Clause 16 addresses suspension and termination by the Contractor, including rights to suspend work, grounds for termination, cessation of work, and payment on termination. It specifies notice periods, conditions for immediate termination, and entitlements following termination.
FIDIC 1999 is a re-measurement contract, with the Employer bearing the risk of quantity variations. Clause 12 covers measurement, evaluation of rates, and valuation of omissions. It lacks a standard measurement method, which has been criticized.
Clause 9 covers Tests on Completion, requiring the Contractor to give notice when ready to carry out Tests on Completion, addressing delays by either party, retesting after failure, and handling failures to meet contract requirements after retesting.
There have been two High Court cases within the last
The Hong Kong Court of Appeal now supports engineers requesting evidence of original tender build-up and disallowing loaded rates if substantial quantity differences justify it. This article explores that new guidance, which finds contract rates to be neither immutable nor sacrosanct.
Clause 4 of the FIDIC Red Book 1999 consolidates various Contractor obligations, covering 24 topics. It includes general duties and references other significant obligations scattered throughout the Contract, such as communications, assignment, document care, compliance with laws, and time for completion.
Clause 5 changes include specifying designer qualifications, moving part of Sub-Clause 5.1 to 1.9, changing "approval" to "No-objection" in Sub-Clause 5.2, and introducing a new procedure for addressing design errors in Sub-Clause 5.8.
Clause 4 changes include defining 'fitness for purpose' in Employer's Requirements, adjusting the Performance Security, handling communications by the Contractor's Representative, setting subcontracting limits, enhancing health and safety obligations, redefining unforeseeable conditions, and increasing Contractor risk for access routes.
Opinions on enforcing 'binding' DAB decisions vary. Some arbitrators support enforcement, while others, including the Singapore Court of Appeal, oppose it. This article considers case law addressing both sides of the argument and the issues that they raise.
If the parties to a FIDIC contract cannot agree on
A Taking-Over Certificate in FIDIC contracts marks the handover date of Works to the Employer, who cannot use them until issued. Disputes arise in tough economies, with Employers delaying responsibility and Contractors eager to finish and reduce costs.
A FIDIC dispute board has just 84 days to give
As one of the drafters of the Green Book 1999,
Clause 10 covers the Taking-Over of Works, Sections, or parts. It includes conditions for Taking-Over, deemed Taking-Over due to Employer's use or interference, and breach of contract if the Engineer fails to issue the Taking-Over Certificate.
Clause 20 covers claims, disputes, and arbitration. It includes procedures for Contractor claims, appointing a Dispute Adjudication Board (DAB), handling disputes, amicable settlement, arbitration under ICC rules, and actions when a DAB decision is not complied with or absent.
This article reflects on the introduction of an automatic contractual mechanism for calculating prolongation costs into the Green Book 2021 and will consider whether it will remove the expense of experts and lawyers from the process of claiming prolongation costs.
Hydropower projects rely heavily on ground conditions, which are often unpredictable despite pre-tender investigations. This article explores how FIDIC contracts, especially the Emerald Book 2019, address risk allocation and mitigation in underground construction projects.
Contractors who fail to issue FIDIC 1999 Clause 20.1 notices on time risk losing claims. A DIFC Court of Appeal ruling reinterprets the 28-day notice period, challenging the Obrascon case and tightening requirements for timely contractor notifications under FIDIC contracts.
The ICC informed a recent FIDIC Conference that draft awards
This article considers the court's decision and implications in a case where an ICC Arbitral Tribunal Chair admitted that his Administrative Secretary drafted significant parts of the award, which was appealed as an unlawful delegation of authority.
