FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

FIDIC Seminar
Conditions of Contract for Construction
1. Edition 1999, designed by the Employer
MDB Harmonised Edition 2010
DAHLEM Beratende Ingenieure
Essen, 10. and 11. September 2019
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©
[email protected]

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel - V. Jaeger

• is a Consulting Engineer with broad experience
in the international construction field ( services )
• is Special Advisor of the FIDIC Contracts Committee
• is former Chairman of the FIDIC Contracts Committee
• is former Member of the FIDIC Executive Committee
• is more than 25 years volunteer of FIDIC Contracts Committee
• is a pratising Adjudicator and member of the
German Adjudicator Assesssment Panel, VBI
• is an accredited, licensed FIDIC trainer
• received the 8th Louis Prangey Award of FIDIC 2007
• Co-author of the book : FIDIC – A Guide for Practitioners
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Agenda :
1. Key Issues of the Conditions of Contract
1.1 Appendix to Tender, 1.2 Particular Condition
2. The Parties of the Contract, Employer, Contractor, (Engineer, Designer of the Contractor, Adjudicator)
3. Administration of the typical sequence of the Works ( Time for Completion) from Commencement up to Performance
Certificate
4. Variations and Adjustments
5. Errors or defects in the Employer‘s documents or Requirements
6. Inspection and Tests
7. Measurement and Evaluation, Adjustment
8. Contract Price and Payment
9. Termination
10. Force Majeure
11. Claim-Management and procedure
12. Dispute – DAB ( Engineers determination, Adjudicators decision )
13. Q & A, Discussions

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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Fédération Internationale
des Ingénieurs - Conseils

founded in 1913 with International Federation

headquarters in Geneva
of Consulting Engineers
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Member Associations
Fédération Internationale des Ingénieurs-Conseils

representing more than 1,9 million

professionals in 101 countries
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CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

1. Key Issues of the Conditions of Contract

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

2
 COMMITTEES
Fédération Internationale des Ingénieurs-Conseils

CONTRACTS
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AGREEMENTS between EMPLOYER and CONTRACTOR

Draft model AGREEMENTS

BUSINESS PRACTICE between CLIENT and CONSULTANT
Prepare publications on: or between Consultants
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PRACTICE
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

FIDIC
Conditions

Contract Agreement
Employer‘s Design Employer‘s Design Consultant
Engineer

Construction Construction Services

MDB Version

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

published 1999

The Red Book is intended

for use for Construction for
Building and Engineering Works
designed by the Employer.
It is a measurement Contract.
There is a contract administrator
referred to as the Engineer
(anglo-saxon style).
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

The terms of the Conditions for Construction RB are

recommended for general use for the purpose of the
construction ( excluding most design) of building or
engineering works.
The Contractor constructs the works in accordance with
design details provided by the Employer.
Many Sub-Clauses make reference to the data being
contained in the Appendix to Tender, prepared by the
Employer. There are no Sub-Clauses in the General
Conditions which require data to be included in the
Particular Conditions
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC Typical Sequence of Principle Events

Fédération Internationale des Ingénieurs-Conseils

Post
42 days Contract
Liability

or
Time Extension

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Pink Book is intended

for use for building and
engineering Works.
It is a remeasured Contract
for Works designed by
Employer. There is a contract
administrator referred to as
the Engineer.
(anglo-saxon style)

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

The Participating Banks in the preparation of the MDB’s

Harmonised Edition. It is understood, that all of them
mandated this edition in their Standard Bidding Documents
for Works.
- African Development Bank
- Asian Development Bank
- Black Sea Trade and Development Bank
- Caribbean Development Bank
- Council of Europe Development Bank
- European Bank for Reconstruction and Development
- Inter-American Development Bank
- International Bank for Reconstruction and
Development ( The World Bank )
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

MDB Multilateral Development

Bank, Harmonized Edition

published May 2005

adjustment March 2006
published June 2010

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The terms of the Conditions for Construction PB are

recommended for general use for the purpose of the
construction ( excluding most design) of building or
engineering works.
The Contractor constructs the works in accordance with
design details provided by the Employer.
Many Sub-Clauses make reference to the data being
contained in the Particular Conditions Part A , prepared by
the Employer. There are no Sub-Clauses in the General
Conditions which require data to be included in the
Particular Conditions, Part B.
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC Typical Sequence of Principle Events
Fédération Internationale des Ingénieurs-Conseils

MDB Pink Book

within 28 days
Contract Agreement
Post
Contract
180 days Liability

or
Time Extension

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Contract Agreement
The Parties shall enter into a Contract Agreement,
Sub-Clause 1.6 within 28 days after the Contractor
receives the Letter of Acceptance, unless the
Particular Conditions establish otherwise.
Not later than the Commencement Date, except for
Sections, Sub-Clause 1.1.5.6 part of the Works (if any)
stated in the Particular Conditions. (Table: Summary of Sections)
Part A : Contract Data.
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 1.1.1.3 Issue of the § 8.1 Commencement

Letter of Acceptance of Works
§ 1.6 Contract Agreement precedent conditions :
within 28 days after Letter
of Acceptance § 1.6 Signature of the Contract Agreement
§ 2.4 Employer‘s Financial Arrangements
§ 8.1 within 180 days § 2.1 Access and Possession of the Site
> 180d - Contractor is entitled to terminate § 14.2 Advanced Payment

Contract Period

If the Contractor considers himself to be entitled

§ 4.2 Issue of the to any Extension of the Time for Completion
Performance Security
within 28 days
and/or any additional Payment, the Contractor
shall give notice as soon as practical and not later
§ 14.2 than 28 days after he became or should have
Advance Payment become aware of the event giving rise to the claim.
Guarantee ( if any )
Sub-Clause 20.1 Contractor‘s Claims.
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

In the Contract Agreement the Employer and the

Contractor agree, ( if any ) e.g. :
that the following documents shall be deemed to form
and to be read and construed as part of this Agreement,
prevailing over all other Contract documents :
(a) the Contract Agreement
(b) the Letter of Acceptance ( incl. annexed memoranda )
(c) the Letter of Tender
- the addenda Nos… (if any)
(d) the Particular Conditions – Part A
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

(e) the Particular Conditions – Part B

(f) these General Conditions
(g) the Specification
(h) the Drawings, and
(i) the completed Schedules, ( Bill of Quantities )
and any other documents forming part of the
Contract
If an ambiguity or discrepancy is found in the
documents, the Engineer shall issue any necessary
clarification or instruction.
to be compared to the sequence of Sub-Clause 1.5 ( Priority of Documents ), documents forming the Contract
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

FIDIC
Conditions

Contract Agreement

Employer‘s Design Employer‘s Design Consultant

Engineer

Construction Services
Construction
MDB Version

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

MDB Typical Sequence of Principle Events

§ 1.6 Parties shall enter into a Contract

Agreement within 28 days after receiving
the Letter of Acceptance by the Contractor

within
180 days

the Contract is in force

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

1. Key Issues of the

Conditions of Contract

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

The FIDIC – Contract is an entire Contract

Document and consists of several parts :
Contract Agreement , ( if any )
Letter of Acceptance
Letter of Tender + Appendix to Tender
Particular Conditions - PB Part A and B
General Conditions of Contract
Employer‘s Requirements
Schedules
Contractor‘s Proposal
Agreement of the Dispute Adjudication Board, DAB - PB Dispute Board , DB
Bonds / Guarantees
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Structure of the Contract Document

The whole framework is structured into three parts :
1. General Conditions
2. Guidance for the Preparation of Particular Conditions
3. Forms for the Letter of Tender, the Appendix to Tender,
the Contract Agreement and the Dispute Adjudication
Agreement

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Principal Service
- the Contractor shall design the Works in accordance with the Contract
see § 4.1, 4.10, 4.11, 5.
- the Contractor shall execute and complete the Works
- the Contractor shall remedy any defects in the Works

Ancillary Service
- duty of care by Contractor for his Staff and Labour § 6
- manner of execution of Plant, Materials and Workmanship § 7
- compliance with target dates for Commencement, Completion § 8
- ( duties prior Contract Agreement ) § 4.10, 4.11, 5.1
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

General Conditions
General Provisions

FIDIC is using Definitions, because :

Lawyers involved in the Common Law

( Case Law ) uses shot guns and not a rifle
with bullets to hit the right meaning

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Conditions of Contract for Construction

for Building and Engineering Works,
designed by the Employer
General Conditions
1. General Provisions 11. Defects Liability
2. The Employer 12. Measurement and Evaluation
3. The Engineer 13. Variations and Adjustments
4. The Contractor 14. Contract Price and Payment
5. Nominated Subcontractors 15. Termination by Employer
6. Staff and Labour 16. Suspension and Termination by Contractor
7. Plant, Materials and Workmanship 17. Risk and Responsibility
8. Commencement, Delays and Susp. 18. Insurance
9. Tests on Completion 19. Force Majeure
10. Employer‘s Taking Over 20. Claims, Disputes and Arbitration

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

General Conditions
General Provisions
1.1
Definitions In the Conditions of Contract (these Conditions), which
include Particular Conditions and these General
Conditions, the following words and expressions shall
have the meanings stated. Words indicating persons or
parties include corporations and other legal entities,
except where the context requires otherwise.

1.1.1
The Contract 1.1.1.1 Contract means the Contract Agreement, the
Letter of Acceptance, the Letter of Tender, …
1.1.1.2 Contract Agreement means the Contract (if
any) referred to in the sub-clause 1.6 [Contract
Agreement].
1.1.1.3 Letter of Acceptance means the letter of formal
acceptance, signed by the Employer, …
etc.

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

General Conditions
General Provisions
1.1.4
Money and
Payments 1.1.4.1 Accepted Contract Amount means the
amount accepted in the Letter of Acceptance for
the execution and completion of the Works and
the remedying of any defect

1.1.4.2 Contract Price means the price in SubClause

14.1 ( the Contract Price ), and includes adjust-
ments in accordance with the Contract.

1.1.4.3 Cost means all expenditure reasonably incurred

( or to be incurred ) by the Conractor, whether on
or off the Site, including overhead and similar
charges, but does not include profit.

etc.

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger 41

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

General Conditions
General Provision
1.1.1.5
Specification
means the document entitled specification, as included in the
Contract, and any additions and modifications tothe specification
in accordance with the Contract. Such document specifies the
Works.
1.1.1.6
Drawings means the drawings of the Works, as included in the Contract, and
any additional and modified drawings issued by ( or on behalf of ) the
Employer in accordance with the Contract.
1.1.1.7
Schedules means the document(s) entitled schedules, completed by the
Contractor and submitted with the Letter of Tender, as included in the
Contract. Such document may include the Bill of Quantities, data,
lists, and schedules of rates and/or prices.

etc.

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Construction RB

Employer

Engineer Contractor

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Contracts Guide
published 2001

In this Guide, the texts in the

Books are reproduced
in a three-column layout.
The comments in this Guide
are not exhaustive and
are only intended to provide
general guidance.
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of White Book

Fédération Internationale des Ingénieurs-Conseils

The Particular Conditions must include all details of any

requirements for the Engineer,
to obtain Employer´s approval before exercising any
authority which is given under the Contract.

see Sub-Clause 3.1 ( RB )

see Conditons of Contract Sub-Clause 3.1 ( PB )

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Employer Duties and Obligations

• grant Access to Site and Possession

Property
• disclose Site Data in his possession

Financing
• make Arrangements for Payments
• pay the Contract Price
Co-operation • according to the provision of Contract

Compensation • for additional cost and disruption

Appointment • shall appoint the Engineer RB , PB

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of White Book
Fédération Internationale des Ingénieurs-Conseils

The Engineer shall be appointed by the Employer

• to check, to certify, to inspect, to instruct, to give his
opinion / consent / notice, to request, to approve or
to valuate, to test, to examine
• to determine ( Clause 3.5 RB, PB ) only the Engineer § 3.2, 1. para, last sentence
- he shall make fair determinations
- he is not allowed to amend the Contract
- he is not allowed to relieve either Party of any duties,
obligations or responsibilities
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of White Book

Fédération Internationale des Ingénieurs-Conseils

• checking the Contractor’s work for compliance

with the requirements of the Contract
• approving tests on completion of the Works,
and ( if any ) performance tests after completion
• monitoring construction programmes
• issuing necessary variations
• providing cost control and certification of the
Contractor’s applications for payment
• determining claims for extra payment
and/or time extensions for completion
• Determinations, Certificates
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Actions of the Contract Interpretation Cl. 1.5 with conse-

quence of variation
Engineer / Employer
Cl. 1.1.6.9

Quality of Works and Cl. 7.4, 7.6, 9.4,

Workmanship 11.1, 11.3, 11.4
List of actions to be
established Cl. 14
Payment Certification

 Approval Taking-Over Cl. 10

 Check Performance Certificate Cl. 11.9
 Certificate
 Consent Variations Cl. 13
 Determination
 Disapproval
 Examination White Book, Scope of
Cost Management
 Inspection Services, § 3.3.1 (c)
 Instruction Cl. 13.2 Value Eng.
 Notice
Time Management Cl. 8.1, 8.2, 8.3, 8.6,
 Proposal
(8.4 EOT )
 Request
 Suspension
 Test Claim Determination Cl. 2.5, 3.5
 Valuation

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of White Book
Fédération Internationale des Ingénieurs-Conseils

The Engineer shall be independent and impartial.

Independence involves the relationship

between the Members and the Parties

Impartiality is about the relationship to the

facts

Dr. Cyril Chern, DBF

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

published 1999

The Red Book is intended

for use for Construction for
Building and Engineering Works
designed by the Employer.
It is a measurement Contract.
There is a contract administrator
referred to as the Engineer
(anglo-saxon style).
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Organisation Diagram

White Book
Client

Consultant

Employer´s Tender Documents with: Scope of Works, Drawings, Specification, BoQ

Quality Determination, Code of Practice, Manner of Execution, Method of Mesurement

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Organisation Diagram

Employer

Engineer Contractor

Employer´s Tender Documents: Scope of Works, Drawings, Specification, BoQ

Contractor´s Bid, Design ( if any ), Execution, Completion, Remedy Defects

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

THE NEW RED BOOK 1999

Conditions of Contract for Construction
Intended for building and civil engineering works designed by (or on behalf of)
the Employer. The Contract may require the Contractor to supply plant and / or
execute some design.
Contract comes into effect when the Employer accepts the Tender by issuing the Letter of
Acceptance. The Parties may then sign a Contract Agreement.
Administration by the Engineer, with data in the Appendix to Tender prescribing one of
two options:
a) the Engineer acts impartially when carrying out certain actions, which include making pre-
arbitral decisions; or
b) the Engineer does not act impartially, and pre-arbitral decisions are made by the
Dispute Adjudication Board ( DAB ) jointly appointed by the Parties.
Other options published in Part II: impartiality + DAB, etc.
The Engineer certifies interim and final payments which are determined by measurement,
applying rates and prices in the Bill of Quantities. Lump sum option published in Part II.
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

White Book organisational

chart

Employer Red Book

Engineer

Contractor

Design / Planning ( if any )

Dispute Adjudication Board
Build / Construction
Execute
attention to responsibility Complete
Remedy any Defects
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Employer
§2
Employer´s Specification Engineer
§ 1.1.1.5 to 1.1.1.10 §3
- Functional Description - Site Supervision
- Scope and Purpose of Works - Contract Management
- Specification - Contract Administration
- Schedules, Bill of Quantities - Instructions / Variations
- Tender and all other documents - Determinations
- Tender Design ( Drawings ) - Certificates
- Inspections, Tests
Employer‘s Specification Contractor § 4 Engineer

design only if Execution § 8

specified in § 4.1
Completion
Remedy any Defects
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Pink Book is intended for

use for building and engineering
Works.
It is a remeasured Contract for
Works designed by Employer.
There is a contract administrator
referred to as the Engineer.
(anglo-saxon style)

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

MDB Multilateral Development

Bank, Harmonized Edition

published May 2005

adjustment March 2006
published June 2010

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

16
 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

THE MDB Harmonized Conditions of Contract

Conditions of Contract for Construction
Intended for building and civil engineering works designed by (or on behalf of) the Employer.
The Contract may require the Contractor to supply plant and / or execute some design ( if any ).
Contract comes into effect when the Employer accepts the Tender by issuing the Letter of
Acceptance. The Parties may then sign a Contract Agreement.
Contract Data completed by the Employer constitute Part A of the Particular Conditions.
Administration by the Engineer, with data in the Particular Conditions-Part A : Contract Data.
Engineer‘s Duties and Authority requiring approval of the Employer. ( time and cost )
The Engineer does not act impartially, and pre-arbitral decisions are made by the
Dispute Board ( DB ) comprising one or three persons, jointly appointed by the Parties by the
date stated in the Contract Data.
The Engineer certifies interim and final payments which are determined by measurement,
applying rates and prices in the Bill of Quantities.

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

The FIDIC - MDB Contract is an entire Contract Document
Fédération Internationale des Ingénieurs-Conseils

and consists of several parts :

Contract Agreement , ( if any )
Letter of Acceptance
Letter of Tender
Particular Conditions
Part A : Contract Data, Part B : Specific Provisions
General Conditions of Contract
Specification and Drawings
Schedules : Bill of Quantities, Daywork , Payment Currencies
Contractor‘s Tender
Appendix Agreement of the Dispute Board, DB and Annex Procedural Rules
(Forms ) Bonds / Guarantees
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Structure of the Contract Document

The whole framework is structured into three parts :

1. General Conditions
2. Particular Conditions
Part A : Contract Data, Part B : Specific Provisions
3. Sample Forms for the
Letter of Tender, Letter of Acceptance,
Contract Agreement , Dispute Board Agreement ,
Security annexed to the Particular Conditions,
Guarantee annexed to the Instructions to Tenderes

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

17
 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

General Conditions
General Provisions

FIDIC is using Definitions, because :

Lawyers involved in the Common Law

( Case Law ) uses shot guns and not a rifle
with bullets to hit the right meaning

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Conditions of Contract for Construction

MDB Harmonised Edition
for Building and Engineering Works
designed by the Employer
General Conditions
1. General Provisions 11. Defects Liability
2. The Employer 12. Measurement and Evalation
3. The Engineer 13. Variations and Adjustments
4. The Contractor 14. Contract Price and Payment
5. Nominated Subcontractors 15. Termination by Employer
6. Staff and Labour 16. Suspension and Termination by Contractor
7. Plant, Materials and Workmanship 17. Risk and Responsibility
8. Commencement, Delays and Susp. 18. Insurance
9. Tests on Completion 19. Force Majeure
10. Employer‘s Taking Over 20. Claims, Disputes and Arbitration

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

MDB Conditions of Contract for Construction

The design specification describes design
characteristics and manufacturing methodology of the
Works and there particular Equipment, Material or
Product, Plant and Workmanship known as the
conventional Design-Bid-Build.
( MDB - Scope and Purpose of Works, Specification,
Bill of Qualities, (Tender-)Drawings, Permits,
Conditions of Contract and Particular Conditions A + B)
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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Employer

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Organisation Diagram

Employer

Engineer Contractor

Employer´s Tender Documents: Scope of Works, Drawings, Specification, BoQ

Contractor´s Bid, Design ( if any ), Execution, Completion, Remedy Defects

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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

organisational
chart
Employer

Engineer

Contractor

Design ( if any )
Dispute Board
Build / Construction
Execute
Complete
Remedy any Defects
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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Employer Duties and Obligations

• grant Access to Site and Possession

Property
• disclose Site Data in his possession

Financing
• make Arrangements for Payments
• pay the Contract Price
Co-operation • according to the provision of Contract

Compensation • for additional cost and disruption

Appointment • shall appoint - the Engineer

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Employer shall e.g. :

• give right of access to, and possession of,
all parts of the Site
• provide assistance to the Contractor
• submit reasonable evidence of financial arrangements
• give notice and particulars for Employer’s claims
• state in the Particular Conditions if Engineer is required
to obtain approval before exercising authority
• make available Equipment and “free-issue material”(if any)
• take over the Works when completed
• be intitled to terminate the Contract
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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Engineer

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

• the Employer shall appoint a skilful and experienced

Engineer, able to exercise the role of the Engineer to
ensure a successful project development
• generally the role of the Engineer will be divided
between actions taken as the Employers’ agent and
those involving a professional opinion, which requires
a certain degree of impartiality and fairness from him
• under Sub-Clause 1.1.2.4 the Engineer is defined to
act for the purposes of the Contract

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

• under the MDB Harmonized Conditions, both

Parties promise to each other, that the Engineer
shall have the duties and authority arising from the
Contract itself and
• accept that the project shall be realised in a fair
and balanced manner
• Clause 3 of these Conditions deals with the powers
and obligations of the “Engineer”, to exercise the
authority attributable to him as specified in the
Contract.
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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

• generally the role of the Engineer will be divided

between actions taken as the Employers’ agent and
those involving a professional opinion, which
requires a certain degree of impartiality and fairness
from him
• whenever carrying out these duties or exercising
authority attributable to him Sub-Clause 3.1(a) :
- the Engineer shall be deemed to act for the
Employer
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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

If required to obtain additional approval of the Employer

before exercising a specified authority applied under
Sub-Clause 3.1 (A) to (D), the requirements shall be
stated in the Particular Conditions, Part A, Contract Data:
• to check, to certify, to inspect, to instruct, to give his
opinion / consent / notice, to request, to approve or
to valuate, to test, to examine
• to determine ( Sub-Clause 3.5 )
- he shall make fair determinations
- he is not allowed to amend the Contract
- he is not allowed to relieve either Party of any duties,
obligations or responsibilities
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FIDIC General Conditions of White Book

Fédération Internationale des Ingénieurs-Conseils

The Engineer shall be independent and impartial.

Independence involves the relationship

between the Members and the Parties

Impartiality is about the relationship to the

facts

Dr. Cyril Chern, DBF

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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Client / Consultant Model Services Agreement

a) have due regard to the third party
White contract provided that the details of
such powers and duties are acceptable
to him and agreed in writing where they
Book Where the Services
include the exercise of
are not described in Appendix 1 (Scope
of Services);
powers or
Services Agreement performance of duties b) if authorised to certify, determine or
4. Edition 2006 authorised or required exercise discretion do so fairly between
by the terms of a the Client and third party not as an
contract between the arbitrator but as an independent
only similarly adopted in the
Client and any third professional exercising his judgment
Fifth Edition 2017
party, the Consultant with reasonable skill, care and
Sub-Clause 3.9.3
may: diligence; and

c) if so authorised vary the obligations of

any third party, subject to obtaining the
Sub-Clause 3.3.2
prior approval of the Client to any
variation which can have an important
shall be stated in the effect on costs or quality or time
General Conditions 3.1 and (except in any emergency when the
Consultant shall inform the Client as
Particular Condition, Part A soon as practicable )

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Actions of the Contract Cl. 1.5 with conse-

Interpretation quence of variation
Engineer Cl. 1.1.6.9

Quality of Works and Cl. 7.4, 7.6, 9.4,

Workmanship 11.1, 11.3, 11.4
List of actions to be
established Cl. 14
Payment Certification

 Approval Taking-Over Cl. 10

 Check Performance Certificate Cl. 11.9
 Certificate
 Consent Cl. 13
Variations
 Determination 13.1
 Disapproval
 Examination
Cost Management White Book
 Inspection Cl. 4.12, 13.2
 Instruction
 Notice
 Proposal Time Management Cl. 4.12, 8.3, 8.6,
8.1
 Request
(8.4 )
 Suspension
 Test Claim Determination Cl. 2.5, 3.5
 Valuation ( procedure 20.1 )

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

to fulfil Engineer’s duties and authority :

• notify the Commencement Date
• may reject any submitted Programme
• inspects the Works
• participates at tests, reject any Plant, Materials or
Workmanship
• shall measure the Works
• shall determine new Rates
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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

to fulfil Engineer’s duties and authority : cont.

• shall evaluate, agree or determine Variations
• shall review and approve the Design ( if any )
• shall certify Payments
• shall issue Taking-Over Certificates and
Performance Certificates
• shall approve or disapprove and determine Claims
• shall give Instructions
• shall request Proposals
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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Conclusion :
to satisfy all the requirements under the MDB
Harmonized Contract the Engineer therefore shall
have :
• complete engineering skills and experience
• good understanding of the Contract and the
required contract administration procedures
• able to agree or determine adjustments to the
Contract Price
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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Conclusion : cont.
• capable to review and/or approve the Contractor’s
Design if any or the proposal of Value Engineering
• able to foresee all legal, commercial and technical
consequences of any instruction, in particular those
leading to Variations
• allow for specific approval of the Employer before
taking action, see Sub-Clause 3.1 and Part A,
Contract Data of the Particular Conditions
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 FIDIC MDB General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Contractor

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Contractor Duties and Obligations

• responsible for qualified designers

Design (if any )
• engineers or other professionals
• manufacture of Plant
Execute
• production and manufacture of Materials
• according proper workmanlike
Complete
• within the Time for Completion
• before the expiry date of the Defects
Remedy Defects
Notification Period
Subcontractor
• subcontract not the whole of the Works
( obtain consent if required )

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FIDIC MDB General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Contractor shall e.g. :

• design ( to the extent specified in the Contract )
• execute
• complete the Works
• remedy any defects in the Works

• obtain a Performance Security

• comply with all safety regulations / Staff and Labour
• comply with obligations to plant and services as
defined by the Bank
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 FIDIC Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

1.3 What cannot be regulated

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FIDIC Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

...therefore a FIDIC Contract can‘t regulate concluding :

Period of the Post Liability, imposed by the applicable
law, agreed under § 1.4, after the Defects Notification
Period/Performance Certificate (mandatory statute, if any;
no limitation on the duration of liability stated therefore ) .
Public Law e.g. :
- Provisions of Site Safety Instructions / Regulations
- Labour Law / Environment Protection Rule
- Customs Duties / Foreign Exchange Provisions, etc.
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FIDIC Procedure of Certificates - Liability

Fédération Internationale des Ingénieurs-Conseils

§ 11.10
Taking Over Performance Unfulfilled Obligations
Certificate § 10.1 Certificate § 11.9

Legal Remedies
Time for Defects Notification for defects
Completion Period until limitation,§17.6
§ 8.2 §§ 11.1, 11.3 Applicable Law
§ 1.1.6.5,1.4,11.10
stated in the App. to Tender

Defects Notification Post Liability

Period

= Extension of Time

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 FIDIC Typical Sequence of Principle Events
Fédération Internationale des Ingénieurs-Conseils

Post
Liability

Time Extension

Post (Contract) Liability

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CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

1. Key Issues of the Conditions of Contract

Construction
designed by the Employer, 1. Edition 1999
Construction, MDB
designed by the Employer, Harmonised Edition 2010

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

1.1 Appendix to Tender RB

Particular Conditions RB

Particular Conditions PB
Part A: Contract Data
Part A: Specific Provisions

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Check Project Procurement Procedure

and Tender Documents :

It is assumed that all information in the Appendix to

Tender RB or Particular Conditions PB will be provided
by the Employer and included in the tender documents.
If the Employer requires tenderers to provide any of the
information required in the Appendix to Tender RB or
Particular Conditions PB, this must be clearly stated in
the tender documents.
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

…the most important details RB are e.g. :

§ 1.1.2.4 & §1.3 Engineer’s name
§ 1.1.3.3 Time for Completion of the Works
§ 1.1.3.7 Defects Notification Period
§ 1.2 Profit (% of cost )
§ 1.4 Governing Law (Statute Law )
§ 1.4 Ruling language
§ 1.4 Language for communications
§ 2.1 Time for access to the Site
§ 3.1 (B)(ii) Engineer’s Duties and Authority

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

…the most important details RB are e.g. :

§ 4.2 Amount of Performance Security
§ 5.1 Period of scrutinies Empl. Requirem.
§ 8.7&14.15 Delay damages for the Works
§ 8.7 Maximum amount of Delay damages
§ 13.5(b) if there are Provisional Sums : Percentage
for adjustment of Provisional Sums

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

…the most important details are e.g. : (cont.)

§ 13.8 if applies : Adjustments for Changes in

Cost
Table(s) of adjustment data … ( + and - )
§ 14.2 Total advance payment
§ 14.3 Percentage of retention
§ 14.3 Limit of Retention Money

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

…the most important details are e.g. : (cont.)

§ 14.6 Minimum amount of Interim Payment
§ 14.15 Currency/currencies of payment
§ 18 Insurance
§ 20.2 The Dispute Adjudication Board, DB ( PB)
ad hoc/permanent
§ 20.3 Appointment (if not agreed) to be made by...
insert name of the appointing entity
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

…the most important details are e.g. : (cont.)

§ 20.6 Arbitration
§ 1.1.5.6 Definition of Sections
( Name, Description, Value percentage of
Accepted Contract Amount, Time for
Completion, Delay Damages )

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

…the most important details are e.g. : (cont.)

§ 1.1.5.6 Section
…means a part of the Works specified in the Appendix to
Tender RB as a Section ( if any ) or in the Particular
Conditions PB Part A as a Section ( if any )

contractual only if agreed and mentioned in the

Appendix to Tender or Particular Conditions, Part A !
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CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

1.2 Particular Conditions

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Modifications to the Conditions may be required in some

legal jurisdictions, particularly if they are to be used on
domestic contracts.
The Conditions of Contract comprise the General
Conditions, which form part of the Contract and the
following Particular Conditions, e.g. which include
amendments and additions to such General Conditions.
Care must be taken to ensure that no ambiguity is
created ! Great care is needed as many FIDIC General
Conditions clauses cross refer.
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The tender documents should be prepared by

suitably-qualified engineers who are familiar with the
technical aspects of the required works, familiar with
the FIDIC wording and
a review by suitably-qualified lawyers may be
advisable, especial when drafting amendments and
additions to the Conditions or Particular Conditions

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

It may be necessary to amend some of the Conditions

e.g. :
§1.13 Employer shall obtain or grant all consents
including permits-to-work and approvals required
for the Works
§1.14 Joint and Several Liability
§1.15 Additional Sub-Clause Details to be Confidential
§3.1 Any requirements for Employer’s approval should
be set out in the Particular Conditions
§3.6 Requirement of Management Meetings
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§4.12 Unforeseeable Physical Conditions (sub-surface works)

§4.19 Availability of Electricity, Water and Gas
§6.8 Ruling Language different from the day to day
communication – competent interpreters
§1.4 Law and Language
§8.7 Reasonable pre-estimate for the pre-defined
damages
§13.2 Sharing of benefit for both Parties of Value
Engineering ( similar to RB )
§ 14.9 Retention Money to be released and substituted
by an appropriate guarantee
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§15.5 Supplement – to pay the amount of any other

loss or damage
§17.6 Limitation of Liability – the sum shall be …
§18 Insurance for Design as additional protection
§1.2 References to profit are e.g.1/20 (5%) of this Cost
§5.1 Employer’s outline design shall be a suggestion
or a requirement
§5.2 Approval of Contractor’s Documents – submission
procedures, time schedule, informations required
etc.
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

UK

Polish

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CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

2. The Parties of the Contract

Rights and Duties
of the Employer
and his Engineer

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Construction RB, PB

Employer

Engineer Contractor

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Employer
In the Definitions the meaning of the term is stated
in § 1.1.2.2 and the rights and duties of the
Employer are stated in § 2 .
The Engineer
In the Definitions the meaning of the term is stated
in § 1.1.2.4 and the rights and duties of the Engineer
are stated in § 3 .

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The primary role of the Employer is to be, or to represent,

the project initiator and owner.
Prior to contract formation, it includes responsibility for :
• deciding what works are to be carried out
• selecting the appropriate form of contract
• preparing Contract Documents
• preparing Employer’s Specification, Scope of Works
• Tendering, Selecting the Contractor, Award
• ensuring site availability and planning approvals
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 FIDIC Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

Employer Duties and Obligations

• grant Access to Site and Possession

Property
• disclose Site Data in his possession

Financing
• make Arrangements for Payments
• pay the Contract Price
Co-operation • according to the provision of Contract

Compensation • for additional cost and disruption

Appointment shall appoint the Engineer RB PB

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Organisation Diagram

Employer

Engineer Contractor

Employer´s Tender Documents: Scope of Works, Drawings, Specification, BoQ

Contractor´s Bid, Design ( if any ), Execution, Completion, Remedy Defects

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

White Book organisational

chart

Employer Red Book

Engineer

Contractor
21
21

Design / Planning ( if any )

Dispute Adjudication Board
Build / Construction
Execute
attention to responsibility Complete
Remedy any Defects
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

The Employer
§ 2.1 ...the Employer shall give the Contractor right of
access to, and possession of the Site.
...withholding of such right until receiving of
the Performance Security.
...if Contractor suffers delay and/or cost due a
failure by the Employer – the Contractor shall be
entitled subject to § 20.1 ( Contractor‘s Claims )
( § 8.4 EOT and Cost plus reasonable profit )

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

… the questions from Dr. Dietsch to Sub-Clause 2.1

and their activities/procedures will be discussed in
detail a little later …

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Employer
§ 2.2 Permits, Licences or Approvals
...the Employer shall provide reasonable
assistance on request to support the
Contractor
Attention : § 5.4 Laws of the Country and
§ 1.13 Compliance with Laws
Planing, zoning and building permit : Employer have
obtained or shall obtain, contribution of Contractor )
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

The Employer
§ 2.4 Employer‘s Financial Arrangements
...the Employer shall submit, within 28 days after
receiving any request from the Contractor reasonable
evidence that financial arrangements have been made
and are being maintained to pay the Contract Price in
accordance with § 14 ( Contract Price and Payment ) .

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Employer
§ 2.5 Employer‘s Claims
...the Employer or the Engineer shall give notice
and particulars as soon as practicable after
becoming aware of the event giving rise to
a claim under the Conditions.
...same administration sequence and
proceedings in accordance with § 3.5,
but no formal time bar .
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Contract may be formed in common law jurisdictions

on the exchange of an offer and acceptance, and more
generally on contract signature.
Following contract formation, the Employer’s
responsibilities include :
• administration and monitoring of the Contract
• measurement ( if any ) or evaluation of the Works
• ordering any necessary variations
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

• making interim and final payments

• consulting with the Contractor to seek agreement prior
to determinations of disputes
• allowing the Engineer to make fair determinations
• taking over the Works
The Engineer acts for the Employer when carrying out
these duties on his behalf, § 3.1 .
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FIDIC Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Employer Duties and Obligations

• grant Access to Site and Possession

Property
• disclose Site Data in his possession

Financing
• make Arrangements for Payments
• pay the Contract Price
Co-operation • according to the provision of Contract

Compensation • for additional cost and disruption

Appointment shall appoint the Engineer RB PB

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

…the Employer shall appoint the Engineer § 3.1, to:

...carry out the duties assigned to him in the Contract.
Whenever carrying out these duties or exercising
authority § 3.1(a), (c) :
...the Engineer shall be deemed to act for the Employer
…actions by the Engineer shall not relieve the
Contractor from any responsibility under the Contract

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

CONTRACT ADMINISTRATION (MANAGEMENT)

- Supervision, Monitoring Progress, Checking and Testing
- Enforcement, Instructions, Requests
- Quality and Quantity
- Invoice Verification, Evaluation
- Certificates: Payments / Taking Over / Completion
- Extensions, Variation Orders, Amendments only by the Parties
- Determinations
- Disputes and their Resolution ( if acting impartial, no DAB in place )
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Actions of the Contract Interpretation Cl. 1.5 with conse-

quence of variation
Eng. / Employer Cl. 1.1.6.9

Quality of Works and Cl. 7.4, 7.6, 9.4,

Workmanship 11.1, 11.3, 11.4
List of actions to be
established Cl. 14
Payment Certification

 Approval Taking-Over Cl. 10

 Check Performance Certificate Cl. 11.9
 Certificate
 Consent Variations Cl. 13
 Determination
 Disapproval
 Examination White Book
Cost Management
 Inspection Cl. 13.2
 Instruction
 Notice
Time Management Cl. 8.3, 8.6, 8.1
 Proposal
(8.4 )
 Request
 Suspension
 Test Claim Determination Cl. 2.5, 3.5
 Valuation

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Engineer
§ 3.1 Engineer‘s Duties and Authority
...shall have no authority to amend the Contract
...except as stated in the Particular Conditions or as
otherwise in the Conditions, the Engineer exercise
the authority as specified in the Contract and shall
be deemed to act for the Employer.
...any action shall not relieve the Contractor from any
responsibilty
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 The Engineer FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 3.2 Delegation by the Engineer

...the Engineer may assign and revoke duties and
delegate authority to assistants in writing
...the Engineer shall not delegate the authority to
determine any matter in accordance with Sub-
Clause 3.5 ( Determination )
...if Contractor questions any activity of an
assistant, he may refer the matter to the Engineer
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Engineer
§ 3.3 Instruction of the Engineer
...the Engineer may issue to the Contractor
( at any time ) instructions and additional or
modified Drawings...
...if an instruction constitutes a Variation,
§ 13 ( Variation and Adjustments ) shall apply.
( see definition 1.1.6.9 )
...the Contractor shall comply with the
instructions given by the Engineer.
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Engineer
§ 3.3 Instruction of the Engineer (cont.)
...whenever practicable, instructions shall be given
in writing. If Engineer or a assistant :
(a) gives an oral instruction
(b) receives a written confirmation from the
Contractor within two working days
(c) does not reply within two working days
then the confirmation shall constitute the written
instruction of the Engineer
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 FIDIC Typical Sequence of Principle Events
Fédération Internationale des Ingénieurs-Conseils

RB
Instructions
PB

or
if notified at
Time Extension
the last day

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Engineer
§ 3.4 Replacement of the Engineer
...the Employer shall not replace the
Engineer with a person against whom the
Contractor raises reasonable objection with
supporting particulars
Employer to give notice not less than 21days
before intended date of replacement
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

notice
see Sub-Clause 1.3 Communications

notice
notice in Party E
writing notice nothing happens
§ 1.3 copy Eng. without a notice
notice
Party C

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 3.5 Determinations
...if the Engineer shall agree or determine
(within 42 days under § 20.1) any matter, he
shall consult with each Party to reach
agreement.
...if not achieved, he shall make a fair
determination in accordance with the
Contract, taking due regard of all relevant
circumstances.
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 3.5 Determinations ( cont. )

...the Engineer shall give notice to both Parties
of each agreement or determination with
supporting particulars.
...each Party shall give effect to each
agreement or determination,
... unless and until revised under § 20
( Claims, Disputes and Arbitration)

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Engineer‘s Determination :

• to consult with each Party (right to be heard)
• to reach agreement (cannot be contested legally)
• if not achieved – make a fair determination,
..taking due regard of all relevant circumstances
• give notice of each agreement or determination
• each Party shall give effect unless and until
..revised by the DAB, DB, Adjudication - Decision
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 3.5 Determinations by Engineer shall consult with fair determination if shall give
the Employer‘s each Party to reach agreement is not notice to both
Engineer agreement achieved Parties

when Employer‘s in accordance with the of each

Engineer shall proceed Contract , taking due agreement or
according to regard of all relevant determination
§ 3.5 Determinations circumstances

binding until
Typical sequence whenever the Conditions revised under
§ 20 Claims,
provide that the Engineer shall proceed in Disputes and
Arbitration

accordance with § 3.5 ( no time period;

but under § 20 Claims there are time periods )
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FIDIC Flow Chart SubClause 3.5 Determination

Fédération Internationale des Ingénieurs-Conseils

Determinations ( Procedure )

Claim
(in the broader sense)
§ 20.1

when Engineer shall DAB

proceed according when not Dispute § 20.4
to SubClause 3.5

Determination provisional
Agreement or by Engineer or
required binding

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FIDIC Flow Chart SubClause 3.5 Determination

Fédération Internationale des Ingénieurs-Conseils

Determination ( Procedure )

Claim
(in the broader sense)
§ 20.1

when Eng./Empl. shall

DAB
proceed according when not Dispute
§ 20.4
to SubClause 3.5

Determination provisional
Agreement or by Eng./Empl. or
required binding

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

The Engineer shall be independent and impartial.

Independence involves the relationship

between the Members and the Parties

Impartiality is about the relationship to the facts

Dr. Cyril Chern, DBF

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CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger ©

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

2. The Parties of the Contract

Rights and Duties
of the Contractor
and his Designer

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

2. Rights and Duties

of the Contractor
and his Designer

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

The Contractor
In the Definitions the meaning of the term is stated in § 1.1.2.3
and the rights and duties of the Contractor are stated in § 4

The SubContractor
In the Definitions the meaning of the term is stated in § 1.1.2.8
and the rights and duties of the SubContractor are stated in § 4.4
The Nominated Subcontractor
means a Subcontractor stated in the Contract or whom the
Engineer instructs the Contractor under § 5 to employ in
conjunction with § 13 (Variation)
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Contractor Duties and Obligations

• responsible for qualified designers,

Design ( if any )
engineers or other professionals
• manufacture of Plant
Execute
• production and manufacture of Materials
• according proper workmanlike
Complete
• within the Time for Completion
• before the expiry date of the Defects
Remedy Defects
Notification Period
Subcontractor
• subcontract not the whole of the Works
( obtain consent if required )

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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§4.1 Contractor’s General Obligations

…the Contractor shall design, execute and
complete the Works and shall remedy any defects
in the Works. ( Fitness for Purpose )
©

…shall provide the Plant and Contractor’s

Documents specified in the Contract
( as-built drawings, operation - and maintenance manuals
– otherwise the Works are not completed for/to §10.1 Taking
Over )

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r

FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.1 Contractor’s General Obligations

(d) prior to the commencement of Tests on Completion
the Contractor shall submit
’’as-built’’ documents and
operation and maintenance manuals
Such part shall not be considered to be completed for
the purposes of taking-over under
§ 10.1 ( Taking Over of the Works and Sections )

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.2 Performance Security

…the Contractor shall obtain ( at his cost ) a
Performance Security for the proper performance,
in the amount and currencies stated in the
Appendix to Tender or Particular Conditions within
28 days, after receiving the Letter of Acceptance
(§1.1.1.3) valid and enforceable until completed
the Works and remedied any defects to the Works.

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 FIDIC Flow Chart of Performance Security
Fédération Internationale des Ingénieurs-Conseils

Sequence of the Performance Security § 4.2

Performance
Certificate

Letter of Acceptance Delivery of

or Performance Return
Time for Completion incl.
Contract Agreement Security 21 days
Defects Notification Period
28 days

Attention:
Adjustments to the
Entitlement
Contract - changes
the Periods

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FIDIC Typical Sequence of Principle Events

Fédération Internationale des Ingénieurs-Conseils

or
Contract
Agreement
Validity of Performance Security

or
if notified at
Time Extension
the last day

14.2 Advanced Payment

against a guarantee
progressively reduced
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.4 Subcontractors
…the Contractor shall not subcontract the whole of
the Works
…the Contractor shall be responsible of any
Subcontractor as if they were the acts and defaults
of the Contractor unless otherwise stated in the
Particular Conditions
…each subcontract shall include provisions which
would entitle the Employer to require the subcontract
to be assigned to the Employer under Sub-Clause 4.5
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 4.5 Assignment of Benefit of Subcontract

…if Subcontractor’s obligations extend beyond the
expiry date of the relevant Defects Notification
Period and instructed by the Engineer, the
Contractor shall assign the benefit of such
obligations to the Employer.
…Contractor not liable for the work carried out by
the Subcontractor after the assignment takes
effect.
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.6 Co-operation
…the Contractor shall allow appropriate opportunities
for carrying out any work by others not included in the
Contract or specified in the Contract or as instructed by
the Employer
…if instruction by the Engineer / Employer incur
Unforseeable Cost, shall constitute a Variation
…extent of co-ordination to be specified in the
Employer’s Requirements
…shall submit docs if possession to works required
from the Employer by the Contractor
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.7 Setting Out

…the Contractor shall use reasonable efforts, to
verify their accuracy before they are used.
Time Extension and Cost plus reasonable profit
only, if an experienced contractor could not
reasonably have discovered such an error.

§ 4.9 Quality Assurance

…shall institute a QMS and shall comply
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 4.10 Site Data

…to the extent which was practicable ( cost
and time ) the Contractor shall be deemed to
have obtained ( inspected/examined the Site)
all necessary information which may
influence or effect the Tender or Works
before submitting the Tender.

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

Definition of data :
1. Factual information, especially information organized
for analysis or used to reason or make decisions.
2. A fact or proposition used to draw a conclusion or
make a decision.
3. A level surface or point to which other levels are
related; a reference in measuring elevations.
( geological survey investigations by means of an expert opinion and
other non-factual interpretations are not record “data” acquisition,
not legally reliable)
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.11 Sufficiency of the Accepted Contract Amoun

…the Contractor shall be deemed to:
(a) have satisfied himself as to correctness and
sufficiency
(b) have based on all Site data as to all relevant
matters
…the Accepted Contract Amount covers all
obligations for proper design (if any ), execution
and completion of the Works and the remedying
of any defects.
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 4.12 Unforeseeable Physical Conditions

…if the Contractor encounters adverse physical
conditions which he considers to have been
first notice Unforseeable, the Contractor shall give notice to
the Engineer as soon as practicable and shall set
out the reasons why the Contractor considers
them to be Unforeseeable, but shall continue
executing the Works
second notice …if entitled, notice for extention of time and cost

Unforeseeable not unforeseen ( §1.1.6.8 means not reasonably foreseeable by an

experienced contractor by the date for submision of the Tender)
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 4.21 Progress Reports

…the Contractor shall prepare monthly progress
reports unless otherwise stated in the Particular
Conditions.
…the extent of the content of a Progress Report
in mentioned in this Subclause (a) up to (h)
( Site Diary / Log Book - Language / Statute
Law, Disputes; must accompany the application
for Interim Payment § 14.3 )
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 5 Nominated Subcontractors
§ 5.1 Definition of nominated Subcontractor means :
(a) who is stated in the Contract…
(b) whom the Engineer, under Clause 13 Variation,
instructs the Contractor to employ as a
Subcontractor
§ 5.2 Objection to Nomination
the Contractor shall not be under any obligation to
employ a nominated Subcontractor against whom
the Contractor raises reasonable objections with
supporting particulars…
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 FIDIC General Conditions of Contract
Fédération Internationale des Ingénieurs-Conseils

§ 5.2 Objection to Nomination ( cont. )

the Contractor shall not be under any obligation to
employ a nominated Subcontractor against whom
the Contractor raises reasonable objections with
supporting particulars…
consequences in (a to c ), if Employer insist – than
the Employer has to indemnity the Contractor
against and from the consequences of the matter
like obligations and liabilities from the consequences
of any failure by the Subcontractor
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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 5.3 Payments to nominated Subcontractor

…the Contractor shall pay to the nominated
Subcontractor the amounts which the Engineer
certifies to be due in accordance with the
subcontract…

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FIDIC General Conditions of Contract

Fédération Internationale des Ingénieurs-Conseils

§ 5.4 Evidence of Payments

…the Engineer may request the Contractor to supply
reasonable evidence that the nominated
Subcontractor has received all amounts due with
previous Payment Certificates prior issuing a new
Payment Certificate which includes an amount
payable to a nominated Subcontractor…
or satisfies the Engineer that he is entitled to
withhold or refuse to pay these amounts and has
notified the Subcontractor
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 CONDITIONS OF CONTRACT
Fédération Internationale des Ingénieurs-Conseils

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