Ss 5 training fidic Dr. Moustafa Ismail 2017 _ lec 5

SCE FIDIC Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- V 1
FIDIC Forms of Contracts
Training Course:
Saudi Council of Engineers
2017
LECTURE FIVE
‫وبركاته‬ ‫هللا‬ ‫ورحمة‬ ‫عليكن‬ ‫السالم‬
2017

• Cl.3
o Delegation – except for sub- Cl.3.5
Determination.
o Instructions in writing
• Verbal instructions to be followed by
confirmation by contractor – written
o Employer instructions to the Engineer
Engineer’s Responsibilities “continue”
2017

o Determination
• Consult – agreement – fair determination
• Give notice
• Give influence or proceed to Cl.20
• Cl.4.1 Request Method of Statements
Discuss determination task? fairness
2017

• Cl.8.1 Give Commencement Notice
• Cl.8.6 Rate of Progress
• Cl.12.1 Measurement
• Cl.13.1 Variations
• Cl.14.6 Interim Payment Certificates
• Cl.20.1 Records / Determination
Engineer’s Responsibilities “continued”
2017

Cl.4
• Execute & Complete the Works
 Cl.8.1 due expedition & without delay
 Adequacy & safety
 Method Statement
 Fit for purpose
• Performance Bond
 Engineer’s Approval of Representative
 May delegate
 Fluent in language
 Sub Contractor approval
2017

• Setting Out to lines & levels
• Quality Assurance (Process oriented)
o Details in Specification
o Procedures
o Compliance documents
Contractor’s Responsibilities
2017

• Site records
o Costs comprised
o Risk
o Inspections
o All relevant data – obligation
o Caution in Tender – failure to provide
• Adequacy of Contract Amount
Contractor’s Responsibilities “continued”
2017

• Unforeseen site Physical Conditions
o Excludes climatic conditions
• S. Cl.8.4 & S.Cl. 17.3 Employer’s Risks
o Extension of time
o Payment of cost
• (see S. Cl.1.1.4.3 includes off site)
Contractor’s Responsibilities “continue”
2017

• Transport to site
• Protection of the Environment
• Emissions S.Cl. 4.18 Protection of the
• Environment
o Surface discharges
o Effluent
o Local/applicable Law
Contractor’s Responsibilities “continued”
2017

 Progress Report
 Monthly – 6 copies
 Cl.4.9 procedures and:
Cl. 6.7 Accident Records
Cl. 6.10 Personnel
Cl.14.3 Application for payment
Cl.20.1 Contemporary records
2017

• Progress Report:
o Charts
o Photographs
o Manufacturing report
o Personnel
o Quality Assurance documents
o Claims Cl.2.5 Employer & 20.1 Contractor
o Safety statistics
o Progress
2017

• Security
• Staff & Labour
o Facilities / Health & Safety
• Tests on Completion Cl. 9.1
• Value Engineering Cl. 13.3
• Application for Payment Cl. 14.3
• Contemporary records to support Cl. 20.1
2017

Nominated Subcontractors
• Clause 5
• Definition:
 "nominated Subcontractor" means subcontractor:
(a) who is stated in the Contract as being a nominated
Subcontractor. or
(b) whom the Engineer. under Clause 13 [Variations
and Adjustments]. Instructs the Contractor to employ as
a Subcontractor.

• Applies to Subcontractors and suppliers
nominated by Employer or as instructed by the
Engineer under Cl.13 (Variations and
Adjustments)

• Clause 5.2
o Contractor practical Objection
o Supporting particulars/details
o Lack of competence, recourses, financial strength
o Lack of indemnity- indemnify contractor
o Lack of obligations and liability -sub-con shall
enable the Contractor to discharge his obligations
and liabilities

Payment Clause 5.3:
• The Contractor shall pay to the nominated
Subcontractor the amounts which the
Engineer certifies to be due in accordance
with the subcontract.
Nominated Subcontractors’continued’

• These amounts plus
• Other charges shall be included in the
Contract Price in accordance with
subparagraph (b) of Sub-Clause 13.5
[Provisional Sums]. except as stated in the
following Sub Clause 5.4.
Nominated Subcontractors ’continued’

Nominated Subcontractors “continued”
• 5.4 Evidence of Payments
1. Engineer requests reasonable evidence from
nominated S/C- for receipt amount requested in the
Contractor’s payment certificate previously paid
(OR)
2. The contractor justifies non payment and
notification issued to the nominated S/C for non
payment with reasons : if no justification :
3. The Employer may pay and get back from the
contractor ......deductions considered in any payment

Q&A
Q1. Nominated Sun-Con is:
1-Defined in the contract 2- assigned by the Contractor
Q.2 Employer's Personnel S. Cl. 2.3 requirements:
The Employer shall be responsible for ensuring that the Employer's Personnel
and the Employer's other contractors on the Site co-operate with the
Contractor's efforts, take actions similar to those which the Contractor is
required to take for [Safety Procedures] and [Protection of the Environment].
1. TRUE 2-False
Q.3
Pursuant S. Cl . 4.2 Cl. 4.2 Issue of the Performance
Security should be within 28 days from Issuance of the
Letter of Acceptance.
1-TRUE 2-False Eng: …………………………
2017

Q&A
Q1. Nominated Sun-Con is:
1-Defined in the contract 2- assigned by the Contractor
Q.2 Employer's Personnel S. Cl. 2.3 requirements:
The Employer shall be responsible for ensuring that the Employer's Personnel
and the Employer's other contractors on the Site co-operate with the
Contractor's efforts, take actions similar to those which the Contractor is
required to take for [Safety Procedures] and [Protection of the Environment].
1. TRUE 2-False
Q.3
Pursuant S. Cl . 4.2 Cl. 4.2 Issue of the Performance
Security should be within 28 days from Issuance of the
Letter of Acceptance.
1-TRUE 2-False
2017

Project Engagement of Staff & Labour
Clause 6
• Contractor shall make arrangements for the engagement of all
staff and labor. local or otherwise, their payment. housing.
feeding and transport.
• Rates of Wages and Conditions // similar to the average in the
work location/country
• The Contractor shall not recruit// Employer's Personnel.

Staff and labour “continue”
• Labour Laws (including Expat/immigration)
• Working Hours
• Facilities (including Employer’s Personnel)
• Health & Safety
Medical staff & facilities
Accident prevention officer
Records

 Cl.4.3 – Contractor’s Representative
 Cl.6.8 – Superintendence (Language)
 Personnel competent– qualified, skilled, experienced
 Cl.4.9 procedures monthly records
Staff and labour “continued”
2017

6.4 Labor Laws
• The Contractor complies- applicable labor Laws (employment.
health. Safety). Labor to obey applicable law.
6.5 Working Hours
No work on rest days- no work outside working hours-// unless stated
in the contract/ instructed. Or non avoidable.
6.6 Facilities for Staff and Labor
• Contractor provide necessary accommodation and welfare
facilities, for labors Contractor shall also provide facilities for
the Employer's Personnel as stated in the Specification.
2017

6.7 Health and Safety
• Contractor shall take reasonable precautions to maintain
the health/ safety of its Personnel.
'6.8 Contractor’s Superintendence
• the Contractor shall provide all necessary superintendence
to plan. arrange. direct. manage. inspect and test the work.
6.9 Contractor’s Personnel
• Contractor's Personnel shall be appropriately qualified. skilled
and experienced in their respective trades or occupations.
2017

6.10 Records of Contractor's Personnel and Equipment
• The Contractor shall submit. to the Engineer. details each class
of Personnel/Equipment on the Site.
'6.11 Disorderly Conduct
• Take all reasonable precautions to prevent any unlawful,
riotous or disorderly conduct by his Personnel. and to preserve
peace and protection of persons & property on & near the Site.
Staff and labour “continued”
2017

7.1 Manner of Execution
• The manufacture of Plant, and all other execution of the Works
in the manner (if any) specified in the Contract, in a proper
workmanlike, with properly equipped facilities and non-
hazardous Materials.
7.2 Samples
• Submit the samples of Material & relevant information. to
Engineer for consent in advance, labeled as to origin and
intended use.
Plant, Materials and Workmanship
2017

7.3 Inspection
The Employer's Personnel shall :
• (have access to all parts of Site & all places of natural
Materials, and during production, manufacture & construction
• be entitled to examine. inspect. measure and test the materials
and workmanship & check the progress of manufacture
• 7.4 Testing
• This Sub-Clause shall apply to all tests specified in the
Contract other than the Tests after Completion (if any).
2017

7.5 Rejection
• As a result of an examination. inspection, measurement or testing.
any defective work/not in accordance with the Contract. the
Engineer may reject it by giving notice to the Contractor. with
reasons.
7.6 Remedial Work
• Notwithstanding any previous test or certification. the Engineer may
instruct::
• remove/ replace any Plant or Materials not complying
• remove and re-execute work not complying.
• execute any work urgently required for the safety. The Contractor complies
in a reasonable time, as in the instruction. or immediately if urgency is
specified under sub-paragraph (c). employ and pay other persons to do
the remedial.
2017

7.7 Ownership of Plant and Materials
• Each item becomes the property of the Employer the
earlier of the following times:
• when it is delivered to the Site; or when Suspension
S.Cl. 8.10.
7.8 Royalties.
The Contractor shall pay all royalties, rents and other
payments for:
• (a) natural Materials, the disposal of material from
demolitions and , excavations & of other surplus, material
2017

8.1 Commencement of Works
 Engineer shall give 7 d. notice of commencement date.
Unless otherwise stated in the P. Conditions. 42 d. (LOA).
• Contractor commence execution as soon as is practicable
(due expedition/ without delay).
8.2 Time for Completion
Contractor shall complete the Works. & each Section (if
any).
• within the Time for Completion including: ( passing of
the Tests on Completion, completing all work which is
stated in the Contract, mandatory for work required to fit
S. Cl.10.1 [Taking Over of the Works, Sections].
8.0 Commencement, Delays and Suspension
2017

8.3 Program
• Submit a detailed program within 28 d. After notice S.-
Cl. 8.1 [Commencement of Works].
• Revised program whenever the previous program is
inconsistent with progress or Contractor's obligations.
• Program shall include:
o order of how to carry out the Works.
o anticipated timing of each stage of design (if any).
Contractor's Documents. procurement. manufacture of
Plant. delivery to Site. construction. erection and testing.
2017

8.3 Program- continued
• each of these stages for work by each N. Sub-Con.
• sequence and timing of inspections and tests, and
• supporting report which includes:
• (i) a general description of the methods intended to be adopted
• (ii) details showing reasonable estimate of Personnel and
Equipment. Histogram
• Unless, responded 21 d. (not comply) with the Contract. the
• Contractor shall proceed in accordance with the program.
subject to his other contractual obligations.
• Employer's Personnel shall be entitled to rely on the program
2017

8.3 Program- continued
• Contractor shall notify the Engineer of specific probable future
events which may adversely affect the work/ Time- Cost.
• The Engineer may require the Contractor to submit an estimate
of the anticipated effect of the future event or circumstances.
• and/or a proposal under Sub-Clause 13.3 [Variation
Procedure].
2017

8.4 Extension of Time for Completion
• Contractor shall be entitled subject to S. Cl. 20.1 [C. Claims]
to EOT for Completion if Sub-Clause 10.1 [Taking Over ] is or
will be delayed by any of:
Procedure of Extension of Time in LEC VI slide 11
o Variation
o In culpable delay
o Adverse weather
o Unforeseeable shortages in the availability of personnel or
Goods caused by epidemic or governmental actions. Or
o delay, impediment or prevention by the Employer
2017

8.4 Extension of Time for Completion- continued
• If Contractor considers himself entitled to EOT, the Contractor
shall give notice to the Engineer in accordance with Sub-
Clause 20.1 - the Engineer shall review previous
determinations and may increase, but shall not decrease, the
total extension of time
2017

8.5 Delays Caused by Authorities
 If specifically:
• Contractor has diligently followed the procedures laid down
by the relevant public authorities.
• These authorities delay or disrupt the Contractor's work. And
• the delay or disruption was Unforeseeable.
then this delay or disruption will be considered as a cause of delay
under subparagraph (b) of S. Cl. 8.4 [EOT for Completion] .
Inculpable delay
2017

8.6 Rate of Progress
If. at any time:
 Low progress
 progress has fallen (or will fall) behind the current program, THEN:
o then the Engineer may instruct a revised program, supporting
report for the corrective measures.
o the Contractor adopt revised methods, may require
increases in the working hours and/or in the numbers of
labor, and/or Goods. at the risk and cost of the Contractor.
And pays delay damages to the Employer.
2017

8.7 Delay Damages
• If the Contractor fails to comply with S. Cl. 8.2 [Time for
Completion]. The Contractor shall subject to Sub-Clause 2.5
[Employer's Claims] pay delay damages to the Employer for
this default. These delay damages shall be the sum:
• stated in the Appendix to Tender. which shall be paid for
every day from Time for Completion & date stated in the T.
Over Certificate
However, the total amount due under this Sub-Clause (10-15%)
• shall not exceed the maximum as per Appendix to Tender.
2017

8.7 Delay Damages - continued
• These delay damages shall be the only damages due from the
Contractor for such default. other than in the event of
termination under Sub-Clause 15.2 [Termination by
Employer] prior to completion of the Works.
• These damages shall not relieve the Contractor from his
obligation to complete the Works, or from any other
contractual obligations.
2017

8.8 Suspension of Work
• The Engineer may instruct the Contractor to suspend progress
part/or all. During suspension , the Contractor protect. store
and secure such part or the Works against any deterioration.
loss or damage.
• If the cause is notified and is the responsibility of the
Contractor, the following S. Cl. 8.9. 8.10 and 8.11 shall not
apply.
2017

8.9 Consequences of Suspension
• If the Contractor suffers delay/Cost from complying with
instructions Suspension. and/or from resuming the work. Then
give notice to the Engineer and shall be entitled S. Cl. 20.1to:
(a) an EOT for delay, and payment of any such Cost.
After this notice, the Engineer shall proceed [Determinations].
The Contractor shall not be entitled EOT/ cost incurred in,
making good Contractor's faulty design, workmanship or
materials, or failure to protect. store or secure in accordance
with Sub-Clause 8.8 [Suspension of Work].
2017

8.10 Payment for Plant and Materials in Event of Suspension
1.1 .5.5 "Plant" means the apparatus(Equipment). machinery and
vehicles intended to or forming part of the Permanent Works.
• Shall be entitled to payment of the value of plant/Materials
which have not delivered to Site. if:
(a) Suspended for more than 28 days, and
(b) Contractor marked Plant and/or Materials as the Employer’s
property in accordance with Engineer's instructions.
2017

8.11 Prolonged Suspension
• If more than 84 days, the Contractor may request the
Engineer's permission to proceed.
• If no permission within 28 days after request, Contractor may,
notify, treat the suspension as an omission under Clause 13.
OR termination S. Cl. 16.2 Termination by Contractor if all
Work is affected.
2017

8.12 Resumption of Work
• After the permission or instruction to proceed is given, the
Contractor and the Engineer shall jointly examine the Works
and the Plant and Materials affected by the suspension. The
Contractor shall make good any deterioration or defect in or
loss of the Works or Plant or Materials, which has occurred
during the suspension.
2017

You are the project Engineer for a private school construction project
which includes hundreds of activities, valued 4.50 M SAR and the contract
is FIDIC Red Book 1999, the value of the school buildings is 4.0 M SAR
while the fence and car shades are 0.50 M SAR, total duration 8 months
Discuss the following in case you are the project Engineer/Employer
1. If the Contractor’s caused delay was prolonged for 6 months for the
whole project- discuss clauses for LD and termination- value.
………………………………………………………………………………
………………………………………………………………………………
………………………………………………………………………………
……………………………………………………………………………....
Analyzed by Eng. …………
Event Analysis 2
2017

You are the project Engineer/ Contractor for a governmental school
construction project which includes hundreds of activities, valued 4.50 M SAR
and the contract is FIDIC Red Book 1999, the value of the school buildings is
4.0 M SAR while the fence and car shades are 0.50 M SAR, total duration 8
months Discuss the following in case you are the project Contractor:
1. If the Employers late decisions/drawings/ payment caused delay was
prolonged for 3 months for the whole project- discuss clauses for LD and
termination- value.
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………
Event Analysis 3
2017

You are the project Engineer/ Contractor for a high demand/urgency school for the
public construction project which includes hundreds of activities, valued 4.50 M SAR
and the contract is FIDIC Red Book 1999, the value of the school buildings is 4.0 M
SAR while the fence and car shades are 0.50 M SAR, total duration 8 months Discuss
the following in case you are the project Contractor:
3. If the Employers late decisions/drawings/ payment caused delay was prolonged for 3
months for the whole project- discuss clauses for LD and termination- value.
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
Event Analysis 4
2017

You are the project Engineer/ Contractor for a private school construction project
which includes hundreds of activities, valued 4.50 M SAR and the contract is FIDIC
Red Book 1999, the value of the school buildings is 4.0 M SAR while the fence and car
shades are 0.50 M SAR, total duration 8 months Discuss the following in case you are
the project Eng/Employer:
3. If the Contractor’s (lack of funds/resources/Equipment/mismanagement) caused
delay was prolonged for 3 months for the fence and car shade only and the rest of the
project is completed - discuss clauses for LD and termination- value.
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
Event Analysis 4
2017

Contractor’s letters- exercise
• Notice of claim
2017SCE FIDIC Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- V 50

End of
LECTURE Five
Thank You
‫وبركاته‬ ‫هللا‬ ‫ورحوة‬ ‫عليكن‬ ‫السالم‬
‫هللا‬ ‫أهاى‬ ‫فى‬
2017

Ss 5 training fidic Dr. Moustafa Ismail 2017 _ lec 5

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