annex A) incorporate Uniform Rules published by
the International Chamber of Commerce (the "ICC", which is based at 33-43 Avenue du President
Wilson, 75116 Paris, France, www.iccwbo.org), need to be carefully reviewed against, and may have
to be amended to comply with, applicable law. Although the ICC publishes guides to these Uniform
Rules, legal advice should be taken before the securities are written. Note that the guaranteed
amounts should be quoted in all the currencies, as specified in the Contract, in which the guarantor
pays the beneficiary.

(/)
2
c:
0
LL

© FIDIC 2017 Conditions of Contract for Construction

56
Annex A EXAMPLE FORM OF PARENT COMPANY
GUARANTEE

Name of Contract/Contract No.: _

Name and address of Employer: _

--------------------- (together with successors and assigns).

We have been informed that (hereinafter called the
"Contractor") is submitting an offer for such Contract in response to your invitation, and that the
conditions of your invitation require his/her offer to be supported by a parent company guarantee.
In consideration of you, the Employer, awarding the Contract to the Contractor, we (name of
parent company) irrevocably and unconditionally guarantee to you, as a primary obligation, the
due performance of all the Contractor's obligations and liabilities under the Contract, including the (/)

Contractor's compliance with all its terms and conditions according to their true intent and meaning. 2
0
LJ...
If the Contractor fails to so perform his/her obligations and liabilitiesand comply with the Contract,
we will indemnify the Employer against and from all damages, losses and expenses (including
legal fees and expenses)which arise from any such failure for which the Contractor is liable to the
Employer under the Contract.
This guaranteeshall come into full force and effect when the Contract comes into full force and effect.
If the Contract does not come into full force and effect within a year of the date of this guarantee,
or if you demonstrate that you do not intend to enter into the Contract with the Contractor, this
guarantee shall be void and ineffective. This guarantee shall continue in full force and effect until
all the Contractor's obligations and liabilities under the Contract have been discharged, when this
guarantee shall expire and shall be returned to us, and our liability hereunder shall be discharged
absolutely.
This guaranteeshallapply and be supplementalto the Contract as amended or varied by the Employer
and the Contractor from time to time. We hereby authorise them to agree any such amendment or
variation, the due performance of which and compliance with which by the Contractor are likewise
guaranteed hereunder.Our obligations and liabilities under this guarantee shall not be discharged
by any allowance of time or other indulgence whatsoever by the Employer to the Contractor, or by
any variation or suspension of the works to be executed under the Contract, or by any amendments
to the Contract or to the constitution of the Contractor or the Employer, or by any other matters,
whether with or without our knowledge or consent.
This guarantee shall be governed by the law of the same country (or other jurisdiction) as that which
governs the Contract and any dispute under this guarantee shall be finally settled under the Rules
of Arbitration of the InternationalChamber of Commerce by one or more arbitrators appointed in
accordance with such Rules.We confirm that the benefit of this guarantee may be assigned subject
only to the provisions for assignment of the Contract.

SIGNED by: SIGNED by'"; _

(signature) (signature)

(name) (name)

(position in the company) (position in the company)

Date:

r1J Whether one or more signatories tor the parent company are required will depend on the parent
company and/or applicable law.

©FIDIC 2017
57
 Annex B EXAMPLE FORM OF TENDER SECURITY
'fl
... J()
rl:t=
llJ CJ Guarantee No.: [insert guarantee reference number]
zZ
LU()
C)() The Guarantor: _
[insert name and address of place of issue, unless indicated in the letterhead)

Name of Contract/Contract No.: [insert reference number or other information

identifying the contract with regard to which the tender is submitted]

The Beneficiary(the "Employer"): [insert name and address of the Beneficiary]

We have been informed that [insert
name and address of the Tenderer](hereinaftercalled the "Applicant") is submitting an offer for such
Contract in response to your invitation, and that the conditions of your invitation (the "Conditions of
(/")
Invitation",which are set out in a document entitled Instructions to Tenderers)require his/her offer to
~~ be supported by a tender security.
0
u,
At the request of the Applicant, we [insert name
of Guarantor] hereby irrevocablyundertake to pay you, the Beneficiary/Employer,any sum or sums
not exceeding in total the amount of [insert in figures and words
the maximum amount payable and the currency in which it is payable] upon receipt by us of your
demand in writing and your written statement (in the demand) that:
(a) the Applicant has, without your agreement, withdrawn his/her offer after the latest
time specified for its submission and before the expiry of its period of validity,or

(b) the Applicant has refused to accept the correction of errors in his/her offer in
accordance with such Conditions of Invitation,or

(c) you awarded the Contract to the Applicant and he/she has failed to comply with
Sub-Clause 1.6 of the Conditions of Contract, or

(d) you awarded the Contract to the Applicant and he/she has failed to comply with
Sub-Clause 4.2.1 of the Conditions of Contract.
Any demand for payment must contain your signature(s)which must be authenticated by your
bankers or by a notary public. The authenticated demand and statement must be received by us
at the following office [insert address of office] on or before [insert the
date 35 days after the expiry of the validityof the Letter of Tender],when this guarantee shall expire.

The party liable for the payment of any charges: _

________________ [insert the name of the party].

This guarantee shall be governed by the laws of [insert the law

governing the guarantee], and shall be subject to the Uniform Rulesfor Demand Guarantees(URDG)
2010 Revision, ICC Publication No. 758.

SIGNED by: SIGNEDby(1l: _

(signature) (signature)

(name) (name)

Date: _

r11 Whether one or more signatories for the bank are required will depend on the bank and/or
applicable law.

©RDIC2017 Conditions of Contract for Construction

58
Annex C EXAMPLE FORM OF PERFORMANCE SECURITY
- DEMAND GUARANTEE

Guarantee No.: [insert guarantee reference number]

The Guarantor: _
[insert name and address of place of issue, unless indicated in the letterhead]
Name of Contract/Contract No.: [insert
reference number or other information identifying the contract between the Applicant and the
Beneficiary on which the guarantee is based]

The Beneficiary(the "Employer"): ----------------------

___________________ [insert name and address of the Beneficiary]

We have been informed that [insert

name and address of the Contractor] (hereinaftercalled the "Applicant") is your Contractor under
such Contract, which requires him/her to obtain a Performance Security.
At the request of the Applicant, we [insert name
of Guarantor] hereby irrevocablyundertake to pay you, the Beneficiary/Employer,any sum or sums
not exceeding in total the amount of [insert in figures and
words the maximum amount payable and the currency in which it is payable] (the "Guaranteed
Amount") upon receipt by us of your demand in writing and your written statement indicating in what
respect the Applicant is in breach of its obligations under the Contract.
[Following receipt by us of an authenticated copy of the Taking-Over Certificate for the whole of the
Works under clause 10 of the Conditions of Contract, the Guaranteed Amount shall be reduced by
_______ % and we shall promptly notify you that we have received such certificate and
have reduced the Guaranteed Amount accordingly.] (1)

Following receipt by us of an authenticated copy of a statement issued by _

[insert name and address of the Engineer under the Contract] that, pursuant to Sub-Clause 4.2.1 of
the Conditions of Contract, variations or adjustments under Clause 13 of the Conditions of Contract
have resulted in an accumulative increase or decrease of the Contract Price by more than twenty
percent (20%)of the Accepted Contract Amount, and that therefore the GuaranteedAmount should
be adjusted by the percentage specified in the statement equal to the accumulative increase or
decrease, respectively,we shall promptly inform you that we have received such statement and
have adjusted the Guaranteed Amount accordingly. In the case of a request for a decrease of the
amount of the Performance Security, the above statement shall be accompanied by your written
consent to such decrease.
Any demand for payment must contain your signature(s)which must be authenticated by your
bankers or by a notary public. The authenticated demand and statement must be received by us
at the following office [insert address of office] on or before (insert the
date 70 days after the expected expiry of the Defects Notification Period for the Works) (the "Expiry
Date"), when this guarantee shall expire.
The party liable for the payment of any charges: [insert the name of the party].
This guarantee shall be governed by the laws of [insert the Jaw
governing the guarantee], and shall be subject to the Uniform Rules for Demand Guarantees,
(URDG)2010 Revision,ICC Publication No. 758.

© FIDIC 2017
59
 SIGNEDby: SIGNEDby(2l: _
(signature) (signature)

(name) (name)
Date: _

<1J When drafting the tender documents, the writer should ascertain whether to include the optional
text, shown in parentheses [ ].
<2J Whether one or more signatories tor the bank are required will depend on the bank and/or
(!)
applicable law.
SS:
2
0
LL

© FIDIC 2017
60 Conditions of Contract for Construction
Annex D EXAMPLE FORM OF PERFORMANCE SECURITY
- SURETY BOND

Name of Contract/Contract No.:

Name and address of Beneficiary (the "Employer"): _

We have been informed that [insert

name of the Contractor] (hereinafter called the "Principal") is your contractor under such Contract,
which requires him/her to obtain a Performance Security.
By this Bond,
[insert name and address of contractor]

(who is your Contractor under such Contract) as Principal and:

-----------------------------~Unsertname
and address of Guarantor] as Guarantor are irrevocably held and firmly bound to the Beneficiary in
the total amount of [insert in figures and words the maximum amount
payable and the currency in which it is payable] (the "Bond Amount") for the due performance of all
such Principal's obligations and liabilities under the above named Contract.

[Such Bond Amount shall be reduced by % upon the issue of the Taking-Over
Certificate for the whole of the Works under Clause 10 of the Conditions of Contract.](1)

This Bond shall become effective on the Commencement Date defined in the Contract.

Upon Default by the Principal to perform any contractual obligation, or upon the occurrence of
any of the events and circumstances listed in Sub-Clause 15.2.1 of the Conditions of Contract,
the Guarantor shall satisfy and discharge the damages sustained by the Beneficiary due to such
Default, event or circumstances.(2) However, the total liability of the Guarantor shall not exceed the
Bond Amount.

The obligations and liabilities of the Guarantor shall not be discharged by any allowance of time or
other indulgence whatsoever by the Beneficiary to the Principal, or by any variation or suspension
of the Works to be executed under the Contract, or by any amendments to the Contract or to the
constitution of the Principal or the Beneficiary, or by any other matters, whether with or without the
knowledge or consent of the Guarantor.

Any claim under this Bond must be received by the Guarantor on or before _
[insert the date six months after the expected expiry of the Defects Notification Period for the Works]
(the "Expiry Date"), when this Bond shall expire and shall be returned to the Guarantor.

The benefit of this Bond may be assigned subject to the provisions for assignment of the Contract,
and subject to the receipt by the Guarantor of evidence of full compliance with such provisions.

This Bond shall be governed by the law of ~nsert the law

governing the bond] being the same country (or other jurisdiction) as that which governs the
Contract. This Bond incorporates and shall be subject to the Uniform Rules for Contract Bonds,
published as number 524 by the International Chamber of Commerce, and words used in this Bond
shall bear the meanings set out in such Rules.

Whereas this Bond has been issued by the Principal and the Guarantor on [date]

Signatures for and on behalf of the Principal(3l:

(signature) (signature)

(name) (name)

© FIDIC 2017
61
 Signatures for and on behalf of the Guarantor'";
(f)

~g
LUO
(signature) (signature)
.2:,: L?.:
1.:..1()
oo
(name) (name)

171 When writing the tender documents, the writer should ascertain whether to include the optional
text, shown in parentheses [}.

121 Insert: [and shall not be entitled to perform the Principal's obligations under the Contract.]
0 Or: [or at the option of the Guarantor (to be exercised in writing within 42 days of receiving the claim
rt
CJ specifying such Default} perform the Principal's obligations under the Contract.]
LL

131 Whether one or more signatories tor the Principal are required will depend on the Principal and/or
applicable law.

Whether one or more signatories for the Guarantor are required will depend on the Guarantor and/
141
or applicable law.

©FIDIC2017 Conditions of Contract for Construction

62
Annex E EXAMPLE FORM OF ADVANCE PAYMENT (/)

GUARANTEE ~~
1.uo
zz
we
Guarantee No.: [insertguarantee reference number] ('.)()

The Guarantor: -----------------------------

[insert name and address of place of issue, unless
indicated in the letterhead]

Name of Contract/Contract No.:

___________________ [insert reference number or other information
identifying the contract between the Applicant and the Beneficiaryon which the guarantee is based)

The Beneficiary(the "Employer"): _ (/)

___________________ [insert name and address of the Beneficiary] 2.
a:
&.:.
We have been informed that -------------------------
___________________ [insert name and address of the Contractor]
(hereinaftercalled the "Applicant") is your Contractor under such Contract and wishes to receivean
advance payment, for which the Contract requires him/her to obtain a guarantee.
At the request of the Applicant, we [insert name of Guarantor] hereby
irrevocablyundertake to pay you, the Beneficiary/Employer,any sum or sums not exceeding in total
the amount of [insert in figures and words the maximum amount payable and the
currency in which it is payable] (the "Guaranteed Amount") upon receipt by us of your demand in
writing and your written statement that:
(a) the Applicant has failed to repay the advance payment in accordance with the
Conditions of Contract, and

(b) the amount of the advance payment which the Applicant has failed to repay.
This guarantee shall become effective upon receipt [of the first instalment] of the advance payment
by the Applicant. The GuaranteedAmount shall be reduced by the amounts of the advance payment
repaid to you, as evidenced by interim payment certificates issued under Sub-Clause 14.6 of the
Conditions of Contract. Following receipt of a copy of each interim payment certificate, we shall
promptly notify you of the revised GuaranteedAmount accordingly.
Any demand for payment must contain your signature(s)which must be authenticated by your
bankers or by a notary public. The authenticated demand and statement must be received by us
at the following office [insert address of office] on or before [insert the
date 70 days after the expected expiry of the Time for Completion] (the "Expiry Date"), when this
guarantee shall expire.

The party liable for the payment of any charges: _______ [insert the name of the party].

This guarantee shall be governed by the laws of [insert the law

governing the guarantee], and shall be subject to the Uniform Rulesfor Demand Guarantees(URDG)
2010 Revision, ICC Publication No. 758.

Signed by: Signed by'"; _

(signature) (signature)

(name) (name)

Date: _

r1J Whether one or more signatories for the bank are required will depend on the bank and/or
applicable law

© FIDIC 2017
63
 Annex F EXAMPLE FORM OF RETENTION MONEY
GUARANTEE

Guarantee No.: [insert guarantee reference number]

The Guarantor: -----------------------------

[insert name and address of place of issue, unless
indicated in the letterhead]
Name of Contract/Contract No.:
[insert reference number
or other information identifying the contract between the Applicant and the Beneficiary on which the
guarantee is based]

The Beneficiary (the "Employer"): _

';/2 ________________ [insert name and address of the Beneficiary]
2.
rr-
0
u,
We have been informed that -------------------------
[insert name and address of the
Contractor] (hereinafter called the "Applicant") is your Contractor under such Contract and wishes to
receive an early payment of [part of the retention money, for which the Contract requires him/her to
obtain a guarantee.

At the request of the Applicant, we [insert name of Guarantor] hereby

irrevocably undertake to pay you, the Beneficiary/Employer, any sum or sums not exceeding in total
the amount of [insert in figures and words the maximum amount payable and the
currencyin which it is payable] (the "Guaranteed Amount") upon receipt by us of your demand in writing
and your written statement that the Applicant has failed to carry out his/her obligation(s) to rectify the
following defect(s) for which he/she is responsible under the Contract [state the natureof the defect(s)].

At any time, our liability under this guarantee shall not exceed the total amount of retention money
released to the Applicant by you, as evidenced by interim payment certificates issued under
Sub-Clause 14.6 of the Conditions of Contract with a copy being submitted to us.

Any demand for payment must contain your signature(s) which must be authenticated by your
bankers or by a notary public. The authenticated demand and statement must be received by us
at the following office [insert address of office] on or before [insert the
date 70 days after the expected expiry of the Defects Notification Period for the Works], (the "Expiry
Date"), when this guarantee shall expire.

We have been informed that the Beneficiary may require the Applicant to extend this guarantee if the
Performance Certificate under the Contract has not been issued by the date 28 days prior to such Expiry
Date. We undertake to pay you the Guaranteed Amount upon receipt by us, within such period of 28
days, of your demand in writing and your written statement that the Performance Certificate has not been
issued, for reasons attributable to the Applicant, and that this guarantee has not been extended.

The party liable for the payment of any charges: _______[insert the name of the party].

This guarantee shall be governed by the laws of [insert the law

governing the guarantee] and shall be subject to the Uniform Rules for Demand Guarantees (URDG)
2010 Revision, ICC Publication No. 758.

Signed by: Signed by'"; _

(signature) (signature)

(name) (name)
Date: _

111 Whether one or more signatories for the bank are required will depend on the bank and/or
applicablelaw.

© FIDIC 2017 Conditions of Contract for Construction

64
Annex G EXAMPLE FORM OF PAYMENT GUARANTEE BY
EMPLOYER

Guarantee No.: [insert guarantee reference number]

The Guarantor: -----------------------------

[insert name and address of place of issue, unless
indicated in the letterhead]
Name of Contract/Contract No.:
___________________[insert reference number or other information
identifying the contract between the Applicant and the Beneficiaryon which the guarantee is based]

The Beneficiary(the "Contractor"): _

________________ [insert name and address of the Beneficiary]
(/)
2
rr
We have been informed that _ C)
LL.
____________________ [insert name and address of the Employer]
(hereinaftercalled the "Applicant") is required to obtain a bank guarantee.

At the request of the Applicant, we Vnsert name of Guarantor] hereby

irrevocably undertake to pay you, the Beneficiary/Contractor,any sum or sums not exceeding in
total the amount of [insertin figures and words the maximum amount payable and
the currency in which it is payable] upon receipt by us of your demand in writing and your written
statement that:
(a) in respect of a payment due under the Contract, the Applicant has failed to make
payment in full by the date fourteen days after the expiry of the period specified in
the Contract as that within which such payment should have been made, and

{b) the amount{s)which the Applicant has failed to pay.

Any demand for payment must be accompanied by a copy of [insert
list of documents evidencing entitlement to payment and the language in which these documents
are to be submitted], in respect of which the Applicant has failed to make payment in full.
Any demand for payment must contain your signature(s)which must be authenticated by your
bankers or by a notary public. The authenticated demand and statement must be received by
us at the following office [address of office] on or before [insert the date
six months after the expected expiry of the Defects Notification Period for the Works] when this
guarantee shall expire.

The party liable for the payment of any charges: _______ [insert the name of the party].
This guarantee shall be governed by the laws of [insert the law governing
the guarantee] and shall be subject to the Uniform Rules for Demand Guarantees (URDG) 2010
Revision, ICC Publication No. 758.

Signed by: Signed by(1J: _

(signature) (signature)

(name) (name)
Date: _

!7! Whether one or more signatories for the bank are required will depend on the bank and/or
applicablelaw.

© FIDIC 2017
65
 GENERAL CONDITIONS

GUIDANCE FOR THE

PREPARATION OF
PARTICULAR CONDITIONS
AND ANNEXES: FORMS
OF SECURITIES

FIDIC® Conditions of Contract for

FORMS OF LETTER OF
CONSTRUCTION TENDER, LETTER OF
ACCEPTANCE,CONTRACT
AGREEMENT AND
FOR BUILDING AND ENGINEERING WORKS DISPUTE ADJUDICATION/
AVOIDANCE AGREEMENT
DESIGNED BY THE EMPLOYER

Forms of Letter of Tender, Letter of Acceptance,

Contract Agreement and Dispute Adjudication
Avoidance Agreement

FEDERATION INTERNATIONAi.£ DES INGENIEURS-CONSEILS

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS ~
INTERNATIONALE VEREINIGUNG BERATENDER INGENIEURE
FIDIC
FEDERACION INTERNACIONAL DE INGENIEROS CONSULTORES ~
LETTER OF TENDER

NAME OF CONTRACT:

TO:

We have examined the Conditions of Contract, Specification, Drawings, Schedules including the Bill
of Quantities,the Contract Data and Addenda Nos for the above-named
Contract and the words and expressions used herein shall have the meanings assigned to them in
the Conditions of Contract. We offer to execute and complete the Works and remedy any defects
therein, in conformity with this Tenderwhich includes all these documents, for the sum of

[currency and amount in figures]

[currency and amount in words]

or such other amount as may be determined in accordance with the Contract.

We agree to abide by this Tenderuntil [date] 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
as soon as is reasonably practicable after the Commencement Date, and complete the Works in
accordance with the above-named documents within the Time for Completion.

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

We understand that you are not bound to accept the lowest or any tender you may receive.

Signature in the capacity of

duly authorised to sign tenders for and on behalf of _

Address: _

Date: _
 LETTER OF ACCEPTANCE •
NAME OF CONTRACT: _

CONTRACTNUMBER: _

TO: ~

Date: _

Your Reference: _

Our Reference: _

We thank you for your Tender dated for the execution

and completion of the Works comprising the above-named Contract and remedying of defects
therein, all in conformity with the terms and conditions contained in the Contract.

We have pleasure in accepting your Tenderfor the Accepted Contract Amount of:

[currency and amount in figures]

[currency and amount in words]

In consideration of you properly and truly performing the Contract, we agree to pay you the Accepted
Contract Amount or such other sums to which you may become entitled under the terms of the
Contract, at such times and as prescribed by the Contract.

We acknowledge that this Letter of Acceptance creates a binding Contract between us, and
we undertake to fulfil all our obligations and duties in accordance with the terms of this Contract.

Signed by: (signature)

For and behalf of: _

Date: ~

• Memoranda {if any) to be annexed [see Sub-Clause 1.1.51]

© FIDIC 2017 Conditions of Contract for Construction

ii
CONTRACT AGREEMENT

This Agreement made the day of _

Between of (hereinaftercalled "the Employer")of the one part,
and of (hereinaftercalled "the Contractor") of the other part

Whereasthe Employerdesires that the Works known as [name

LU
and number of the Contract] should be executed by the Contractor, and has accepted a Tender by u
z
the Contractor for the execution and completion of these Works and the remedying of any defects g
therein. 5
CJ

The Employer and the Contractor agree as follows:

1. In this Agreement words and expressions shall have the same meanings as are respectively
assigned to them in the Conditions of Contract hereinafterreferredto.

2. The following documents shall be deemed to form and be read and construed as part of this
Agreement:
(a) The Letter of Acceptance dated
(b) The Letter of Tenderdated
(c) The Addenda Nos
(d) The Conditions of Contract
(e) The Specification
(t) The Drawings
(g) The Schedules and
(h) The JV Undertaking.*
* [if the Contractor constitutes an unincorporated JV, otherwise delete]

3. In consideration of the payments to be made by the Employerto the Contractor as hereinafter

mentioned, the Contractor hereby covenants with the Employerto execute and complete the
Works and remedy any defects therein, in conformity with the provisions of the Contract.

4. The Employer hereby covenants to pay the Contractor, in consideration of the execution and
completion of the Works and the remedyingof defects therein, the Contract Price at the times
and in the manner prescribed by the Contract.

In Witness whereof the parties hereto have caused this Agreement to be executed the day and year
first before written in accordance with their respective laws.

SIGNED by: _ SIGNED by: _

for and on behalf of the Employer in the for and on behalf of the Contractor in the
presence of presence of
Witness: _ Witness: _
Name: _ Name: _
Address: _ Address: _
Date: _ Date: _

iii
 Y:) DISPUTE AVOIDANCE/ADJUDICATION AGREEMENT
z.
-.J()

[All italicised text and any text within square brackets (except sub-clause headings) in this form of
~~ agreement is for use in preparing the form and should be deleted from the final product].
C..'JU

Name and details of the Contract

LU
0
z<1'
c5
5 This Agreement made the __ day of __ [month], __ [year], between
o
Name and contact details of the Employer (name)
________________ (address)
______________ (telephone)
_________ (email/other contact details);

Name and contact details of the Contractor (name)

_______________ (address)
_______________ (telephone)
_________ (email/other contact details);

and

Name and contact details of the DMB Member (name)

________________ (address)
______________ (telephone)
_________ (email/other contact details);
("DAA Agreement")

Whereas:
A. the Employer and the Contractor have entered (or intend to enter) into the Contract;

B. under the Contract, the "DAAB" or "Dispute Avoidance/Acijudication Board" means the
sole member or three members (as stated in the Contract Data of the Contract) so named in
the Contract, or appointed under Sub-Clause 21.1 [Constitution of the DMB] or Sub-Clause
21.2 [Failure to Appoint DMB Members] of the Conditions of Contract;

C. the Employer and the Contractor desire jointly to appoint the above-named DMB Member to
act on the DMB as:
(a) the sole member of the DMB, and where this is the case, all references to the "Other
Members" do not apply; or
(b) one of three members/chairman [delete the one which is not applicable] of the DMB
and, where this is the case, the other two persons are:

_____________ (name) ----------~--0am~

____________ (address) _____________ (address)
____________ (telephone) ____________ (telephone)
______________ (email! ______________ (email/
other contact details) other contact details)

the "Other Members"; and

D. the DMB Member accepts this appointment.

© FIDIC 2017 Conditions of Contract for Construction

iv
The Employer, Contractor and DAAB Member jointly agree as follows:

1. The conditions of this DAA Agreement comprise:

(a) Clause 21 [Disputes and Arbitration] of the Conditions of Contract, and any other
provisions of the Contract that are applicable to the DAAB's Activities; and
(b) the "General Conditions of Dispute Avoidance/Adjudication Agreement", which is
appended to the General Conditions of the "Conditions of Contract for Construction" UJ
Second Edition 2017 published by FIDIC ("GCs"}, as amended and/or added to by the ()
z
<1'
following provisions. C;'·

2. [Detailsof amendments to the GCs, if any. For example:

In the procedural rules annexed to the GCs, Rule _ is deleted and replaced by: " ... "]

3. The DAAB Member shall be paid in accordance with Clause 9 of the GCs. The currency of
payment shall be _

In respect of Sub-Clauses 9.1 and 9.2 of the GCs, the amounts of the DAAB Member's
monthly fee and daily fee shall be:
monthly fee per month, and
daily fee of per day
(or as otherwise set under Sub-Clause 9.3 of the GCs).

4. In consideration of the above fees, and other payments to be made to the DAAB Member
in accordance with the GCs, the DAAB Member undertakes to act as DAAB Member in
accordance with the terms of this DAA Agreement.

5. The Employer and the Contractor shall be jointly and severallyliable for the DAAB Member's
fees and other payments to be made to the DAAB Member in accordance with the GCs.

6. This DAA Agreement shall be governed by the law of (if not stated, the law
that governs the Contract under Sub-Clause 1.4 of the Conditions of Contract).

SIGNED by: _ SIGNED by: _ SIGNED by: _

Print name: _ Print name: _ the DAAB Member

Title: _ Title: _ Title: _
for and on behalf of the for and on behalf of the
Employer Contractor
in the presence of in the presence of in the presence of
Witness: _ Witness: _ Witness: _
Name: _ Name: _ Name: _
Address: _ Address: _ Address: _

Date: _ Date: _ Date: _