Time Management In Fidic Red

Book 2017
Contents
Fidic Red Book 2017

Project Parties

Agreement or Determination

Time for Completion

Commencement, Delays and Suspension

Sequence of payment

FIDIC and its Dispute Resolution Provisions

Typical Sequence of Dispute

 Fidic Red Book 2017
• Design and Engineering (incl. BoQs) is done by Employer or Employer’s
Representative.
• Tenderers fill in their unit prices into the existing BoQs.
• Final amount is not fixed, payments are done based on the real amounts
executed. (Exceptions are available eg: lump-sum conracts).
• Employer carries the risk for contract amount increases.
• The better the design, the flawless the project implementation.
• Tender evaluations are relatively simpler.
Project Parties
Employer
• he person named as the
employer in the Contract
Data and the legal
successors in title to this
person
Engineer Contractor
• the person named in the • the person(s) named as
Contract Data appointed contractor in the Letter
by the Employer to act of Tender accepted by
as the Engineer for the the Employer and the
purposes of the Contract legal successors in title
of such person(s).

Project
Parties
Typical Sequence of Events in Agreement or Determination under
Sub-Clause 3.7
Scenario(1) Agreement is reached within 42 days, error found in the Engineer’s Notice of agreement and corrected
Typical Sequence of Events in Agreement or Determination under
Sub-Clause 3.7
Scenario(2) The Parties’ early advice that agreement cannot be reached and so Engineer’s determination is necessary,
no error in Engineer’s determination.
Typical Sequence of Events in Agreement or Determination under
Sub-Clause 3.7
Scenario(3) No agreement within 42 days, Engineer determines within 42 days, error found in the Engineer’s
determination and corrected.
The Time for Completion Sequence During Contracts for Construction
 Commencement, Delays and Suspension(sec-8)
• 8.1 Commencement of Works

• Before the
Commencement Date
Engineer(Notice not less than 14 days
the contractor to • Or
Commence the
commence the • The Commencement Contractor work
Date shall be within 42
work) days after the
Contractor receives the
Letter of Acceptance.
Time for Completion
Time for
completion

Taking over of the

works & section Contractor
clause 10.1

Whole works
complete with
in
time
8.3 Programme
The Contractor shall
Yes submit a revised
Contractor Engineer programme within 14
days after receiving this
• submit an initial • Review the initial Noticeto the Engineer
programme for the programme and gives Engineer
execution of the Works the notice within 21 give the
to the Engineer within days after receiving the Notice
28 days after receiving initial programme
the Notice • Review each revised
Commencement of programme and gives Notice of No-objection
Works. the notice within 14 • The Contractor shall
• submit a revised days after receiving a proceed in
programme for the revised programme No accordance with the
actual progress of the Programme
Works.
 Initial programme

initial
programme

the date right of

Commencement
access to and Execution Schedule & WBS
Date and the
possession of strategy all activities
Time for
the Site
Completion

the earliest,
the order of timing of each latest start,
Logically linked the critical path
execution works stage of finish dates and
the float

construction, nominated
Submission of Subcontractor Testing &
Design (if any) Procurement erection, Milestones
documents inspection
installation works
 Revised programme
Revised
programme

Progress Supporting report

actual progress Execution significant

Delays Execution works Required recourses
to date Method change(s)

Prosals to
any delay to such effects of delay overcome the Personnel Equipment
progress
effects of any delay
8.4 Advance Warning
• The Engineer may request the Contractor to submit a proposal under
Sub-Clause 13.3.2 [Variation by Request for Proposal] to avoid or
minimize the effects of such event(s) or circumstance(s).
8.5 Extension of Time for Completion
• The Contractor shall be entitled subject to Sub-Clause 20.2 [Claims
• For Payment and/or EOT] to Extension of Time if and to the extent
that
• completion for the purposes of Sub-Clause 10.1 [Taking Over the
Works and
• Sections] is or will be delayed by any of the following causes:

Measure works • Review

which increases measured
the quantity quantities
Contractor more than Engineer
10%causes a • Increase, but
delay to not decrease
completion the total EOT
8.5 Extension of Time for Completion (EOT)
Variation

Concurrent Delay

Delays
EOT Unforeseen
caused by climatic
the employer conditions

Causes
Assessed in
accordance
Unavailabilit
y of labor, as appropriate taking
rules and procedures
material,or due regard of all
equipment stated in the Special
relevant
Provisions circumstances).
8.6 Delays Caused by Authorities

authorities or entities delay or disrupt the

Contractor’s work
Delays Caused
by Authorities

Contractor has diligently followed the

procedures laid down by the relevant delay or disruption was Unforeseeable,
legally constituted public authorities

Contractor consider Clause 8.4 (EOT for

completion)
 8.7 Rate of Progress
1- slow progress to complete the Works
Contractor 2- progress has fallen (or will fall) behind the Programme
3- the initial programme has not yet become the Programme

1-instruct the Contractor to submit the revised methods to expedite progress and complete the Works
Engineer
2-gives a Notice to the Contractor stating otherwise, the Contractor shall adopt these revised methods

1- if these revised methods cause the Employer to incur additional costs, the Employer shall be entitled subject to
Sub-Clause 20.2 [Claims For Payment and/or EOT] to payment of these costs by the Contractor, in addition to Delay
Damages (if any).
Employer
2- termination under Sub-Clause 15.2 [Termination for Contractor’s Default] before completion of the Works. These
Delay Damages
 8.8 Delay Damages

Delay Damages

Contractor Employer

Fraud, gross [Claims ForPayment paid for every day

Fails to comply with negligence, and/or EOT] to Delay Damages shall between the relevant
Sub-Clause 8.2 [Time deliberate default or payment of Delay be the amount stated Time and relevant
for Completion] reckless misconduct Damages by the in the Contract Data Date of Completion
by the Contractor. Contractor of the Works
8.9 Employer’s Suspension

Engineer • protect, store and

secure such part or all
• instruct to suspend of the Works against
progress of part or all of any deterioration, loss
the Works or damage
• state the date and
cause of the suspension

Contractor
8.10 Consequences of Employer’s Suspension

Contractor entitled to EOT, or to

payment of the Cost incurred
• If the Contractor suffers delay and/or incurs Contractor not entitled to EOT, or to payment
Cost from complying with an Engineer’s
instruction under Sub-Clause 8.9 [Employer’s of the Cost incurred, in making good:
Suspension] and/or from resuming the work
under Sub-Clause 8.13 [Resumption of Work] • (a) the consequences of the Contractor’s faulty or defective
• (b) any deterioration, loss or damage caused by the Contractor
8.11 Payment for Plant and Materials after Employer’s
Suspension

the Plant and/or Materials

were scheduled, and ready
for delivery to the Site during
The Contractor shall be the suspension period
entitled to the work on Plant, or delivery
of Plant and/or Materials, has
payment of the value Plant been suspended for more
and/or Materials which have than 28 days and
not been delivered to Site if
reasonable evidence that the
Materials which have not
Plant and/or Materials
been delivered to Site, if:
comply with the Contract
the Contractor has marked
the Plant and/or Materials as
the Employer’s property in
accordance with the
Engineer’s instructions.
8.12 Prolonged Suspension

The Contractor may give a Notice If the Engineer does not give a
Suspension has Notice within 28 days
to the Engineer
continued for more than 84 days after receiving the Contractor’s
requesting permission to proceed
Notice

if the Parties not agree after

the Contractor may agree to a
giving a (second) Notice to the
If the suspension affects the further suspension in which case
Engineer, treat the suspension as
whole of the Works, the the Parties may agree the EOT
an omission of the affected part
and/or Cost Plus Profit, and/or
Contractor may give a Notice of of the Works with immediate
payment for suspended Plant
termination effect including release from any
and/or Materials, arising from
further obligation to protect,
the total period of suspension
store and secure
8.13 Resumption of Work

Engineer Contractor Engineer Contractor

• Give Notice to • resume work • record any • Make good all

the contractor after receiving deterioration, such
to proceed the Notice loss, damage deterioration,
the suspended from the or defect in loss, damage
work Engineer the Works or or defect to
Plant or comply with
Materials the Contract
during the
suspension
Typical Sequence of payment Events Envisaged in clause 14
FIDIC 1999 and its Dispute Resolution Provisions
FIDIC Procedure for Employer/Contractor’s Claims
28 day Notice of Claim to Engineer
Clause 20.1
Contractor’s Claims
42 day “Fully Detailed Claim”
to Engineer

“Final Claim” 28 days after end of effects

42 days after receipt of claim

Engineer’s Response

Clause 3.5 Clause 3.5 Engineer to“Agree or Determine”

Determinations

Agreement/Determination
given effect unless revised under Clause 20
FIDIC 1999 and its Dispute Resolution Provisions(cont.)
Reference to Dispute Adjudication Board (DAB)
Clause 20.2 (1 or 3 people)

DAB Decision No DAB Decision

Clause 20.4 within 84 days of reference within 84 days of reference

No Notice of Dissatisfaction Notice of Dissatisfaction Notice of Dissatisfaction

within 28 days of Decision within 28 days of Decision within 28 days after 84 days of reference

DAB Decision
final and binding
Clause 20.5 “Amicable Settlement” stage

Clause 20.6 ICC Arbitration

within 56 days after Notice of Dissatisfaction
FIDIC 1999 and its Dispute Resolution Provisions(cont.)

Clause 2.5 Employer or Engineer gives

Employer’s Claims notice and particulars to Contractor

Clause 3.5 Clause 3.5 Engineer to

Determinations “Agree or Determine”

Agreement/Determination given
effect unless revised
under Clause 20

Clauses 20.2 and 20.4 Reference to Dispute Adjudication Board (DAB)

(See previous diagram for (1 or 3 people)
full Clause 20.4 procedure)
Clause 20.5 “Amicable Settlement” stage

Clause 20.6 ICC Arbitration

within 56 days after Notice of Dissatisfaction
FIDIC 2017 and its Dispute Resolution Provisions
Event for Claim

28 day Notice of Claim to

Engineer

Engineer shall give a Notice

(No) the claiming Party shall to the claiming Party, within
not be entitled to any claim 14 days after receiving the
Notice of Claim (yes) the other Party
disagrees &review by
(No) valid Notice
the Engineer

Fully Detailed claim

84 days after the event
giving rise to the Claim

the Engineer shall, within

14 days after this time limit
has expired, give a Notice to
the claiming Party
accordingly.
FIDIC 2017 and its Dispute Resolution
Provisions
FIDIC 2017 and its Dispute Resolution Provisions
Typical Sequence of Dispute Events Envisaged in clause 21