R 2017 - 20

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Questions and Answers

Who is responsible for paying the remuneration of the appointing entity or official?

The Contractor

Both the Contractor and the Employer (correct)

The Engineer

The Employer

Under what conditions should the Parties jointly request the DAAB for assistance or informal discussion?

If the Engineer requires additional assistance

If the Employer wants to terminate the Contract

If the Contractor fails to fulfill their obligations

In case of any disagreement during the performance of the Contract (correct)

What happens if the Contractor pays the remuneration in full?

The Contractor includes one-half of the amount in a Statement and the Employer pays the Contractor (correct)

The Contractor is not required to include any amount in a Statement

The DAAB provides financial assistance to the Contractor

The Employer pays the remuneration in full

What does the DAAB Agreement govern?

The resolution of issues or disagreements during the Contract performance Signup and view all the answers

What is the consequence if the Employer pays the remuneration in full?

The Engineer includes one-half of the amount as a deduction under Sub-Clause 14.6.1 Signup and view all the answers

What is the monthly services fee and daily fee based on?

The terms of the appointment Signup and view all the answers

What is the primary purpose of the DAAB Agreement?

To govern the resolution of disputes during the Contract performance Signup and view all the answers

What is the consequence of the Parties jointly requesting the DAAB for assistance?

The DAAB assists in resolving issues or disagreements Signup and view all the answers

What is the responsibility of each Party regarding the remuneration of the appointing entity or official?

Each Party is responsible for paying one-half of the remuneration Signup and view all the answers

Under what circumstances should the Engineer include one-half of the remuneration as a deduction under Sub-Clause 14.6.1?

If the Employer pays the remuneration in full Signup and view all the answers

What is the time limit for referring a dispute to the DAAB for a decision?

42 days after a Notice of Dissatisfaction (NOD) is given Signup and view all the answers

What happens if a party fails to refer a dispute to the DAAB within the specified period?

The NOD becomes invalid Signup and view all the answers

When must the DAAB provide its decision after receiving a reference?

84 days Signup and view all the answers

What happens if a decision by the DAAB requires a payment?

It is immediately due and payable without certification or notice Signup and view all the answers

How long does a party have to give a Notice of Dissatisfaction (NOD) if dissatisfied with the DAAB's decision?

28 days Signup and view all the answers

What happens if no NOD has been given within 28 days after receiving the DAAB's decision?

The decision becomes final and binding on both parties Signup and view all the answers

What is the responsibility of the employer with regard to the Engineer's compliance with the DAAB decision?

The employer is responsible for the Engineer's compliance Signup and view all the answers

What is the effect of the reference of a dispute to the DAAB on any applicable statute of limitation or prescription period?

It interrupts any applicable statute of limitation or prescription period Signup and view all the answers

What is the status of the DAAB's informal assistance advice in future dispute resolution processes or decisions?

It is not binding in any future dispute resolution process Signup and view all the answers

When is the reference to the DAAB deemed to be received?

On the date it is received by the chairperson of the DAAB Signup and view all the answers

What is the time limit for giving a 'Notice of Dissatisfaction with the DAAB’s Decision' (NOD) after receiving the DAAB’s decision?

28 days Signup and view all the answers

When can arbitration commence if no attempt to settle the dispute amicably is made?

28 days after NOD is given Signup and view all the answers

Under which rules will the dispute be finally settled by international arbitration if not settled amicably and not finalized by the DAAB?

Rules of Arbitration of the International Chamber of Commerce Signup and view all the answers

What power do the arbitrator(s) have regarding the DAAB’s decision relevant to the dispute?

Power to review and revise Signup and view all the answers

In dealing with costs of the arbitration, what may the arbitrator(s) consider regarding a Party's failure to cooperate in constituting a DAAB?

They may consider it as a major factor Signup and view all the answers

Are parties limited in the arbitration proceedings to the evidence or arguments previously put before the DAAB?

No, they are not limited Signup and view all the answers

When is a payment required by an award immediately due and payable?

Immediately without further certification or notice Signup and view all the answers

In case of non-compliance with the DAAB’s decision, what action may the other Party take?

Refer the failure directly to arbitration Signup and view all the answers

In the absence of a DAAB, what is the process for resolving a dispute?

Referral directly to arbitration without applying the amicable settlement process Signup and view all the answers

When do Sub-Clause 21.4 [Obtaining DAAB’s Decision] and Sub-Clause 21.5 [Amicable Settlement] not apply?

When there is no DAAB in place Signup and view all the answers

Study Notes

FIDIC 2017 Conditions of Contract for Construction

Parties may give a "Notice of Dissatisfaction with the DAAB’s Decision" (NOD) to the other Party within 28 days of receiving the DAAB’s decision.
Both Parties must attempt to settle the dispute amicably before arbitration, but arbitration may commence 28 days after the NOD is given if no settlement attempt is made.
Any dispute not settled amicably and not finalized by the DAAB will be finally settled by international arbitration under the Rules of Arbitration of the International Chamber of Commerce.
The arbitrator(s) have the power to review and revise any decision of the DAAB relevant to the dispute.
The arbitrator(s) may consider the extent of a Party's failure to cooperate in constituting a DAAB when dealing with costs of the arbitration.
Parties are not limited in the arbitration proceedings to the evidence or arguments previously put before the DAAB.
If an award requires a payment, it is immediately due and payable without further certification or notice.
In case of non-compliance with the DAAB’s decision, the other Party may refer the failure directly to arbitration, and the arbitral tribunal may order enforcement of that decision.
In the absence of a DAAB, the dispute may be referred directly to arbitration without applying the amicable settlement process.
The arbitration shall be conducted in the ruling language defined in Sub-Clause 1.4 [Law and Language].
Sub-Clause 21.4 [Obtaining DAAB’s Decision] and Sub-Clause 21.5 [Amicable Settlement] do not apply when there is no DAAB in place, and the dispute may be referred directly to arbitration.
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Description

Explore the key provisions and procedures for dispute resolution in the FIDIC 2017 Conditions of Contract for Construction, including the process for arbitration, settlement attempts, and enforcement of decisions. Test your understanding of the NOD, amicable settlement, international arbitration, and the role of the DAAB in resolving disputes.