The following Construction guidance note provides comprehensive and up to date legal information covering:
This Practice Note considers the dispute resolution procedure in the FIDIC Red, Yellow and Silver Books 2017. These contracts, like the previous (1999) editions and the Gold and Pink Books, contain a ‘multi-tiered’ dispute resolution procedure. The first stage is referral of the dispute to the Dispute Avoidance/Adjudication Board (DAAB) followed if necessary by amicable settlement and finally arbitration. The dispute provisions are contained in clause 21.
For information about the dispute resolution procedure in the earlier FIDIC contracts referred to above, see Practice Note: FIDIC contracts (pre-2017 editions)—dispute resolution.
If a ‘Dispute’ arises between the parties, either party can invoke the contractual dispute resolution procedure by referring the matter to the DAAB. Disputes are defined in clause 1. The definition is wide, but parties need to check that they have followed the correct procedure before referring a matter to the DAAB. For example, if a dispute has arisen over an entitlement or relief other than payment, and extension of time or an extension of the defects notification period, clause 20.1 expressly states that this is not a ‘Dispute’ and requires the party to first refer the claim to the Engineer (Employer’s Representative in the Silver Book) for agreement or determination under clause 3.7 (3.5 in the Silver Book).
For more information about the claims procedure in
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