Our series “FIDIC for breakfast” is bringing you short movies of Sub-Clauses from FIDIC 2017 Rainbow Suite (Silver Book, Red Book and Yellow Book) presented in a graphical way, which improves learning and memory.

Introduction to FIDIC 2017 short movies

The short introduction movie here below will explain. Don’t hesitate to like, comment or share with anyone that could be interested in this.

Part 0 – Icons and images

In order to facilitate your understanding of our visual representations of FIDIC contracts, you’d better know the meaning of the icons and symbols we use. Please have a look at the following presentation (better to play this video several times to memorize the symbols):

Part 1 – YB Sub-Clause 19.1 [General Requirements for insurance]

Ready for your “breakfast with FIDIC”?

On today’s menu is Sub-Clause 19.1 which contains the general requirements of Clause 19 [insurance]. This FIDIC clause provides a good overview of the typical insurances in project business.

Part 2 – YB Sub-Clause 3.7.1 [Consultation to reach agreement]

As the first step in Sub-Clause 3.7 [Agreement or Determination], the Engineer – acting neutrally – shall consult with the Parties in an attempt to reach agreement. In this phase, the Engineers role is much like a mediator. Companies acting as Engineers under FIDIC contracts, should seriously consider providing their teams with some ADR/mediation training:

Part 3 – SB Sub-Clause 6.7 [Health and Safety of Personnel]

At all times, and especially now due to Covid-19, Contractors should take great care in preserving the health and safety of their personnel. Note that FIDIC 2017 has already foreseen that “suitable arrangements should be made for the prevention of epidemics”.

Part 4 – YB Sub-Clause 2.3 [Employer’s Personnel and Other Contractors]

The Employer’s Personnel shall fulfill certain requirements in terms of HSE, anti-corrupt behavior and cooperation:

Part 5 – SB Sub-Clause 10.3 [Interference with Tests on Completion]

This short but important clause explains what happens in case the Employer interferes with the Tests on Completion.

Part 6 – SB Sub-Clause 11.4 [Failure to Remedy Defects]

What happens if the Contractor doesn’t remedy any defect or damage (or unduly delays doing so) during the Defects Notification Period?

Part 7 – SB Sub-Clause 15.2 [Termination for Contractor’s Default]

Under what circumstances can the Employer terminate the contract for Contractor’s default?

Will the Contractor receive a prior notice? And is there any cure period before Termination actually occurs?

Part 8 – SB Sub-Clause 8.3 [Programme]

Let it be clear from FIDIC 2017 Rainbow Suite, the Programme has to be done properly! No excuses (as so many disputes are based on its interpretation) and no delay in reviewing and in updating it.

Part 9 – SB Sub-Clause 8.5 [Extension of Time for Completion]

In what circumstances will the Contractor be entitled to an EOT / Extension of Time?

Part 10 – SB Sub-Clause 4.8 [Health and Safety Obligations]

Health & Safety is a very important issue in modern construction projects.

In part 3 of this series “FIDIC for breakfast” we have already dealt with sub-Clause 6.7 [Health and Safety of Personnel]. But FIDIC has also another Sub-Clause, 4.8, giving clear instructions of what the Contractor should do.

Part 11 – SB Sub-Clause 5.2.2 [Review by Employer of Contractor’s Documents]

In Sub-Clause 5.2.2 of the Silver Book, FIDIC makes the process of review by the Employer of Contractor’s Documents crystal clear, including the timings, notice requirements, deemed No-objection, revisions etc.

Part 12 – SB Sub-Clause 17.1 [Responsibility for Care of the Works]

Contractually (including for insurance), it is essential to know who has the care of the Works. The Employer or the Contractor? If Contractor has the care of the Works, and any loss or damage occurs, Contractor shall rectify it at its own risk and cost.

Part 13 – SB Sub-Clause 5.6 [As-Built Records]

When shall the As-Built records / drawings be submitted to Employer?

Part 14 – SB Sub-Clause 14.7 [Payment]

When do payments become due under FIDIC SB 2017?

When specifically for

  • advance payment,
  • interim payments,
  • final payment

Part 15 – SB Sub-Clause 1.14 [Limitation of Liability]

If there would be only one clause in the contract, this would be THE ONE.

It used to be Sub-Clause 17.6 of FIDIC 1999 Rainbow suite. In view of its importance, FIDIC has decided to shift it earlier in the document in the 2017 versions.

This Sub-Clause provides protection against special/indirect & consequential damages and also introduces the principle of an aggregate limit of Contractor’s liability.

Part 16 – RB Sub-Clause 16.1 [Suspension by Contractor]

In the FIDIC Red Book 2017, under what circumstances may the Contractor suspend the works (for issues attributable to the Employer)? And what are the consequences of such suspension?

Part 17 – SB Sub-Clause 5.7 [Operation and Maintenance Manuals]

What about the operation and maintenance manuals? When should they be submitted and what are the steps to take?

Part 18 – SB Sub-Clause 13.4 [Provisional Sums]

How shall provisional sums be used?

Part 19 – SB Sub-Clause 20.2.1, 2 and 3 [Claims For Payment and/or EOT]

How does the claims procedure work under FIDIC 2017 conditions? Is there a time bar?

Part 20 – SB Sub-Clause 14.11 [Final Statement]

When and how should the Contractor prepare the final statement?

Part 21 – YB Sub-Clause 19.2.1 [Insurance to be provided by Contractor for the Works]

What insurance shall the Contractor provide for the Works? For what time? What should be included? What can be excluded?

Part 22 – YB Sub-Clause 4.6 [Co-operation]

With whom should the Contractor co-ordinate and co-operate? What should he provide? What if such co-operation was Unforeseeable?

Part 23 – SB Sub-Clause 13.6 [Adjustments of Changes in Laws]

What happens in case an applicable law changes during the contract execution period?

Will the Contractor be entitled to any compensation? Or an extension of time, if impacted?

About AfiTaC

AfiTaC.com is the blog on commercial and contractual subjects for the Project Businesses (Construction, Infrastructure, Oil & Gas, Power & Renewable, Water Supply & Sanitation, etc). Its objective is to stimulate reflection, learning, convergence to balanced contracts and positive dispute resolution. You can subscribe to our newsletter by writing to “newsletter@afitac.com”. You can also connect to our LinkedIn page. Engagement with the readers is what keeps us going. So, don’t hesitate to exchange with us by commenting here below, liking our publication on LinkedIn and writing to us “info@afitac.com”. 

LinkedIn
Share