This document discusses claims according to the FIDIC Red Book construction contract. It outlines the different types of claims that can be made by both the employer and contractor for circumstances like extensions of time, additional payments, cost recovery, and non-fulfillment of obligations. Specific clauses from the Red Book are cited that allow claims for delays, differing site conditions, suspensions of work, termination, and other events. The document also provides background on FIDIC contract models and the applicability of claims.
- Having a brief of FIDIC
- Understand the steps and stages of Contract Management Using FIDIC.
- Understand the Role of PM during construction project to protect the organization Business case.
The Second Edition of the Rainbow Suite is considerably longer, more detailed. The update addresses issues raised by users over the past 18 years and reflects current international best practice. The presentation analysis changes in Yellow & Silver Books as they apply to EPC & PPP Contracts from the perspectives of Public Entities, Contractors and Lenders.
A thorough analysis of FIDIC and it implication on COnstruction industry explained in this presentation for the beginners. It has been broken down to simplified version
- Having a brief of FIDIC
- Understand the steps and stages of Contract Management Using FIDIC.
- Understand the Role of PM during construction project to protect the organization Business case.
The Second Edition of the Rainbow Suite is considerably longer, more detailed. The update addresses issues raised by users over the past 18 years and reflects current international best practice. The presentation analysis changes in Yellow & Silver Books as they apply to EPC & PPP Contracts from the perspectives of Public Entities, Contractors and Lenders.
A thorough analysis of FIDIC and it implication on COnstruction industry explained in this presentation for the beginners. It has been broken down to simplified version
Construction Contracts Management based on UK common law using more than 40 cases of law with references from the UK, USA regulations, and international rules plus some examples from standard forms of construction contracts such as JCT, NEC & FIDIC.
Training Slides of An Overview of the FIDIC FORMS OF CONTRACTand Contracts Committee Activities .
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Training Slides of Extension of Time (EOT) & Related Costs in Construction, in fullfillment of Delay Claim Expert.
Some Key-Points:
- Contentious Issues in Delay Analysis
- The SLC Protocol
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
A review of the concept of extension of time for construction contracts, including why it is beneficial for employers to grant extensions. Includes a look at alternatives to extension, by way of acceleration of works.
#FIDIC Understanding Basics# By SN Panigrahi
Essenpee Business Solutions
FIDIC Golden Principles
FIDIC essential characteristics of its general conditions of contract
Essenpee Knowledge Series
Contractor’s ability to mitigate damages can be limited if coupled with uncertainty of the duration of the delay. HOOH is recoverable in certain prolonged delay situations and has been granted by courts and amicable settlements for more than half a century. The Contractor may recover the return that he would have achieved on other work had his resources not been detained on the Works due to the delay. The presentation highlights the different formulae used in the calculations and conditions precedent to do so.
CONDITIONS OF CONTRACT FOR WORKS OF CIVIL ENGINEERING CONSTRUCTIONBahzad5
FEDERATION INTERNATIONALE DES INGENIEURS-CONSEILS
CONDITIONS OF CONTRACT
FOR WORKS OF CIVIL
ENGINEERING CONSTRUCTION
PART I GENERAL CONDITIONS
WITH FORMS OF TENDER AND AGREEMENT
FOURTH EDITION 1987
Reprinted 1988 with editorial amendments
Reprinted 1992 with further amendments
Construction Contracts Management based on UK common law using more than 40 cases of law with references from the UK, USA regulations, and international rules plus some examples from standard forms of construction contracts such as JCT, NEC & FIDIC.
Training Slides of An Overview of the FIDIC FORMS OF CONTRACTand Contracts Committee Activities .
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Training Slides of Extension of Time (EOT) & Related Costs in Construction, in fullfillment of Delay Claim Expert.
Some Key-Points:
- Contentious Issues in Delay Analysis
- The SLC Protocol
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
A review of the concept of extension of time for construction contracts, including why it is beneficial for employers to grant extensions. Includes a look at alternatives to extension, by way of acceleration of works.
#FIDIC Understanding Basics# By SN Panigrahi
Essenpee Business Solutions
FIDIC Golden Principles
FIDIC essential characteristics of its general conditions of contract
Essenpee Knowledge Series
Contractor’s ability to mitigate damages can be limited if coupled with uncertainty of the duration of the delay. HOOH is recoverable in certain prolonged delay situations and has been granted by courts and amicable settlements for more than half a century. The Contractor may recover the return that he would have achieved on other work had his resources not been detained on the Works due to the delay. The presentation highlights the different formulae used in the calculations and conditions precedent to do so.
CONDITIONS OF CONTRACT FOR WORKS OF CIVIL ENGINEERING CONSTRUCTIONBahzad5
FEDERATION INTERNATIONALE DES INGENIEURS-CONSEILS
CONDITIONS OF CONTRACT
FOR WORKS OF CIVIL
ENGINEERING CONSTRUCTION
PART I GENERAL CONDITIONS
WITH FORMS OF TENDER AND AGREEMENT
FOURTH EDITION 1987
Reprinted 1988 with editorial amendments
Reprinted 1992 with further amendments
Mihaela Vulpescu, Manager of Contracts Department - "Early warnings";
Cristina Pirjan, Senior QS Advisor - "Claims at termination under FIDIC 1999 Sub-Clauses 16.4 and 19.6 of the Contract"
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Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
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1. Claims according to FIDIC Red Book
By
Naresh Gattupalli,PMP®
B.Tech (Civil), M.Tech (SE), PGD ACM & PGD ADR
2. The International Federation of Consulting Engineers (FIDIC) has devoted itself to the compilation of management
documents for all kinds of projects, among which the FIDIC Conditions of Contract are of the highest influence
and are the most popular Application
The first edition of FIDIC Conditions of Contract for Works of Civil Engineering Construction (use “Red Book” in the
following) was compiled in 1957, and later its second, third, and fourth edition were issued in 1963, 1977, and
1987 respectively
With the investigation of the governments, employers, contractors and consulting engineers all over the world
about their application of the “Red Book”, 204 findings reports were returned. According to the findings, the FIDIC
Contract Committee organized a group of experts to compile the new Contract Condition models to be applied in
the 21stcentury
The test edition of these models was published in 1998, and FIDIC solicited opinions throughout the world for
additional time to publish the official texts in 1999.
Now FIDIC condition of contract has been applied worldwide, especially in the projects invested by World Bank,
Asia Development Bank, Africa Development Bank etc.
Background
3. The new models include :
1. FIDIC Conditions of Contract for Construction, the (New Red Book)
2. FIDIC Conditions of Contract for Plant and Design/Build, the (New Yellow Book)
3. FIDIC Conditions of Contract for EPC Turnkey Projects, the (Silver Book)
4. FIDIC Short Form of Contract, the (Green Book)
4. New Red Book --- Any kind of Engineering Construction Contract.
New Yellow Book --- Lump sum contract project where the Contractor takes participation in the design work.
Silver Book --- Turnkey projects of infrastructures or large-scale factories, where the Contractor takes
on more work and risk while the Employer’s participation is small (private financing or
government financing), but it is strictly defined upon the investment and construction
period.
Green Book --- All kinds of small-scale projects
Gold Book --- Design-Build Operate contract, Published on Sep-2007
Apart from these FIDIC published a Multilateral Development Bank Harmonized Edition in June 2010
Applicability
5. Claims
Claims are generally made by the Parties due to the following circumstances :
Entitlement to an extension of time
Entitlement to additional payments
Entitlement to the recovery of costs
Non fulfilment by one party of an obligation under the contract
Additional payments due to legal entitlement
6. Claims by Employer– Clause 2.5
Clauses requiring notice under clause 2 .5 include:
Clause 7.5 Rejection
Clause 7.6 Remedial work
Clause 8.6 Rate of progress
Clause 8.7 Delay damages
Clause 9.4 Tests on completion
Clause 11.3 Extension of defects notification period
Clause 15.4 Payment after termination
Clauses not requiring notice under clause 2.5 include:
Clause 4.19 Electricity water and gas
Clause 4.20 Employer’s equipment and free issue material
Other services requested by the contractor
7. Claims by Employer– Clause 2.5
Other clauses allowing for claims a deduction by the employer include:
Clause 4.2 Performance security
Clause 5.4 Evidence of payments to nominated subcontractors
Clause 9.2 Delayed tests
Clause 10.2 Taking over of parts of the works
Clause 11.4 Failure to remedy defects
Clause 11.6 Further tests
Clause 11.11 Clearance of site
Clause 13.7 Adjustments in legislation
Clause 17.1 Indemnities
Clause 18.1 General requirements for insurances
Clause 18.2 Insurance for works and contractors equipment
8. Claims by Contractor
Clauses which require the contractor to give notice of an event which may cause delay or additional cost:
Clause 1.9 Delayed drawings or instructions
Clause 4.12 Unforeseeable physical conditions
Clause 4.24 Fossils
Clause 16.1 Contractor’s entitlement to suspend work
Clause 17.4 Consequences of Employer’s risks
Clause 19.4 Consequences of force majeure
9. Claims by Contractor
Clauses which entitled the contract out to an extension of time and or additional payments:
Clause 1.9 Delayed drawings or instructions
Clause 2.1 Right of access to the site
Clause 4.7 Setting out
Clause 4.12 Unforeseeable physical conditions
Clause 4.24 Fossils
Clause 7.4 Testing
Clause 10.2 Taking over parts of the works
Clause 10.3 Interference with tests on completion
Clause 11.8 Contractor to search
Clause 13.7 Adjustments for changes in legislation
Clause 16.1 Contractor’s entitlement to suspend work
Clause 17.4 Consequences of Employers risks
Clause 19.4 Consequences of force majeure
10. Claims by Contractor
Clauses which involve valuation or similar requirements:
Clause 12.3 Evaluation
Clause 12.4 Omissions
Clause 15.3 Valuation at date of termination
Clause 16.4 Payment on termination
Clause 18.1 General requirements for insurances
Classes which provide for the Contractor to claim profit as well as costs:
Clause 1.9 Delayed drawings are instructions
Clause 2.1 Right of access to the site
Clause 4.7 Setting out
Clause 7.4 Testing
Clause 10.2 Taking over parts of the works
Clause 10.3 Interference with tests on completion in
Clause 11.8 Contractor to search
Clause 16.1 Contractor’s entitlement to suspend work
Clause 16.4 Payment on termination
Clause 17.4 Consequences of Employers risks on