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An Employer's and Engineer's Guide to the FIDIC Conditions of Contract (eBook)

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2013
John Wiley & Sons (Verlag)
978-1-118-38558-6 (ISBN)

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An Employer's and Engineer's Guide to the FIDIC Conditions of Contract - Michael D. Robinson
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When all parties involved in the construction process fully understand their roles and are able to anticipate potential points of conflict, disputes and delays will be minimised.

The Employer's and Engineer's Guide to the FIDIC Conditions of Contract sets out the essential administrative requirements of a FIDIC based contract by reference to the FIDIC 1999 Red Book.

The obligations and duties of the Employer and the Engineer are identified and discussed. Potential pitfalls are highlighted and likely consequences pointed out.

The importance of the Employer's role in the preparation of tenders, which fully reflect his requirements and duties and obligations arising in the execution of the works, is emphasised. The key role of the Engineer in the effective administration of contracts after award is examined and commentary provided.

Included in the guide are a number of appendices, including model letters which will be of value to less experienced staff (particularly those whose mother-tongue is not the English language).

Engineers, quantity surveyors and project managers engaged in the contractual administration of international projects using FIDIC forms of contract will find the concise guidance in simple and jargon-free language provided here invaluable.

This, together with the author's earlier book, Contractor's Guide to the FIDIC Conditions of Contract - which describes the duties, rights and responsibilities of the Contractor - represents the totality of supervision, design and execution of construction projects executed under the FIDIC Conditions of Contract.

This book's companion website offers invaluable resources to freely download, adapt and use:

  • Model letters for use by the Employer
  • Model letters for use by the Contractor
  • Sample Interim Payment Certificate
  • Model Form for Submissions to the Engineer
  • Model Form of Engineer's Order for Varied Works
  • Model Form of Daywork/Daily Record Sheets


THE AUTHOR

Michael D. Robinson, Independent Consulting Engineer has 50 years of experience with contract management and contractual issues for major civil engineering projects worldwide. He has extensive experience with dispute resolution, engineers' decisions, dispute resolution boards and he lectures on the practical on-site usage aspects of FIDIC contracts.


When all parties involved in the construction process fully understand their roles and are able to anticipate potential points of conflict, disputes and delays will be minimised. The Employer s and Engineer s Guide to the FIDIC Conditions of Contract sets out the essential administrative requirements of a FIDIC based contract by reference to the FIDIC 1999 Red Book. The obligations and duties of the Employer and the Engineer are identified and discussed. Potential pitfalls are highlighted and likely consequences pointed out. The importance of the Employer s role in the preparation of tenders, which fully reflect his requirements and duties and obligations arising in the execution of the works, is emphasised. The key role of the Engineer in the effective administration of contracts after award is examined and commentary provided. Included in the guide are a number of appendices, including model letters which will be of value to less experienced staff (particularly those whose mother-tongue is not the English language). Engineers, quantity surveyors and project managers engaged in the contractual administration of international projects using FIDIC forms of contract will find the concise guidance in simple and jargon-free language provided here invaluable. This, together with the author s earlier book, Contractor s Guide to the FIDIC Conditions of Contract - which describes the duties, rights and responsibilities of the Contractor represents the totality of supervision, design and execution of construction projects executed under the FIDIC Conditions of Contract. This book s companion website offers invaluable resources to freely download, adapt and use: Model letters for use by the Employer Model letters for use by the Contractor Sample Interim Payment Certificate Model Form for Submissions to the Engineer Model Form of Engineer s Order for Varied Works Model Form of Daywork/Daily Record Sheets

THE AUTHOR Michael D. Robinson, Independent Consulting Engineer has 50 years of experience with contract management and contractual issues for major civil engineering projects worldwide. He has extensive experience with dispute resolution, engineers' decisions, dispute resolution boards and he lectures on the practical on-site usage aspects of FIDIC contracts.

An Employer’s and Engineer’s Guide to the FIDIC Conditions of Contract 5
Copyright 6
Contents 7
Preface 9
Acknowledgements and Dedication 13
Chapter 1 The Employer and the FIDIC Conditions of Contract for Construction (CONS) – ‘The Red Book’ 15
Clause 1 General Provisions 17
1.0 17
1.1 Definitions 17
1.2 Interpretation 19
1.3 Communications 19
1.4 Law and Language 19
1.5 Priority of Documents 20
1.6 Contract Agreement 20
1.7 Assignment 20
1.8 Care and Supply of Documents 20
1.9 Delayed Drawings and Instructions 21
1.10 Employer’s Use of the Contractor’s Documents 21
1.11 Contractor’s Use of Employer’s Documents 22
1.12 Confidential Details 22
1.13 Compliance with Statutes, Regulations and Laws 22
1.14 Joint and Several Liability 23
Clause 2 The Employer 24
2.1 Right of Access to the Site 24
2.2 Permits, Licences or Approvals 25
2.3 Employer’s Personnel 27
2.4 Employer’s Financial Arrangement 27
2.5 Employer’s Claims 28
Clause 3 The Engineer 30
3.1 Engineer’s Duties and Authority 30
3.4 Replacement of the Engineer 30
3.5 Determinations 31
Clause 4 The Contractor 32
4.0 General 32
4.1 Contractor’s General Obligations 32
4.2 Performance Security 32
4.3 Contractor’s Representative 33
4.4 Subcontractors 33
4.5 Assignment of Benefit of Subcontract 34
4.6 Co-operation 34
4.7Setting Out 34
4.8 Safety Procedures 34
4.9 Quality Assurance 35
4.10 Site Data 35
4.11 Sufficiency of the Accepted Contract Amount 36
4.12 Unforeseeable Physical Conditions 36
4.13 Rights of Way and Facilities 36
4.14 Avoidance of Interference 36
4.15 Access Route 37
4.16 Transport of Goods 37
4.17 Contractor’s Equipment 37
4.18 Protection of the Environment 37
4.19 Electricity, Water and Gas 37
4.20 Employer’s Equipment and Free-Issue Material 38
4.21 Progress Reports 38
4.22 Security of the Site 38
4.23 Contractor’s Operations on Site 39
4.24 Fossils 39
Clause 5 Nominated Subcontractors 40
5.0 General 40
5.1 Definition of ‘Nominated Subcontractor’ 41
5.2 Objection to Nomination 41
5.3 Payments to Nominated Subcontractors 41
5.4 Evidence of Payments 42
Clause 6 Staff and Labour 43
6.1 Engagement of Staff and Labour 43
6.2 Rates of Wages and Conditions of Labour 43
6.3 Persons in Service of Employer 43
6.4 Labour Laws 43
6.5 Working Hours 43
6.7 Health and Safety 44
6.8 Contractor’s Superintendence 44
6.9 Contractor’s Personnel 44
6.10 Records of Contractor’s Personnel and Equipment 45
6.11 Disorderly Conduct 45
Clause 7 Plant, Materials and Workmanship 46
7.3 Inspection 46
7.7 Ownership of Plant and Materials 46
Clause 8 Commencement, Delays and Suspension 47
8.1 Commencement of Work 47
8.2 Time for Completion 47
8.4 Extension of Time 47
8.5 Delay Caused by Authorities 47
8.6 Rate of Progress 48
8.7 Delay Damages 48
8.8 Suspension of the Works 49
8.9 Consequences of Suspension 49
8.10 Payment for Plant and Materials in Event of Suspension 49
8.11 Prolonged Suspension 49
8.12 Resumption of Work 50
Clause 9 Tests on Completion 51
9.1 Contractor’s Obligations 51
9.2 Delayed Tests 51
9.3 Re-testing 51
9.4 Failure to Pass Tests on Completion 51
Clause 10 Employer’s Taking Over 52
10.1 Taking Over of the Works and Sections 52
10.2 Taking Over of Parts of the Works 52
10.3 Interference with Tests on Completion 53
Clause 11 Defects Liability 54
11.1 Completion of Outstanding Work and Remedying Defects 54
11.2 Cost of Remedying Defects 54
11.3 Extension of Defects Notification Period 54
11.4 Failure to Remedy Defects 54
11.5 Removal of Defective Work 55
11.9 Performance Certificate 55
11.10 Unfulfilled Obligations 55
11.11 Clearance of Site 55
Clause 12 Measurement and Evaluation 57
12.1 Works to be Measured 57
12.2 Method of Measurement 57
12.3 Evaluation 57
12.4 Omissions 57
Clause 13 Variations and Adjustments 58
13.0 General 58
13.1 Right to Vary 58
13.4 Payment in Applicable Currencies 59
13.5 Provisional Sums 60
13.6 Daywork 61
13.7 Adjustments for Changes in Legislation 61
13.8 Adjustment for Changes in Cost 61
Clause 14 Contract Price and Payment 63
14.1 The Contract Price 63
14.2 Advance Payment 63
14.3 Application for Interim Payment Certificates 64
14.4 Schedule of Payments 64
14.5 Plant and Materials Intended for the Works 64
14.6 Issue of Interim Payment Certificates 64
14.7 Payment 65
14.8 Delayed Payment 65
14.9 Payment of Retention Money 66
14.10 Statement at Completion 66
14.11 Application for Final Payment Certificate 66
14.12 Discharge 67
14.13 Issue of Final Payment Certificate 67
14.14 Cessation of Employer’s Liability 67
14.15 Currencies of Payment 67
Clause 15 Termination by the Employer 68
15.1 Notice to Correct 68
15.2 Termination by the Employer 68
15.3 Valuation at Date of Termination 69
15.4 Payment after Termination 70
15.5 Employer’s Entitlement to Termination 70
Clause 16 Suspension and Termination by the Contractor 71
16.1 Contractor’s Entitlement to Suspend Work 71
16.2 Termination by the Contractor 71
16.3 Cessation of Work and Removal of Contractor’s Equipment 72
16.4 Payment on Termination 72
Clause 17 Risk and Responsibility 73
17.1 Indemnities 73
17.2 Contractor’s Care of the Works 73
17.3 Employer’s Risks 74
17.4 Consequences of Employer’s Risks 74
17.5 Intellectual and Industrial Property Rights 74
17.6 Limitation of Liability 75
Clause 18 Insurance 76
18.1 General Requirements for Insurances 76
18.2 Insurance for Works and Contractor’s Equipment 76
18.3 Insurance against Injury to Persons and Damage to Property 78
18.4 Insurance for Contractor’s Personnel 78
Clause 19 Force Majeure 79
19.1 Definition of Force Majeure 79
19.2 Notice of Force Majeure 79
19.3 Duty to Minimise Delay 79
19.4 Consequences of Force Majeure 79
19.5 Force Majeure Affecting Subcontractor 80
19.6 Optional Termination, Payment and Release 80
19.7 Release from Performance by Law 80
Clause 20 Claims, Disputes and Arbitration 81
20.1 Contractor’s Claims 81
20.2 Appointment of the Dispute Adjudication Board (DAB) 81
20.3 Failure to Agree Dispute Adjudication Board 82
20.4 Obtaining Dispute Adjudication Board’s (DAB) Decision 82
20.5 Amicable Settlement 83
20.6 Arbitration 84
20.7 Failure to comply with Dispute Adjudication Board’s Decision 84
20.8 Expiry of Dispute Adjudication Board’s Appointment 84
Chapter 2 The Engineer and the FIDIC Conditions of Contract for Construction (CONS) – ‘The Red Book’ 85
Introduction 87
Clause 1 General Provisions 88
1.1 Definitions 88
1.3 Communications 88
1.4 Law and Language 88
1.8 Care and Supply of Documents 88
1.9 Delayed Drawings or Instructions 88
1.13 Compliance with Statutes, Regulations and Laws 89
Clause 2 The Employer 90
2.1 Right of Access to the Site 90
2.5 Employer’s Claims 90
Clause 3 The Engineer 91
3.1 Engineer’s Duties and Authority 91
3.2 Delegation by the Engineer 91
3.3 Instructions of the Engineer 92
3.5 Determinations 92
Clause 4 The Contractor 94
4.1 Contractor’s General Obligations 94
4.2 Performance Security 94
4.3 Contractor’s Representative 94
4.4 Subcontractors 95
4.5 Assignment of Benefit of Subcontract 96
4.6 Co-operation 96
4.7 Setting Out 97
4.8 Safety Procedures 97
4.9 Quality Assurance 98
4.10 Site Data 98
4.11 Sufficiency of the Accepted Contract Amount 99
4.12 Unforeseeable Physical Conditions 99
4.13 Rights of Way and Facilities 101
4.14 Avoidance of Interference 102
4.15 Access Routes 102
4.16 Transport of Goods 102
4.17 Contractor’s Equipment 103
4.18 Protection of Environment 103
4.19 Electricity, Water, Gas 103
4.20 Employer’s Equipment and Free-Issue Material 104
4.21 Progress Reports 104
4.22 Security of Site 105
4.23 Contractor’s Operations on Site 106
4.24 Fossils 106
Clause 5 Nominated Subcontractors 107
5.0 Nominated Subcontractors – General 107
5.1 Definition of ‘Nominated Subcontractor’ 107
5.2 Objection to Nomination 108
5.3 Payments to Nominated Subcontractors 108
5.4 Evidence of Payments 108
Clause 6 Staff and Labour 109
6.5 Working Hours 109
6.7 Health and Safety 109
6.8 Contractor’s Superintendence 109
6.9 Contractor’s Personnel 109
6.10 Records of Contractor’s Personnel and Equipment 110
Clause 7 Plant, Materials and Workmanship 111
7.1 Manner of Execution 111
7.2 Samples 111
7.3 Inspection 111
7.4 Testing 111
7.5 Rejection 112
7.6 Remedial Work 112
7.7 Ownership of Plant and Materials 113
7.8 Royalties 113
Clause 8 Commencement, Delays and Suspension 114
8.1 Commencement of Works 114
8.2 Time for Completion 114
8.3 Programme 114
8.4 Extension of Time 115
8.5 Delay Caused by Authorities 115
8.6 Rate of Progress 116
8.7 Delay Damages 116
8.8 Suspension of Work 117
8.9 Consequences of Suspension 117
8.10 Payment for Plant and Materials in Event of Suspension 118
8.11 Prolonged Suspension 118
8.12 Resumption of Work 118
Clause 9 Tests on Completion 120
9.0 General 120
9.1 Contractor’s Obligations 120
9.2 Delayed Tests 120
9.3 Re-testing 121
Clause 10 Employer’s Taking Over 122
10.0 General 122
10.1 Taking Over of the Works and Sections 122
10.2 Taking Over of Parts of the Works 123
10.3 Interference with Tests on Completion 123
Clause 11 Defects Liability 124
11.1 Completion of Outstanding Work and Remedying Defects 124
11.2 Cost of Remedying Defects 124
11.3 Extension of Defects Notification Period 124
11.4 Failure to Remedy Defects 124
11.5 Removal of Defective Work 124
11.6 Further Tests 125
11.8 Contractor to Search 125
11.9 Performance Certificate 125
11.11 Clearance of Site 125
Clause 12 Measurement and Evaluation 126
12.1 Works to be Measured 126
12.2 Method of Measurement 126
12.3 Evaluation 127
12.4 Omissions 127
Clause 13 Variations and Adjustments 128
13.0 General 128
13.1 Right to Vary 128
13.2 Value Engineering 129
13.3 Variation Procedure 129
13.4 Payment in Applicable Currencies 129
13.5 Provisional Sums 130
13.6 Daywork 131
13.7 Adjustment for Changes in Legislation 131
13.8 Adjustment for Changes in Cost 132
Clause 14 Contract Price and Payment 133
14.1 The Contract Price 133
14.2 Advance Payment 133
14.3 Application for Interim Payment Certificates 133
14.4 Schedule of Payments 134
14.5 Plant and Materials intended for the Works 134
14.6 Issue of Interim Payment Certificates 135
14.7 Payment 135
14.8 Delayed Payment 136
14.9 Payment of Retention Money 136
14.10 Statement at Completion 137
14.11 Application for Final Payment Certificate 137
14.12 Discharge 138
14.13 Issue of Final Payment Certificate 138
14.14 Cessation of Employer’s Liability 138
14.15 Currencies of Payment 138
Clause 15 Termination by the Employer 139
15.1 Notice to Correct 139
15.2 Termination by the Employer 139
15.3 Valuation at Date of Termination 140
15.4 Payment after Termination 141
15.5 Employer’s Entitlement to Termination 141
Clause 16 Suspension and Termination by the Contractor 143
16.1 Contractor’s Entitlement to Suspend Work 143
16.2 Termination by Contractor 143
16.3 Cessation of Work and Removal of Contractor’s Equipment 143
16.4 Payment on Termination 144
Clause 17 Risk and Responsibility 145
17.0 General 145
17.1 Indemnities 145
17.2 Contractor’s Care of Works 145
17.3 Employer’s Risks 146
17.4 Consequences of Employer’s Risks 146
17.5 Intellectual and Industrial Property Rights 147
17.6 Limitation of Liability 147
Clause 18 Insurance 148
18.0 General 148
18.1 General Requirements for Insurances 148
18.2 Insurance for Works and Contractor’s Equipment 149
18.3 Insurance against Injury to Persons and Damage to Property, Familiarly Referred to as ‘Third Party Insurance’ 150
18.4 Insurance for Contractor’s Personnel 150
Clause 19 Force Majeure 152
19.1 Definition of Force Majeure 152
19.2 Notice of Force Majeure 152
19.3 Duty to Minimise Delay 152
19.4 Consequences of Force Majeure 153
19.5 Force Majeure Affecting Subcontractor 153
19.6 Optional Termination, Payment and Release 153
19.7 Release from Performance under Law 153
Clause 20 Claims, Disputes and Arbitration 154
20.0 General 154
20.1 Contractor’s Claims 154
20.2 Appointment of a Dispute Adjudication Board 155
20.3 Failure to Agree Dispute Adjudication Board 156
20.4 Obtaining Dispute Adjudication Board’s Decision 156
20.5 Amicable Settlement 158
20.6 Arbitration 158
20.7 Failure to Comply with Dispute Adjudication Board’s Decision 158
20.8 Expiry of Dispute Adjudication Board’s Appointment 158
Appendices 159
Appendix A Conditions of Contract for Plant and Design-Build 1999 (P & DB) ‘The Yellow Book’
Appendix B Conditions of Contract for EPC/Turnkey Projects (EPCT) ‘The Silver Book’ 164
Appendix C Other FIDIC Publications 165
Appendix D Employer’s Claims under a CONS Contract 167
Appendix E Contractor’s Claims under a CONS Contract 168
Appendix F Preparation of Interim Payment Certificates 170
Appendix G Model Form for Submissions to the Engineer for Approval and/or Consent 174
Appendix H Model Form of Engineer’s Order for Varied Works 175
Appendix I Model Form of Daywork/Daily Record Sheets 176
Appendix J Model Letters for Use by the Employer 178
Appendix K Model Letters for Use by the Engineer 189
Introduction to Indexes 219
Index of Sub-Clauses (FIDIC System) 220
Index of Sub-Clauses (sorted according to FIDIC Clause numbering system) 226

Erscheint lt. Verlag 28.1.2013
Sprache englisch
Themenwelt Recht / Steuern EU / Internationales Recht
Recht / Steuern Öffentliches Recht
Recht / Steuern Privatrecht / Bürgerliches Recht Baurecht (privat)
Technik Bauwesen
Schlagworte Able • administrative requirements • Bauökonomie • Bauingenieur- u. Bauwesen • Bauökonomie • Baurecht • Civil Engineering & Construction • Civil Engineering & Construction Special Topics • Conditions • Construction • construction law • Contract • employer • employers • engineer • engineers • Essential • Execution • FIDIC • Guide • importance • Massenermittlung u. Bauökonomie • Massenermittlung u. Bauökonomie • Parties • Points • Potential • Preparation • Process • Quantity Surveying & Construction Economics • Role • Spezialthemen Bauingenieur- u. Bauwesen • tenders
ISBN-10 1-118-38558-6 / 1118385586
ISBN-13 978-1-118-38558-6 / 9781118385586
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