Procedures and Notices required Under FIDIC 1999

Procedures and Notices Required Under

FIDIC 1999 First edition

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 Procedures and Notices required Under FIDIC 1999

Clause 14 “Contract Price and Payments”

Engineer to certify Employer shall pay

Contractor submit
the approved to the contractor
his monthly payment
amount the certified amount

< 28 days
Monthly Payment
< 56 days

Employer to verify the final

Final Payment < 42 days
draft and contractor to submit
requested information

Contractor
submit final Employer shall
Contractor submit
Statement and pay to the
draft of final
the written contractor the
Statement
discharge Final Statement
amount

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 Procedures and Notices required Under FIDIC 1999

Clause 20 “Claims Dispute and Arbitration”

Either of the Either of the
parties notifies to parties can go to
refer the dispute Parties arbitration
to a D.A.B to assign D.A.B shall issue the
a D.A.B decision
Amicable
Documents to be settlement should
submitted to the D.A.B be tried
< 28 days
< 84 days < 28 days < 56 days

Either of the
parties shows
Either of the parties his
refers the dispute to dissatisfaction
D.A.B

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Procedures and Notices required Under FIDIC 1999

Clause 1.6 “Contract Agreement”

L.O.I

28 days

Parties shall enter into a

contract agreement

Clause 1.9 “Delayed Drawings or Instructions”

The contractor shall give notice to the Engineer whenever the works are
likely to be delayed or disrupted, the notice shall include details of the
necessary drawings or instruction, details of why and by when it should
be issued, and details of the nature and amount of the de lay or
disruption likely to be suffered if it is late.

If the contractor suffers delay and or/incurs cost as a result of a failure

of the engineer to issue the notified drawings or instructions within a
time which is reasonable and is specified in the notice with supporting
details, the contractor shall give a further notice to the engineer and
shall be entitled subject to clause 20.1 to

a) Extension of time

b) Payment of any such cost

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Procedures and Notices required Under FIDIC 1999

Clause 2.1 “Right of Access to the Site”

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

by the Employer to give any right or possession within such time as may
be required to enable the contractor to proceed in accordance with the
programme [8.3], the contractor shall give notice to the Engineer and
shall be entitled subject to clause 20.1 to

c) Extension of time

d) Payment of any such cost

Clause 2.4 “Employer’s Financial Arrangements”

Contractor may request an evidence from the employer to proof that

financial arrangement have been made and are being maintained which
will enable the Employer to pay the contract price (as estimated at that
time) in accordance with Clause 14[contract price and payment]

28 days
42 days
Employer shall issue such
evidence

If the Employer intends to

make any change to his
financial arrangements, the Contractor shall be entitled to terminate
employer shall give notice to the contract if he didn’t receive the
the contractor with detailed reasonable evidence in respect of a failure
particulars to comply with the financial arrangement

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Procedures and Notices required Under FIDIC 1999

Clause 3.2 “Delegation by the Engineer”

The assignment, delegation or

revocation from the engineer
to assistants shall be in writing
and shall not take effect until
copies have been received by
both parties

If the contractor questions any determination or

instruction of an assistant, the contractor shall refer the
matter to the engineer, who shall promptly confirm,
reverse or vary the determination or instruction

Clause 3.3 “Instructions of the Engineer”

Instructions given by the engineer shall be
in writing. If the engineer gives an oral
instruction

2 days

Contractor shall send a letter

confirming the above verbal
instruction.

2 days

If no contradiction in writing
Engineer to make a letter to
within 2 days, it shall be
contradict
deemed to be an instruction of
the Engineer.

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 Procedures and Notices required Under FIDIC 1999

Clause 3.4 “Replacement of the Engineer”

If the Employer intends to replace the

Engineer

42 days

The Employer shall give notice to the contractor not

less than 42 days before the intended date of
replacement of the name, address and relevant
experience of the intended replacement engineer

The Employer shall not replace the Engineer with person

against whom the contractor raises reasonable objection
by notice to the Employer, with supporting
documents

Clause 4.2 “Performance Security and Performance Certificate”

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Issuance of Letter of Acceptance Contractor shall ensure that the performance security is valid and
Page 7 of 30 enforceable until the contractor has executed and completed the
works and remedied any defects. If the terms of the performance
28 days security specify its expiry date and the contractor has not become
entitled to receive the performance certificate by the date of 28
 Procedures and Notices required Under FIDIC 1999

Contractor shall Deliver the Performance Security to the

Employer and send a copy to the engineer.

Claim against the Performance Security Employer shall return the

Performance Security to the
▪ Contractor shall extend the validity of the Contractor within 21 days
Performance Security after receiving a copy of the
Performance Certificate
▪ Contractor shall pay the Employer an amount due, as
either agreed by the Contractor or as determined
under Clause, 2.5 within 42 days after this agreement
or determination

▪ Contractor shall remedy a default within 42 days after

receiving the default to be remedied

▪ Circumstances which entitle the Employer to

termination under Sub- Clause 15.2 irrespective
whether notice of termination has been given.

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Procedures and Notices required Under FIDIC 1999

Clause 4.7 “Setting Out”

If the contractor suffers delay and/or incurs cost from executing
work was necessitated by an error in the items (points, lines and
levels) of reference, contractor shall give notice to the engineer
Engineer shall proceed in
accordance with sub-clause
3.5[determinations] to agree
Contractor shall be entitled subject to clause 20.1 to: or determine these matters

a) An extension of time for any such delay, if completion is or

will be delayed

b) Payment of any such cost plus reasonable profit, which shall

be included in the contract price.

Clause 4.12 “Unforeseeable Physical Conditions”

If the contractor suffered from unforeseen physical obstruction or

conditions

Contractor shall send a notice to the engineer and a copy to the

employer to determine an extension of time.
Engineer shall proceed in
accordance with sub-clause
3.5[determinations] to agree
Contractor shall be entitled subject to clause 20.1 to: or determine these matters

a) An extension of time for any such delay, if completion is or

will be delayed

b) Payment of any such cost plus reasonable profit, which shall

be included in the contract price.

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Procedures and Notices required Under FIDIC 1999

Clause 4.16 “Transport of Goods”

Contractor shall give the engineer not less than 21 days’ notice of the
date on which any plant or a major item of other Goods will be
delivered to the site

Clause 4.21 “Progress Reports”

Commencement date

7 days after the last day of the

period to which it relates

Contractor to submit
monthly progress
reports

Clause 4.24 “Fossils”

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 Procedures and Notices required Under FIDIC 1999

If the contractor suffers delay and/or incurs cost from complying with
the instructions of the engineer related to fossils.

Contractor shall send a notice to the engineer.

Engineer shall proceed in

accordance with sub-clause
3.5[determinations] to agree
Contractor shall be entitled subject to clause 20.1 to: or determine these matters

a) An extension of time for any such delay, if completion is or

will be delayed

b) Payment of any such cost plus reasonable profit, which shall

be included in the contract price.

Clause 7.4 “Testing”

Engineer should give a notice to
the contractor by his Intention
to carry inspection or test for
material

24 hours

Test or inspection to be done

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Procedures and Notices required Under FIDIC 1999

Clause 8.1 “Commencement of work”

Letter of acceptance

Engineer shall give the

42 Days contractor not less than 7 days’
notice of the commencement
Commencement date date.

Clause 8.3 “Programme”

Notice of Commencement

28 Days

Contractor shall submit the

detailed programme of works.

Engineer may give notice to the

contractor stating the extent to
21 Days which the programme does not
comply with the contract

Contractor shall proceed in

accordance with the
programme.

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Procedures and Notices required Under FIDIC 1999

Clause 8.8-8.12 “Work suspension”

Instruction to suspend the work

by the engineer

84 days

Contractor shall give notice

requiring permission to proceed
with the work.

28 days

If such permission is not

guaranteed

Suspension affect part of the scope, this part can be Suspension affects the full project; this will
considered by the contractor as omitted and shall entitle the contractor to termination of the
be treated under clause 13 contract and shall be treated under clause
16.2

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Procedures and Notices required Under FIDIC 1999

Clause 9.1 “Contractor’s Obligations”

Contractor is ready to carry out
each to the tests on completion

21 days

Contractor shall give notice to

the engineer.

14 days

Tests on completion shall be

carried out within 14 days.

Clause 9.2, 7.4, 10.3 “Delayed Tests”

Delay on Tests
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 Procedures and Notices required Under FIDIC 1999

Caused by the Employer Caused by the Contractor

Contractor to give notice If contractor is prevented Engineer may, by notice,

to the Engineer and shall for more than 14 days to
require to carry out the tests
be entitled to extension carry out the tests, within 21 days after receiving
of time, cost related Employer is deemed to the notice.
expenses and reasonable have taken over the Works
profit. or Section.

Engineer to issue a Taking

– over certificate

Issue a written notice to

Contractor to conduct
tests on Completion

14 days

Contractor to carry out

the tests on completion as
soon as practicable before
the expiry of defects
notification period
Clause 10.1 “Taking over of the works and sections”

Contractor may apply by notice

to the engineer for a taking-
over certificate not earlier than
14 days before the works will,
in the contractor’s opinion, be
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completed.
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Contractor’s application of
14 days
taking over certificate
 Procedures and Notices required Under FIDIC 1999

Engineer shall issue the taking- Engineer shall reject the If the Engineer fails to
over certificate application, giving reasons and either issue the taking –
specifying the work required to over certificate or to reject
be done by the Contractor the Contractor’s
application within 28 days
and if the works are
substantially in accordance
with the Contract, the
taking –over certificate
shall be deemed to have
been issued on the last day
of that period.

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 Procedures and Notices required Under FIDIC 1999

Clause 11.1- 11.11 “Defects Liability”

If there is defect or damage in

the contractor’s works

Employer or representative shall

notify the Contractor

Contractor to: Failure to remedy:

1. Complete any outstanding work within 1. Employer may fix the date for Contractor to remedy
reasonable time as instructed by the the defects.
Engineer 2. If still failed to remedy, Employer may:
2. Execute all work required to remedy 3. Carry out the work by himself or others at Contractor’s
defects or damage as may be notified by cost
the Employer/ representative on or before 4. Reasonable reduction in Contract Price
the expiry date of the defects notification 5. it deprives the Employer of substantially the whole
period. benefits of the works, terminate the contract as a
whole.

Cost is at Contractor’s risk if work is attributable to: If due to any other cause, the Contractor will
1. Any design for which to contractor is responsible be notified by the employer/ representative,
2. Plant, materials or workmanship not being in accordance and it shall be treated as a variation
with the contract
3. Failure by the Contractor to comply with any other
obligation

28 days
For unfulfilled obligations, even after the
Engineer shall issue a issuance of the performance certificate, each
Performance Certificate party is liable for the unperformed obligations
after the latest of the
expiry dates of notice
Contractor to remove all
equipment, materials, etc.

28 days
Clause 12.1 “Works to be Measured”
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Works to be
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Procedures and Notices required Under FIDIC 1999

Notice to be given to the

Contractor/ Representative

1. Contractor to attend or send

a representative to assist the
Engineer
2. Supply any particulars
requested by the Engineer

14 days
Contractor to give If no notice,
notice to the Engineer Contractor, it is
to which records are deemed as
inaccurate if he accepted and
disagrees to the accurate
measurement

Engineer to review the records

and confirm or vary the records

Confirm Vary

Clause 12.4 “Omissions”

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Contractor to give notice to the
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Engineer with supporting
particulars
Procedures and Notices required Under FIDIC 1999

There is omission of any work

if:
1. 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
2. The omission of the work
will result (or has resulted)
in this sum not forming part
Engineer shall proceed to of the Contract Price; and
determine the cost which shall 3. This cost is not deemed to
be included in the
be included in the Contract
evaluation of any
price. substituted work

Clause 13.3 “Variation Procedure”

Variation is initiated by the

Engineer through:
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 Procedures and Notices required Under FIDIC 1999

Engineer requests a proposal for Engineer issues an Instruction

variation to the Contractor for variation to the Contractor

If Contractor
cannot
Contractor, in compliance, Contractor shall Contractor Contractor readily obtain
submits: inform the shall execute to the goods
1. A description of the Engineer if he and be promptly required for
proposed work to be cannot comply bound by give notice the variation
performed and a programme and give reasons each to the
for its execution Engineer
therefor variation
2. The Contractor’s proposal for
stating the
any necessary modifications
to the programme reasons
3. Contractor’s proposal for with
evaluation of the variation supporting
particulars

Engineer to
act on the
proposal

Approval Disapproval Comments

Clause 13.7- 13.8 “Adjustments for Changes in Price”

Changes in
price

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Increase/ decrease caused by Increase/ decrease of costs of
aPage
change
20 in
oflegislation/
30 laws labor, goods and other inputs to
of UAE the works
 Procedures and Notices required Under FIDIC 1999

If Contractor
suffered or will Contractor to give There is “Table of Adjustment data” If there is no
suffer delay notice to the Engineer included in the Appendix to Tender “Table of
and/ or Adjustment
incurred or data” in the
will incur Appendix to
additional cost Contractor is entitled The adjustment will be based upon the
Tender, this
for an extension of formulae:
Pn= a + b Ln/Lo + C En/Eo + d Mn/Mo + Sub- clause
time and payment of
will not apply.
any cost

Engineer to proceed Engineer to determine a provisional

determining the index for the issue of interim payment
entitlement of the certificates
Contractor

The adjustment of
prices shall be based
on whatever is more
favorable to the
Employer, either:

On each index or price applicable Current index or price

on the date, 49 days prior to expiry
of the time of completion.

Clause 14 “Contract Price and Payments”

Letter of Acceptance OR Receipt of Performance Security The final payment certified

42 days 21 days
56 days
Whichever is later
Employer shall pay to the
contractor the final payment
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 Procedures and Notices required Under FIDIC 1999

Employer shall pay to the

contractor the first installment
of the advance payment

Performance security received Note: if the contractor has not

applied for a final Payment
56 days Certificate in accordance with
this Sub-Clauses, the engineer
Contractor shall submit, to the engineer, six copies of
shall request the contractor to
a draft final statement with supporting documents
do so. If the contractor fails to
submit an application within a
period of 28 days, the engineer
Contractor with the engineer shall agree with the
shall issue the final payment
final statement
certificate for such amount as
he fairly determines to be due
Disputed
Agreed

Contractor shall submit the final statement along with Engineer shall deliver to the employer
a written discharge which confirms that the total of with a copy to the contractor an interim
the Final statement represents full and final payment certificate for the agrees parts
settlement of all the moneys due to the contractor of the draft final statement, and a
under or in connection with the contract dispute should be referred to D.A.B

28 days

Engineer shall issue, to the Employer, the Final

Payment Certificate

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Procedures and Notices required Under FIDIC 1999

Clause 14.9- 14.10 “Payment of Retention Money” and

“Statement of Completion”

Taking- over Certificate has been issued

Issued for the If issued for a Section

whole works or part of the Works

Engineer to certify Proportion of the 2/5 (or 20%) of the

the first half of the Retention Money proportion
Retention Money shall be certified
Proportion= estimated
and paid
contract value of the
84 days from receipt of Section or part
taking over certificate divided by estimated
final contract price

Contractor to
submit Statement
of Completion
with supporting
documents in six
copies

Engineer will certify

the payments

Clause 14.13 “Issue of Final Payment Certificate”

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Contractor to submit Final Statement
Page 23 of 30 and written discharge
Procedures and Notices required Under FIDIC 1999

If Contractor has not 28 days

applied for a Final
Payment Certificate Engineer shall issue Final
Payment Certificate

Engineer shall make a

request to the Contractor
to do so

28 days
If the Contractor failed to
submit an application

Contractor to submit
an application

Engineer shall issue the

Final Payment Certificate

Clause 15-15.5 “Termination by Employer”

Termination notice to the

Contractor
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 Procedures and Notices required Under FIDIC 1999

28 days prior notice

Immediate effect

14 days prior notice Grounds are: At Employer’s convenience

1. Bankruptcy/ Insolvency
2. Bribery
With reason/s against Contractor

Clause 16 “Suspension and Termination by Contractor”

Employer fails to pay the OR 56 days after

Engineer fails to certify the
payment within 56 days from submitting
monthly payments within 28
contractor submittal the payment
days from contractor submittal
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 Procedures and Notices required Under FIDIC 1999

42 days after
Contractor shall be
the 56 days entitled to terminate
Contractor shall give a notice to the
Employer of his intension to suspend the the contract. After
work or reduce the rate of work giving a 14 days’
Contractor shall notice
be entitled to
terminate the 21 days
contract. After
giving a 14
Contractor shall be entitled to suspend the
days’ notice
work or reduce the rate of work

If the contractor suffers delay and/or incurs Cost as a

result of suspending work (or reducing the rate of work),
the contractor shall give a notice to the Engineer
Engineer shall proceed in
accordance with sub-clause 3.5
[determinations] to agree or
determine these matters
Contractor shall be entitled subject to clause 20.1 to:
c) An extension of time for any such delay, if completion is or will be
delayed
d) Payment of any such cost plus reasonable profit, which shall be
included in the contract price.

Clause 16.1 “Suspension of Work by Contractor”

Notice of Suspension

21 days prior notice

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 Procedures and Notices required Under FIDIC 1999

To the Employer

Clause 16.2 “Termination by Contractor”

Notice of Termination

Grounds:
1. Non receipt of evidence w/in 14 days
Immediate effect
42 days after giving notice of prior notice
termination w/ respect to
Financial Arrangements Grounds are:
2. Engineer fails to issue payment To the Employer
1. Prolonged suspension
certificate after 56 days after 2. Bankruptcy/ insolvency of
receipt of statement and the Employer or has gone
supporting documents into liquidation
3. Non- payment of interim
payment certificate w/in 42
days after expiry of 56 days for
Employer to pay interim
payments
4. Non- performance of
obligation by the Employer
5. Failure to comply with the
Contract agreement by the
employer as regards signing of
contract agreement and
assignment of contract

Clause 17.5 “Intellectual and Industrial property Rights”

The party who’s intellectual and / or

industrial property rights have been
violated, has to give a notice of claim

Infringement (or
____________________________________________________________________________________
alleged infringement)
of Intellectual and/ or
Page 27 of 30
industrial property
rights
Procedures and Notices required Under FIDIC 1999

Failure to do so, WAIVER

28 days
of right to indemnity

Party who committed

the infringement

Clause 19 “Force Majeure”

Occurrence of
Force Majeure
or should have
become aware

One time occurrence 84 continuous days OR

but less than 84 days Multiple periods totaling to 140 days

Within 14 days

Notice of Termination of Contract

Notice of circumstances of
the force majeure, specifying
the works prevented 7 days

Effective Termination

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 Procedures and Notices required Under FIDIC 1999

Clause 20.1 “Contractor’s Claim”

If the contractor considers himself to be entitled to any extension of the Time

and/or any additional payment under any Clause of these Conditions or otherwise,

The contractor became aware or should have become aware of the event or
circumstance

< 28 days

Contractor shall give notice of to

the Engineer, with a copy to the
Employer 42 days or any other period
agreed by the Engineer

Direct effect Continuing effect

Contractor shall send an

The Contractor shall send to the Interim Account
Engineer an account giving
Repeated
detailed particulars of the amount every 28 days
claimed and the grounds upon
which the claim is based
End of the event effect

42 days
28 days

The Engineer shall respond with Full Detailed Particulars of

approval, or with disapproval and cumulative account
detailed comments. He may also
request any necessary further
particulars, but shall nevertheless
give his response on the principles
of the claim within such time
Clause 20.2 “Appointment of the Dispute Adjudication Board”

If either of the parties If either of the parties If 1 PERSON- Jointly

raised a dispute to DAB refers to DAB
____________________________________________________________________________________
appointed by the
< 28 days parties
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84 days or other If 3 PERSONS- each
period agreed by DAB shall be appointed party to nominate 1
the parties by the Parties member for the
Procedures and Notices required Under FIDIC 1999

Clause 20.5 “Arbitration”

ARBITRATION
NOTICE OF
Notes:
▪ Under the rules of
arbitration of international
chamber of commerce
56 days after notice ▪ May be commenced prior to
of dissatisfaction or after the completion of
the Works
▪ Obligations of the parties,
On or after this period, to the Engineer and the DAB
commence even without shall not be altered by any
attempt to settle amicably. arbitration being conducted.

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