FIDIC Conditions of Contract

The workshop will follow the same structure as the FIDIC documentation, being based around the 20 clauses that run across the FIDIC contracts. It will therefore be useful irrespective of which FIDIC contract you happen to be working on.

Session 1
We start this session by introducing the FIDIC contracts – explaining where they come from, why the contracts have such global popularity, and what contracts are in the FIDIC Family.
We then go on to explore which FIDIC contract you would use for which project. The obligations of the Owner (Employer) and his agent (the Engineer) are also discussed. The Topics covered in this session include:

• Procurement under the FIDIC Contracts: Choosing the right contract for your project.
• Risk allocation: How the different FIDIC contracts allocate risk
• Clause 1: General Provisions: This clause covers important matters like: how to serve notices, what legal system applies, how the contract is entered into, what happens if drawings are issued late
• Clause 2: The Employer: Here we focus on the duties of the owner of the works – the obligation to give access to the site, to give information about his financial arrangements, and other duties. Claims by the Employer are also discussed
• Clause 3: The Engineer: The Engineer is the owner’s agent who manages the contract on his behalf. We will consider the Engineer’s duties and authority. Also, whether the Engineer is supposed to be impartial or whether he acts in the interests of his client, the Employer. The Engineer’s role is determining claims is also considered.

Session 2

• Clause 4: The Contractor: Here we focus on the duties of the Contractor, with particular focus on: Security: Performance guarantees, retention money, advance payment guarantees, Unforeseen physical conditions.
• Clause 5: Nominated Subcontractors: Here we look at the Contractor’s liability for work of a nominated subcontractor. Some topics covered here include: how and when subcontractors can be nominated, when the contractor can refuse to appoint a nominated subcontractor direct payment to nominated subcontractors
• Clause 6: Staff and Labor: This clause details the Contactor’s obligations regarding his staff and labor, working hours, health and safety, facilities for staff, and related matters.

Session 3
In this session, we cover Clause 7 (Plant, Materials and Workmanship) and Clause 8 (Commencement, Delays and Suspension). Some topics discussed here include:

• Ownership of plant and materials: who owns goods stored on (and off) site?
• Inspections and Testing.
• Time for completion
• Commencement, delays and stages of completion
• Extension of time claims
• The program
• Liquidated damages for delay
• Acceleration
• Suspension of work

Session 4
Session 4 focuses on Clauses 9, 10 and 11. These three clauses deal with:

• Tests on completion
• Taking over the works by the Employer. Here we will consider: What happens if the Employer uses the works before taking over? Sectional taking over, What happens if the Employer is not ready to take over the works?
• Defects liability: The FIDIC defects notification period, Extending the defects notification period, Cost of remedying defects

Session 5

Session 5 focusses on clauses 12, 13, 14. These clauses deal with the important issues of variations to the work, valuing variations and payment. We will spend some time looking at how changes to the work can be instructed, and how payment for changes is valued. Matters covered in these clauses include:

• Tests after completion
• Variations: How variations are issued, value engineering, and how variations are valued;
• Payment

Session 6
In this session, we focus on the clauses relating to termination, suspension, risk and responsibility (Clauses 15, 16 and 17). Matters covered here include:

• When is a party entitled to cancel the contract?
• Termination for convenience
• Suspension of work by the Contractor – the grounds for suspension and claims for delay caused by suspension
• Limitation of liability

Session 7
The focus of this session is Contractor’s claims, including the process for making claims. Some topics covered here include:

• Force majeure in different jurisdictions
• Claiming under force majeure and claiming under Employer’s risk
• Claims for time, claims for money and claims for both
• Insurance
• The process for making claims: serving notices, time barring

Session 8
In this final session, we look at dispute resolution. We focus on adjudication and the FIDIC Dispute Adjudication Board
Delegates who attend this workshop will acquire:

• an awareness of some pitfalls when working with the FIDIC contracts;
• an awareness of projects where the FIDIC contracts have been used; and
• insight into how the FIDIC contracts work in practice, on both big and small projects.