15.6 Archives - Howard Kennedy

FIDIC contracts – What protection do they give contractors for employer financial problems?

FIDIC contracts – What protection do they give contractors for employer financial problems?

In all construction contracts, one of the central principles is the Employer’s obligation to pay the contract price. The Contractor will be wary about the Employer’s financial standing and ability to pay and concerned to ensure that payments are made on time and that effective remedies are available in case of late or non-payment. The FIDIC standard forms of contract contain provisions dealing with these aspects.

By HowardKennedy ITteam|21/05/2019|Dispute Boards, featured, Knowledge Hub|Comments Off

FIDIC 2017 Books – Clause 15 – Termination by Employer

FIDIC 2017 Books – Clause 15 – Termination by Employer

The main changes in Clause 15 are the new grounds for termination: Non-compliance with a final and binding Engineer’s Determination (Sub-Clause 15.2.1(a)(ii)) and a binding or final and binding DAAB decision (Sub-Clause 15.2.1(a)(iii)) to the extent that such failure constitutes a “material breach” of the Employer’s obligations under the Contract. Maxing out the Delay Damages (Sub-Clause 15.2.1(c)). There is no requirement for the Delay Damages to have been actually deducted. It is not clear what the position would be if the Contractor claims an EOT and it is granted by the DAAB or arbitrator after termination so that the Delay Damages are reduced below the cap. Would the termination then be unlawful?

By HowardKennedy ITteam|27/01/2018|Dispute Boards, Knowledge Hub|Comments Off

FIDIC 2017 – First Impressions of the 3-Kilo Suite

FIDIC 2017 – First Impressions of the 3-Kilo Suite

In London last week, FIDIC launched its Second Editions of the Red, Yellow and Silver Books. They are big, weighing in at almost a kilo each. The general conditions cover 106 pages with more than 50,000 words, over 50% longer than the 1999 forms. Many improvements have been made, addressing issues that have emerged since 1999. Fans of Dispute Boards will be pleased to see that all three books now have standing boards with more emphasis on dispute avoidance; and that appointment of DB members and enforcement of their decisions have been made easier. Disputes and Arbitration are now dealt with in a separate chapter 21. Here are the most interesting changes to the Yellow Book.

By HowardKennedy ITteam|13/12/2017|Dispute Boards, featured, Knowledge Hub|Comments Off

Time’s up for FIDIC’s Pink Book?

Time’s up for FIDIC’s Pink Book?

Rumour reaches us that the Multilateral Development Banks (MDBs) behind the Pink Book, FIDIC’s harmonised version of the 1999 Red Book, will discontinue the experiment. Should we be sorry to see the back of the Pink Book? We think not.

By HowardKennedy ITteam|09/03/2015|Knowledge Hub|Comments Off