FIDIC 2017 Edition Updates
FIDIC 2017 Edition Updates
FIDIC 2017 Edition Updates
FIDIC TRAINING
The New 2017 FIDIC Red,
Yellow and Silver Books
CONTENTS
contd
Overview areas of focus;
•The increased role of the Engineer; Project Management
Issues
•Quality management and compliance;
•Advanced warning;
•Risk and insurance;
•Design and its relationship to insurance;
•Notices, time bars and claims procedure;
•The expanded role of the dispute board emphasis- dispute
avoidance; and
•Arbitration and enforcement of Dispute Board Decisions.
4
2.1 Termination
• Clause 15 Termination By Employer.
• Clause 16 Suspension and Termination by
Contractor.
• Termination Clause 1.16:
“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 that
stated in the Sub-Clause.”
9
contd
• Disputes - Clause 21:
Formation of Dispute;
Referral of Dispute to the DAAB;
84 day procedure;
Written DAB decision;
Notice of Dissatisfaction – 28 days; and
Arbitration:
NOD – Amicable Settlement - Arbitration (Sub-Clause
20.7); and
DAAB compliance – Arbitration, and interim measures.
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“Circumstances” defined
• If the fully detailed Claim relates to a disagreement about the lateness of a
Notice of Claim then the late submission must be justified.
“The circumstances which may be taken into account (but shall not be binding)
may include:
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 contractual and/or
other legal basis of the Claim, which the claiming Party may include in its
supporting particulars.”
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Additional Particulars
• An Engineer may require additional particulars in relation to
fully detailed Claim.
• Engineer to promptly give Notice describing the additional
particulars required (with reasons).
• However, the “… contractual and/or other legal basis” must be
determined by the Engineer regardless (Sub- Clause 3.7.3).
• Interim fully detailed Claims are made on a monthly basis
identifying the accumulated amount of additional money or
adjustments to time.
• A final fully detailed Claim is due “within 28 days after the end
of the effects resulting from the event or circumstance …” (the
parties can agree to extend this).
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Arbitration
If a NOD has been served [Sub-Clause 21.5]:
amicable settlement for 28 days after the date on which the NOD was given;
but
no attempt to amicably settle need be made;
ICC Arbitration [Sub-Clause 21.6]:
one or three arbitrators;
language of the Contract applies;
may open up review, revise etc.;
costs; tribunal may take account a Party’s failure to cooperate with the other
in constituting a DAAB;
not limited to evidence put before the DAAB;
may commence before or after completion of the Works; and
if award requires payment then this is immediately due (no need for a
certificate etc).
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3.0 Conclusions
• The importance of communication.
• Familiarity of FIDIC approach, language and demands is essential
• Use the correct terminology.
• Effective pro-active contract administration.
• Claims under FIDIC Sub-Clause 20.2 – the condition precedents.
Questions?
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END
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