Comparison 2017

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Questions and Answers

What risk allocation is unique to the Emerald Book compared to the other FIDIC Books?

Remeasure of time for completion for Underground Works using Schedule of Baselines (correct)

Lump-sum for other Works with no option for partial remeasure

Remeasure of price for 'Excavation & Lining Works' using BQ

BQ included as a 'Schedule' with quantities produced by Employer & rates by Contractor

Which book allows for the conversion to a full lump-sum approach with no option for partial remeasure?

Red (2017)

Emerald (2019) (correct)

Yellow (2017)

Silver (2017)

What is a unique feature of the Silver Book's Quantity Risk allocation?

Remeasure of price for 'Excavation & Lining Works' using BQ

Lump-sum Option with provision to convert to a full lump-sum approach

BQ included as a 'Schedule' with quantities produced by Employer & rates by Contractor

Quantities in SRP 'used for the purposes stated', not 'corrected' (correct)

Which book allows for the valuation of Variations as 'Cost Plus Profit' if there is no 'Schedule of Rates and Prices'?

Yellow (2017) Signup and view all the answers

According to the YB Guidance Notes, when is the Contractor responsible for verifying and interpreting Employer’s information?

When 4.10 applies as in the Red EXCEPT deemed to have relied on ‘subsurface physical conditions and ground reactions described in the GBR’ Signup and view all the answers

What is the duration of defects liability according to the YB Guidance Notes?

Not limited to DNP, but Plant limited to 2 years after end DNP Signup and view all the answers

Under what circumstances is neither Party liable for loss of profit or consequential loss according to the YB Guidance Notes?

Except for delay damages, omission by Variation, termination for convenience/Employer default & some indemnities (1.15) Signup and view all the answers

When does the Contractor get EOT/Cost for Unforeseeable physical conditions at the Site according to the YB Guidance Notes?

When 4.12 applies as in the Red EXCEPT impact of ‘conditions described in GBR’ is dealt with under 13.8, ie remeasure for price/time Signup and view all the answers

What is the general carve-outs for liability according to the YB Guidance Notes?

Fraud, gross negligence, deliberate default, reckless misconduct (1.15 &11.10) Signup and view all the answers

Under what circumstances is the total liability of Contractor limited according to the YB Guidance Notes?

To ACA or amount in Contract Data, with some exceptions Signup and view all the answers

What is the responsibility of the Employer according to the YB Guidance Notes?

To make available all information in its possession on the conditions at the Site, including GDR and GBR (2.5) Signup and view all the answers

When is 1.9 applied according to the YB Guidance Notes?

When the Employer must make available all information in its possession on the conditions at the Site, but also covers the GBR Signup and view all the answers

What provision is required if the Employer and Contractor want to use the Remeasure Option for part of the Works?

Special Provisions (14.1) Signup and view all the answers

What is the basis for Interim Payment?

Actual progress Signup and view all the answers

When does the Contractor have the option for a 'Schedule of Payments' for Interim Payment?

When Special Provisions are included Signup and view all the answers

Under what circumstances is the contract price not fixed?

When Schedule of cost indexation is included Signup and view all the answers

Who is responsible for designing the Permanent Works?

Contractor Signup and view all the answers

What is the Employer's responsibility regarding the accuracy of the Employer's Requirements?

Accuracy is not the Employer's responsibility Signup and view all the answers

What remains the Contractor's obligation even if the Contractor designs Works to the extent specified in the ER?

Fit for purpose Signup and view all the answers

When are Special Provisions needed for interim payment?

When no Schedule of Payments is used Signup and view all the answers

What may the Contractor not be entitled to if provided late?

EOT/Cost Plus Profit Signup and view all the answers

Who is liable for loss to the Works due to Employer design error?

Contractor Signup and view all the answers

What forms part of the Contract and needs to be complied with?

Contractor's Proposal Signup and view all the answers

Is the Contractor's risk for design error reduced by design review by the Engineer?

No Signup and view all the answers

Study Notes

Construction Contract Provisions Summary

Employer and Contractor can use the Remeasure Option for "part of the Works" but Special Provisions are required (14.1).
BQ must adhere to SMM in CD (13.8.1) with errors effectively corrected.
Interim Payment has the option of a "Schedule of Payments" and is based on actual progress (14.4).
Fixed price unless "Schedule of cost indexation" is included (13.7).
Contractor designs Permanent Works and is responsible for fit for purpose (4.1, 5th para).
Employer is not responsible for accuracy of the Employer's Requirements except for certain 'rely upon information' (5.1).
Contractor designs Works ‘to the extent specified in the ER’ (5.1) with a full ‘fit for purpose’ obligation remaining (4.1).
Special Provisions needed for interim payment if no SOP; no measurement provision in GC for 'measure and value' approach.
Contractor may not be entitled to EOT/Cost Plus Profit if provided late (Yellow 2017).
Contractor liable for loss to the Works due to Employer design error (17).
"Contractor's Proposal" forms part of the Contract and needs to be complied with (4.1, 3rd para).
Contractor's risk for design error is not reduced by design review by the Engineer (5.8 and 3.2, 5th para).

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Description

This quiz provides a summary of important provisions in a construction contract, covering topics such as remeasure options, bill of quantities adherence, interim payments, fixed price vs. cost indexation, design responsibilities, and entitlements for extension of time and cost plus profit. Test your knowledge of key contractual clauses and their implications.