FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ......

43
FIDIC CONTRACTS A COMPARATIVE Uttam Sengupta Sr. GM Contracts & Risk Management

Transcript of FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ......

Page 1: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

FIDIC CONTRACTS – A COMPARATIVE

Uttam Sengupta

Sr. GM – Contracts & Risk Management

Page 2: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

FIDIC AND INTRODUCTION TO FIDIC

CONDITIONS OF CONTRACT

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Page 3: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

OUTLINE

What is FIDIC?

Characteristics of FIDIC Conditions of Contract

Application Prospect of FIDIC Conditions of Contract

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Page 4: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

FIDIC CONDITIONS OF CONTRACT

The new models include :

FIDIC Conditions of Contract for construction, the (New Red Book)

FIDIC Conditions of Contract for Plant and Design/Build, the (New

Yellow Book)

FIDIC Conditions of Contract for EPC Turnkey Projects, the (Silver

Book)

FIDIC Short Form of Contract, the (Green Book)

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Page 5: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

THE PARTIES IN A FIDIC CONTRACT

Contracting Authority/

Employer

Contractor - Contract

between Employer &

Contractor under Red/

Yellow FIDIC

Engineer - Contract

between Employer &

Engineer

Engineer to administer

FIDIC Contract on behalf of

Employer

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Page 6: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of

Contract for

Design, Build and

Operate Projects

“Gold Book”

Key Features of

Contracts:

Employers

Obligations

Access Permits,

licenses or

approvals

Employers

personnel

Employers

Financial

Arrangements

Access Permits,

licenses or

approvals

Employers

personnel

Employers

Financial

Arrangements Site

data

Access Permits, licenses or

approvals Employers

personnel Employers Financial

Arrangements

Access Permits,

licenses or

approvals

Employers

personnel

Employers

Financial

Arrangements

Role of

Engineer

Engineer:

Duties and limits on

authority

Instructions

Ability to replace on

42 days notice

Engineers

determinations

Engineer:

Duties and limits

on authority

Instructions

Ability to replace

on 42 days notice

Engineers

determinations

Dual role

No Engineer, Employers

Representative appointed

Duties and limits on authority.

Ability to replace on 14 days

notice

No Engineer,

Employers

Representative

appointed

Duties and limits

on authority.

Ability to replace

on 14 days notice

Comparison of key features of the FIDIC Contracts

Page 7: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for

Design, Build and

Operate Projects

“Gold Book” Administering

Claims

Employers Claims:

Requirement for

notice and particulars

to the Contractor

A notice to be given

as soon as

practicable.

Ability to set off or

deduct

Employers Claims:

Requirement for

notice

Notice to be given as

soon as practicable.

Ability to set off or

deduct

Employers Claims:

Requirement for notice

- notice to be given as soon as

practicable.

Ability to set off or deduct

Employers Claims:

Requirement for notice

– as soon as

practicable.

Claim to be

determined by

Employers.

Representative and, if

party is dissatisfied

issue a notice of

dissatisfaction and

proceed to Dispute.

Adjudication Board

(DAB) within 28 days

of determination.

Amount determined by

DAB set off or

deducted.

Contractors Claims:

Initial notice must be

given within 28 days

after the Contractor

became aware of, or

should have become

aware of the event or

circumstance giving

rise to the claim.

Condition precedent.

Contractors

Claims:

Initial notice must be

given within 28 days

Objective test and

condition precedent.

Fully detailed claim

within 42 days.

Engineers response

with 42 days.

Contractors Claims:

Initial notice must be given within

28 days after becoming (or

should become ) aware of the

event or circumstance.

Fully detailed claim within 42

days. Employers response within

42 days. Condition precedent.

Contractors Claims:

Contractor must

comply with specified

procedure (condition

precedent), initial

notice within 28 days

(extension only on

DAB decision),

Page 8: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for

Design, Build and

Operate Projects

“Gold Book” (cont) Fully detailed claim

must be sent to

Engineer within 42

days of becoming

aware of (or should

be aware of) event or

circumstance.

Engineer to respond

to claim within 42

days.

Contractor must keep

contemporaneous

records and if

instructed submit to

Employers

Representative, with

42 days of even, send

employers

Representative fully

detailed claim

(extension only by

DAB decision).

If circumstances /

event has continuing

effect, Contractors fully

detailed claim

considered as interim,

Contractor send further

interim claims at 28

day intervals, send

final claim within 28

days after end of

effects resulting from

event/circumstance.

Within 42 days receipt

of fully detailed claim

Employers

Page 9: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of Contract

for Design, Build and

Operate Projects “Gold

Book” (cont) Representative determines

claim. If no response

deemed rejected and

either party can refer to

DAB. If dissatisfied with

decision of Employers

Representative refer to

DAB within 28 days.

Contract Price Lump sum

Advance Payment

Advance Payment

Guarantee

Retention monies

Adjustment for

changes in

legislation and cost

Employer not liable

to Contractor for any

matter or thing in

connection with

Contract or

Execution of Works

except to extent

Contractor included

amount expressly for

it in Final Statement

and also Statement

at Completion

Lump sum contract

price

Advance payment

All payments

conditional on

receipt of required

Performance

Security Retention

Adjustments for

changes in

legislation and cost

fluctuations

Lump sum

Contractor to pay duties,

taxes and fees

Advance payment

Performance security

Retention

Currencies for payment

stipulated – this covers

payment of damages under

contract

Adjustments for changes in

legislation

Adjustments for changes in

costs

As submitted for Design-

Build and Operation

Service including Asset

Replacement Fund.

Contractor pays taxes,

duties, fees

Advance payment

Page 10: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of Contract

for Design, Build and

Operate Projects “Gold

Book”

Payment

Procedure

Periodic / stage

payments

Engineer issues

interim Payment

Certificate within 28

days receiving

Statement and

Supporting

Documents

Employer pays

amount certified

within 56 days

Engineer receiving

Statement and

Supporting

Documents (Interim

Payment Certificate)

and 56 days after

Employer receives

Final Payment

Certificate

Periodic or stage

payments

Contractor submits

application to

Engineer

Engineer issues

interim payment

certificate with 28

days of receipt of

application.

Employer pays the

amount certified

within 56 days of

application receipt.

Periodic payments

Employer to pay Contractor

within 28 days of receipt of

Statement and supporting

documents. Employer pays

first installment of advance

payment within 42 days of

date of Contract coming into

effect or 21 days of receipt

of security documents.

Employer pays amount due

in respect of each statement

within 56 days of receipt of

Statement and supporting

documents.

Final payment due 42 days

after receipt of Final

Statement and written

discharge

Contractor entitled to

financing charges 3

percentage points above

discounted rate of central

bank in country of currency

of payment compounded

monthly for delayed

payment.

If contract has schedule of

Payments as per

schedule. Monies to be

paid per Asset

Replacement Fund

Schedule. Employers

Representative issues

interim Payment

Certificate within 28 days

receiving Statement and

Supporting Documents.

Employer pays amount

certified within 56 days

receiving Statement and

Supporting Documents.

Final payment within 56

days Employer receiving

Final Payment Certificate

Design Build and final

Payment Certificate

Operation Service.

Page 11: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of Contract

for Design, Build and

Operate Projects “Gold

Book”

Variations Engineer may initiate

any time prior to

issue of Taking Over

Certificate either by :

an instruction or

request for

Contractor to submit

a proposal.

Contractor to

execute unless gives

prompt notice to

Engineer that

Contractor can’t

readily obtain goods

required.

Engineer may

initiate any time

prior to Taking Over

Certificate either by

: an instruction or a

request for

Contractor to

submit a proposal.

No entitlement to

omit any work to be

carried out by

others.

Contractor to

execute variation

unless prompt

notice given to

Engineer that; can’t

readily obtain

required goods; it

will reduce the

safety and

suitability of the

Works, adverse

impact of Schedule

of Guarantees

Engineer then

cancels, confirms or

varies instruction,

value engineering.

Employer may initiate

variations any time prior to

issuing of Taking Over

Certificate either by;

instruction or request for

Contractor to submit

proposal.

Employer can instruct

variations for work of a

minor or incidental nature

on a day work basis. This

will be valued in accordance

with day work schedule

Employer may initiate

variations any time prior to

issuing of Commissioning

Certificate either by; an

instruction, proposal.

Contractor to execute

Variation unless prompt

notice given that, can’t

readily obtain goods

required, reduce safety or

suitability of works,

adverse impact on

schedule of guarantees,

adverse affect on

Operation Service.

Page 12: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Variation

procedure

Engineer requests

proposal; Contractor

responds in writing

as soon as

practicable with

reasons for non

compliance or

proposal. Engineer

shall respond to

Contractor as soon

as practicable.

Variations evaluated

in accordance with

Measurement and

Evaluation

provisions unless

Engineer instructs /

approves otherwise

Engineer requests

proposal;

Contractor

responds as soon

as practicable with

reasons for non

compliance or

proposal. Engineer

responds as soon

as practicable with

approval,

disapproval or

comments. Upon

instructing or

approving a

Variation, Engineer

agrees or

determines

adjustments to

Contract Price and

Schedule of

Payments

Employer requests proposal;

Contractor responds as soon as

practicable with reasons for non

compliance or proposal

On instructing or approving

variation, Employer will agree or

determine adjustments to

Contract Price and Schedule of

Payments. Adjustments will

include reasonable profit and

take into account Contractors

submissions under value

engineering

Employer

Representative

requests proposal;

Contractor responds

as soon as

practicable with

reasons for non

compliance or

proposal.

On instructing or

approving variation,

Employers

Representative will

agree to determine

adjustments to

Contract Price and

Schedule of

Payments and will

include reasonable

profit and take into

account Contractors

submissions for value

engineering.

Page 13: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Programming

issues:

Commencement

Engineer to give

atleast 7 days notice

of Commencement

date.

Commencement

date to be within 42

days of receipt of

Letter of Acceptance

Engineer to give

atleast 7 days

notice of

Commencement

date.

Commencement

date to be within 42

days of receipt of

Letter of

Acceptance

Not applicable if

there is a Contract

Agreement. Ensure

that Contract has

retrospective effect.

Employer to give atleast 7 days

notice of Commencement Date.

Commencement date to be

within 42 days of date. Contract

comes into effect.

Employer

Representative to

give atleast 14 days

Notice of

Commencement date.

Commencement date

to be within 42 days

of Contractor

receiving Letter of

Acceptance.

Programming

Issues :

Completion

Contractor to

complete whole

Works and Section

within Time for

Completion.

Completion includes

passing Tests on

Completion;

completing all work

in Contract required

for Works or Section

to be considered

completed

Contractor to

complete whole

Works and Section

within Time for

Completion.

Completion

includes passing

Tests on

Completion; and

completing all work

required under the

Contract

Contractor to complete whole

Works and Section within Time

for Completion.

Completion includes passing

Tests on Completion;

completing all work stated in

Contract as required

Contractor to

complete the whole of

the Design-Build and

each section by Time

for Completion of

Design Build or as

extended and will

provide Operation

Service for the period

stated in Contract

Data (as agreed by

partied).

Page 14: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Programming

Issues:

Programme

Contractor to submit

programme within 28

days of receiving

Notice of Commence

Engineer has 21

days to respond

Contractor give

prompt notice to

Engineer of: specific

probable future

events or

circumstances which

may adversely affect

the work, increase

the Contract Price or

delay execution of

the Works

Contractor to submit

programme with in

28 days of Notice of

Commence

Engineer has 21

days to respond.

Submission of

revised

programmes. Early

warning.

Contractor to submit programme

to Employer within 28 days of

Commencement Date. Employer

has 21 days to respond to

Contractors programme

otherwise Contractor proceeds

with programme. Submission of

revised programmes.

Contractor to submit

programme within 28

days receiving Notice

of Commencement

date. Employers

representative has 21

days to respond to

Contractors

programme otherwise

Contractor proceeds

with programme.

Submission of revised

programme within 14

days of notice of

programme failing to

comply with contract

or actual progress

Page 15: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Programming

Issues: EOT

Variations

Exceptionally

adverse climatic

conditions

Unforeseeable

shortages of

personnel or goods

caused by epidemic

or govt. actions

cause of delay giving

entitlement under the

conditions.

Delay, impediment

or prevention

attributable to

Employer, Employer

personnel or

Employers other

Contractors on site

Delay caused by

authorities

Variations

Exceptionally

adverse climatic

conditions

Unforeseeable

shortages

Employer acts of

prevention. Any

other cause of

delay giving an

entitlement under

the conditions.

Delay, impediment

or prevention

caused by or

attributable to

Employer, his

personnel or

Employers other

Contractors on site

Variations

Cause of delay giving

entitlement under the conditions.

Delay, impediment or prevention

caused by or attributable to

Employer

Delay caused by authorities

For completion of

Design Build

Variations

Cause of delay giving

entitlement under the

conditions.

Exceptionally adverse

climatic conditions.

Unforeseeable

shortages of

personnel or goods

caused by epidemic

or govt. action

Delay, impediment

prevention caused by

Employer, his

personnel or other

Contractors on site

Page 16: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Risk allocation :

Design

responsibility

Contractor

generally

responsible for

design. Employer

requirements and

contractors

Proposals Errors in

the Employers

requirements.

Contractor review

period. Fitness for

purpose. If errors,

omissions,

ambiguities,

inconsistency

defects found in

Contractor

documents,

Contractor

Documents and

Works corrected at

Contractors cost

notwithstanding

consent or

approval.

Contractor generally responsible

for design

Contractor deemed to have

scrutinized Employers

requirements. Contractor

responsible for design of Works

and for accuracy of Employers

requirements

Contractor undertakes the

design. Contractors documents,

execution of completed works

will be in accordance with Laws

in country and documents

forming Contract (as

altered/modified by variations).

Contractor

responsible for design

of works. Contractor

warrants experience

and capability of

designers.

Page 17: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction

“Red Book”

Conditions of Contract for

Plant Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Risk

allocation:

Design

Developmen

t

Contractor prepare all

Contractors Documents.

Contractor Documents to be

submitted to Engineer for

review and (where specified)

approved. Review period not

to exceed 21 days from

receipt of Contractors

Documents and notice.

Engineer notified contractor

within review period if

Contractors Document fails to

comply with Contract.

Execution of relevant works

not to commence prior to

expiry of review period. If

Contractors Document

submitted for Engineers

approval. Engineer gives

notice to Contractor that

Contractors Document is

approved, with or without

comments, or that it fails to

comply. Engineers approval

is a condition precedent to

relevant part of the Works

commencing. Absence of

notice within review period

triggers deemed approval.

Contractor shall prepare all

Contractors Documents.

Documents to be submitted for

review. Review period not to

exceed 21 days from receipt of

Contractors. Documents and

Contractors notice. Employer

notifies Contractor within review

period if Contractors Document

fails to comply with Contract.

Contractor shall

prepare all

Contractors

Documents.

Documents to be

submitted for review,

review not to exceed

21 days from date.

Employer's

Representative

receives Contractors

Document and

Contractors Notice.

Employers

Representative

notified Contractor in

review period if

Contractors

Documents fall to

comply with Contract.

Page 18: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Risk allocation:

Site Conditions

Employer to make

available to

Contractor all

relevant data in

Employers

possession re

subsurface and

hydrological

conditions including

environmental

aspects Contractor

responsible for

interpretation.

Deemed to have

obtained all

necessary

information and

deemed inspection

of site. Sufficiency

of Accepted Contract

Amount

Employer to provide

site data Contractor

responsible for

interpretation.

Deemed

awareness (to the

extent practicable).

Sufficiency of

Accepted Contract

Amount

Employer to make available to

Contractor all relevant data in

Employers possession re

subsurface and hydrological

conditions including

environmental aspects

Contractor responsible for

verifying and interpreting all

data.

Employer has responsibility for

accuracy, sufficiency or

completeness of data sufficiency

of contract price.

Employer to make

available to

Contractor all relevant

data in Employers

possession re

subsurface and

hydrological &

climatic conditions at

site including

environmental

aspects. Contactor

deemed to have

inspected and

examined the site, its

surroundings data

and other available

information.

|

Sufficiency of

accepted Contract

amount

Page 19: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Risk allocation :

Unforeseeable

physical

conditions

Contractor notifies

Engineer as soon as

practicable.

Engineer inspects

and makes

determination.

Entitlement to

Extension of Time

and payment of cost.

Engineer can take

into account more

favourable

conditions

Contractor notifies

Engineer as soon

as practicable.

Engineer inspects

and makes

determination.

Entitlement to

Extension of Time

and additional cost.

Engineer can take

into account more

favourable

conditions

Unforeseeable difficulties :

Contractor deemed to have

obtained all necessary

information as to risks,

contingencies and other

circumstances which may

influence / effect Works.

Contractor accepts total

responsibility for having

foreseen all difficulties and costs

of successfully completing

works, no adjustment to

Contract Price for unforeseen

difficulties.

Contractor notifies

Employers

Representative as

soon as practicable.

Employers

Representative

inspects /

investigates.

Entitlement to

Extension of Time

and payment of cost.

Employers

Representative can

take into account

more favourable

conditions and any

evidence of physical

conditions foreseen

by Contractor when

submitting tender.

Page 20: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold Book”

Risk allocation:

Indemnities

Contractors

Indemnities: injury,

sickness, disease,

death damage or

loss of property, real

or personal (other

than Works) arising

out of Contractors

design (if any) the

execution and

completion of works

and remedying

defects. Is

attributable to

negligence, wilful act

or breach of Contract

by Contractor.

Contractors

Indemnities:

injury, sickness,

disease, death.

Damage or loss of

property (other than

Works). Contractors

care of the Works.

Employers

Indemnities:

injury, sickness,

disease, death

attributable to any

negligence, wilful

act or breach of

Contract by

Employer his

personnel or agents

and for matters for

which liability is

excluded from

insurance cover

(insurance under

contract).

Contractor Indemnities:

Injury, disease, death, loss

property real or personal (other

than Works) to extent damage

or loss arises out of or in the

course of or by reason of

design, execution and

completion of Works and

remedying of defects or not

attributable to any negligence,

wilful act or breach of Contract

by Employer.

Employers Indemnities:

injury, sickness, disease,

death attributable to any

negligence, wilful act or breach

of Contract by Employer his

personnel or agents and for

matters for which liability is

excluded from insurance cover

(insurances under contract).

Contractor

Indemnities: Injury,

disease, death, loss

property real or

personal (other than

Works). Indemnify

Employer against all

errors in Contractors

design of the Works and

other professional

services which result in

works not being fit for

purpose or result in any

loss/damage to

employer. Fitness for

purpose net

contribution.

Employers

Indemnities: injury,

sickness, disease,

death. Damage to or

loss of property real or

personal (other than

Works) which is

attributable to any

negligence, wilful act or

breach of contract by

Employer. Employers

personnel or agents.

Employers Risks net

contribution.

Page 21: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of Contract

for Design, Build and

Operate Projects “Gold

Book”

Risk allocation:

Indemnities

Employers

Indemnities: injury,

sickness, disease,

death attributable to

negligence, wilful act

or breach of Contract

by Employer,

Employers personnel

or agents and any

matters for which

liability cover is

excluded from

insurance cover

(insurance under

contract). Contractor

has total cap on

liability (excluding

electricity, water, gas,

Employers equipment

and free issue

material, IP, fraud,

deliberate default and

reckless misconduct).

Other:

Both parties liability

for indirect and

Consequential losses

are excluded.

Level of total cap to

be negotiated by

Parties.

Other:

Contractor has total

cap on liability

(excluding

electricity, water,

gas, Employers

equipment and free

issue material,

IP).Level of total cap

to be negotiated by

Parties.

Both parties liability

for indirect and

Consequential

losses are excluded.

Other:

Contractor has total cap on

liability (excluding electricity,

water gas, Employers

equipment and free issue

material, IP, fraud, deliberate

default and reckless

misconduct). Level of Total

Cap to be negotiated by

parties.

Both parties liability for

indirect and Consequential

losses are excluded

Other:

Both parties liability for

indirect and

Consequential losses are

excluded.

Contractor has total cap

on liability. Level of total

cap to be negotiated by

Parties.

Page 22: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Risk allocation:

Employers Risks

Employer risks e.g.

war, hostilities,

rebellion, riot

munitions of war,

pressure waves, use

or occupation by

Employer of any part

of Permanent Works

except as specified

under contract,

design of any part of

Works by Employers

personnel or by

others who Employer

is responsible for,

operation of forces of

nature that is

unforeseeable.

Consequences: If

Contractor suffers

delay / incurs cost as

result of Employers

risk Contractor shall

give notice to

Engineer and shall

be entitled (subject to

Contractors claims

procedure) EOT,

payment of Cost.

Employers risks e.g.

war, hostilities,

rebellion, riot

munitions of war,

pressure waves,

use or occupation of

the Works except as

specified,

Employers design,

unforeseeable

operation of the

forces of nature.

Employers risks e.g. war,

hostilities, rebellion, riot

munitions of war, pressure

waves

Consequences: Contractor will

give prompt notice to Employer if

Employers Risks result in loss,

damage to Works, Goods,

Contractor Documents. If

Contractor suffers delay and/or

incurs Cost as result will be

entitle to EOT, payment of cost.

Employers Risk

(During design build

period & Operation

Service Period) :

Commercial risks -

financial loss, delay

damage allocated to

Employer under

Contract or liable by

Law, right to construct

works on, over, under,

in through site, use or

occupation of site by

works for design,

construction or

completion of works

(other than abusive or

wrongful use by

Contractor) use

occupation by

Employer or any part

Permanent Works

except as specified

under Contract.

Page 23: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Risk allocation:

Employers Risks

(cont)

Risks of Damage -

damage due to

interference whether

temporary or

permanent with any

right of way, light, air,

water easement which

is unavoidable result

of construction of

works in accordance

with Contract, fault,

error, defect, omission

in any element design

of works by Employer

or in Employers

Requirements (other

than design carried

out by Contractor,

operation of forces of

nature, Exceptional

risk.

Page 24: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of Contract

for Construction “Red

Book”

Conditions of

Contract for

Plant Design

and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of Contract for

Design, Build and Operate

Projects “Gold Book”

Testing and

Taking Over :

Tests on

Completion

Contractor to give

Engineer atleast 21 days

notice of date after which

Contractor ready to carry

out Test on Completion

Engineer carries out Test

on Completion within 14

days or as instructed.

Delayed tests. Employer

delay, Contractor delay -

Engineer may require

Contractor to carry out

tests within 21 days after

receipt of notice. If

Contractor fails to carry

out Tests on Completion

within this period

Employers Personnel

can proceed with Tests at

risk and cost on

Contractor. Tests

deemed carried out and

results accepted as

accurate. Retesting.

Failure to pass -

Engineers options,

further repetition, reject

Works or section, issue

Taking Over Certificate

and Contract Price will be

reduced.

Contractor to give

atleast 21 days

notice. Engineer

instructs tests

within 14 days/

Test sequencing

Delayed Tests:

Employer delay,

Contractor delay

Retesting Failure

to pass -

Engineers options

: order further

repetition,

rejection if failure

deprives Employer

of substantially the

whole benefit,

issue a taking

Over Certificate if

Employer

requests.

Contractor to give atleast 21

days notice of date after

which Contractor ready to

carry out Tests on

completion. Tests on

Completion will be pre-

commissioning test, trial

operation. Delayed Tests:

Employer delay, Contractor

delay, Employer may require

contractor to carry out tests

within 21 days after receiving

notice. If Contractor fails to

carry out tests on completion

within 21 days. Employer

personnel may proceed with

test at Contractors risk and

cost. Tests deemed to be

carried out in presence of

Contractor and results

accepted as accurate.

Retesting. Failure to pass -

Employer can order further

test, reject works or section,

issue Taking Over Certificate

Contractor applies no earlier

than 21 days before ready to

carry out Tests on Completion

of Design-Build. Tests on

Completion Design Build will

be, pre-commissioning test,

commissioning test, trail

operation. Employer sole

beneficiary of any revenue or

benefit resulting from Tests on

Completion of Design Build.

During Trial Operation when

Works are operating under

stable conditions, the

Contractor shall give notice to

Employers Representative

that Works are ready for any

other tests on completion of

Design Build including

performance tests to

demonstrate if works confirm

with Employers requirements

and schedule of guarantees.

Trial operation is not

commencement of Operation

Service. Delayed Tests :

Employer delay, Contractor

delay. Retesting Failure to

pass - Employers

representative options : order

further repetition, issue Notice

to Correct.

Page 25: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of Contract

for Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Testing &

Taking Over :

Employer's

Taking Over

Contractor apply not

earlier than 14 days

before Contractor

anticipates completion.

Within 28 days Engineer

either: issues. Taking

Over Certificate or

rejects application. In

absence of Engineer

doing either within 28

days and if works or

section are substantially

in accordance with

Contract, deemed take

over occurs. Engineer

may take over part of

Permanent Works

Interference with Tests

on Completion :

prevention by Employer

more than 14 days

triggers deemed take

over, Tests on

Completion carried out

before expiry of Defects

Notification Period

Contractor entitled to

EOT and cost as a

result of delayed tests

on completion.

Contractor applies

no earlier than 14

days before

Contractor

anticipated

completion. Within

28 days Engineer

either: issues.

Taking Over

Certificate, rejects

Contractor's

application. In the

absence of either,

deemed takeover

occurs. Taking

over part of Works

Interference with

Test on

Completion,

prevention by

Employer for more

than 14 days

triggers deemed

take over, Tests on

Completion then to

be carried out

during the Defects

Notification period,

entitlement to EOT

and cost plus profit.

Contractor applies no earlier

than 14 days before Contractor

anticipated completion. Within

28 days Employer issues.

Taking Over Certificate, rejects

Contractor's application. If

Employer fails to do either within

28 days and if Works or Section

are substantially in accordance

with Contract Taking Over

Certificate deemed issued. No

Taking over in parts except as

stated in contract or as agreed.

Interference with tests on

completion. If Contractor

prevented more than 14 days by

Employer, Contractor carry out

tests as soon as practicable. If

Contractor suffers delay and / or

incurs Cost plus reasonable

profit. Retesting.

Contractor applies no

earlier than 14 days

before anticipated

completion. Within 28

days Employer

Representative

issues.

Commissioning

Certificate, rejects

Contractor's

application. If

Employer's

Representatives fails

to do either within 28

days and if Works or

Section are

substantially in

accordance with

Contract the

Commissioning

Certificate deemed

issued.

Page 26: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Testing and

taking over :

Tests after

Completion

Employer to give 21

days notice

Employer then

determines date

within 14 days.

Delayed tests and

retesting. Failure to

pass Tests after

Completion, non

performance

damages,

adjustments or

modifications to the

works.

Employer gives Contractor 21

days notice of tests after

Completion. If tests after

Completion are delayed

unreasonably by Employer

Contractor entitled (subject to

claim procedure) to payment of

Cost plus reasonable profit.

Failure to pass tests after

Completion. If works of Section

fail to pass any or all Tests after

Completion, relevant sum

payable for non performance

damages is stated in contract

(or calculation for non

performance damages) and

Contractor pays this sum to

Employer during Defects

Notification period then Works

or Section deemed passed.

Page 27: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of Contract

for Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of Contract for Design,

Build and Operate Projects “Gold

Book”

Defects Contractor obliged to

complete any

outstanding work on

date stated in Taking

Over Certificate and

remedy defects or

damage on or prior to

expiry date of Defects

Notification Period

Employer can extend

Defects Notification

Period upto 2 years.

Failure to remedy.

Defects / damage by

notified date, Employer

may carry out work

himself or by others at

Contractors cost,

Engineer agree to

determine reasonable

reduction in Contract

Price, terminate contract

if defect / damage

deprives Employer of

substantially whole

benefit of Works or

major part of Works.

Engineers ability to

instruct further tests.

Contractors obligation to

search for cause of

defect.

Contractor obliged

to remedy defects

or damage notified

on or prior to the

expiry date of the

Defects Notification

Period Extension of

Defects Notification

Period by upto 2

years. Failure to

rectify defects:

Employer may carry

out work at

Contractor's cost, or

Employer may

require Engineer to

agree or determine

reduction in

Contract Price, or

Terminate if defect

deprives Employer

of substantially the

whole benefit of the

Works, etc.

Engineers ability to

instruct further tests.

Contractors

obligation to search

Serial defects and

latent defects.

Issue of

Performance

Certificate.

Contractor shall complete

any outstanding work on

date stated in Taking Over

Certificate and remedy

defects or damage on or

prior to expiry Defects

Notification Period. All

remedy work carried out at

Contractors cost to extent

work is attributable to design

of Works, Plant Materials of

Workmanship, improper

operation or maintenance

for which Contractor

responsible failure to comply

with any other obligation.

Employer can extend

Defects Notification Period

by upto 2 years.

Failure to remedy Defects :

If fails within reasonable

time a date may be fixed by

Employer to remedy

defects. If fixed date is

missed Employer may, carry

out work himself in

reasonable manner at

Contractors cost, agree /

determine a reasonable

decrease in Contract price,

terminate if defect / damage

deprives Employer

substantially of whole

benefit of Works

Design- Build Period : Contractor

shall complete any work outstanding

on date stated in Commissioning

Certificate and no later than 1 year

after such date and remedy defects or

damage as notified by Employer.

Operation Service Period : Contractor

responsible repairing and making

good any damage or defect occurring

during Operation Service Period

whether defect is notified by Employer

or Employers representative or

observe by Contractor.

All work to repair defects or damage

executed at risk and cost of

Contractor except where attributable

to act of Employer / Employers

representative or is an Exceptional

Risk.

Failure to Remedy Defects during

Design Build Period or operation

Service Period. If fails within a

reasonable time a date may be fixed

by Employer / Employers

representative to remedy defects. If

fixed date is missed Employer may,

Employers representative determine

and certify reasonable reduction in

Contract Price or rates and prices

submitted for Operation Service

Period, terminate the contract if the

defect is such that deprives the

Employer substantially of the whole or

part of Works.

Page 28: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Force Majeure Exceptional event or

circumstance Notice

must be given within

14 days of becoming

aware, or should

become aware of

relevant event or

circumstance

constituting force

majeure. Contractor

entitled to EOT and

Cost in specified

circumstances

Option to Terminate :

continuous period for

84 days or multiple

periods totalling

more than 140 days

due to the same

notified force

majeure

Exceptional events

or circumstance

Notice to be given

within 14 days of

becoming aware -

objective test.

Contractor

entitlement to EOT

and cost in

specified

circumstances.

Option to terminate

: continuous period

for 84 days,

multiple periods

totalling more than

140 days.

Exceptional events or

circumstance Notice to be given

within 14 days of becoming

aware (or should become

aware). Duty to minimise delay.

If Contractor suffers delay

and/or incurs cost entitled to

EOT and Cost in specified

circumstances Option to

Terminate : continuous force

majeure period of 84 days or

multiple periods (of same event /

circumstance) totalling more

than 140 days

No definition of Force

Majeure - Exceptional

Event" Notice to be

given within 14 days

of becoming aware

(or should be aware).

Duty to minimize

delay. If Contract

suffers delay and / or

incurs cost entitle to

EOT and cost in

specified

circumstances.

Option to terminate.

Continuous

exceptional Event

period of 84 days or

multiple period (of

same event /

circumstances)

totalling more that

140 days.

Page 29: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of Contract

for Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Suspension

by Employer

Engineer may instruct

suspension of part or all

Works at any time. If

Contractor suffers delay

and/or incurs Cost

entitlement (subject to

Contractors claims) to

EOT and Cost Payment of

value plant and/or

materials not delivered to

site if suspension more

than 28 days and

Contractor market Plant

and/or materials as the

Employers property as

per Engineers instructions

Prolonged suspension

more than 84 days.

Contractor may request

Engineers permission to

proceed, if Engineer does

not give permission within

28 days Contractor may

treat suspension as

omission. If suspension

affects whole of Works,

contractor may give notice

of termination.

Engineer may

instruct suspension

at any time.

Contractor

entitlement to EOT

and costs. Payment

for Plant and/or

materials not

delivered to Site if

suspension more

than 28 days.

Prolonged

suspension for more

than 84 days.

Contractor may

request Engineers

permission to

proceed. If Engineer

does not give

permission within 28

days suspension

may be treated as

an omission or if

suspension affects

whole works,

termination.

Employer may instruct

suspension any time. If

Contractor suffers delay and/or

incurs cost entitlement to EOT

and Cost Payment of value (as at

date of suspension) of plant

and/or materials which have not

delivered to site if suspension

more than 28 days and

Contractor marked Plant and/or

materials as Employers property

in accordance with the employers

instructions.

Prolonged suspension more than

84 days. Contractor may request

the Employer permission to

proceed, if Employer does not

give permission within 28 days

suspension may be treated as

omission. If suspension affects

whole of Works, contractor may

give notice of termination.

Page 30: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Suspension

by Contractor

Contractor may

suspend on 21 days

notice if : Employer

fails to certify issue

interim payment

certificate; Employer

fails to comply with

Employers financial

arrangements;

Employer fails to pay.

Contractor may

suspend on 21 days

notice if : Engineer

fails to issue an

interim Payment

Certificate; Employer

fails to comply with

Employers financial

arrangements;

Employer fails to pay.

Contractor may suspend on 21

days notice if: Employer fails to

comply with Employers

Financial Arrangements or

timing of payment.

Contractor may

suspend on 21 days

notice if : Employers

Representative fails

to certify issue of

advance, interim

payment certificates,

fail to comply with

Employers. Financial

Arrangements or fails

to pay.

Page 31: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of Contract for

Construction “Red Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of

Contract for

EPC/Turnkey

Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold Book”

Termination

by Employer

For specified default on 14 days

notice to Contractor.

Immediately for Contractor

bankruptcy, insolvency,

liquidation, or Contractor offers

(directly / indirectly) bribe, gift,

gratuity, commission or thing of

value as inducement or reward

Employer may complete works /

arrange to do so. Employer and

other entities may use any

Goods, Contractor. Documents

and other design documents

made by or on behalf of

Contractor. Employer can

terminate for convenience.

Engineer will agree or

determine value of Works,

Goods and Contractors

Documents and any other sums

due to Contractor for work

executed in accordance with

Contract. Payment after

termination. Employer may

proceed with Employers claims

procedure withhold further

payments to Contractor until

costs of execution, completion

and remedying of any defects,

damages for delay and all other

costs of Employer established

and/or recover

For specified default

on 14 days notice.

Entitlement to

terminate immediately

for insolvency or

corruption.

No obligation to pay

further amount until

cost position of

completing the Works

is established.

Employer also entitled

to terminate for

convenience -

Contractor entitled to

value of work done

plus reasonable costs

etc, no entitlement to

loss of profit, Employer

not entitled to complete

the works

For specified default

on 14 days notice.

Immediately for

bankruptcy,

insolvency, liquidation,

Contractor or

Contractor offering

bribes, gift, gratuity,

commission or other

thing of value as

inducement / reward.

Employer can

terminate for

convenience.

Employer can

complete works or

arrange for others to

do so. Employer may

use any goods,

Contractor documents

and any other sums

due to Contractor.

Employer can proceed

with Employers claims

process, withhold

payment until costs

design execution and

completion and

remedying defects

For specified default

on 14 days notice.

Immediately for

bankruptcy, insolvency,

liquidation, Contractor

or Contractor offering

bribes, gift, gratuity,

commission or other

thing of value as

inducement / reward.

Employer can terminate

for convenience.

Employer can complete

works or arrange for

others to do so.

Employer may use any

goods, Contractor

documents or other

design documents

made by or on behalf of

Contractor.

Payment after

termination for

Contractors Default.

Proceed with Employers

claims procedure,

withhold payment until

costs of design,

execution, completion,

remedying defects

established,

Page 32: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of

Contract for

Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects “Silver

Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Termination by

Employer

(cont)

any losses and

damages incurred by

Employer and any

extra costs of

completing works

and pay Contractor

balance.

remedying defects established

and/or recover costs from

Contractor.

recover any losses or

damages incurred and

extra costs of

completing works.

Payment after

termination for

convenience: return

performance security,

pay contractor in

accordance with

optional termination

payment and release,

pay amount of any

loss of profit or other

loss or damage

sustained by

Contractor as result of

termination.

Page 33: FIDIC CONTRACTS A COMPARATIVE - CEAI · PDF fileFIDIC CONTRACTS – A COMPARATIVE ... Yellow Book) FIDIC Conditions of Contract for EPC Turnkey Projects, ... “Gold Book ” Key Features

Conditions of Contract

for Construction “Red

Book”

Conditions of

Contract for Plant

Design and Build

“Yellow Book”

Conditions of Contract for

EPC/Turnkey Projects

“Silver Book”

Conditions of

Contract for Design,

Build and Operate

Projects “Gold

Book”

Termination by

Contractor

For specified default on

14 days notice.

Terminate immediately for

: prolonged suspension or

Employer becomes

bankrupt, insolvent, goes

into liquidation. On

termination Employer

promptly return

performance security to

Contractor, pay contractor

value of work done (as

determined by Engineer)

include amounts payable

for work carried out under

Contract, Cost of plant

and materials ordered for

works and delivered to

Contractor or which

Contractor liable to

accept and any other

reasonable cost or

liability, Costs of removal

temporary works and

Contractors Equipment

and Cost of repatriation

Contractor staff and

labour and any loss of

profit.

For specified default

on 14 days notice.

Entitlement to

terminate immediately

for insolvency or

prolonged suspension

Employer required to

pay for value of Works

performed, reasonable

costs etc and loss of

profit.

Entitled to terminated

immediately for prolonged

suspension or bankruptcy,

insolvency, liquidation of

Employer.

After notice of termination

Employer will: return

performance security to

Contractor, pay contractor

for amounts payable for

work carried out (price

stated in contract), cost of

Plant and materials ordered

and delivered or Contractor

liable to accept, reasonably

incurred Cost or liability, cost

of removal of Temporary

Works and Contractors

Equipment, repatriation

Contractors staff and labour.

Entitled to terminate

immediately for

prolonged suspension

or bankruptcy,

insolvency, liquidation

of Employer.

After notice of

termination Employer

will: return

performance security,

pay Contractor in

accordance with

optional termination

payment and release,

pay amount of any

loss of profit or other

loss or damage

sustained by

Contractor as result of

termination.

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EXTENSION OF TIME 34

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WHY THE CLAIMS MADE BY THE CONTRACTOR

1. Most claims are made by the Contractor and may be claims for an extension of time for the

completion of the works, for the reimbursement of costs including in some cases reasonable

profit.

2. Claims for additional time frequently result in claims for additional payments, which under the

FIDIC conditions must be submitted as a separate claim.

3. All claims for additional time or money must follow the procedures of clause 20.1 which require

a notice to the Engineer as soon as practicable as and in any event not later than 28 days after

the Contractor became aware, or should have become aware, of the event or circumstances.

4. If the Contractor fails to give notice of a claim under this clause he shall not be entitled to

additional payment and the Contractor shall be discharged from all liability in connection with

the claim. The Contractor is also under an onerous obligation to keep contemporary records as

may be necessary to substantiate the claim.

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Specific Probable Future Events or

Circumstances

Duty to Give Notice

(Sub Clause 20.1) Duty to Give Notice (Sub Clause 8.3)

SubClause 20.1 Notice of any claim in connection with the Contract by describing the event or circumstance giving rise to the claim

Clause 8.3 Alternative 1 The Contractor shall submit a detailed time programme to the Engineer within 28 days after receiving the notice under Sub-Clause 8.1 (Commencement of Works)

Clause 8.3 Alternative 2 The Contractor shall submit a revised programme whenever the previous programme is inconsistent with actual progress or with the Contractor’s obligations

Clause 8.3 Alternative 3 The Contractor shall promptly give notice to the Engineer of specific probable future events or circumstances which may adversely affect the work, increase the Contract Price or delay the execution of the Works.

Real Cause

TIME BARRED

28 DAYS TIME

BARRED

28 DAYS

TIME BARRED

REASONABLE

TIME BARRED PROMPTLY

Advanced

Warning

MANDATORY NOTICE OBLIGATIONS UNDER FIDIC

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SUMMARY OF GROUNDS IN THE FIDIC FORMS WHICH EXPRESSLY

ENTITLE THE CONTRACTOR TO AN EXTENSION OF TIME

Red Book /

MDB

Yellow Book Silver Book Gold Book

Sub-

Clause Heading Grounds EoT

Additional

Payment EoT

Additional

Payment EoT

Additional

Payment EoT

Additional

Payment

1.9

(R/M)

Delayed

Drawings or

Instructions

Failure of

Engineer to

issue the

drawing or

instruction

within notified

reasonable

time

Y Cost +

37

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SUMMARY OF GROUNDS IN THE FIDIC FORMS WHICH EXPRESSLY ENTITLE THE

CONTRACTOR TO AN EXTENSION OF TIME

Red Book /

MDB

Yellow Book Silver Book Gold Book

Sub-

Clause Heading Grounds EoT

Addition

al

Payment

EoT Additional

Payment EoT

Additional

Payment EoT

Addition

al

Payment

1.9(Y)/

1.10

(G)

Errors in the

Employer’s

Requiremen

ts

Error in the

Employer’s

Requirements,

and an

experienced

Contractor

exercising due

care would not

have discovered

the error when

scrutinizing the

Employer’s

Requirements

under Sub-Clause

5.1

Y Cost + Y Cost +

38

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SUMMARY OF GROUNDS IN THE FIDIC FORMS WHICH EXPRESSLY ENTITLE

THE CONTRACTOR TO AN EXTENSION OF TIME

Red Book / MDB Yellow Book Silver Book Gold Book

Sub-

Clause Heading Grounds EoT

Additional

Payment EoT

Additional

Payment EoT

Additional

Payment EoT

Additional

Payment

2.1

Right of

Access to

Site

Failure by the

Employer to give

right of access to,

or possession of,

the Site within

required time

unless and to

extent Employer’s

failure was

caused by any

error or delay by

the Contractor.

Y Cost + Y Cost + Y Cost + Y Cost +

39

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SUMMARY OF GROUNDS IN THE FIDIC FORMS WHICH EXPRESSLY ENTITLE THE CONTRACTOR TO AN EXTENSION OF TIME

Red Book / MDB Yellow Book Silver Book Gold Book

Sub-

Clause Heading Grounds EoT

Additional

Payment EoT

Addition

al

Payment

EoT Additional

Payment EoT

Additiona

l

Payment

4.6 Co-

operation

Instruction by

contract

administrator to

allow specified

others

appropriate

opportunities to

carry out work

Y

(under

8.4(a) )

As part of

Valuation

under

Sub-

Clause

13.3

Y

(under

8.4(a) )

As part

of

Valuation

under

Sub-

Clause

13.3

Y

(under

8.4(a) )

As part of

Valuation

under

Sub-

Clause

13.3

Y

(under

8.4(a))

As part of

Valuation

under

Sub-

Clause

13.3

4.7 Setting-

out

Execution of

Work which was

necessitated by

an error in terms

of reference and

an experienced

contractor could

not reasonable

have discovered

such error and

avoided this

delay and / or

cost.

Y Cost + Y Cost + Y Cost +

40

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SUMMARY OF GROUNDS IN THE FIDIC FORMS WHICH EXPRESSLY ENTITLE THE CONTRACTOR TO AN EXTENSION OF TIME

Red Book / MDB Yellow Book Silver Book Gold Book

Sub-

Clause Heading Grounds EoT

Additiona

l

Payment

EoT

Additiona

l

Payment

EoT Additional

Payment EoT

Additional

Payment

4.12 Unforeseea

ble

Physical

Conditions.

Encountering

Physical

conditions which

are Unforeseeable Y Cost + Y Cost + Y Cost +

41

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Thank you very much for your participation and attention!

42

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Thank you very much for your participation and attention!

43