Fidic Assignment Final

7/23/2019 Fidic Assignment Final

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ANALYSIS OF THE FIDIC CONDITIONS OF CONTRACT (RED BOOK) 1999 EDITION

Submitted To:

Dr. Hadikusumo

Submitted By:

Suyog Krishna Shrestha (115573)

Takehiko Yamaji (115663)

Deeptara Luitel (115564)

Muhammad Afzal (115659)

ANALYSIS OF THE FIDIC CONDITIONS OF CONTRACT (RED BOOK)

1999 EDITION

LEGAL & CONTRATUAL RISK MANAGEMNT


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Table of Contents

1.0 Introduction:.............................................................................................................................. 12.0 Management of the project risks by FIDIC:............................................................................. 1

2.1 Project Time:......................................................................................................................... 1

2.2 Project Cost:.......................................................................................................................... 6

2.3 Project Quality:................................................................................................................... 10

2.4 Project Safety:..................................................................................................................... 13

3.0 Project Risks of OWNER (How he can manage them): ........................................................... 14

4.0 Project Risks of CONTRACTOR (How he can manage them): ................................................. 18

4.0 FIDIC Timeline: ........................................................................................................................ 30

5.0 Claim, Suspension and Termination by the Contractor: ......................................................... 30

5.0 Claim, Suspension and Termination by the Contractor: ......................................................... 35

6.0 Clauses that can allow contractor to demand EOT/Additional Payment: .............................. 40

7.0 Conclusion: .............................................................................................................................. 41

Appendix I ..................................................................................................................................... 42


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1

1.0 Introduction:

FIDIC (Fdration Internationale des Ingnieurs Conseils) is an international

organization developed the brief and practical contract types for the international projects. FIDICRed book refers to the general conditions of contract for construction. In order to change/modify

any of the condition in the general conditions of FIDIC based of the specific conditions of the

project, we need to document that in the supplementary conditions of the contract.

In the following part of this report, we have tried to analyze the project risks based on

various perspective such as time, cost, owner, contractor as documented in the general conditions

of the contract of FIDIC RED BOOK (1999 Edition) etc. The analysis is in form of Questions as

stated below.

2.0 Management of the project risks by FIDIC:

FIDIC general conditions of contract provide the structure and guidelines to manage

project risks from various perspectives. Below is the detail of the respective clauses and

explanation of how the document is managing those particular risks.

2.1 Project Time:

MANAGEMENT OF PROJECT RISK BY FIDIC

TIME

S.No. CLAUSE No. CLAUSE RISK MANAGEMENT

1 1.1 Definitions

Most of the terms defined are related with time for

example. The contract, commencement date should

be taken into account to make it on specified time.

2 1.2 InterpretationIt should be mentioned very clearly in the contract

during providing conditions.


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TIME


3 1.3 CommunicationsFor the approvals, certificates not to be delayed,

communications must be made out by in writing or

delivered by hand, or sent by email or courier

4 1.4 Law and languageThe language for communications shall be that stated

in the Appendix to Tender.

5 1.5Priority of

documents

The documents should be in proper sequence i.e. The

contract agreement, letter of acceptance, letter of

tender ,the particular conditions, etc.

6 1.6 Contract agreementThe parties should go for contract agreement within

28 days after the Letter of acceptance is awarded.

7 1.9Delayed drawings or

Instructions

The contractor should give notice to the engineer for

the extension of time for any delays concerning the

drawings and cost within the time

8Permits, Licenses or

Approvals

And payment of any cost plus reasonable profit.

2.2

The contractor should be provided reasonable

assistance in getting copies of Laws of the country

relevant to the contract and also provided

Permits, licenses or approvals for delivery of goods

and export of contractorsequipment from site.

9 3.5 Determination

For variation that has been made, then the engineer

will make the determination, whether to approve or

disapprove, where the determination

10 Site data Is binding, unless it is revised by DAB procedure.


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4.1OThe contractor should inspect the site and collect thedata required before submitting the tender including

all the form and nature of site

Including sub-surface conditions, hydrological

conditions, laws and labor practices of the country

and other contractorsrequirements.

11 4.16 Transport of goods The contractor should prepare material deliveryschedule and submit to the engineer so that he couldcheck the material delivery on site.

12 4.17Contractor's

Equipments

For the mobilization of the equipment, the contractor

needs the engineer's approval so that after use, it can

be removed from the site.

13 4.20Employers

Equipment and

Free Issue Material

Any substandard material supplied for the work and

made use of might negate the original design of theproject. This could lead to failure of the project on

completion. So, standard materials as specified in the

design must be purchased and applied.

14 4.24 Fossils

The artifacts should be removed by the owner

through diplomatic arrangement with the community

to remove them or otherwise to make way for the

contract or to do his work. This done timely will go a

long way to check delay in the execution of work.


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15 7.3 Inspection

Based on the specification of the designed project,

the monitoring or time to time inspection of the work

with guarantee the job or work being alone according

to the designed standard.

16 7.4 Testing

Contractor should review testing method and

standard in specification or in condition of contract if

they fail to pass test on completion

17 7.5 Rejection

The Engineers duty amongst others is to ensure the

contractor complies and carry out the project

execution according to specification and schedule.

18 7.6 Remedial Work

There should be good relationship between the

client/owner, the Contractor, the Sub-Contractor and

the nominated Sub-contractor

19 8.1Commencement of

Works

The owner in agreement with his Project Engineer on

verification of claims by the Contractor should reach

away forward on time so as to avoid delay in the

work execution.

20 8.3 Program

Contractor should ask for time extension before the

validity period expires. Providing detail explanation to

engineer/owner.

21 8.4Extension of Time

for Completion

Any Circumstances that could lead to extension of

time must be notified within 28 days in writing to the

Engineer who then act within a reasonable time. The

extension of time must be avoided by owner to avoid

the delay in completion.


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If the access road Is the problem it should benegotiated and provided early enough by the owner

before the commencement of the work; Natural

occurrence is not the fault of either and should be

integrated in the plan.

Variation in design may cause extension of time if

agreed upon by the contractor and the owner.

22 8.7 Delay Damages

Where there is friction, the work can suffer a setback

time wise. This situation can be arrested by mutual

understanding engendered by the Engineer or and

23 8.8 Suspension of Work

The owner as much as possible should avoid a

situation such as this. The consequence of this act

leads to extension of time to which the contractor

can claim.

24 8.9Consequences of

Suspension

The project owner being conscious of the

consequences of acts that could lead to termination

of contract is to avoid it. An amicable resolution of

any issue in the contract terms can be a way out of

the situation. The cost of termination of contract can

be more costly than retendering for completion of

the project.

25 8.10

Payment for Plant

and Materials in

Event of Suspension

The payment issue is sensitive and therefore theproject owner should employ every possible means

to ensure that the contractor is settled so as not to

degenerate to suspension


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26 8.11Prolonged

Suspension

The project owner, with a good understanding can

settle this claim amicably with the contractor. He may

not allow it out of hand. The two parties could

negotiate unless otherwise, there will be more

dispute and delay.

27 10.1Taking Over of the

Works and Sections

Taking over by the employer is a critical phase as

defect notification period starts and responsibility of

the facility is being transferred to the employer bythis certificate. It is a critical point of potential claims

if could not handle properly. Fiddich entails this

clause with specific procedure, dates and deadlines

to manage the risks.

2.2 Project Cost:


Cost


1 1.1 Definitions

Few terms related with cost for example, tendering, bill

of quantities, variation, money and payment should be

taken into consideration.

2 1.7 Assignment Either party may, as security in favor of a bank orfinancial institution, assign its right to any moneys due,

or to become due, under contract.


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Cost


3 1.1OEmployer's Use of

Contractor's

Documents

The contractor should give the employer a non-

terminable transferable non-exclusive royalty-free

license to copy, use and communicate the

4 1.12 Confidential details

Contractorsdocuments including modifications.

The contractor should disclose all confidential to verify

the compliance with the contract.

5 1.13Compliance with

laws

The contractor should give the notice regarding allpayments of taxes, duties and fees and obtain all

permits, licenses and approvals

As required by the laws in relation to the execution and

completion of the works and remedying of the any

defects.

6 1.14Joint and Several

liabilityIf partner cannot finish, then engineer should be able

to take the responsibility in case of joint venture.

7 2.1 Right of Access toSite

Before contractor enters the site, he must submit

performance bond about 10% to prevent the delay of

the works.

8 2.4Employer's financial

arrangementReasonable evidence regarding financial arrangements

should be made out to pay contract price and should

be submitted within 28 days.

9 2.5 Employer's claims

After receiving any request from the contractor and

contractor should always be aware of the financial

status of his contract.

The contractor should be informed by the employer

after he finds any even and any circumstances so that

engineer could make determination.


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Cost


And the notice is related with the extension of the

Defects Notification Period that is made before expiry

of such period.

10 3.2Delegation by the

EngineerContractor should clarify with the engineer in some

communications about the claim and the Interim

payment certificate.

11 4.2Performance

SecurityContractor need to buy this bond as insurance to make

sure for the commitment by the contractor to the

works.

12 4.5

Assignment of

benefits of

subcontract

Once the benefit gets transferred to owner, then

responsibility directly goes to owner for material

supply equipment operation.

13 4.6 Cooperation Contractor must identify the price of cooperation orcan be taken as an instruction if not mentioned in the

contract.

14 4.12Unforeseeable

physical conditions

The experienced contractor, during the period of

tender, should consider these unforeseeable

conditions and should notify the engineer within 28

days.

15 4.13Rights of way and

facilitiesContractor should find additional ways to access to the

site and use the other areas not provided and specified

by owner.

16 4.24 Fossils

When fossils, coins, antiquity or archeological artifacts

are found, the owner, on report by the contractor, acts

immediately to avoid delay.


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Cost


17 7.3 Inspection

To ensure quality work, the ownersstaff shall at all

reasonable times have full access to the site for which

the Project is going on. The contractor shall give the

owners personnel full opportunity to carry out their

assigned duties without hindrance.

18 7.4 Testing

Review testing method and standard in specification or

in condition of contract.

19 7.5 Rejection

The contractor has to establish the quality insurance

system in his company to control the quality of work.


The system monitored shall assist in the desired quality

work and should be audited from time to time.


Suspension

Conduct site visit before tendering to gather as much

information as possible about site condition.

Contractor should incorporate such conditions in

contract and to have good comparison later when such

conditions are encountered.

22 8.10

Payment for Plant

and Materials in

Event of Suspension

The detail report on why the payment is delayed

should be given to contractor.eg.it is because of the

unsatisfactory work and part of payment is delayed

until rework is carried out

23 9.4Failure to Pass Tests

on Completion

The failure of test has additional cost and delay risk,

folic managed the risk as to specify the party

(contractor, if under his responsibility) liable of

repeating the test until successful or the contract price

can be reduced to cover reduced value to the

employer.


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Cost


24 12.3 EvaluationThere is a risk for the deciding the quantity and price

for the item of work, folic guides to decide those.

Moreover, it guides on the items of work not specified

in the contract.

2.3 Project Quality:


QUALITY


1 1.1 DefinitionsTerm related with quality egotist after completion is

carried out according to the particulate conditions.

2 1.8Care and Supply of

documents

The contractor shall keep the copy of contract

documents on the site, named Specification and the

drawings and the specifications should be in custody

and care of the employer.

3 1.11

Contractor's use of

Employer's

Documents

The employers shall retain the copyright and the

intellectual property rights in the Specification, the

drawings and other documents made by the

Employer.

4 3.1Engineer's Duties and

Authority

The engineer has the right to issue variations which

may include omissions i.e. Cancellation of the works.

5 3.3Instructions of the

Engineer

If the contractor should solve the matter regarding

the additional costs due to instruction with the

engineer and if not possible, then the contractor

should send a claim notice, and the instruction should

not be given directly to the contractor or

subcontractor.


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QUALITY


6 3.4Replacement of the

engineer

To replace the engineer, not less than 42 days,employer should give the notice to the contractor,

with supporting particulars.

7 4.3Contractor's

representative

Contractor should appoint the representative on site

who is fluent in the language mentioned in the

contract.

8 4.4 SubcontractorsThe contractor and the subcontractor should transfer

their benefits to the owner.

9 4.7 Setting out

Contractor is responsible for setting out work like

positioning, dimensioning of all parts of the works ND

also should rectify them and if errors occurs, then

should notify to the engineers so that he may ask for

the additional payment and time.

10 4.9 Quality assurance

The contractor must develop quality manual and plan

and Audit should be carried out by engineer or should

be mentioned in particular conditions.

11 4.11

Sufficiency of the

accepted contract

amount

The contactor must fulfil all the requirements so that

the correctness and the sufficiency of the accepted

contract amount can be easily met.

12 4.20

Employers

Equipment and Free

Issue Material

Quality of materials and equipment supplied must be

gauged each by the unit cost (Price) and agreed by

the engineer. The BOQ is used as part of quality

performance Qualitative and cost effective material

are pointer to the quality of work.

13 4.21 Progress ReportsThe monthly report properly guided would help in the

desired quality control for greater performance.

14 6.8Contractor's

Superintendence

Implement method statement and quality insurance

system very strictly.


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QUALITY


15 6.9Contractors

Personnel

Having experienced and committed team members.Having work method statement for each work and

executing work under supervisor.

16 7.2 Samples

The Engineer shall instruct the Contractor submit

Testing Plan for all project. The Contractor has to

submit Testing document that including testing

method/ procedure, standard, form for the Engineer

consideration before testing. The Engineer has to

check progress of work.

17 7.3 Inspection

It is suggested that the quality of work being done is

being gauged through inspection beginning from

materials used and the skills employed. The

inspection report should guide the contractor and

sub-contractor.

18 7.4 Testing

Contractor should review testing method and

standard in specification or in condition of contract if

they fail to pass test on completion

19 7.5 Rejection

The Engineer has to instruct the Contractor submit

shop drawing by compare drawing with survey data

of construction site for approval before starting.

20 11.1

Completion of

Outstanding Work

and Remedying

Defects

This clause clearly makes contractor liable for the

works remaining and the repair of the works of poor

quality. So, the risks of re-work will make the

contractor to maintain his quality during the

execution of the work.


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2.4 Project Safety:


SAFETY


1 2.3 Employer's PersonnelSafety procedures and Protection of the environment

is required.

2 4.1 Contractor's Obligations

The contractor should be responsible for all

contactors documents, temporary works and design

of each plant and materials to be accordance within

the contract and should be able to take responsibilityfor adequacy, stability and safety of all Site

operations.

3 4.8 Safety proceduresThe contractor should be responsible for all

contactors documents, temporary works and design

of each plant and materials to be accordance

temporary works like fencing, guarding etc. So, need

to make safety manual and safety plan.

5 4.15 Access Routes

As government has restrictions for allowance of size

of vehicles passing the roads and the bridges, so the

contractor must consider these things in tendering

and if in case, any damages occurs, then contractor

himself has to handle these problems related with the

local authority.

6 4.21 Progress Reports

Investigation productive in project. Revise scheduling

of project. Make details planning of critical works.


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SAFETY


7 6.7 Health and safety

The Engineer shall instruct the Contractor submit

Safety Plan for all project. The Contractor has to

submit Safety document that including Safety

method/ procedure, standard, form for the Engineer

consideration. The Engineer has to check progress of

work for consideration whether the Contractor can

Safety Plan is efficient or not. Arrange site meeting to

monitoring status of Safety and construction

progress.

8 7.3 Inspection Making testing plan and submit to the Engineer.

Review testing method and standard in specification

or in condition of contract

3.0 Project Risks of OWNER (How he can manage them):

The Following table shows the risks borne by the owner according to FIDIC and

suggestions to manage these risks.

RISK ON PARTIES (FOR OWNER)

S.No. CLAUSE No. CLAUSE RISK FOR OWNER RISK CONTROL

1 1.1 DefinitionsRisk related with contract

price, site ,etc.

These terms should be

clearly stated in the

contract as the

responsibility for running

works on site and the cost

related to owner.


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2 1.2 Interpretation

Risk related with different

terms like 'Agreement,

Written or in writing etc.

The marginal words and

other headings shall not be

taken into consideration in

the interpretation of these

conditions.

3 1.6Contract

agreement

Risk related with the time,

cost ,quality and safety

The contract agreement

should be done within 28

days after contractor

receives the LOA and the

contract agreement shall

be based upon the form

annexed to the particular

conditions.

4 2.1Right of access to

the siteRisk of delay

The owner shall give the

contractor right of access

to the site stated in

appendix to tender.

5 2.2Permits, licenses

or approvalsRisk of compliance

The employers shall

provide assistance to

contractor by obtaining

copies of laws of country

for delivery of good s and

export of contractors

equipment when removed

from the site.

6 2.3Employer's

Personnel

Risk related with safety

procedures and protection

of environment

The employer should

ensure the personnel and

other contractors on the

site (cooperation).

7 2.4

Employer's

Financial

arrangement

Risk of suspension and

termination

The employer should

submit within 28 days after

receiving any request from

the contractor with

detailed particulars.

8 4.5

Assignment of

benefits of

subcontract

Risk of risk transfer

Once the benefit gets

transferred to owner, all

the responsibility goes to

the owner.


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9 4.7 Setting out Risk of claim by contractor

Because of delay of

specified items, the

contractor will claim andafter getting the notice,

engineer should go

through sub clause

3.5(determination) to

agree or determine.

10 4.12

unforeseeable

physical

conditions

Risk of claim by contractor

The owner should set out

the reasons why

contractors considers them

to be unforeseeable

11 4.17Contractor's

equipmentRisk of claim by contractor

For the mobilization of

equipment after use, theconsent is needed from

engineer and if delay

occurs in providing

consent, then contractor

will claim.

12 4.20

Employers

Equipment and

Free Issue

Material

The Employer shall, at his

risk and cost provide these

materials at the time and

place specified in the

Contract

Enforcing the engineers

to get all the necessary

permits approved before

the work commence at

the site.

13 4.24 Fossils

Contractors Claims (a) anextension of time for

completion (b) payment of

any such Cost plus

reasonable profit

Detail survey of the site to

check if such ground

condition exists all over or

just in a single spot.

14 7.4 Testing

Contractors Claims (a) an

extension of time for


any such Cost plus

reasonable profit

Define clearly the liability

of Test on Completion in

contract.


The Employer shall be

entitled to employ and payother persons to carry out

the work

Conduct a check list of

all the activities to beperformed before the

signing the contract.

16 8.4Extension of Time

for Completion

Contractors Claims for an


completion

Enforcing contractor to

prepare shop-drawing and

getting approved before

every construction


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Having good relation and

regular communication

with the consultant is vital.Work as per the

specification and approved

drawings

17 8.8Suspension of

Work




any such Cost plus

reasonable profit

Owners Should have

evidence like pictures, test

report before suspending

the work.

18 8.9

Consequences of

Suspension



completion (b) payment ofany such Cost plus

reasonable profit

Owners Should have

evidence like pictures, test

report before suspendingthe work.

19 14.11

Application for

Final Payment

Certificate

After the application, owner

has to take the responsibility

of the product in spite of the

detection of deterioration.

Owner should force the

engineer to confirm the

value of all work done in

accordance with the

contract.

20 14.15Currencies of

Payment

If the exchange rate

negatively changes, actual

payment become bigger

than contract price

Using bank consulting,

appropriate insurance

should be applied.

21 17.3 Employer's Risks

In the stated particular

conditions, owner has to

care the damage from the

issue.

Appropriate insurance is

necessary. Additionally, if

the foretaste is found,

owner should make the

decision how to treat the

issue as soon as possible.

22 18.2

Insurance for

Works and

Contractor's

Equipment

Insurance has the exclusion

statement. If the causing loss

or damage is classified

exclusion, owner has to

discuss with contractor whoshould indemnify.

By using particular

condition, how to

indemnify should be

decided in the contract.


Force Majeure


conditions, owner has to

care the damage from the

issue.

Appropriate insurance is

necessary. Additionally, if

the foretaste is found,

owner should make the

decision how to treat the

issue as soon as possible.


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24 20.6 Arbitration

If dispute is judged by

arbitration, owner must

receive any result. And it

becomes the final result.

At first, owner should

mitigate the predictable

risk in the contract. Andafter contracting, owner

should monitor the project

risk. And once problems

and risks causing, owner

should make decision

quickly with

communicating with

stakeholders.

4.0 Project Risks of CONTRACTOR (How he can manage them):

The Following table shows the risks borne by the contractor according to FIDIC and suggestions

to manage these risks.

RISK ON PARTIES (CONTRACTOR)

S.No.CLAUSE

No.CLAUSE RISK FOR CONTRACTOR RISK CONTROL

1 1.1 Definitions

Risk related with the variation,

materials, temporary

worksheet.

The contractor

should carry out

these works so

clearly mentioned

in the contract.

2 1.2 Interpretation

Risk related with different

terms like 'Agreement,

Written or in writing' etc.

The marginal

words and other

headings shall not

be taken into

consideration in

the interpretation

of theseconditions.

3 1.3 Communication

Risk related with issuing

approval, certificates,

consents and determination.

The notice should

be sent by email or

delivered by hand,

courier or other

reliable medium to

prevent delay.


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S.No.CLAUSE


4 1.4 Law and languageRisk related with thecommunication

It should be

according to whathas been stated in

the Appendix to

the tender.

5 1.5 Priority of documents Risk related with the delay

To avoid delay, the

documents should

be in the proper

sequence for the

purpose of

interpretation and

if any ambiguity or

difference found,

then instruction

should be issued

by the engineer.

6 1.6 contract agreementRisk related with the time,

cost ,quality and safety

The contract

agreement should

be done within 28

days after

contractor

receives the LOA

and the contract

agreement shall

be based upon theform annexed to

the particular

conditions.

7 1.7 Assignment Risk related with bankruptcy

If both parties

agree, then

another

subcontractor can

be assigned.

8 1.8Care and supply of

documentsRisk with the specification

The contractor

shall keep on the

site the copy ofdocuments so that

employer's

personnel can see

these documents

at all reasonable

times and check

the variations and

specifications.


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S.No.CLAUSE


9 1.9Delayed Drawings or

Instructions

Risk with the delay of works

or disruption

The contractor

should give noticeto engineer if any

necessary drawing

or instructions is

not issued.

10 1.12 Confidential DetailsRisk with the compliance of

contractor with contract

The contractor

shall disclose all

such confidential

and other

information as the

engineer.

11 1.13 Compliance with the lawsRisk in performing the

contract

The contractor

should comply

with applicable

laws otherwise

contractor shall

give notice, pay all

taxes, duties and

obtain license and

approvals for

execution and

completion of the

works.

12 1.14 joint and several liability Risk with legal status

The contractorshall not alter his

composition or

legal status

without prior

consent of the

employer.

13 2.5 Employer's Claim Risk of claim

The contractor will

be noticed by the

employer after any

circumstances or

event is found.


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S.No.CLAUSE


14 4.1 Contractor's obligations Risk related with works

The contract must

follow what has beenstated in contract,

responsibility of

adequacy, stability and

safety of all site

operations should

submit all details of all

arrangements and

method of execution.

15 4.2 Performance security Risk of claim

Performance

security is

required by owner

as a risk control to

ensure contractor

will perform the

contract.

16 4.4 SubcontractorRisk of termination by

employer

The contractor is

required to obtain

prior consent of

the engineer to

subcontract parts

of the works.

17 4.6 Cooperation Risk of price variation

The Contractor

must identify the

price ofcooperation.

18 4.8 Safety proceduresRisk of obtaining taking over

certificate

The contractor

needs to make

safety manual and

project safety plan

that comply with

govt. safety

regulation.

19 4.1O Site data Risk of claim

The contractor

should provide all

the datasrequiredwhile executing

site works, also

mention site

conditions

,geography etc.


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S.No.CLAUSE


20 4.14 Avoidance of interference Risk for damages and losses

The contractor

should not disturbthe convenience of

public and must

negotiate with

local authority.

21 4.16 transport of goodRisk of claims arising from the

transport

The contractor

should prepare

and update

material delivery

schedule and that

schedule must be

submitted to the

engineer.

22 4.19 Electricity, Water and Gas

The Contractor shall, at his

risk and cost, provide any

apparatus necessary for his

use of these services and for

measuring the quantities

consumed.

Conduct site visit

before tendering

to gather as much

information as

possible about site

condition.

Contractor should

incorporate such

conditions in

contract and to

have goodcomparison later

when such

conditions are

encountered.

23 4.20

Employers Equipment and

Free Issue Material

The Contractor shall be

responsible for each item of

Employer's Equipment whilst

any of the Contractor'sPersonnel is operating it,

driving it, directing it or in

possession or control of it

Owner/Engineer

should provide

details inspection

report if

contractor fail to

remedy defect.

Contractor shouldcheck again to

make sure it is a

fault of contractor

or some external

factors like

environment.


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S.No.CLAUSE


24 6.9 Contractors Personnel

If appropriate, the

Contractor shall then appoint

(or cause to be appointed) a

suitable replacement person.

Having

experienced andcommitted team

members. Having

work method

statement for each

work and

executing work

under supervisor.

25

7.3 Inspection

If the Contractor fails togive the notice, he shall if

and when required by the

Engineer, uncover the work

and thereafter reinstate and

make good, all at the

Contractor's cost.

Contractor should

review testing

method and

standard in

specification or in

condition of

contract if they fail

to pass test on

completion

26

Implement

method statement

and quality

insurance system

very strictly.

27 7.4 Testing

The cost of carrying out this

Variation shall be borne by

the Contractor,

notwithstanding other

provisions of the Contract.

Making testing

plan and submit tothe Engineer.

Review testing

method and

standard in

specification or in

condition of

contract.

Inform the

Engineer about

incur cost and

extra time toextend the

contract if he want

additional test

which does not

follow standard in

specification.


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S.No.CLAUSE


Submission Plant,

Material andWorkmanship to

the Engineer for

approval before

working.

28 7.5 Rejection

If the Engineer requires thisPlant, Materials or

workmanship to be retested,

the tests shall be repeated

under the same terms and

condition. If .the rejection

and retesting cause the

Employer to incur additional

costs, the Contractor shall

subject to Sub-Clause 2.5

[Employer's Claims] pay

these costs to the Employer.

Making testing

plan and submit to

the Engineer.

Review testing

method and

standard in

specification or in

condition of

contract.

Inform the

Engineer about

incur cost and

extra time to

extend the

contract if he want

additional test

which does not

follow standard in

specification.Submission Plant,

Material and

Workmanship to

the Engineer for

approval before

working.


The Contractor shall comply

with the instruction within a

reasonable time, which shall

be the time (if any) specified

in the instruction, or

immediately if urgency is

specified under subparagraph

(c).

Making testing

plan and submit to

the Engineer.

Review testing

method andstandard in

specification or in

condition of

contract.


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Inform the

Engineer aboutincur cost and

extra time to

extend the

contract if he want

additional test

which does not

follow standard in

specification.

Submission Plant,

Material and

Workmanship to

the Engineer for

approval before

working.

30 8.4Extension of Time for

Completion

Contractors Claims for an


completion

Having good

relation and

regular

communication

with the

consultant is vital.

Work as per the

specification and

approveddrawings

31 8.6 Rate of Progress

Unless the Engineer notifies

otherwise, the Contractor

shall adopt these revised

methods, which may require

increases in the working

hours and/or in the numbers

of Contractors Personnel

and/or Goods, at the risk and

cost of the Contractor

Investigation

productive in

project.

Revise scheduling

of project.

Make details

planning of critical

works.


Damages to the Employer.These delay damages shall be

the sum states in the

Appendix to Tender, which

shall be paid for every day.

However, the total amount

shall not exceed the maximum

amount of delay damages

stated in the Appendix to

Investigationproductive in

project.

Revise scheduling

of project.

Make details


works.


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Tender.

33 8.8 Suspension of Work

The Engineer may also notify

the cause foe the suspension.

If and to the extent that the

cause is notified and is the

responsibility of the

Contractor

Investigation

productive in

project.

Revise scheduling

of project.

Make details


works.


Suspension

The Contractor shall not be

entitled to an extension of

time for, or to payment ofthe Cost incurred in, making

good the consequences of

the Contractors faulty

design, workmanship or

materials or of the

Contractors failure to

protect, store or secure in

accordance with Sub-Clause

8.8 [Suspension of Work]

Investigation

productive in

project.Revise scheduling

of project.

Make details


works.

35 8.10

Payment for Plant and

Materials in Event of

Suspension

The Contractor shall be

entitled to payment of the

value

Investigation

productive in

project.

Revise scheduling

of project.

Make details


works.

36 8.11 Prolonged Suspension

The suspension under sub-

clause 8.8, the Contractor can

request the Engineers

permission to proceed if the

suspension has continued formore than 84 days.

Investigation

productive in

project.

Revise scheduling

of project.

Make detailsplanning of critical

works.


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37 9.2 Delayed Tests

There is a risk of failure of the

contractor to carry out thetests in time or within 21 days

of the notice of the engineer.

If he fails, he has to bear two

consequences:

1. Bear the cost of the test

carried out by someone else

on discretion of the engineer.

2. He has to accept the results

of the test.

The contractor cancontrol the

delayed test risks

as: 1.

Preparing proper

Testing Schedule.

2. Notifying and

Conducting Tests

at Proper time.

38 11.2Cost of Remedying

Defects

According to the FIDIC,

contractor is liable to

complete outstanding and

remedying defects (Sub-clause

11.1). So, the risk and cost is

to be incurred by the

contractor for the repair and

remedying of the works.

Contractor need to

improve its

productivity, so

that the

outstanding works

can be completed

in time as well as

his workmanship

to avoid re-work

of the defects.

39 11.3Extension of Defects

Notification PeriodA risk of Employer's Claim.

Contractor should

carefully see if the

extension is due to

the suspension ofthe works by the

employer then the

liability is not on

contractor for the

delay. Contractor

need to correct

the defects within

time and at most

within defect

liability period.

40 11.4 Failure to Remedy DefectsA risk of Cost claim by the

Employer

The Contractorshould carry out

the work by

himself and if he

sense he cannot

then he should

subcontract the

work by the

approval of the


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Employer to avoid

the claim. (A cost-efficient option

41 14.11 Application for FinalPayment Certificate

If contractor cannot receive

the final payment certification

because of his lack, taking-

over date will be delayed. Andin the worst case, the

contractor cannot receive the

performance security.

Contractor must

prepare the

taking-over

procedure, Or if

contractor find

seriousdeterioration, as

soon as possible

they have to treat

it before taking

over.

42 14.15 Currencies of Payment

If the exchange rate

negatively changes, actual

payment become smaller than

contract price

Using bank

consulting,

appropriate

insurance should

be applied.

43 15.2 Termination by Employer


conditions, contractor has the

probability of termination of

the contract.

The contractorshould understand

the clause's

particular

conditions of

termination. And

they must avoid

causing these

conditions. Good

communication

will help to get the

support of

engineer.

44 17.1 Indemnities

Before the TOC, contractor

has the responsibility of the

property. And they also have

the responsibility of the

damage of staffs.

The practice of

proper project

management

(safety

management,

construction

management and


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S.No.CLAUSE


so on) will prevent

the propertydamage and

human resource

damage.

45 17.2Contractor's Care of the

Works

From the project's

commencement to TOC,

contractor has the

responsibility of thedamage/loss of works and

goods.

The practice of

proper project

management

(safety

management,

construction

management andso on) will prevent

the property

damage and

human resource

damage.

46 18.2Insurance for Works and

Contractor's Equipment

Insurance has the exclusion

statement. If the causing loss

or damage is classified

exclusion, contractor has to

discuss with owner who

should indemnify.

By using particular

condition, how to

indemnify should

be decided in the

contract.

47 19.5Force Majeure Affecting

Subcontractor

Applying force majeure to

subcontractor, constructor

must take the responsibility of

the damage/loss.

If the foretaste is

found, contractor

should make the

decision how to

treat the issue as

soon as possible.

48 20.6 Arbitration

If dispute is judged byarbitration, contractor must

receive any result. And it

becomes the final result.

At first, contractor

should mitigate

the predictable

risk in the

contract. And after

contracting,

contractor should

monitor the

project risk. And

once problems

and risks causing,

contractor should

make decision


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quickly with

communicatingwith owner and

engineer.

4.0 FIDIC Timeline:

Kindly refer to the Attached diagram on the proceeding page.

5.0 Claim, Suspension and Termination by the Contractor:

This portion of the document elaborates the clauses of FIDIC that can favor the

contractor to put claim, or to suspend or terminate the contract because of the action or lack of

action of the employer. The employer is in sensitive condition in these clauses and he needs to

consider these carefully. The clauses are:


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CLAIM, SUSPENSION AND TERMINATION

CONTRACTOR

S.No.CLAUSE

No.CLAUSE CONSEQUENCES BEAR BY CONTRACTOR

WHAT NEED TO BE DONE BY PROJECT

OWNER

1 1.9

Delayed

drawings or

Instructions

Claim by a contractor. The contractor

should give notice to engineer if works

likely to be delayed if any necessary

drawings and instructions get delayed.

Itsbecause of the failure of engineer to

provide notified drawings. So,

contractor will claim for extension of

time plus additional amount of

contractor will claim for extension of

time plus additional amount of

reasonable profit.Subclause-20.1

After receiving the notice, these matters

should be determined and agreed.

2 2.1Right of

access to site

Claim by contractor The employer shall

give right of access to the site to

contractor to proceed in accordance

with the programme. But if contractor

suffer or incurs cost, then contractor will

claim for EOT plus additional amount of

reasonable profit.

After receiving the notice, it must be

preceded in accordance with Sub clause

(determination) to agree or to determin

these matters.

3 4.7 Setting out

Claim by contractor for the extension of

time for any kind of delay plus

additional amount of reasonable profit

that one should be included in the

contract price.

After receiving this notice, it should be

preceded in accordance with sub clause

(determination) to agree or to determinthese matters.

4 4.12

Unforeseeable

physical

conditions

Claim by contractor after the contractor

encounters adverse physical conditions,

obstructions etc. Claim is for EOT plus

additional payment.

The engineer shall set out the reasons

why the contractor considers it as

unfired seeable.

5 8.4Extension of

Time for

Completion

Claim for additional pay mint

Error in design may entitle

Contractor to claim time/money

Extension of time (EOT) available

for a variation, delay or impediment

of the Employer, exceptionally, adverseweather conditions, shortages of goods

or personnel.

On a project-financed deal, the

Employer and Funder/Sponsor usually

require the deletion of these EOT rights.


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OWNER

6 8.5Delay Caused

by AuthoritiesClaim for extension of time

Extension of time (EOT) available fora variation, delay or impediment of

the Employer, exceptionally, adverse

weather conditions, shortages of goods

or personnel.

7 8.8Suspension of

WorkClaim for additional payment

If the contractor suffers delay and /o

incurs Cost from complying with the

Engineers instructions under sub-Clause

8.8[Suspension of Work] and/or from

resuming the work, The Contractor hall

give notice to the Engineer and shall be

entitled subject to Sub-Clause 20.1[Contractors Claims] to:

(a) An extension of time for any such

delay, if completion is or will be delayed

Under sub-clause 8.4 [Extension of Time

for Completion], and

(b) Payment of any such Cost which sha

be included in the Contract Price.

8 8.9Consequences

of SuspensionClaim for additional payment

If the Contractor suffers delay and/or

incurs Cost from complying with the

Engineers instructions under Sub-Clause8.8[Suspension of wok] and h/or from

resuming the work, the Contractor shall

give notice to the Engineer and shall be

entitled subject to Sub-Clause 20.1

[Contractors Claims] to claim for time

extension and payment of any such Cost

9 8.10

Payment for

Plant and

Materials in

Event ofSuspension

Claim for extension of time and

additional payment

The Contractor shall be entitled to

payment of the value (as at the date of

suspension) of Plant and/or Materials

which have not been delivered to site.

10 10.2

Taking Over of

Parts of the

Works

There is a possibility that, after taking

over, the contractor may bear extra cost

in completing the works due to the

partial use of the facility by the

employer.

The employer should be much careful in

using the partially completed facility as

this might pose a claim against him. If no

other option, then taking over should be

much specified and employer need to be

careful that it might not interfere with

the on-going contractor works.


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S.No.CLAUSE



OWNER

11 10.8

Interference

with Tests on

Completion

It is obvious that the contractor has a

tight schedule and any delay in the

works by the actions of the employer

will lead in extra cost borne by the

contractor and ultimately claims from

the Employer.

The employer should be in proper

communication with the engineer and

contractor to inform his availability on

the test on completion date, to avoid

Contractor claims.

12 11.8Contractor to

Search

Any job requested to the contractor

beyond the scope of the contract shall

be claimed by the contractor as he

incurs extra cost for that.

It is duty of the contractor to remedy the

defects (Sub-clause 11.3) in defects

notification period. The engineer should

be competent in the preliminary and

final inspection to highlight the defectsbefore taking over certificate.

13 12.4 Omissions

The omissions are considered as

variations in the tender. The contractor

will claim the cost he incurs as a result

of the omission beside his profit.

The employer should try to make the

scope of the project very clear and fidic

contract clauses (General condition)

should be further refined according to

the project situation in the particular

conditions to avoid any major omission

that can result in potential claim by the

employer.

14 13.2Value

Engineering

This clause refers to the proposal of the

efficient design or construction by thecontractor in the benefit of the

employer. As the contractor is working

for the cost efficiency of the project at

his own cost so, if the proposal results in

cost saving then contractor should be

given benefit of the saving.

The employer should encourage the

value engineering aspect of the

contractor, but the proposal should be

carefully analyzed before approval to

avoid future dispute.

15 13.7

Adjustments

for Changes in

Legislation

The change in the government rules and

regulation can affect the contractor

directly (change in construction laws) or

indirectly (material price change). Such

changes will affect the cash flow n

performance of the contractor.

To avoid such claims, the employer

should mention a range in the particular

conditions for keeping him flexible of

price escalations. If the escalations go

beyond that, he should compensate the

contractor for the increased risk.


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OWNER

16 14.8Delayed

Payment

Delay in the payment clearly hinders the

contractor from performance of his

work and he will be entitle to claim the

financing charges (interest) on the loans

he took from bank to maintain his cash

flow to execute the project.

The employer should decide a practical

payment plan in the contract agreed by

both the parties and abide by that durin

the execution of the project.

17 16.1

Contractor's

Entitlement to

Suspend Work

Lack of the engineer's issuing

certifications or others which are

allowed as engineer's right to ask

engineer in the contract causes the

contractor's claim (EOT, additionalpayment).

Owner and engineer should response

the contractual contractor's request

properly.

18 16.4Payment on

Termination

If termination of contract happens,

owner has to pay contractor's finished

work. Contractor will claim the

maximum amount of payment by

according to the contract.

Owner has to decide this condition

carefully with the consideration of

predictable termination cases.

19 17.1 Indemnities

If contractor's personnel receive the

damage or loss by thee employer,

contractor becomes to be entitle to

claim indemnity.

Owner should manage his/her personne

to prevent causing those issues.

20 17.4

Consequences

of Employer's

Risks

Delay of response against the

contractor's request coming from clause

"employer's risk" causes EOT

Owner and engineer should response

the contractual contractor's request

properly.

21 17.5

Intellectual

and Industrial

Property

Rights

If engineer doesn't give notice against

contractor's claim within 28 days,

contractor becomes to get the right to

take any goods and work in the site. And

no notice finally causes

ambition/litigation.

Proper response to the contractor's

claim and request is necessary.

Additionally, if there is important

goods/works in site, owner should

protect this property by using particular

condition.

22 18.1General

Requirements

for Insurances

If owner/owner's personnel/engineer

don't follow insurance policy and cause

damage/loss, contractor can claim

owner to indemnify them.

Owner side should understand and keep

the insurance policy.


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OWNER

23 19.4

Consequences

of Force

Majeure

If the external force causes the

damage/loss, contractor will try to apply

this clause as much as possible to claim

the indemnity.

To making contract, owner shouldreview the condition of clause. And if

there are predictable issues (for

example: flood in Thailand), using

particular condition, owner should

mitigate these risk.

24 19.6

Optional

Termination,

Payment and

Release


owner has to pay contractor's finished

work. Contractor will claim the

maximum amount of payment by

according to the contract.

Owner has to decide this condition

carefully with the consideration of

predictable termination cases.

Additionally, owner should exclude

predictable issue from force majeure.

25 19.7

Release from

Performance

under the Law

When owner applies this clause to

adjust the payment appropriately,

contractor will claim and try to secure

their benefit.

Engineer should estimate the

performance by confirming contractor's

submissions and existing property. And

engineer must make accurate

estimation.

26 20.1Contractor's

Claims

According to this condition, contractor

becomes to be entitled to claim.

Engineer has to inform these condition

to owner correctly to prevent future

owner's misunderstanding. And owner's

understanding will help project

controlling to avoid contractor's claim.

5.0 Claim, Suspension and Termination by the Contractor:

This portion of the document elaborates the clauses of FIDIC that can favor the employer

to put claim against the contractor (multiple reasons), or to suspend or terminate the contract

because of the non-performance of the contractor. The contractor is in sensitive condition in

these clauses and he needs to consider these carefully. The clauses are:


OWNER


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36

S.No.CLAUSE

No.CLAUSE CONSEQUENCES BEAR BY OWNER

WHAT NEED TO BE DONE BY

PROJECT CONTRACTOR

1 2.5 Employer'sclaims

If the employer considers himself

to be entitled to any payment

under any of the conditions or

connected with the contract or anyextension of defect notification

period, then employer should give

notice and particulars to the

contractors.

The amount may be included in thecontract price and price certificates

2 3.5 Determination

If the agreement end

inconclusively, then the engineer

must give notice to both parties of

determination and each party shall

give the determination and unless

and until revised under clause20

(Claims, disputes andarbitration).This determination is

binding unless revised by DAB

procedure.

Contractor need to follow clause

20.1if he considers himself entitled

for the additional payment and time

3 4.2Performance

security

The employers will not make a

claim under the performance

security, except for amount to

which the employer is entitled

under the contract if failure by the

contractor to extend validity of

performance security and the

failure by the contractor to pay the

performance security and the

failure by the contractor to pay the

employer an amount due, or the

circumstances which entitle the

employer to termination under

sub clause15.2(termination by

employer) i.e. mistake by

contractor occurs then employer

will take the bond after

termination of contract.

Contractor should deliver the

performance security to the

employer within 28 days after

receiving the letter of acceptance.

4 4.19Electricity,

Water and GasClaim for damage

The Contractor shall, at his risk

and cost, provide any apparatusnecessary for his use of these

services and for measuring the

quantities consumed.

5 4.20

Employers

Equipment and

Free Issue

Material

Claim for damage

The Contractor shall be responsibl

for each item of Employer's

Equipment whilst any of the

Contractor's Personnel is operating

it, driving it, directing it or in


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S.No.CLAUSE



PROJECT CONTRACTOR

possession or control of it

6 4.4 Subcontractors

Each subcontract should include

provisions that would entitle

employer to require the

subcontract to be assigned to the

employer under sub clause 4.5 or

in the event of termination under

sub clause 15.2(termination of

employer).

The contractor and the

subcontractor should transfer their

benefit to the owner.

7 6.9Contractors

Personnelclaim for change the personnel

If appropriate, the Contractor shal

then appoint (or cause to be

appointed) a suitable replacement

person.

8 7.3 Inspection Claim for damage , re-do of works

If the Contractor fails to give the

notice, he shall if and when

required by the Engineer, uncover

the work and thereafter reinstate

and make good, all at the

Contractor's cost.

9 7.4 Testing Claim for damage , re-do of works

The cost of carrying out thisVariation shall be borne by the

Contractor, notwithstanding other

provisions of the Contract.

10 7.5 Rejection Claim for damage

If the Engineer requires this Plant,

Materials or workmanship to be

retested, the tests shall be

repeated under the same terms

and condition. If .the rejection and

retesting cause the Employer to

incur additional costs, the

Contractor shall subject to Sub-

Clause 2.5 [Employer's Claims] pay

these costs to the Employer.

11 7.6 Remedial Work Claim for damage

The Contractor shall comply with th

instruction within a reasonable time

which shall be the time (if any)

specified in the instruction, or

immediately if urgency is specified

under subparagraph (c).


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OWNER

S.No.CLAUSE



PROJECT CONTRACTOR

12 Retention amount and performancebond to be used for the test

13 8.6 Rate of Progress Claim for damage


otherwise, the Contractor shall

adopt these revised methods,

which may require increases in the

working hours and/or in the

numbers of Contractors Personne

and/or Goods, at the risk and cost o

the Contractor

14 8.8Suspension of

WorkClaim for damage


otherwise, the Contractor shalladopt these revised methods,

which may require increases in the

working hours and/or in the

numbers of Contractors Personne

and/or Goods, at the risk and cost o

the Contractor

15 8.9 Consequences ofSuspension Claim for damage

The Contractor shall not be

entitled to an extension of time

for, or to payment of the Cost

incurred in, making good the

consequences of the Contractorsfaulty design, workmanship or

materials or of the Contractors

failure to protect, store or secure

in accordance with Sub-Clause 8.8

[Suspension of Work]

16 8.10

Payment for

Plant and

Materials in

Event of

Suspension

Claim for damageThe Contractor shall be entitled to

payment of the value

17 9.4

Failure to Pass

Tests on

Completion

Failing to pass the tests can havecritical consequences if the

employer needs to put the facility

in operation. Before

commissioning, he could not do

that and it might affect his plan of

bringing facility in service. Or if the

test fails and owner has to accept

the reduced value facility.

The contractor needs to clearly

understand the project

specifications and work with

acceptable quality in order to

prevent himself from the risk and

claim of failure of facility at test.


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S.No.CLAUSE



PROJECT CONTRACTOR

18 11.4Failure to

Remedy Defects

Failure of the contractor to repairthe defect will result in the hiring

of another contractor by the

employer for remedying the

defects. This will incur extra cost

which employer will claim from

the contractor.

The contractor should do the workcorrect in first the first time. And fo

specialized works, he should

subcontract to a competent sub-

contractor to avoid defects in

specialized works that are complex

to rectify.

19 15.2Termination by

Employer

There is the probability of addition

of particular condition about this

clause for mitigate owner's risk.

And owner will terminate the

contract in particular condition.

Contractor should confirm the all

conditions of termination. And if

there is unfair condition, contractor

has to negotiate the correction of

condition.

20 15.3

Valuation at

Date of

Termination

If termination is applied, engineer

start to estimate the contractors

achieving works, property and

delay from master schedule. And it

strongly affects payment after

termination.

Contractor manages the project

properly. And they have to eliminat

the difference b/w actual progress

and reporting progress.

21 15.4Payment after

Termination

Using this clause, owner decides

the payment for the work after

termination. Therefore, if there is

particular condition which cancels

owner's payment after

termination, contractor has to

cover the site recovery cost.

Contractor had to confirm whether

particular condition mitigate owner

payment.

22 17.1 Indemnities

If owner's personnel receive the

damage or loss by the contractor

side, owner becomes to be

entitled to claim indemnity.

Contractor should manage his/her

personnel to prevent causing those

issues.

23 17.5

Intellectual and

Industrial

Property Rights

Delay of response against the

owner's/engineersrequest

coming from clause "owner's risk"

causes litigation/arbitration in theworst case.

Contractor should response the

contractual contractor's request

properly.

24 18.1

General

Requirements

for Insurances

If contractor doesn't use

appropriate insurance, it will cause

the owner's/engineer's claim. And

if the case is serious, owner will

use termination of contract.

Contractor should understand the

condition of insurance correctly. An

they must get correct type of

insurance.


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S.No.CLAUSE



PROJECT CONTRACTOR

25 18.2

Insurance for

Works and

Contractor's

Equipment

If contractor doesn't use

appropriate insurance, it will cause

the owner's/engineer's claim. And

if the case is serious, owner will

use termination of contract.

Contractor should understand the

condition of insurance correctly. An

they must get correct type of

insurance.

26 19.6

Optional

Termination,

Payment and

Release


owner has to pay contractor's

finished work. So owner will claim

the minimum amount of payment

by according to the contract.

Contractor has to decide this

condition carefully with the

consideration of predictable

termination cases.

Additionally, contractor should

negotiate the clause's condition to

remove serious risk.

27 19.7

Release from

Performance

under the Law

When owner applies this clause to

adjust the payment, owner will try

to minimize the payment.

Contractor should confirm

engineersestimation. And if they

find underestimation of payment,

contractor should claim correct pric

with evidence.

6.0 Clauses that can allow contractor to demand EOT/Additional

Payment:

EOT / ADDITIONAL PAYMENT

S.No. CLAUSE No. CLAUSE

1 1.9 Delayed drawings or Instructions

2 2.1 Right of Access to the Site

3 4.7 Setting out

4 4.12 Unforeseeable Physical Conditions

5 8.4 Extension of Time for Completion

6 8.5 Delay Caused by Authorities

7 10.2 Taking Over of Parts of the Works


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EOT / ADDITIONAL PAYMENT

S.No. CLAUSE No. CLAUSE

8 10.3 Interference with Tests on Completion

9 11.8 Contractor to Search

10 12.4 Omissions

11 13.2 Value Engineering

12 13.7 Adjustments for Changes in Legislation

13 14.8 Delayed Payment

14 19.4 Consequences of Force Majeure

15 19.6Optional Termination, Payment and

Release

16 20.1 Contractor's Claims

7.0 Conclusion:

This report has been developed by a profound study of the FIDIC general conditions of

contract (1999 Edition). By study of the document we go to know that, FIDIC unequivocally

elaborates the project risks considering multiple practical scenarios and assumptions. One

interesting thing worth mentioning here is that though the contract conditions clearly highlight

project risks with respect to the employer and the contractor perspectives. But the clauses that

pose the risk on the contractor are much more than those of the contractor. So, Contractor needs

to much careful while working in the FIDIC Arrangement.


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42

Appendix I

No Title

Project Risks Management Project RisksClaim, Suspension&

Termination

EOT/Additio

Payment

Time Cost Quality Safety Owner Contractor Contractor Owner

1 GENERAL PROVISION

1 1 Definitions

1 2 Interpretation1 3 Communications

1 4 Law and Language

1 5 Priority if Documents

1 6 Contract Agreement

1 7 Assignment

1 8Care and Supply of

Documents

1 9Delayed Drawings or

Instructions

1 10Employer's Use ofContractor's

Documents

1 11Contractor's Use of

Employer's Documents

1 12 Confidential Details

1 13 Compliance with Laws

1 14Joint and Several

Liability

2 THE EMPLOYER

2 1 Right of Access to theSite

2 2Permits, Licences or

Approvals

2 3 Employer's Personnel

2 4Employer's Financial

Arrangements

2 5 Employer's Claims


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No Title


Termination

EOT/Additio

Payment


3 THE ENGINEER

3 1Engineer's Duties and

Authority

3 2Delegation by the

Engineer

3 3

Instructions of the

Engineer

3 4Replacement of the

Engineer

3 5 Deteminations

4 THE CONTRACTOR

4 1Contractor's General

Obligations

4 2 Performance Security

4 3Contractor's

Representative

4 4 Subcontractors

4 5Assignment of Benefit

of Subcontract

4 6 Co-operation

4 7 Setting Out

4 8 Safety Procedures

4 9 Quality Assurance

4 10 Site Data

4 11

Sufficiency of the

Accepted Contract

Amount

4 12Unforeseeable Physical

Conditions

4 13Rights of Way and

Facilities

4 14Avoidance of

Interference


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No Title


Termination

EOT/Additio

Payment


4 15 Access Route

4 16 Transport of Goods

4 17Contractor's

Equipment

4 18Protection of the

Environment

4 19Electricity, Water and

Gas

4 20

Employer's Equipment

and Free-Issue

Material

4 21 Progress Reports

4 22 Security of the site

4 23Contractor's

Operations on Site

4 24 Fossils

5NOMINATED

SUBCONTRACTORS

5 1

Definition of

"nominated

Subcontractor"

5 2Objection to

Nomination

5 3

Payments to

nominated

Subcontractors

5 4 Evidence of Payments6 STAFF AND LABOUR

6 1Engagement of Staff

and Labour

6 2Rates of Wages and

Conditions of Labour

6 3Persons in the Service

of Employer


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No Title


Termination

EOT/Additio

Payment


6 4 Labour Laws

6 5 Working Hours

6 6Facilities for Staff and

Labour

6 7 Health and Safety

6 8Contractor's

Superintendence

6 9 Contractor's Personnel

6 10

Records of Contractor's

Personnel and

Equipment

6 11 Disorderly Conduct

7PLANT, MATERIALS

AND WORKMANSHIP

7 1 Manner of Execution

7 2 Samples

7 3 Inspection

7 4 Testing

7 5 Rejection

7 6 Remedial Work

7 7Ownership of Plant and

Materials

7 8 Royalties

8

COMMENCEMENT,

DELAYS AND

SUSPENSION8 1

Commencement of

Work

8 2 Time for Completion

8 3 Programme

8 4Extension of Time for

Completion

8 5 Delays Caused by


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46

No Title


Termination

EOT/Additio

Payment


Authorities

8 6 Rate of Progress

8 7 Delay Damages

8 8 Suspension of Work

8 9Consequences of

Suspension

8 10

Payment for Plant and

Materials in Event of

Suspension

8 11 Prolonged Suspension

8 12 Resumption of Work

9TESTS ON

COMPLETION

9 1Contractor's

Obligations

9 2 Delayed Tests

9 3 Retesting

9 4Failure to Pass Tests on

Completion

10EMPLOYER'S TAKING

OVER

10 1Taking Over of the

Works and Sections

10 2Taking Over of Parts of

the Works

10 3

Interference with Tests

on Completion

10 4Surfaces Requiring

Reinstatement

11 DEFECTS LIABILITY

11 1

Completion of

Outstanding Work and

Remedying Defects


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No Title


Termination

EOT/Additio

Payment


11 2Cost of Remedying

Defects

11 3Extension of Defects

Notification Period

11 4Failure to Remedy

Defects

11 5 Removal of DefectiveWork

11 6 Further Tests

11 7 Right to Access

11 8 Contractor to Search

11 9Performance

Certificate

11 10 Unfulfilled Obligations

11 11 Clearance of Site

12

MEASUREMENT AND

EVALUATION

12 1 Works to be Measured

12 2Method of

Measurement

12 3 Evaluation

12 4 Omissions

13VARIATIONS AND

ADJUSTMENTS

13 1 Right to Vary

13 2 Value Engineering

13 3 Variation Procedure

13 4Payment in Applicable

Currencies

13 5 Provisional Sums

13 6 Daywork

13 7Adjustments for

Changes in Legislation


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No Title


Termination

EOT/Additio

Payment


13 8Adjustments for

Changes in Cost

14CONTRACT PRICE AND

PAYMENT

14 1 The Contract Price

14 2 Advance Payment

14 3Application for Interim

Payment Certificates

14 4 Schedule of Payment

14 5Plant and Materials

intended for the Works

14 6Issue of Interim

Payment Certificates

14 7 Payment

14 8 Delayed Payment

14 9

Payment of Retention

Money

14 10Statement at

Completion

14 11Application for Final

Certificate

14 12 Discharge

14 13Issue of Final Payment

Certificate

14 14Cessation of

Employer's Liability

14 15 Currencies of Payment

15TERMINATION BY

EMPLOYER

15 1 Notice to Correct

15 2Termination by

Employer

15 3Valuation at Date of

Termination


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No Title


Termination

EOT/Additio

Payment


15 4Payment after

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