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.
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.
FIDIC ‘launched’ the FIDIC 2022 reprints at the FIDIC International Construction Users’ Conference 2022, in London. The reception to the changes was mixed – some embraced the clarity; others questioned the significance and cost. This article draws your attention to 10 of the key areas of change in respect of the FIDIC Red Book 2017 including the definition of Claim, matters to be agreed or determined, the definition of Dispute and Exceptional Events.
Clause 14 covers payment aspects, including interim and final certificates, advance payments, retention monies, and the cessation of the Employer’s liability. It outlines the process for monthly payment applications, final settlement, and the Contractor's rights if payments are delayed.
Clause 3 outlines the Engineer's duties and obligations, including acting for the Employer, delegating authority (but not Determinations), issuing instructions, and handling Variations. It also covers Engineer replacement and making fair Determinations after consulting both Parties.
Clause 10 changes include express references to As-Built Records, Manuals, and Training for Taking Over, a Notice of No-objection requirement, deemed Taking Over without these Notices, immediate issuance of Taking-Over Certificates, and a 14-day prevention period.
Contractors must prepare a detailed test programme reviewed by the Engineer. Clause 9.2 addresses delayed tests, applying Clause 10.3 for undue delays. Clause 9.2 adds procedures, including three Notices. Clause 9.4 expands failure criteria to include section rejection, complicating recovery under Clause 13.3.1.
Clause 15 covers Termination by the Employer, including notices to correct, grounds for termination, valuation at termination, payment after termination, and the Employer's entitlement to terminate at will with 28 days' notice.
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