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Questions and Answers
According to the text, when may the Engineer instruct the Contractor to submit quotations from the Contractor’s suppliers and/or subcontractors?
According to the text, when may the Engineer instruct the Contractor to submit quotations from the Contractor’s suppliers and/or subcontractors?
What happens if the Engineer does not respond within 7 days of receiving the quotations from the Contractor?
What happens if the Engineer does not respond within 7 days of receiving the quotations from the Contractor?
When does the Sub-Clause 13.5 about Daywork apply?
When does the Sub-Clause 13.5 about Daywork apply?
What does the Engineer instruct for work of a minor or incidental nature?
What does the Engineer instruct for work of a minor or incidental nature?
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What does a Statement that includes a Provisional Sum also include?
What does a Statement that includes a Provisional Sum also include?
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When may the Engineer respond by giving a Notice instructing the Contractor to accept one of the quotations from the Contractor’s suppliers and/or subcontractors?
When may the Engineer respond by giving a Notice instructing the Contractor to accept one of the quotations from the Contractor’s suppliers and/or subcontractors?
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How is the work valued if a Daywork Schedule is included in the Contract?
How is the work valued if a Daywork Schedule is included in the Contract?
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Which of the following is NOT a requirement for the Statement submission?
Which of the following is NOT a requirement for the Statement submission?
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What is the amortisation rate for deductions in the specified currencies and proportions of the advance payment?
What is the amortisation rate for deductions in the specified currencies and proportions of the advance payment?
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Which Sub-Clause covers adjustments for changes in Laws?
Which Sub-Clause covers adjustments for changes in Laws?
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What is the limit of Retention Money for deductions stated in the Contract Data?
What is the limit of Retention Money for deductions stated in the Contract Data?
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Under which Sub-Clause are adjustments for changes in Cost covered?
Under which Sub-Clause are adjustments for changes in Cost covered?
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What is the sequence for expressing the applicable items in the Statement?
What is the sequence for expressing the applicable items in the Statement?
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What is the percentage of retention stated in the Contract Data for deductions?
What is the percentage of retention stated in the Contract Data for deductions?
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What is the rate of deductions for amortisation of each IPC in the specified currencies and proportions of the advance payment?
What is the rate of deductions for amortisation of each IPC in the specified currencies and proportions of the advance payment?
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What is the purpose of including supporting documents with the Statement?
What is the purpose of including supporting documents with the Statement?
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What happens if the Engineer does not instruct the Contractor within 7 days of receiving the quotations for Goods?
What happens if the Engineer does not instruct the Contractor within 7 days of receiving the quotations for Goods?
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What must the Contractor do if the daily statement provided to the Engineer is not correct?
What must the Contractor do if the daily statement provided to the Engineer is not correct?
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Under what circumstances is the Contractor entitled to an extension of time and/or payment?
Under what circumstances is the Contractor entitled to an extension of time and/or payment?
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When are adjustments for rises or falls in the cost of labor, Goods, and other inputs not applicable?
When are adjustments for rises or falls in the cost of labor, Goods, and other inputs not applicable?
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How are adjustments to prices made if the Contractor fails to complete the Works within the Time for Completion?
How are adjustments to prices made if the Contractor fails to complete the Works within the Time for Completion?
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What is the Contractor obligated to do before ordering Goods for work, other than those in the Daywork Schedule?
What is the Contractor obligated to do before ordering Goods for work, other than those in the Daywork Schedule?
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What happens if adjustments to the execution of the Works are necessary due to a change in laws?
What happens if adjustments to the execution of the Works are necessary due to a change in laws?
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What is the purpose of the Advance Payment Guarantee?
What is the purpose of the Advance Payment Guarantee?
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When should the Contractor obtain the Advance Payment Guarantee?
When should the Contractor obtain the Advance Payment Guarantee?
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What happens if the advance payment has not been repaid by a specified expiry date?
What happens if the advance payment has not been repaid by a specified expiry date?
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When does the Engineer issue an Advance Payment Certificate?
When does the Engineer issue an Advance Payment Certificate?
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How is the advance payment repaid?
How is the advance payment repaid?
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What happens if the advance payment has not been repaid before the issue of the Taking-Over Certificate for the Works?
What happens if the advance payment has not been repaid before the issue of the Taking-Over Certificate for the Works?
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What statement should the Contractor submit after the end of the period of payment stated in the Contract Data?
What statement should the Contractor submit after the end of the period of payment stated in the Contract Data?
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What is the timeframe for the Contractor to submit a proposed breakdown of each lump sum price to the Engineer?
What is the timeframe for the Contractor to submit a proposed breakdown of each lump sum price to the Engineer?
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What is the purpose of an Advance Payment Guarantee?
What is the purpose of an Advance Payment Guarantee?
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When does the Engineer issue an Advance Payment Certificate?
When does the Engineer issue an Advance Payment Certificate?
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What happens if the advance payment is not repaid before the Taking-Over Certificate or termination?
What happens if the advance payment is not repaid before the Taking-Over Certificate or termination?
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When must the Contractor submit a Statement to the Engineer?
When must the Contractor submit a Statement to the Engineer?
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What does the Repayment of the advance payment involve?
What does the Repayment of the advance payment involve?
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What is the purpose of the Advance Payment?
What is the purpose of the Advance Payment?
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Study Notes
Contractor's Obligations and Adjustments in FIDIC 2017 General Conditions
- Before ordering Goods for work, other than those in the Daywork Schedule, the Contractor must submit quotations to the Engineer from suppliers/subcontractors.
- If the Engineer does not instruct the Contractor within 7 days of receiving the quotations, the Contractor can accept any quotation at their discretion.
- The Contractor must provide accurate daily statements to the Engineer, including records of resources used in the previous day's work.
- The Engineer must promptly return a signed copy of the statement if correct and agreed, or proceed to agree or determine the resources if not correct.
- The Contractor then submits priced statements of agreed resources to the Engineer, along with applicable invoices, vouchers, and accounts for payment.
- The Contract Price is adjusted to account for changes in laws, including taxes, overheads, and profit, if not stated in the Daywork Schedule.
- Any increase or decrease in costs resulting from a change in laws entitles the Contractor to an extension of time and/or payment, or the Employer to a reduction in the Contract Price.
- If adjustments to the execution of the Works are necessary due to a change in laws, the Engineer may instruct a Variation or request a proposal.
- If cost indexation schedules are not included in the Contract, adjustments for rises or falls in the cost of labor, Goods, and other inputs do not apply.
- The adjustment to the amount payable to the Contractor is calculated for each currency in which the Contract Price is payable.
- If the Contractor fails to complete the Works within the Time for Completion, adjustments to prices are made using either the index applicable 49 days before the expiry or the current index, whichever is more favorable to the Employer.
- The Contract Price and Payment are subject to various provisions and adjustments as per the FIDIC 2017 General Conditions.
Advance Payment Clause in FIDIC 2017
- The Contract Price is determined by the value of the Works and subject to adjustments, additions, and deductions as per the Contract.
- The Contractor is responsible for paying taxes, duties, and fees, and the Contract Price is not adjusted for these costs except as stated in the Contract.
- Any quantities in the Bill of Quantities are estimated and not taken as actual quantities for execution or valuation purposes.
- The Contractor must submit a proposed breakdown of each lump sum price to the Engineer within 28 days after the Commencement Date.
- An Advance Payment may be made as an interest-free loan for mobilization, and the amount and currencies are as stated in the Contract Data.
- The Contractor must obtain an Advance Payment Guarantee equal to the advance payment amount at their cost and submit it to the Employer.
- The Engineer issues an Advance Payment Certificate within 14 days after receiving the Performance Security and the Advance Payment Guarantee.
- Repayment of the advance payment is through percentage deductions in Payment Certificates, and the Contractor must extend the guarantee's validity until repayment.
- If the advance payment is not repaid before the Taking-Over Certificate or termination, the outstanding balance becomes due and payable by the Contractor to the Employer.
- The Contractor must submit a Statement to the Engineer after the period of payment stated in the Contract Data or at the end of each month if not specified.
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Description
Explore your knowledge of the obligations, adjustments, and advance payment clause outlined in the FIDIC 2017 General Conditions for construction contracts. Test your understanding of the regulations governing quotations, adjustments to the contract price, and repayment of advance payments.