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PRACTICE NOTES
This Practice Note examines the approach to sub-contracting under the 1999 editions of the FIDIC Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. It also looks at the key features of the two standard form sub-contracts published by FIDIC: • Conditions of Subcontract for Construction 2011, which is for use with the Red Book 1999 and, with some amendments, the Pink Book 2010 (the Red Book sub-contract) • Conditions of Subcontract for Plant and Design-Build 2019, which is for use with the Yellow Book 1999 (the Yellow Book sub-contract) Despite being published in 2019, the Yellow Book sub-contract is for use with the 1999 edition of the Yellow Book main contract—not the 2017 edition. For information on sub-contracting under the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—sub-contracting. Approach to sub-contracting in the FIDIC contracts The key principle in the FIDIC contracts in relation to sub-contracting is that the contractor remains responsible to the employer for work carried out by sub-contractors. This is enshrined
PRACTICE NOTES
This Practice Note considers termination by the Contractor under the FIDIC Red, Yellow and Silver Books 1999, the Gold Book 2008 and the Pink Book 2010. It does not address the right to terminate at law. Further, the governing law of the Contract may affect the operation of some of the clauses. In relation to the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—termination by the Contractor. Who can terminate? Both the Employer and the Contractor may terminate the Contract. Clause 15 sets out the procedure for Employer termination and Clause 16 sets out the procedure for Contractor termination. Termination is also addressed in Sub-Clauses 9.4, 11.4 and 19.6, and in Sub-Clause 10.7 of the FIDIC Gold Book. For more information about termination by the Employer, see Practice Note: FIDIC contracts (pre-2017 editions)—termination by the Employer. The Contractor may terminate for cause or as a result of Force Majeure. It may not terminate for convenience. Termination by the Contractor
PRACTICE NOTES
This Practice Note looks at the Employer’s rights to terminate under the FIDIC Red, Yellow and Silver Books 1999, the Gold Book 2008 and the Pink Book 2010. In relation to the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—termination by the Employer. Who can terminate? Both the Employer and the Contractor may terminate the Contract. Clause 15 sets out the procedure for Employer termination and Clause 16 sets out the procedure for Contractor termination. Termination is also addressed in Sub-Clauses 9.4, 11.4 and 19.6, and in Sub-Clause 10.7 of the FIDIC Gold Book. For more information about termination by the Contractor, see Practice Note: FIDIC forms of contract (pre-2017 editions)—termination by the Contractor. The Employer may terminate for cause or for convenience or as a result of Force Majeure. Termination by the Employer for cause Grounds for termination for cause by the Employer Sub-Clause 15.2 provides several ways for the Employer to terminate the Contractor. The FIDIC Red, Pink
PRACTICE NOTES
This Practice Note considers the role of the Engineer under the FIDIC Red and Yellow Books 1999 and the Pink Book 2010. The FIDIC Silver Book 1999 and the FIDIC Gold Book 2008 have an ‘Employer’s Representative’ rather than an Engineer and are outside the scope of this Practice Note. While under the FIDIC Gold Book 2008, the Employer’s Representative has a similar role to that of the Engineer—the position of the Employer’s Representative under the FIDIC Silver Book 1999 is significantly different. For guidance on the role of the Engineer under the FIDIC Red and Yellow Books 2017, see Practice Note: FIDIC contracts 2017—the role of the Engineer. Who is the Engineer? The Engineer is 'the person appointed by the Employer to act as the Engineer for the purposes of the Contract and named in the Appendix to Tender, or other person appointed from time to time by the Employer and notified to the Contractor under Sub-Clause 3.4 [Replacement of the Engineer]' (Sub-Clause
PRACTICE NOTES
This Practice Note examines the position under the 1999 editions of the Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. In relation to the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—time and for a comparison of the FIDIC time provisions (albeit referencing the 2017 versions of the contracts) with the JCT and NEC contracts, see Practice Note: Comparison between JCT, NEC and FIDIC time and money events. Time to complete the works (meaning, for the purposes of this Practice Note, the works under the Red and Pink Books, the design and works under the Yellow and Silver Books and the design-build phase under the Gold Book) is one of the key concerns in any construction project. The contractor is under two distinct obligations in relation to time: • the obligation to complete the works within the time for completion (or complete the design-build within the time for completion of design-build under the Gold Book), and • the obligation to proceed with the works with
PRACTICE NOTES
This Practice Note examines variations under the 1999 editions of the Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. For detail on variations under the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—variations. Introduction Under all the FIDIC forms of contract the employer is entitled to vary the works by the issue of variations at any time before the issue of the Taking-Over Certificate (the Commissioning Certificate under the Gold Book) without the need for the contractor's agreement. However, the issue of a variation may entitle the contractor to additional payment and extra time within which the contractor must complete the works as varied. Under all the FIDIC forms of contract, variations are primarily governed by clauses 13.1 to 13.3, which set out the right to vary the works and the procedure to be followed. What is a variation? A variation is defined as: • 'any change to the Works, which is instructed or approved as a variation under Clause 13' (under the Red and
PRACTICE NOTES
It is vital for parties to follow the correct procedure for making claims under the FIDIC contracts. The consequences of not doing so are severe, and may lead to the claim being barred or the claiming party’s entitlement being reduced. This Practice Note considers the procedure for claims brought by the Contractor or Employer under the FIDIC Red, Yellow and Silver Books 2017, focussing specifically on the detailed process set out in clause 20.2. See also Flowcharts: Claims under the FIDIC Red and Yellow Books 2017 (clause 20.2) and Claims under the FIDIC Silver Book 2017 (clause 20.2). In the 2017 contracts, claims by the Employer are now treated in the same way as Contractor claims—claims by the Employer were subject to their own (less strict) regime in the 1999 editions. For guidance on claims under the 1999 Red, Yellow and Silver Books, as well as under the Pink and Gold Books, see Practice Notes: FIDIC contracts (pre-2017 editions)—Contractor claims and FIDIC contracts (pre-2017 editions)—Employer claims. Another change in the 2017 contracts is that
PRACTICE NOTES
This Practice Note considers the use of Dispute Avoidance/Adjudication Boards (DAABs) in the FIDIC Red, yellow and Silver Books 2017. These contracts all provide for disputes to be referred to a DAAB, which issues a binding decision. The DAAB can also offer informal advice and assistance during the project with the aim of resolving issues before they become disputes. The DAAB process is the first stage in a multi-tiered dispute resolution procedure. If a party is dissatisfied with a DAAB decision, it can refer the dispute to amicable settlement and ultimately arbitration, provided it complies with contractual time limits. For more information, see Practice Note: FIDIC contracts 2017—dispute resolution. FIDIC’s practice notes on dispute boards FIDIC has published three practice notes on the use of dispute boards: Practice Note I—Dispute Avoidance—focusing on dispute boards published on 1 November 2023, Practice Note II—Appointment of Dispute Boards, published in December 2024 and Practice Note III — Dispute Board Decisions: Preparation and Composition, published in December 2025. Practice Note I considers the benefits of dispute avoidance and the main
PRACTICE NOTES
This Practice Note looks at the design obligations in the 2017 editions of the FIDIC contracts (Red, Yellow and Silver Books) and considers fitness of purpose and responsibility for the Employer’s Requirements. For a look at the design obligations in the 1999 editions of the Red, Yellow and Silver Books and in the Pink and Gold Books, see Practice Note: FIDIC contracts (pre-2017 editions)—design. Under the Yellow and Silver Books, the design is carried out by the Contractor to comply with the Employer's Requirements which are prepared by or on behalf of the Employer, whereas under the Red Book the design is prepared by or on behalf of the Employer. The design is contained in the following documents: • the specifications and drawings (the Red Book) • the Employer's Requirements and Contractor's proposals (the Yellow Book) • the Employer's Requirements and Tender (the Silver Book) Contractor design obligations under the Red Book FIDIC considers the Red Book to be a 'traditional construction' contract, because the Contractor will carry out and complete the construction of the Works according
PRACTICE NOTES
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. When does a ‘Dispute’ arise? 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
PRACTICE NOTES
This Practice Note considers the insurance provisions in the FIDIC Red, Yellow and Silver Books 2017. It looks at liability for the Works, insurance of the Works and the other insurances which the Contractor must take out, including professional indemnity, public liability and employer’s liability insurance. For guidance on the 1999 editions, see Practice Note: FIDIC contracts (pre-2017 editions)—insurance. The insurance requirements in the FIDIC Red, Yellow and Silver Books 2017, setting out which party takes out insurance, the amount and the type of cover required, can be found in: • the Contract Data • the Special Conditions (amendments to the General Conditions) • the General Conditions This list is in order of precedence for determining which insurance provisions apply (clause 1.5). The rest of this Practice Note describes the requirements in the General Conditions. Liability or risk in the Works The Contractor’s liability for the Works, which gives it an insurable interest in the Works, is found at clause 17.1. The Contractor is responsible for the care of the Works, Goods and Contractor’s Documents from
PRACTICE NOTES
This Practice Note examines the performance and testing provisions of the 2017 editions of the Red, Yellow and Silver Books. It looks at testing during execution of the works and tests on and after completion. For details of the performance and testing requirements under the 1999 editions of the Red, Yellow and Silver Books, and under the Pink and Gold Books, see Practice Note: FIDIC contracts (pre-2017 editions)—performance and testing requirements. In any construction contract, a key concern for both employers and contractors is knowing when the works will be considered ‘complete’. The employer wants to be sure that the works are fully constructed in accordance with the requirements of the contract, and the contractor will want to know what such requirements are, and what it needs to do to satisfy them. Therefore, it is essential that the contract makes it clear exactly what the performance requirements are. In the 2017 editions of the FIDIC Red, Yellow and Silver Books, the performance and testing requirements are predominantly set out in clauses 7, 9 and 12 (in the Yellow