Contracts and Claims - 1999

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24 Questions

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?

Silver Book

What is the consequence of the Employer taking early possession without consent?

The Contractor is entitled to an extension of time

What is the Contractor entitled to if the Employer suspends work due to default?

An extension of time

What is the consequence of the Employer's risk?

The Contractor is entitled to additional payment

When can the Contractor consider themselves entitled to an Extension of Time (EOT) or extra payment?

After 42 days notice for a fully detailed claim

What is the consequence of an unforeseeable condition?

The Contractor is entitled to an extension of time

What is the Contractor's entitlement if the Employer terminates the contract at will?

Immediate payment in full

What is the consequence of a prolonged prevention of performance?

The Contractor is released from the contract

What is the Contractor's entitlement if performance is impossible, unlawful, or released by law?

Immediate termination of the contract

Who is responsible for executing the works in accordance with the Contract and Engineer's instructions?

The Contractor

How are interim and final payments certified?

Based on actual quantities of works and rates in the Bill of Quantities

What triggers the Employer's claims procedures?

Performance security

What are the Contractor's claims procedures related to?

Delayed drawings

What restricts the Employer's common law right to set off?

Sub-Clause 2.5

What determines the allocation of risks between parties?

Insurability, project management principles, and ability to foresee and mitigate circumstances

Where are the Employer's Claims procedures outlined?

Sub-Clause 2.5

What is the role of the Dispute Adjudication Board (DAB) in resolving disputes?

It resolves disputes

What are the Employer's options in case of determined amounts to be deducted?

Make a separate claim against the Contractor

What do Tenderers require more of to evaluate risks?

Data on Site conditions and time

What is specified for Contractor's claims depending on the event triggering the claim?

Different types of costs and profits

What does the provisions cover related to termination?

Costs for completion, losses, and damages

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

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.

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