Podcast
Questions and Answers
Under what circumstances should users consider the FIDIC Yellow Book (Conditions of Contract for Plant and Design-Build) instead of the Silver Book for EPC/Turnkey projects?
Under what circumstances should users consider the FIDIC Yellow Book (Conditions of Contract for Plant and Design-Build) instead of the Silver Book for EPC/Turnkey projects?
- When the employer intends to closely supervise the contractor's work or review most construction drawings. (correct)
- When the project involves minimal design work.
- When project timelines are extremely short, leaving insufficient time for comprehensive risk assessment.
- When projects require a lump sum payment structure.
What does FIDIC consider to be the official and authentic version of its contract documents for translation purposes?
What does FIDIC consider to be the official and authentic version of its contract documents for translation purposes?
- The version published in the official journal of the consulting engineers of the country of project origin.
- The version approved by FIDIC's Contracts Committee at the time of publication.
- Any translated version that is certified by a legal professional.
- The version in the English language. (correct)
According to FIDIC, what is the primary aim when encountering provisions in the General Conditions requiring amendment?
According to FIDIC, what is the primary aim when encountering provisions in the General Conditions requiring amendment?
- To seek a license to amend, ensuring any alterations are captured within the Particular Conditions Part B – Special Provisions. (correct)
- To modernise archaic clauses using contemporary legal language.
- To ensure they are updated without specific written consent from FIDIC.
- To reference newer versions of publications mentioned.
According to Sub-Clause 1.1.3, which of the following best describes a 'Claim'?
According to Sub-Clause 1.1.3, which of the following best describes a 'Claim'?
What does Sub-Clause 1.1.7 define as the components of the 'Contract'?
What does Sub-Clause 1.1.7 define as the components of the 'Contract'?
In the context of the FIDIC contract, what is the significance of the "Base Date" when assessing 'Unforeseeable' conditions?
In the context of the FIDIC contract, what is the significance of the "Base Date" when assessing 'Unforeseeable' conditions?
According to Sub-Clause 1.3, how is an electronically transmitted Notice or communication considered to be received?
According to Sub-Clause 1.3, how is an electronically transmitted Notice or communication considered to be received?
Which of the following conditions needs to be satisfied to enable a Party to refer a dispute to the DAAB?
Which of the following conditions needs to be satisfied to enable a Party to refer a dispute to the DAAB?
If the General Conditions of the contract are to be supplemented, where should this be done?
If the General Conditions of the contract are to be supplemented, where should this be done?
"Delay Damages" are applied if the Contractor fails to comply with which Sub-Clause?
"Delay Damages" are applied if the Contractor fails to comply with which Sub-Clause?
When should the Employer consider seeking legal and engineering advice during the drafting of Special Provisions?
When should the Employer consider seeking legal and engineering advice during the drafting of Special Provisions?
What does FIDIC state regarding the illustrative flow charts included in the EPC/Turnkey contract documentation?
What does FIDIC state regarding the illustrative flow charts included in the EPC/Turnkey contract documentation?
What principles of risk sharing are maintained in the second edition of the FIDIC Silver Book?
What principles of risk sharing are maintained in the second edition of the FIDIC Silver Book?
If not explicitly defined in the Contract Data, what duration is considered for 'The Defects Notification Period'?
If not explicitly defined in the Contract Data, what duration is considered for 'The Defects Notification Period'?
Under what conditions can the assignment of a Party's right to any moneys due or to become due under the contract be considered valid?
Under what conditions can the assignment of a Party's right to any moneys due or to become due under the contract be considered valid?
What is the Contractor required to do if they identifies an error/defect in a document prepared for the execution of the works?
What is the Contractor required to do if they identifies an error/defect in a document prepared for the execution of the works?
Under what circumstances shall the Employer be relieved of liability for the Contractor's delay or failure to comply with laws, permits, etc.?
Under what circumstances shall the Employer be relieved of liability for the Contractor's delay or failure to comply with laws, permits, etc.?
What action by the Employer demonstrates an intent to closely supervise or control the contractor's work?
What action by the Employer demonstrates an intent to closely supervise or control the contractor's work?
With respect to copyright and intellectual property rights for the contractor's documents, what license is granted to the Employer?
With respect to copyright and intellectual property rights for the contractor's documents, what license is granted to the Employer?
What is the primary difference between the Employer's and Contractor's Personnel in regard to being entitled to 'copies' of project documents?
What is the primary difference between the Employer's and Contractor's Personnel in regard to being entitled to 'copies' of project documents?
Under what conditions may a first party give a second notice and again seek EOT or payment, if there is a continuing disagreement (or lack of any response)?
Under what conditions may a first party give a second notice and again seek EOT or payment, if there is a continuing disagreement (or lack of any response)?
What must be included in a Notice of Dissatisfaction?
What must be included in a Notice of Dissatisfaction?
How does FIDIC suggest the Employer and Contractor address when/if there's a need to correct a decision issued under sub-clause 3.5?
How does FIDIC suggest the Employer and Contractor address when/if there's a need to correct a decision issued under sub-clause 3.5?
What consequence is incurred if the Employer withholds a required 'Right of Access to the Site'?
What consequence is incurred if the Employer withholds a required 'Right of Access to the Site'?
During project execution, for what factors is the Contractor directly responsible, absent some law that places the responsibility somewhere else?
During project execution, for what factors is the Contractor directly responsible, absent some law that places the responsibility somewhere else?
According to the document, under what circumstances can the Employer terminate the agreement?
According to the document, under what circumstances can the Employer terminate the agreement?
At what stage must the instrument providing a performance security (or any similar instrument) be delivered?
At what stage must the instrument providing a performance security (or any similar instrument) be delivered?
Up to what limit can a 'limitation of liability' apply to the Contractor?
Up to what limit can a 'limitation of liability' apply to the Contractor?
What action should the contractor undergo if after delivery of the Project, and during operations, they discover that an antiquities site had been disrupted?
What action should the contractor undergo if after delivery of the Project, and during operations, they discover that an antiquities site had been disrupted?
In many scenarios it is appropriate for the employer to retain power and action for items regarding project-related insurance, when can they retain that power?
In many scenarios it is appropriate for the employer to retain power and action for items regarding project-related insurance, when can they retain that power?
What aspect of the contract must the Employer take due regard to ensure is balanced or specified?
What aspect of the contract must the Employer take due regard to ensure is balanced or specified?
If something is tested and fails inspections, and there is later damage caused to that part during additional work, to what is the relevant liability?
If something is tested and fails inspections, and there is later damage caused to that part during additional work, to what is the relevant liability?
If Tests After Completion are required, when in the process are they completed?
If Tests After Completion are required, when in the process are they completed?
Which rules are used to settle any disputes if going to international arbitrations?
Which rules are used to settle any disputes if going to international arbitrations?
When utilizing a DAAB, how are they compensated?
When utilizing a DAAB, how are they compensated?
What is the primary factor in deciding the suitability of Conditions of Contract for EPC/Turnkey Projects?
What is the primary factor in deciding the suitability of Conditions of Contract for EPC/Turnkey Projects?
What does FIDIC recommend if sufficient time or information for tenderer's design assessment is not available?
What does FIDIC recommend if sufficient time or information for tenderer's design assessment is not available?
Regarding notices and communications under the contract, what is generally implied about the intent of withholding or delay?
Regarding notices and communications under the contract, what is generally implied about the intent of withholding or delay?
In drafting Special Provisions to amend the General Conditions, what guidance or recommendation is stated?
In drafting Special Provisions to amend the General Conditions, what guidance or recommendation is stated?
How should drafters approach copyright concerns when amending provisions found in the General Conditions?
How should drafters approach copyright concerns when amending provisions found in the General Conditions?
Where should changes to the General Conditions be included as mentioned in the text?
Where should changes to the General Conditions be included as mentioned in the text?
If a party finds an actual ambiguity or discrepancy in contract documents, what is their initial duty as mentioned in the content?
If a party finds an actual ambiguity or discrepancy in contract documents, what is their initial duty as mentioned in the content?
According to the document, what is the Employer entitled to recover from the Contractor upon discovering their failure to comply?
According to the document, what is the Employer entitled to recover from the Contractor upon discovering their failure to comply?
What are the requirements for documentation and reporting regarding Health and Safety?
What are the requirements for documentation and reporting regarding Health and Safety?
Flashcards
What is FIDIC?
What is FIDIC?
An international federation of consulting engineers.
What does the Silver Book describe?
What does the Silver Book describe?
Conditions of Contract for EPC/Turnkey Projects.
Who designs the EPC/Turnkey works?
Who designs the EPC/Turnkey works?
To provide the Employer's Requirements; may also design.
When NOT to utilize EPC/Turnkey contracts
When NOT to utilize EPC/Turnkey contracts
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What does the 2nd Edition of the Silver Book provide?
What does the 2nd Edition of the Silver Book provide?
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What does the Particular Conditions Part A include?
What does the Particular Conditions Part A include?
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What are the Conditions of Contract?
What are the Conditions of Contract?
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What happens if an Employer doesn't give right of access?
What happens if an Employer doesn't give right of access?
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What must the Employer's Representative do?
What must the Employer's Representative do?
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What kind of error can Notices of Agreement correct?
What kind of error can Notices of Agreement correct?
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For what kind of error is no time or cost provided?
For what kind of error is no time or cost provided?
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If a Contract has ruling languages, what statement can be made?
If a Contract has ruling languages, what statement can be made?
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What can not be delegated from ER?
What can not be delegated from ER?
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What does the Employer's Requirements describe?
What does the Employer's Requirements describe?
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Study Notes
Conditions of Contract for EPC/Turnkey Projects (Second Edition 2017)
- A contract document by the Fédération Internationale des Ingénieurs-Conseils (FIDIC).
- It is an update to the FIDIC 1999 Silver Book.
Copyright and Terms
- Copyright owned by FIDIC.
- Protected by the Berne Convention, TRIPS, WIPO copyright treaty, and national intellectual property laws.
- No reproduction, translation, adaptation, or storage without prior written permission from FIDIC.
- English version is considered the official text for translation purposes.
- Dissemination, acceptance, and use of FIDIC publications are actively promoted.
- Purchase or supply of a FIDIC publication does not confer author's rights.
- Users rely on the contents of FIDIC publications, especially contracts and agreements, for business transactions.
- Modification of FIDIC publications is discouraged.
Scope and Purpose
- Provides general conditions intended to apply to the majority of EPC/Turnkey contracts.
- Essential contract-specific information is included in Particular Conditions Part A - Contract Data.
- Special conditions or procedures required by Employers, governmental agencies, etc., which differ from the General Conditions, are included in Part B – Special Provisions.
- General Conditions and Particular Conditions are all part of the contract's conditions.
- Assists Employers in preparing tender documents and drafting Particular Conditions.
- Includes flow charts showing typical activity sequences for the FIDIC EPC/Turnkey contract form.
- Contains sample forms.
- General Conditions of all FIDIC contracts are protected by copyright and trademark.
- Amendments require specific written consent from FIDIC, usually via a license to amend.
- Amendments should be placed in the Particular Conditions Part B – Special Provisions.
- FIDIC deems the official texts to be the versions in the English language.
Key Personnel (Acknowledgements Section)
- Lists individuals and groups involved in preparing the Second Edition.
- Notable figures include Zoltán Záhonyi, Siobhan Fahey, Svend Poulsen, Simon Worley, and Philip Jenkinson.
- Special Advisers include Christopher Seppälä and Nael G Bunni.
Suitability and Features
- NOT suitable if there's insufficient time/info for tenderers to scrutinize employer's requirements or if substantial underground work prevents inspection.
- Also unsuitable for close Employer supervision.
- Second Edition maintains risk sharing principles of 1999, but enhances clarity/detail for notices, addresses Employer/Contractor claims, and provides mechanisms for dispute avoidance, quality management & verification of compliance.
Timing of Events
- Time for Completion is stated in Contract Data, may be extended under Sub-Clause 8.5.
- Defects Notification Period stated in Contract Data and extended under Sub-Clause 11.3.
Typical Payments
- Each interim payment is verified ≤28d after Contractor's statement.
- Employer gives notice of payments ≤56d
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