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FIDIC Contract Management Overview

FIDIC is an international federation of consulting engineers that has published standard forms of contract since 1957. This document discusses FIDIC's history and standard contracts, including the Red Book for construction, Yellow Book for design-build projects, and Silver Book for EPC turnkey projects. It also summarizes key clauses related to claims procedures under FIDIC contracts, such as requirements for contractors to submit notices of claims within timelines and keep contemporary records to support any claims for delays or additional costs.

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Mohammed Shafi
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214 views18 pages

FIDIC Contract Management Overview

FIDIC is an international federation of consulting engineers that has published standard forms of contract since 1957. This document discusses FIDIC's history and standard contracts, including the Red Book for construction, Yellow Book for design-build projects, and Silver Book for EPC turnkey projects. It also summarizes key clauses related to claims procedures under FIDIC contracts, such as requirements for contractors to submit notices of claims within timelines and keep contemporary records to support any claims for delays or additional costs.

Uploaded by

Mohammed Shafi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Contracts Management

Principles & Practices


According to FIDIC
• Founded in 1913
• Expanded in 1945 to include 40 national associations
• Published first Conditions of Contract in 1957
• In 2004 has 64 member associations
• Headquarters in Switzerland
• Web Site : www.fidic.org
• Conditions of Contract for Construction (Red
Book)
• Conditions of Contract for Plant & Design
Build (Yellow Book)
• Conditions of Contract for EPC Turnkey
Projects (Silver Book)
• Short Form of Contracts (Green Book)
14.3 Contractor 14.6 Employer 14.7 Employer
submits gives Contractor makes the
Statement to the notice of amount payment to the
Employer considered due Contractor

Each of the <56d


monthly (or
otherwise)
interim <28d
payments

The final Employer verifies the draft final statement, Contractor


payment submits information
<42d

14.11 Contractor submits 14.11 Contractor 14.7 employer


draft final statement to the submits Final Statement makes payment
Employer and the 14.12 discharge
DAB: the persons so named in the contract or other persons appointed
under sub-clause (appointment of the dispute adjudication board)
• The several documents forming the Contract are to be taken as
mutually explanatory of one another, but in case of ambiguities or
discrepancies the same shall be explained and adjusted by the
Engineer who shall thereupon issue to the Contractor instructions
thereon and in such event, unless otherwise provided in the Contract,
the priority of the documents forming the Contract shall be as
follows:
• The Contract Agreement (if completed);
• The Letter of Acceptance;
• The Tender;
• Part II of these Conditions;
• Part I of these Conditions; and
• Any other document forming part of the Contract.
• Cl.1.9 Drawings • Cl.8.4 Adverse Climatic
• Cl.2.1 Site Conditions
• Cl.4.7 Setting Out • Cl.13.7 Legislation
• Cl.4.12 Unforeseeable • Cl.13.8 Changes in Cost
• Cl.4.24 Fossils • Cl.14.8 Delayed
payments
• Cl.7.4 Testing
• Cl.19.4 Force Majeure
• Cl.8.4 EoT
• Cl.13.1 Right to vary
– Prior to issue of TO
certificate
• Cl.13.2 Value Engineering
– Development risk with
Contractor
– Savings 50/50
CLAIMS & CONTRACTUAL PROCEDURES
 Majority of construction projects worldwide are
administered by the FIDIC forms of contract.

 FIDIC recognises delay and related costs and has


provisions related thereto. For example;
 Sub-Clauses 8.4 & 20.1 (FIDIC 1999 Edition)
 Clauses 44 & 53 (FIDIC 1987 Edition)
 Unforeseeable ground conditions
 Delayed drawings
 Delayed payment
 Lack of possession of site
 Consequence of risk
 Suspension
 Force Majeure
 Clause 20.1
o Sets out Contractor procedure
o Condition Precedent
o Not later than 28 days
o Sets out Engineer procedure
 Contractor gives notice
 Within 28 days
 Contractor keeps contemporary records
o Engineer may monitor
o Engineer may instruct further records
 Fully detailed claim
o Supporting documents
 Within 42 days of event
 Crucial for determination of claim
 Records for any future dispute
 Contractor obliged to keep records
 Procedure for this work
 Employer & Engineer to agree Engineer’s
actions
 Cl.20.1 continuing procedure
 After 42 days:
o Claim submission is considered interim
o Further monthly claims
 Final claim with 28 days of end of effects

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