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The International federation of Consulting Engineers
A form of contract devised by the International Federation of Consulting Engineers for use in engineering contracts when the parties are based in differing European countries.
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FIDIC Red Book 1999—Engineer’s duties and authority—checklist This Checklist outlines some of the Engineer’s duties and authority under the FIDIC Red Book 1999. For an analysis of the Engineer's role under the FIDIC Red and Yellow Books 1999, and the FIDIC Pink Book 2010, see Practice Note: FIDIC contracts (pre-2017 editions)—the role of the Engineer. In relation to the 2017 edition of the Red Book, see Checklist: FIDIC Red Book 2017: Engineer’s duties and authority. • Sub-Clause 1.5 The Engineer’s duty to issue clarification or instruction as to the priority of documents. • Sub-Clause 1.8 The Engineer’s right of access at all reasonable times to copies of the Contract, publications named in the Specification, the Contractor’s Documents (if any), the Drawings and Variations and other communications given under the Contract. • Sub-Clause 1.9 The Engineer’s duty to issue necessary drawings or instructions within a reasonable time. The Engineer’s duty to determine (under Sub-Clause 3.5 and upon receiving notice from the Contractor) time or money incurred as a result of the...
Termination of a construction contract—checklist This Checklist provides a summary of the issues that should be taken into consideration before and after a party decides to terminate a building contract, or other agreement entered into in connection with a construction project. Full guidance and information on terminating contracts can be found in the Termination and suspension in construction contracts subtopic. Considerations when deciding whether to terminate A party who is deciding whether to take steps to terminate a construction contract should consider the following points: • What are the reasons for terminating the contract? • Check the provisions of the building contract carefully. Does the building contract contain express provisions regarding termination, setting out specific events that will entitle the parties to terminate? Most UK building contracts contain express termination rights (see Practice Notes: JCT contracts—termination, NEC contracts—termination, FIDIC contracts 2017—termination by the Employer, FIDIC contracts 2017—termination by the Contractor, FIDIC contracts (pre-2017 editions)—termination by the Employer and FIDIC forms of contract (pre-2017 editions)—termination by the Contractor). •...
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FIDIC Contracts 2017 (Red and Yellow Books) Disputes (clause 21)—Flowchart This flowchart sets out the process for resolving disputes under clause 21 of the FIDIC Red and Yellow Books 2017. Under the FIDIC Red and Yellow Books 2017 a Dispute arises where: • one Party has made a Claim, or there has been a matter to be agreed or determined under clause 3.5 [Agreement of Determination]; the Engineer’s determination of that claim or a Party’s assertions was a rejection or deemed rejection in whole or in part; and a Notice of Dissatisfaction (NOD) has been given by either Party under Sub-Clause 3.7.5 [Dissatisfaction with Engineer’s determination] (clause 1.1.29) • the Engineer fails to issue the relevant Payment Certificate within 56 days after receiving a Statement
Extension of time claims under the FIDIC Red
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This Practice Note considers the insurance provisions in the 1999 editions of the FIDIC Red, Yellow and Silver Books. For guidance on the 2017 editions, see Practice Note: FIDIC contracts 2017—insurance.The FIDIC insurance provisionsThe insurance requirements in the FIDIC contracts, setting out which party takes out insurance, the amount and the type of cover required, can be found in:•the letter of acceptance of tender•the particular conditions (amendments to the general conditions), or•the general conditionsThis list is the order of precedence for determining which insurance provisions apply.The below sets out the requirements in the general conditions.Liability or risk in the works The Contractor’s risksThe Contractor’s liability for the works, that gives it an insurable interest in the works, is found at clause 17.2. The Contractor is required to take care of the works until take over. Any damage to the work must be rectified at the Contractor’s own risk and cost unless the damage was caused by an Employer risk.The Employer’s risksThe Employer risks are:•war, invasion, etc•rebellion, terrorism, etc•riot, commotion unless...
FIDIC contracts (pre-2017 editions)—variations This Practice Note examines variations under the 1999 editions of the Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. For detail on variations under the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—variations. Introduction Under all the FIDIC forms of contract the employer is entitled to vary the works by the issue of variations at any time before the issue of the Taking-Over Certificate (the Commissioning Certificate under the Gold Book) without the need for the contractor's agreement. However, the issue of a variation may entitle the contractor to additional payment and extra time within which the contractor must complete the works as varied. Under all the FIDIC forms of contract, variations are primarily governed by clauses 13.1 to 13.3, which set out the right to vary the works and the procedure to be followed. What is a variation? A variation is defined as: • 'any change to the Works, which...
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Advice to clients—Appropriate contract selection Appropriate contract selection We want to discuss with you the approach that should be taken when selecting the form of building contract to use in relation to [insert name/description of the project]. The first point is that the choice of contract should be appropriate for the sector that the works relate to. In the UK, there are a number of different standard form contracts which have been produced, the use of which depend predominantly on whether the works relate to the construction of buildings, infrastructure or civil engineering projects, energy projects, chemical/process plants or electrical and mechanical engineering projects. As the works in this case relate to [the construction of a building OR an infrastructure or civil engineering project OR an energy project OR a chemical/process plant OR an electrical/mechanical engineering project], we recommend that you use the [insert name of contract producer, eg JCT, NEC, FIDIC] suite of contracts for the works. The next point to consider is which procurement method should be...
FIDIC Contracts 2017—Reference of a Dispute to the Dispute Avoidance/Adjudication Board _______________________________________ [NAME OF PROJECT] ReferENCE OF A DISPUTE TO THE DAAB DAAB Reference No. [Number of reference] [Date] _______________________________________ Referring Party: [Name of Party 1] [Address] [Telephone/Fax Number] [Email address] [ON THE HEADED NOTEPAPER OF THE REFERRING PARTY] Responding Party: [Name of Party 2] [Address] [Telephone/Fax Number] [Email address] The DAAB: [Name of DAAB Chairperson] [Address] [Telephone/Fax Number] [Email address] [[Name of DAAB Member 2] [Address] [Telephone/Fax Number] [Email address] [Name of DAAB Member 3] [Address] [Telephone/Fax Number] [[Email address]] [The Engineer]] [[Address]] [[Telephone/Fax Number]] [[Email address]] [NAME OF PROJECT]:REFERENCE OF A DISPUTE TO THE DAAB UNDER CLAUSE 21.4 DAAB Reference No. [Number of reference] Introduction 1 This is [insert full name of Referring Party]’s (the Referring Party’s) reference of a Dispute to the DAAB under clause 21.4 (the Reference). 2 The Reference is accompanied by a bundle, which includes a chronology of events together with the relevant documents: 2.1 chronology of relevant events at tab [insert] 2.2...
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What actually constitutes 'exceptionally adverse weather conditions'? The standard form JCT 2011 contracts contain a number of events, called 'Relevant Events', that may entitle the contractor to an extension of time in which to complete the works (to avoid completing its works after the contractual completion date and becoming liable to pay the employer liquidated damages). See Practice Note: Extensions of time under construction contracts. One of these Relevant Events is 'exceptionally adverse weather conditions', see for example clause 2.29.9 in the JCT Standard Building Contract With Quantities 2011 or clause 2.26.8 in the JCT Design and Build Contract 2011. FIDIC 1999 contracts also contain a similar provision in the event of delay for 'exceptionally adverse climatic conditions' (eg clause 8.4(c) in the Red Book). There is, however, no definition in either of these as to what will constitute exceptionally adverse weather—so what sort of weather conditions would qualify? There is no easy answer as to what constitutes exceptionally adverse weather. In some circumstances it may be...
In the FIDIC 2017 contracts (Red and Yellow books), what is the consequence of the employer failing to appoint an engineer (assuming the employer never appoints the engineer)? If a contractor does not want to terminate the contract as a result of such a breach by the employer of its obligations under the contract, can it argue that all the obligations of the engineer are, by default, employer's obligations and treat the contract as if references to the engineer are references to the employer? What are the consequences if the employer fails to appoint an engineer? The precise consequences of the Employer’s failure to appoint an Engineer are likely to depend on the particular circumstances and the impact of that failure on the Contractor. For example, where the Employer’s default, ie the failure to appoint an Engineer, causes the Contractor delays, then the Contractor may be entitled to an extension of time, following the procedure in clause 20 of the FIDIC 2017 contract. The Contractor would...
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This week's edition of Construction weekly highlights includes a case in which the Technology and Construction Court (TCC) considered the scope of recoverable loss in respect of claims under the Defective Premises Act 1972 (DPA 1972) (Wilson v HB (SWA)), introduction of the Scottish Building Safety Levy (Scotland) Bill, an announcement by the Joint Contracts Tribunal (JCT) of the release date of its Target Cost Contract 2024, upcoming amendments to the Building Regulations mandating solar panel installations on new build homes, a case in which the TCC considered whether an After the Event (ATE) policy was sufficient in a security for costs application against a claimant in administration (Lloyds v Accor), and an announcement by HM Treasury (HMT) of a £14.2bn investment for the construction of the Sizewell C nuclear power plant.
This week's edition of Construction weekly highlights includes a case in which the High Court enforced a loan agreement under the Contracts (Rights of Third Parties) Act 1999 (HNW Lending v Lawrence), commentary on the creation of the National Infrastructure and Service Authority (NISTA), a case in which the High Court provided guidance on renunciation and affirmation of contracts, and the interpretation of guarantees (Chugga Chugg v Privinvest), and the launch of a consultation by the Ministry of Housing, Communities and Local Government (MHCLG) on the introduction of a statutory build out framework for eligible residential developments.
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