Questions and Answers
In which FIDIC 1999 form is the Contract administered by the Engineer appointed by the Employer?
Red Book
Which FIDIC 1999 form is recommended for building and engineering works if most (or all) of the works are to be designed by (or on behalf of) the Contractor?
Yellow Book
For which type of project is the FIDIC 1999 Silver Book suitable?
Process or power plant
Under which FIDIC 1999 form does the Employer (unless appointing an Employer's Representative) administer the Contract and endeavor to reach agreement with the Contractor on each claim?
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What is the consequence of the Employer taking early possession without consent?
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What is the Contractor entitled to if the Employer suspends work due to default?
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What is the consequence of the Employer's risk?
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When can the Contractor consider themselves entitled to an Extension of Time (EOT) or extra payment?
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What is the consequence of an unforeseeable condition?
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What is the Contractor's entitlement if the Employer terminates the contract at will?
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What is the consequence of a prolonged prevention of performance?
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What is the Contractor's entitlement if performance is impossible, unlawful, or released by law?
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Who is responsible for executing the works in accordance with the Contract and Engineer's instructions?
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How are interim and final payments certified?
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What triggers the Employer's claims procedures?
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What are the Contractor's claims procedures related to?
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What restricts the Employer's common law right to set off?
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What determines the allocation of risks between parties?
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Where are the Employer's Claims procedures outlined?
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What is the role of the Dispute Adjudication Board (DAB) in resolving disputes?
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What are the Employer's options in case of determined amounts to be deducted?
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What do Tenderers require more of to evaluate risks?
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What is specified for Contractor's claims depending on the event triggering the claim?
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What does the provisions cover related to termination?
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Study Notes
Construction Contract Provisions and Claims Procedures
- Disputes are resolved through a Dispute Adjudication Board (DAB)
- The Contractor is responsible for executing the works in accordance with the Contract and Engineer's instructions
- Interim and final payments are certified by the Engineer based on actual quantities of works and rates in the Bill of Quantities
- Risks are allocated between parties based on insurability, project management principles, and ability to foresee and mitigate circumstances
- Tenderers require more data on Site conditions and time to evaluate risks
- Employer's Claims procedures are outlined in Sub-Clause 2.5 and involve discussions with the Engineer and the Contractor
- The Employer has options to deduct determined amounts from payment certificates or make a separate claim against the Contractor
- The Employer's common law right to set off is restricted under Sub-Clause 2.5
- Various events trigger Employer's claims procedures, including performance security, failure to pass tests, and termination
- Contractor's claims procedures involve events such as delayed drawings, late access to the site, and setting-out errors
- Different types of costs and profits are specified for Contractor's claims, depending on the event triggering the claim
- The provisions cover insurance for works and Contractor's equipment, termination, and costs for completion, losses, and damages
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Description
Test your knowledge of construction contract provisions, claims procedures, and the responsibilities of the employer and contractor. Explore topics such as dispute resolution, payment certification, risk allocation, and various events triggering claims procedures.