Guide to the FIDIC Conditions of Contract for Construction: The Red Book 2017

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Enables readers to easily understand the contract to enable better compliance and efficiency

Guide to the FIDIC Conditions of Contract for Construction: The Red Book 2017 helps the reader overcome some of the difficulties encountered on a typical international construction project using the FIDIC Construction Contract 2nd Edition (the 2017 Red Book), by summarizing the activities and duties of those involved, and crystallizing the requirements of the contract. To aid in reader comprehension, the text explains clauses in the sequence they appear in the contract, but also in the order they happen in real time on site. It further provides practical guidance in a concise manner, and in straightforward, jargon-free language.

It is a highly practical resource for use during the project, rather than a legal review of the contractual requirements, ensuring readers are fully conversant with the revised requirements and procedures mandated by the 2017 edition of the contract.

Guide to the FIDIC Conditions of Contract for Construction: The Red Book 2017 includes:

  • A review of the duties and responsibilities of the three parties, the Employer, the Engineer and the Contractor, engaged on a FIDIC-based Contract
  • A review of the flow of documentation and instructions which is to be provided by one party to another party throughout the contract period
  • Practical guidelines are provided for the avoidance of disputes and delays in order that contracts are completed as planned

Guide to the FIDIC Conditions of Contract for Construction: The Red Book 2017 is a practical and highly useful resource for engineers, consultants, project managers, and others who are engaged in the site management of international projects using the FIDIC Construction Contract, along with those involved in contractual administration on behalf of the client.

Author(s): Michael D. Robinson
Publisher: Wiley-Blackwell
Year: 2023

Language: English
Pages: 207
City: Hoboken

Cover
Title Page
Copyright Page
Brief Contents
Contents
Preface
Acknowledgements
Chapter 1 Clause 1 General Provisions
1.1 Definitions
1.1.10 The Contract
1.1.12 Contract Data
1.1.13 Contract Price
1.1.15 Contractor’s Documents
1.1.20 Cost Plus Profit
1.1.22 DAAB
1.1.23 DAAB Agreement
1.1.24 Date of Completion
1.1.26 Daywork Schedule (If Included)
1.1.27 Defects Notification Period (DNP)
1.1.28 Delay Damages
1.1.29 Disputes
1.1.37 Exceptional Events
1.1.38 Extension of Time (EOT)
1.1.40 Final Payment Certificate (FPC)
1.1.43 General Conditions
1.1.45 Interim Payment Certificate (or IPC)
1.1.46 Joint Venture
1.1.48 Key Personnel
1.1.49 Laws
1.1.54 Month
1.1.55 No objection
1.1.56 Notice
1.1.57 Notice of Dissatisfaction (or NOD)
1.1.59 Particular Conditions
1.1.62 Performance Certificate
1.1.65 Plant
1.1.66 Programme
1.1.68 QM System
1.1.70 Review
1.1.71 Schedules
1.1.75 Special Provisions
1.1.77 Statement
1.1.78 Subcontractor
1.1.81 Tender
1.1.82 Tests After Completion
1.1.85 Unforeseeable
1.2 Interpretation
1.3 Notices and Other Communications
1.4 Lawand Language
1.5 Priority of Documents
1.6 ContractAgreement
1.7 Assignment
1.8 Care and Supply of Documents
1.9 Delayed Drawings or Instructions
1.10 Employer’s Use of Contractor’s Documents
1.11 Contractor’s Use of Employer’s Documents
1.12 Confidentiality
1.13 Compliance with Laws
1.14 Joint and Several Liability
1.15 Limitation of Liability
1.16 Contract Termination
Chapter 2 Clause 2 The Employer
2.1 Right of Access to the Site
2.2 Assistance
2.3 Employer’s Personnel and Other Contractors
2.4 Employer’s Financial Arrangements
2.5 Site Data and Items of Reference
2.6 Employer-Supplied Materials and Employer’s Equipment
Chapter 3 Clause 3 The Engineer
3.1 The Engineer
3.2 Engineer’s Duties and Authority
3.3 The Engineer’s Representative
3.4 Delegation by the Engineer
3.5 Engineer’s Instructions
3.6 Replacement of the Engineer
3.7 Agreement or Determination
3.7.1 Consultation to Reach Agreement
3.7.2 Engineer’s Determination
3.7.3 Time Limits
3.7.4 Effect of the Agreement or Determination
3.7.5 Dissatisfaction with Engineer’s Decision
3.8 Meetings
Chapter 4 Clause 4 The Contractor
4.1 Contractor’s General Obligations
4.2 Performance Security
4.2.1 Contractor’s Obligations
4.2.2 Claims under the Performance Security
4.2.3 Return of the Performance Security
4.3 Contractor’s Representative
4.4 Contractor’s Documents
4.4.1 Preparation and Review
4.4.2 As Built Records
4.4.3 Operation and Maintenance Manuals
4.5 Training
4.6 Co-operation
4.7 SettingOut
4.8 Health and Safety Obligations
4.9 Quality Management and Compliance Verification
4.9.1 Quality Management System – General Comments
4.9.2 Compliance Verification System
4.9.3 General Provisions
4.10 Useof Site Data
4.11 Sufficiency of the Accepted Contract Amount
4.12 Unforeseeable Physical Conditions
4.13 Rights of Way and Facilities
4.14 Avoidance of Interference
4.15 Access Route
4.16 Transport of Goods
4.17 Contractor’s Equipment
4.18 Protection of the Environment
4.19 Temporary Utilities
4.20 Progress Reports
4.21 Security of the Site
4.22 Contractor’s Operations on Site
4.23 Archaeological and Geological Findings
Chapter 5 Clause 5 Subcontracting
5.1 Subcontractors
5.2 Nominated Subcontractors
5.2.1 Definition of a ‘Nominated Subcontractor’
5.2.2 Objection to Nomination
5.2.3 Payments to Nominated Subcontractors
5.2.4 Evidence of Payment
Chapter 6 Clause 6 Staff and Labour
6.1 Engagement of Staff and Labour
6.2 Rates of Wages and Conditions of Labour
6.3 Recruitment of Persons
6.4 Labour Laws
6.5 Working Hours
6.6 Facilities for Staff and Labour
6.7 Health and Safety for Personnel
6.8 Contractor’s Superintendence
6.9 Contractor’s Personnel
6.10 Contractor’s Records
6.11 Disorderly Conduct
6.12 Key Personnel
Chapter 7 Clause 7 Plant, Materials, and Workmanship
7.1 Manner of Execution
7.2 Samples
7.3 Inspections (by the Employer’s Personnel)
7.4 Testing by the Contractor (on Site)
7.5 Defects and Rejection
7.6 Remedial Work
7.7 Ownership of Plant and Materials
7.8 Royalties
Chapter 8 Clause 8 Commencement, Delays, and Suspension
8.1 Commencement of Works
8.2 Time for Completion
8.3 Programme
8.4 Advance Warning
8.5 Extension of Time
8.6 Delays Caused by Authorities
8.7 Rate of Progress
8.8 Delay Damages
8.9 Employer’s Suspension
8.10 Consequences of Employer’s Suspension
8.11 Paymentfor Plant and Materials after Employer’s Suspension
8.12 Prolonged Suspension
8.13 Resumption of Work
Chapter 9 Clause 9 Test on Completion
9.1 Contractor’s Obligations
9.2 Delayed Tests
9.3 Re-testing
9.4 Failure to Pass Tests on Completion
Chapter 10 Clause 10 Employer's Taking Over
10.1 Taking Over of the Works and Sections
10.2 Taking Over of Parts of the Works
10.3 Interference with Tests on Completion
10.4 Surfaces Requiring Reinstatement
Chapter 11 Clause 11 Defects after Taking Over
11.1 Completion of Outstanding Work and Remedying Defects
11.2 Cost of Remedying Defects
11.3 Extension of Defects Notification Period
11.4 Failure to Remedy Defects
11.5 Remedying of Defective Work off Site
11.6 Further Tests after Remedying Defects
11.7 Right of Access after Taking-Over
11.8 Contractor to Search
11.9 Performance Certificate
11.10 Unfulfilled Obligations
11.11 Clearance of Site
Chapter 12 Clause 12 Measurement and Valuation
12.1 Works To Be Measured
12.2 Method of Measurement
12.3 Valuation of the Works
12.4 Omissions
12.4.1 Contractor to give Notice of unreimbursed Costs
Chapter 13 Clause 13 Variations and Adjustments
13.1 Right to Vary
13.2 Value Engineering
13.3 Variation Procedure
13.3.1 Variation by Instruction
13.3.2 Variation by Request for Proposal
13.4 Provisional Sums
13.5 Daywork
13.6 Adjustments for Changes in Laws
13.7 Adjustment for Changes in Cost
Chapter 14 Clause 14 Price and Payment
14.1 The Contract Price
14.2 Advance Payment
14.2.1 Advance Payment Guarantee
14.2.2 Advance Payment Certificate
14.2.3 Repayment of the Advance Payment
14.3 Application for Interim Payment Certificates
14.4 Schedule of Payments
14.5 Plant and Materials intended for the Works
14.6 Issue of IPC
14.6.1 The IPC
14.6.2 Withholding (Amounts in) an IPC
14.6.3 Correction or Modification
14.7 Payment
14.8 Delayed Payment
14.9 Release of Retention Money
14.10 Statement on Completion
14.11 Final Statement
14.11.1 Draft Final Statement
14.11.2 Agreed Final Statement
14.12 Discharge
14.13 Issue of Final Payment Certificate (FPC)
14.14 Cessation of Employer’s Liability
14.15 Currencies of Payment
Chapter 15 Clause 15 Termination by the Employer
15.1 Notice to Correct
15.2 Termination for Contractor’s Default
15.2.1 Notice
15.2.2 Termination
15.2.3 After Termination
15.2.4 Completion of the Works
15.3 Valuation after Termination for Contractor’s Default
15.4 Payment after Termination for Contractor’s Default
15.5 Termination for Employer’s Convenience
15.6 Valuation after Termination for Employer’s Convenience
15.7 Payment after Termination for Employer’s Convenience
Chapter 16 Clause 16 Suspension and Termination by the Contractor
16.1 Suspension by the Contractor
16.2 Termination by Contractor
16.2.1 Notice
16.2.2 Termination
16.3 Contractor’s Obligations After Termination
16.4 Payment after Termination by the Contractor
Chapter 17 Clause 17 Care of the Works and Indemnities
17.1 Responsibility for Care of Works
17.2 Liability for Care of the Works
17.3 Intellectual and Industrial Property Rights
17.4 Indemnities by Contractor
17.5 Indemnities by Employer
17.6 Shared Indemnities
Chapter 18 Clause 18 Exceptional Events
18.1 Exceptional Events
18.2 Notice of an Exceptional Event
18.3 Duty to Minimise Delay
18.4 Consequences of an Exceptional Event
18.5 Optional Termination
18.6 Release from Performance Under the Law
Chapter 19 Clause19 Insurance
19.1 General Requirements
19.2 Insurance to be provided by the Contractor
19.2.1 The Works
19.2.2 Goods (Contractor’s Equipment, Materials, Plant, and Temporary Works)
19.2.3 Liability for Breach of Professional Duty
19.2.4 Injury to Persons and Damage to Property
19.2.5 Injury to employees
19.2.6 Other Insurances Required by Law and by Local Practice
Chapter 20 Clause 20 Employer’s and Contractor’s Claims
20.1 Claims
20.2 Claims for Payment and EOT
20.2.1 Notice to Claim
20.2.2 Engineer’s Initial Response
20.2.3 Contemporary Records
20.2.4 Fully detailed claim
20.2.5 Agreement or determination of the Claim
20.2.6 Claims of Continuing Effect
20.2.7 General Requirements
Chapter 21 Clause 21 Disputes and Arbitration
21.1 Constitution of the DAAB
21.2 Failure to Appoint DAAB Members
21.3 Avoidance of Disputes
21.4 Obtaining DAAB’s Decision
21.4.1 Reference of a Dispute to the DAAB
21.4.2 The Parties’ Obligations after the Reference
21.4.3 The DAAB Decision
21.4.4 Dissatisfaction with DAAB’s Decision (NOD)
21.5 Amicable Settlement
21.6 Arbitration
21.7 Failure to Comply with DAAB’s Decision
21.8 No DAAB in Place
Appendix A. Guidance for the Preparation of Particular Conditions
Appendix B. Employer’s Claims
Appendix C. Contractor’s Claims
Appendix D. Notices and Site Organisation
Appendix E. Daywork and Contemporary Record Sheets
Appendix F. Contractor’s Costs
Appendix G. Joint Ventures
Model Form of a Pre-Bid Joint Venture Agreement
Index of Clauses and Sub-Clauses
Index of Sub-Clauses
EULA