Downloaded 193 times
![Clause 2.5 : EMPLOYER’S CLAIMS
• Notice extending the defects notifications period must
be given before the expiry of that period
• Particulars” must specify the clause or other basis of
the claim and should include substantiation of the
amount and extension to which the Employer
considers himself entitled in connection with
contractor
• Engineer proceed in accordance with Sub-Clause 3.5
[Determination]
• Amount may be deducted from the contract price and
payment certificates](https://image.slidesharecdn.com/fidic-presentation-180319041533/75/FIDIC-Relevant-to-Time-Management-23-2048.jpg)
Uploaded byASHISH KUMAR SINGH
FIDIC-Relevant to Time Management
The document outlines the various conditions and procedures established by FIDIC for managing construction contracts, focusing specifically on time management and project execution. It details key clauses related to project commencement, completion timelines, variations, delays, suspension of work, and claims procedures, including the roles and responsibilities of contractors and employers. Additionally, it emphasizes the importance of communication and documentation in case of delays or disputes, ensuring all parties adhere to the stipulated contractual obligations.
More Related Content
Similar to FIDIC-Relevant to Time Management
FIDIC-Relevant to Time Management
- 1.
- 2. FIDIC • International Federationof consulting Engineers • Majority of construction projects worldwide are administered by the FIDIC forms of contract • General conditions of contract • Conditions of Contract Book(Agreement & Condition)–Green Book (1999) • Conditions of contract for Construction for building & Engineer Works designed by employer–Red Book (1999 & 2005) • Conditions of contract for Plant & Design Build–Yellow Book (1999 ) • Conditions of contract for Design Build for Turnkey – Orange Book (1995) • Conditions of contract for EPC / Turnkey – Silver Book (1999) • Conditions of contract for Design,Build & operate Projects – DBO (2008)
- 3. FIDIC –Red Book(1999) Conditions of contract for Construction for building & Engineer Works designed by employer There are 20 General condition of FIDIC-Red book (1999),Now we are explain & discuss for Planning department related to the topic only 1 General Provisions 11 Defects Liability 2 The Employer 12 Measurement & Evaluation 3 The Engineer 13 Variations &Adjustments 4 The Contractor 14 Contractor Price & Payment 5 Nominated SubContractors 15 Termination by Employer 6 Staff & Labour 16 Suspension &Termination by Contractor 7 Plant ,Materials &Workmanship 17 Risk & Responsibility 8 Commencement, Delays & Suspension 18 Insurance 9 Tests on Completion 19 Force Majeure 10 EmployersTaking Over 20 Claims,Disputes & Arbitration
- 4. Clause 8. Commencement,Delay & Suspension
- 5. Clause 8. Commencement,Delay & Suspension 8.1 Commenceme nt of works 8.2 Time for completion 8.3 Programme 8.4 Extension of time for completion 8.5 Delays caused by authorities 8.6 Rate of progress 8.7 Delay damages 8.8 Suspension of work 8.9 Consequences of suspension 8.10 Payment for plant and materials in event of suspension 8.11 Prolonged suspension 8.12 Resumption of work
- 6. Clause 8.1: Commencementof works Client • Not less then 7 days notice Comments date Contractor • With in 42 days after LOA Construction Start as soon as practicable
- 7. Clause 8.2: Timefor completion Time for Completion Contractor Whole works complete with in time IncludeT& C Taking over of the works & section clause 10.1
- 8. Clause 8.3: Programme Contractor DetailedProgram Consultant Comments or Approved If comments contractor revised program & update actual progress End Within 28 days after commence of works With 21 days review
- 9. Clause 8.3: Programme PROGRAMME 1 Designstage 2 Procurement 3 Construction 4 Nominated Sub Contractor 5 Sequence works & timing for inspections 6 Snagging & De snagging FinalT &C 7 Updated Program & Reports
- 10. Clause 8.4: Extensionof time for completion • Client late approved Design Drawing • Client AdditionWorks & instruction Contractor • Notice identifying • Claim notice Sub Clause 20.1 • Impact cost & time Consultant • Review program • Comments & Approved as per contractor require time Client Consider himself
- 11. Clause 8.4: Extensionof time for completion EOT CAUSES 1 Change in requirements or design 2 Delay on Site Clearance Work 3 Unforeseen Climate Condition 4 Poor Planning & Control 5 Owner caused delay: permits, owner-supplied, eq., materials, ..etc. 6 Differing site conditions 7 Unavailability of labor, material, or equipment
- 12. Clause 8.5: Delayscaused by authorities Delay caused by Authorities Delay in ContractorWorks Delay was unforeseeable Contractor consider Clause 8.4 (EOT for completion) Follow the procedures laid down by public authorities in the country
- 13. Clause 8.6: Rateof progress Contractor Actual progress too slow Program fallen behind current Programme Revised program submitted by Consultant Consultant review program (with in time frame complete the works)
- 14. Clause 8.7: Delaydamages Contractor Fail to Complete the works on time Employer terminator because of prior to completion works All delay damages appendix to tender Damages & All completeWorks responsible for Contractor Delay damages broadly to apply both critical & non critical delays 1.Idle labor &equip. 2.Addition material storage
- 15. Clause 8.8: Suspensionof work Consultant • Any time instruct Contractor • During suspension protect store & secure such part Suspend works • Suspend progress part or all the works Contractor apply for EOT • Consultant also notify
- 16. Clause 8.9: Consequencesof suspension Complying SuspensionWorks -Engineer instructions • Contractor making good consequences of the contractor design or material • Contractor failure to protect store or secure (clause 8.8) • Contractor suffers delay & cost Contractor give notice to Engineer • Clause 20.1 Contractor claims Eng receive the notice to proceed • Clause 3.5 determine
- 17. Clause 8.10: Paymentfor plant and materials in event of suspension Contractor entitled Payment for plant & material(event of suspension) 1.Not delivered to site 2.More then 28 days(suspended) Contractor marked Plant & material (as client property)with EI
- 18. Clause 8.11: Prolongedsuspension Suspension of works More then 84 days continued Contractor request Engineer permission to proceed With in 28 days not give permission Contractor give the notice to Eng Variations & adjustments clause 13
- 19. Clause 8.12: Resumptionof work • After EI instruction to Proceed the works • Contractor & Engineer jointly inspection works & material affected to Suspension • During Suspension contractor make defect in or loss of works & material Resumption of works
- 20. Clause 1.5 :Priorityof documents • Documents forming the contract are to be taken as mutually explanatory of one another • Documents shall be in accordance with the following sequences 0 2 4 6 8 10 Schedules or BOQ Drawings Specification General Conditions Particular Conditions Letter of Tender Letter of Acceptance Contract Agreement Priority Priority
- 21. Clause 1.9 :DelayedDrawings (or) Instructions • Advance notice to engineer for delay its going to cause be of delayed drawings • When drawings are already delayed contractor has to served delay with subject because of clause 20.1Contractors claims • Quantum of delay as by sub clause 8.4 extension of time for completion • After receive the notice Engineer to agree and determine the quantum
- 22. Clause 2.5 :EMPLOYER’S CLAIMS • Employer considers himself to be entitled to payment under or in connection with contract • Engineer give notice & particulars contractor • Notice not required for payments in relation to electricity, water,gas,employers,free issue materials or services requested by the contractor (Sub clause 4.19 & 4.20) • Notice given, as soon as practical after the Employer became aware of the event or circumstances given rise to the claim.
- 23. Clause 2.5 :EMPLOYER’S CLAIMS • Notice extending the defects notifications period must be given before the expiry of that period • Particulars” must specify the clause or other basis of the claim and should include substantiation of the amount and extension to which the Employer considers himself entitled in connection with contractor • Engineer proceed in accordance with Sub-Clause 3.5 [Determination] • Amount may be deducted from the contract price and payment certificates
- 24. Clause 3.1 :Engineer’s duties and authority • Engineer carry out the duties specified in the Contract. • Engineer may exercise the authority specified in or necessarily to be Authority implied from the Contract. • Engineer is required, under, the terms of his appointment by the Employer, to obtain the specific approval of the Employer before exercising any such authority, particulars of such requirements shall be set out in conditions of particular Application of these Conditions • Engineer have no authority to relieve the Contractor of any of his obligations under the contract
- 25. Clause 4.12 :Unforeseeable physical condition • Physical condition means natural and man-made. • Contractor faces un expectable physical conditions & it is notice to the engineer as soon as practicable and inspected by the engineer. • The contractor continue executing the work, using proper and reasonable measures are appreciate for the physical condition. • Engineer give instruction constitutes a variation clause 13 variation and adjustments may apply. • Delay due to unforeseeable physical condition the contractor should claim for extension of time (clause 20.1 & 8.4) • After inspecting the physical condition the engineer proceed with Clause 3.5 determinations
- 26. Clause 4.14: Avoidanceof interference • Contractor not interfere unnecessary with Convenience of the public. • Contractor compensate for loss and hold employer harmless against from all damage losses and expenses resulting from any improper interference.
- 27. Clause 4.20: Employer’sequipment and free issue material • Employer responsible for the Employer’s Equipment. • Contractor responsible for each item of employer equipment and personnel is operating it, driving it, direction it or control of it. • Employer supply “free issue material” which is set out in specification. • Providing these material at his risk and cost as specified in the contract. • Contractor visually inspect them.
- 28. Clause 4.21: Progressreport • Daily, weekly, monthly progress report prepared by the contract and submitted by the engineer. • The first report covers the period up to end of the first month calendar following the commencement date. • Report continues until contractor has completed all works • Report includes (project description, contract document, plan vs actual progress, s curve, summary of progress status, photographic report, equipment, quality, area of concern, safety )
- 29. Clause 6.5: Workinghours • Normal working hours stated in the contract. • Locally recognized days of rest no work carry out on site. • Engineer gives consent • Work is unavoidable but Contractor advice the engineer for the protection of life.
- 30. Clause 6.10: Recordsof contractor’s personnal and equipment • Contractor submit to the engineer showing number of each class contractor’s personnal and type of contractor’s equipment reports on site. • Reports are approved by the engineer (every month). • Report continues until contractor has completed all works which is “taking over certificate”.
- 31. Clause 10.1: Takingover of the works & sections • The Contractor may apply for a Taking Over Certificate not earlier than 14 days before the Works will in the Contractor’s opinion be complete (Sub-Clause 10.1). • The Engineer has 28 days to issue a Taking Over Certificate stating the date on which the Works or section were completed (save any minor defects) or reject the application giving reasons. • If the Engineer fails to respond within 28 days a Taking Over Certificate is deemed to have been issued on the last day of that period. • The Engineer may at the sole discretion of the Employer issue a Taking Over Certificate for any part of the permanent works (Sub-Clause 10.2).
- 32. Clause 10.1: Takingover of the works & sections • Issuing the taking-over certificate to the contractor stating the date on which the work completed except for minor outstanding works. • Reject the application giving reasons and specifying the work required to be done to enable taking-over certificate. • Engineer fails issuing taking-over certificate or reject contractor’s application within 28 days and works are substantial taking-over certificate can be deemed on the last day.
- 33. Clause 13.2: Valueengineering • Contractor may submit proposal to engineer if adopted • Accelerate completion • Reduce the cost to the employer of executing, maintaining or operating the work. • Improve the efficiency of completed work. • Benefit to employer • Proposal is approved by the engineer including change in design of permanent works • Contractor shall design the part. • Contractor’s general obligations apply.Clause 4.1 • Reduction in contract value such as adjustments for changes in legislation & cost (clause 13.7 & 13.8 )and varied works.
- 34. Clause 13.3: Variationprocedure • Upon request of the engineer to propose a Variation the Contractor may: • Give reasons of why he can not comply with the request Or submit: • A description of proposed work to be performed and programme for its execution • • A proposal for modifications to the programme and to the Time for Completion • A proposal for the evaluation • Engineer is to respond asap • Contractor shall not delay any work while awaiting response
- 35. Clause 13.5: ProvisionalSum • Provisional Sum" means a sum (if any) which is specified in the Contract as a provisional sum • Its used Whole or in Part with Engineers instruction & Contract price adjusted according • For provisional sums engineer instruct: • Work executed (include plant & material)by the contractor & valued clause 13.3 (Variation Procedure) • Plant, materials or services are purchased by the contractor from a subcontractor clause 5 (nominated Sub con) contract price include: • Actual amount paid by contractor & sum for overhead charges and profit and calculated % of actual amounts by applying relevant % rate stated in appropriate schedule ,if no rate % rate stated to Tender applied • Contractor required by Eng producequotation,invoices,vochers in sub Stantiation
- 36. Clause 15.1: Noticeto correct • Contractor fails to carry out any obligation under contract • engineer may notice the contractor to make good the failure & to remedy it with in specified reasonable period.
- 37. Clause 15.2: Terminationby employer • Fails to comply with Performance security clause 14.2 & Notice to correct 15.1 • Abandons the works • Without reasonable excuse fails • Sub Con the whole of the works or Assign the contract without required agreement • Agent are sub-contractor gives or offers to give direct or indirectly to a person any such reward • Employer may be notice terminate the contract immediately • Employers election to terminate the contract not prejudice any other rights of the employer
- 38. Clause 19.1: Definitionof force majeure • Force majeure means exceptional event or circumstance. • Beyond party’means (Engineer or contractor ) control. • Party could not reasonably have avoided • Not substantially attributable to other party. • It also include but not limited to exceptional event listed below • War, Act of foreign enemies • Rebellion,terrorism, revolution, insurrection, military or civil war. • Riot, commotion, disorder and strike. • War, explosive material. • Natural catastrophes such as earthquake,volcanic activity
- 39. Clause 19.2: Noticeof force majeure • Party prevented from performing any of its obligations under contract by force majeure give notice to other party of the event • The notice shall be given with in 14 days after the party became aware of the relevant event constituting force majeure • Its not apply to obligation of either party to make payments to the other party under the contract
- 40. Clause 19.3: Dutyto minimise delay • Each party all times use all reasonable endeavours to minise delay in performance of contract results force majeure. • Party gives notice to other party when it ceases to be affected by the force majeure.
- 41. Clause 19.4: Consequencesof force majeure • If the contractor is prevented from performing his obligations under contract by force majeure notice given clause 19.2(notice of force majeure). • Suffering delay& cost by reason of such force majeure contractor subjected to claim clause 20.1 (contractor’s claims) • An extension of time for such delay if completion delayed clause 8.4(extension of time for completion) • Circumstance of kind defined in clause 19.1 definition of force majeure • Receiving this notice engineer proceed in accordance clause 3.5(Determination)
- 42. Clause 19.5: Forcemajeure affecting subcontractor • Any subcontractor is entitled under any contract related to work to relief from force majeure • such additional circumstances shall not excuse the contractor’s non-performance or entitle him to relief
- 43. Clause 20.1: Contractor’sclaims • Contractor give notice to the engineer notice as soon as practicable not later then 28 days after contractor became aware of the event or circumstances • Fails to give notice of a claim within 28 days time for completion not be extended & entitled to addition payment & employer discharged from all liability in connection with the claim • Contractor keep contemporary records necessary to sub stantiate any claim • Fully detailed claim shall be consider as interim • Further interim claims at monthly intervals, giving the accumulated delay or amount claimed • Final claim with in 28day after end of the effects resulting from the event, proposed by the contractor approved by the engineer • With in 42 days after receive a claim or supporting previous claim with in period proposed by engineer & approved by contractor
- 44. Clause 20.2: Appointmentof the dispute adjudication board • Jointly by the Parties & set up at the commencement of the contract • DAB comprises of 1 or 3 qualified persons • Each party shall nominate one member for the approval of other party • Parties shall consult together for appointment of chairman • Alternative way of selecting member list of potential members included in contract and the member will be selected
- 45. Clause 20.2: Appointmentof the dispute adjudication board • Unless agreed otherwise selection member &parties will adopt general condition of Dispute adjudication appended to the Red Book • The terms of remuneration agreed & each party responsible for paying one half • Replacement of any or all member of the DAB can only be made with the agreement of both parties but not by one party acting alone • Appointment of the DAB shall expire when the Discharge clause 14.12 has become effective
- 46. Clause 20.7: Failureto comply with dispute adjustment board’s decision • Party give notice of dissatisfaction with in the period stated sub clause 20.4 • DAB's decision has become binding, but a Party does not comply with it, then that failure to comply can itself be referred to arbitration without the need for a DAB decision under Clause 20.4 or Amicable Settlement under Clause 20.5.