FIDIC 2017 (RED BOOK)
16 MARCH 2018FIDIC 2017 (RED BOOK)A BRIEF OVERVIEW AND COMPARISON WITHFIDIC 1999PETER ATKINSONPartner HKAE: peteratkinson@hka.com
INTRODUCTION – HEADLINE CHANGES(ACCORDING TO FIDIC)“Greater detail and clarity on the requirements for notices and other communicationsProvisions to address Employer’s and Contractor’s claims treated equally and separated fromdisputesMechanisms for dispute avoidanceDetailed provisions for quality management and verification of Contractor’s contractualcompliance.”In addition it recognises“that many Employers, especially governmental agencies, may require special conditions ofcontract , or particular procedures, which differ from those included in the in the GeneralConditions.”2WWW.HKA.COM
INTRODUCTION – PRACTICAL IMPLICATIONSLooking at some areas of change from 1999 edition that have a potentialimplication on how the contract is administered and how risk is considered. Programme/Time Contract Price / Variations / Claims / Interim and Final Account Termination Contract Administration generally3WWW.HKA.COM
PRACTICAL IMPLICATIONSPROGRAMME / TIMEDESCRIPTIONGCFIDIC 1999GCFIDIC 2017Programme issues8.3Form not mentioned forpreparation and submission, 4requirements of programme,no deemed acceptanceprovision8.3To be prepared using programme software (in Spec or acceptable to Eng), to besubmitted in paper and electronic format, 12 requirements of programme plusmethod statement, deemed accepted by Eng if no NONO, change does notrelieve Contractor of obligation to give Notice.Advance warning8.3Contractor to give notice8.4Both parties under obligation to give advance warning for futureevents/circumstances which may affect Contractor personnel, performance ofWorks when completed, increase in Contract Price, delay to the WorksConcurrent delay-Not stated8.5If Owner delay concurrent with Contractor delay, entitled to be assessed inaccordance with SP (default – as appropriate)8.4(c)8.4(d)8.5No detailNot mentionedPublic authorities only8.5(c)8.5(d)8.6No mention of change4.15EoTAdverse climatic conditionsUnforeseeable shortagesUtility delaysAccess routeIncrease in quantities4.1512.3(a)New rate only8.54Now referenced back to Site Data from Owner and/or published dataEmployer supplied materials now includedPrivate utility services now includedChanges in access route (non-suitability/non-availability) now grounds for EOTEntitlement to EoT if 10%, although reduction to be taken into account.WWW.HKA.COM
PRACTICAL IMPLICATIONSCONTRACT PRICE / VALUATIONDESCRIPTIONCost plus profitGCVariousAccess route4.15Advance warning8.3Works to be measured12.1Evaluation/ValuationOmissionsFIDIC 1999Cost plus reasonable profit (Guidancenotes example suggests 5%)GC1.1.20No mention of change4.15Contractor to give noticeFIDIC 2017Cost plus Profit, default now 5% profit unless otherwise stated in Contract DataChanges in access route (non-suitability/non-availability) now grounds foradditional cost (but not profit)8.4Both parties under obligation to give advance warning for futureevents/circumstances which may affect Contractors personnel, performance ofWorks when completed, increase in Contract Price, delay to the WorksSite measure- reasonable notice only,no agreement. Record measure-signedagreement12.1Site measure and records - Eng to give Notice 7 days with part, date and place.Endeavour to agree. Contractor non attendance – deemed. Now Notice ofdisagreement and goes to Eng Determination. Provisional for IPC12.3Evaluation. New rate requirement “or”No mention of unpriced itemsNew rates, cost reasonable profit12.3Valuation. New rate requirement “and/or”Unpriced items deemed included in other rates/pricesNew rates, cost 5% profitNotice of disagreement and goes to Eng Determination. No deemed acceptance.12.4Omission with no agreed effect goes toEng for determination12.4Omission with no agreed effect goes to Variation by Instruction procedure.Contractor entitled to loss of profit (Cl 13.3.1 (c))5WWW.HKA.COM
PRACTICAL IMPLICATIONSVARIATIONS / INTERIM ACCOUNTSDESCRIPTIONGCVariation Procedure13.3FIDIC 1999GCFIDIC 20171. Eng requests proposed variationIf can comply, contractor provides infoas soon as practicable. Eng responds,contractor continues to work.2. Eng issues instruction for variationand evaluates under Clause 1213.3.1Variation by InstructionEng issues Notice and Eng Instruction under Clause 3.5Contractor to respond in 28 days, provides info on resource and methodologyplus proposal for evaluation and supporting particulars, continues to work.Eng then proceeds to determine time and value13.3.2Variation by Request for ProposalBefore instruction request by Notice. Contractor responds as soon aspracticable with proposal as 13.3.1 or why cannot complyEng responds as soon as practicable by Notice, Contractor continues to work.If Eng consents then instruct variation and proceeds to determine time andvalue. If no consent, Contractor entitled to additional cost.Interim Payment14.3Form approved by Eng plus supportingdocs. 7 items to be included14.3Form acceptable to Eng and with sufficient detail for Eng to investigate10 items to be included incl (new) provisional sums, retention release, utilitiesIssue of InterimPayment Certs14.6CP just Performance SecurityNo requirement for reasons to reduceapplicationSpecific reasons for correctio/modification14.6Appointed Contractors Rep is also a CPEng to issue IPC with detailed supporting particulars, including differenceswith application and reasonsCorrections/modifications can be made if proper investigation of submissionprevented by significant error or e discrepancy in submission or supportingdocs. Details of correction/modification and reasons to be given6WWW.HKA.COM
PRACTICAL IMPLICATIONSFINAL ACCOUNTSDESCRIPTIONGCFIDIC 1999GCFIDIC 2017Final Payment Cert/Final Statement14.11Final Payment Certificate6 copies of Final Statement withsupporting docs, further info to besubmitted as reasonably required,agreed Final statement. If dispute referred to DAB14.11Final StatementPaper and electronic as required in CD, plus estimate of other amounts dueon issue of Performance Certificate. Eng to issue Notice for furtherinformation, Final Statement and Partially Agreed Final StatementDischarge14.12Effective on receipt of PerformanceSecurity and the outstanding balance14.12Also subject to payment due in respect of a dispute and/or PerformanceSecurity and outstanding balance. Deemed discharge if none submitted.Issue of FinalStatement /IFC14.1314.13If Contractor has issued a Partially Agreed Final Statement or a draft FinalStatement deemed by Eng to be a Partially Agreed Final Statement, Eng itissue an IPC7WWW.HKA.COM
PRACTICAL IMPLICATIONSTERMINATIONDESCRIPTIONGCNotice to Correct15.2Termination byEmployer(Contractor’sDefault)15.2FIDIC 1999GCFIDIC 2017Defines contents of the Notice incl Contractor’s failure, contract provision andtime to remedy.Contractor to respond with Notice describing measures to remedy15.2May terminate on 14 daysnotice, immediate for insolvencyor corruption. On terminationContractor to use best efforts tocomply with reasonable Enginstructions15.2.1Notice of intention to terminate. Notice of Termination for insolvency, corruptionor assignmentTermination Notice triggers as before plus, fails to comply with Notice to Correct,Engineer’s Determination, decision of DAAB, breach of delay damage cap15.2.2If failure to remedy by Contractor, within 14 days of 15.2.1 Notice, Employer mayissue Notice of Termination.15.2.3Contractor to comply immediately with reasonable Eng instructionsImmediately after Notice, Employer has no right to use Contractor’s documents, unless paid for No continued use of Contractor’s equipment, temp works, etc Employer to return Payment SecurityContractor entitled loss of profit and other losses and damagesTermination forEmployer’sconvenience15.515.5Termination byContractor16.216.2.1 and16.2.28Notice arrangement as 15.2.Reciprocal triggersTermination Notice triggers as before plus, fails to comply with Engineer’sDetermination, decision of DAAB, corruption, Contractor fails to receive Notice ofCommencement Date within 84 days of LoA.WWW.HKA.COM
PRACTICAL IMPLICATIONSCONTRACT ADMINISTRATION GENERALLYDESCRIPTIONGCFIDIC 1999GCNotices1.3Many instances where notice required1.1.56,1.3Significantly more NoticesInstruction3.3Oral instruction can be confirmed inwriting1.3, 3.5No oral instructions and later confirmationsProgress Report4.21Key PersonnelProgramme change8.3FIDIC 2017Not clearly stated4.20Progress report not a NoticeNot included6.12Key personnelNot clearly stated8.39Programme change not a NoticeWWW.HKA.COM
FIDIC 2017 (RED BOOK) A BRIEF OVERVIEW AND COMPARISON WITH FIDIC 1999 PETER ATKINSON Partner HKA . DESCRIPTION GC FIDIC 1999 GC FIDIC 2017 Notices 1.3 Many instances where notice required 1.1.56, 1.3 Significant
FIDIC’s Contracts Committee has updated the FIDIC 1999 Suite of Contracts (Red Book, Yellow Book and Silver Book) and the Second . Edition 2017 of each of these three FIDIC contracts are being launched at this conference. In th
In addition to the three contracts mentioned above, an updated FIDIC White Book to be applied for consultancy/advisory services was pub-lished in the spring of 2017. FIDIC also offers a wide variety of other standard contracts. We find that the FIDIC Yellow Book and the FIDIC Silver Book ar
FIDIC Yellow Book and Red Book 1999 and 2017 (Szymon Sakowski) 23 Unilateral dissolution of a contract for building works based on the 1999 and 2017 versions of the FIDIC template (FIDIC sub-clauses 15.2 and 16.2 in the light of Polish law) (Mikołaj Strojnowski) 27 Not
3 Documentele FIDIC 1999 10 3.1 Documentele FIDIC 1999 10 3.2 Alegerea între documentele FIDIC 11 4 Cartea roşie FIDIC 13 4.1 Introducere 13 4.2 Ghid FIDIC 13 4.3 Îndrumare Clauz ă – cu – Clauză pentru Condiţiil
clause 19 of the 1999 FIDIC Red Book). The 2017 FIDIC contracts refer to "Exceptional Events" rather than . Force Majeure. events, but the principles are essentially the same. This article looks at the 1999 FIDIC contracts, which, at least for now, are more widely used. " Force Majeure " is defined at clause 19 of the 1999 FIDIC Red
FIDIC Contract & Agreement forms Kaj Möller (SWE). FIDIC Executive Committee Member (2011-2015); . (White Book); Task Group 6 –Update of 1999 Rainbow Suite (Red, Yellow and Silver book); Task Group 7 –Update of Dredgers Contract; Task Group 9 –New Yellow Book / Silver
FIDIC White Book (2006) for professional services contract (consulting services) FIDIC Red Book (1996) for construction FIDIC Green Book (1999) for minor construction projects with an estimated value of less than FJD 100,000 FIDIC
Animal Food Fun & MORE. Instructions Equipment: Paper plate Thin card (not paper as it is too thin) Yellow and brown paint (or felt pen). Yellow bendy straws (you can colour paper ones) Sellotape Glue Elastic What to do: 1) Draw this shape on the back of your paper plate and cut it out carefully. (save this to make the ears). 2) Paint the front of both pieces of the .
