R 2017 - 19

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Questions and Answers

What happens if the Engineer does not give a Notice within the period of 14 days?

The Notice of Claim is considered invalid

The claiming Party loses the right to make a claim

The other Party must extend the period

The Notice of Claim is deemed valid (correct)

What should the other Party do if they disagree with the deemed valid Notice of Claim?

File a lawsuit immediately

Ignore the Notice and proceed with their own claim

Give a Notice to the Engineer including details of the disagreement (correct)

Wait for the Engineer to retract the Notice

What is required for the agreement or determination of the Claim under Sub-Clause 20.2.5 to include a review by the Engineer?

A Notice from the other Party disagreeing with the Engineer's decision (correct)

A request from the Engineer to review the Claim

A formal court order

An independent arbitration decision

What should the claiming Party do if they disagree with the Engineer or consider late submission of the Notice of Claim justified?

Include details of such disagreement or why such late submission is justified in its fully detailed Claim Signup and view all the answers

What does 'contemporary records' refer to in Sub-Clause 20.2?

Records prepared or generated at the same time, or immediately after, the event or circumstance giving rise to the Claim Signup and view all the answers

What is the Engineer's role regarding the Contractor's contemporary records?

The Engineer may monitor the Contractor’s contemporary records and/or instruct the Contractor to keep additional contemporary records Signup and view all the answers

What is the consequence of the claiming Party failing to keep necessary contemporary records to substantiate the Claim?

The Claim may be difficult to substantiate Signup and view all the answers

If a DAAB member declines to act or is unable to act as a result of death, when should a replacement DAAB member be appointed?

Within 42 days after the date of decline or inability to act Signup and view all the answers

When does the term of the DAAB expire if the Contract is terminated?

Both a and b Signup and view all the answers

Under what conditions would the Parties fail to agree the appointment of a replacement DAAB member?

All of the above Signup and view all the answers

When can the appointment of any DAAB member be terminated?

By mutual agreement of both Parties Signup and view all the answers

If the DAAB is to comprise three persons, what happens if either Party fails to select a member by the date stated in the first paragraph of Sub-Clause 21.1?

The Parties fail to agree the appointment of the third member within 42 days Signup and view all the answers

Who appoints the member(s) of the DAAB if one Party refuses or fails to sign a DAAB Agreement with any replacement member?

The appointing entity or official named in the Contract Data Signup and view all the answers

When does the term of the DAAB expire if the Parties reach a final agreement on all matters in connection with the termination of the Contract?

28 days after the date the Parties reach a final agreement on all matters in connection with the termination Signup and view all the answers

Under what conditions can the appointment of any DAAB member be terminated?

By mutual agreement of both Parties Signup and view all the answers

If the DAAB is to comprise a sole member, what happens if the Parties fail to agree the appointment of this member by the date stated in the first paragraph of Sub-Clause 21.1?

The DAAB becomes inactive until both Parties agree Signup and view all the answers

What is the time limit for the engineer to respond to a claim, as per FIDIC 2017 General Conditions?

28 days Signup and view all the answers

When should the final fully detailed claim be submitted after the event's effects end?

Within 28 days Signup and view all the answers

Under what condition may late submissions of claims be accepted?

Depending on the potential prejudice to the other party and their prior knowledge of the event or circumstance Signup and view all the answers

How are substantiated claim amounts included in Payment Certificates until the claim is agreed or determined?

They are included in each Payment Certificate until the claim is agreed or determined Signup and view all the answers

How can the Employer claim payment, extend the Defects Notification Period (DNP), or make deductions?

By complying with Sub-Clause 20.2 Signup and view all the answers

What happens if there is a failure to comply with the claim process?

May affect additional payment, extension of time, or extension of the Defects Notification Period (DNP), taking into account any prevention or prejudice to proper investigation Signup and view all the answers

How are disputes decided according to FIDIC 2017 General Conditions?

By a Dispute Adjudication/Avoidance Board (DAAB) in accordance with the contract Signup and view all the answers

What does a 'fully detailed Claim' include according to Sub-Clause 20.2.4?

A detailed description of the event or circumstance giving rise to the Claim Signup and view all the answers

What happens if the claiming Party fails to submit the statement under Sub-Clause 20.2.2(b)?

The Notice of Claim shall be deemed to have lapsed Signup and view all the answers

What does the Engineer do if they consider that the claiming Party has failed to give the Notice of Claim within the period of 28 days?

Give a Notice to the claiming Party within 14 days after receiving the Notice of Claim Signup and view all the answers

What does the Engineer do after receiving a fully detailed Claim under Sub-Clause 20.2.4?

Proceed to agree or determine the additional payment or extension of time Signup and view all the answers

What happens if the Engineer does not give a Notice within 14 days after the time limit for submitting the statement under Sub-Clause 20.2.2(b) has expired?

The Notice of Claim shall be deemed to be a valid Notice Signup and view all the answers

What does the agreement or determination of the Claim include according to Sub-Clause 20.2.5?

The additional payment or extension of time to which the claiming Party is entitled Signup and view all the answers

What happens if the Engineer requires necessary additional particulars after receiving the fully detailed Claim?

The Engineer may request the necessary additional particulars Signup and view all the answers

What is the consequence of failing to submit a fully detailed Claim within the specified time limit?

The Notice of Claim is deemed invalid, unless the Engineer fails to give a Notice within 14 days. Signup and view all the answers

What must be included in a 'fully detailed Claim' submission?

A detailed description of the event, contractual/legal basis, contemporary records, and supporting particulars of the amount claimed. Signup and view all the answers

What happens if the Engineer requires additional particulars after receiving the fully detailed Claim?

The claiming Party must provide them. Signup and view all the answers

What does the Engineer do after receiving a fully detailed Claim?

Proceeds to agree or determine the additional payment or time extension entitled to the claiming Party. Signup and view all the answers

In case of a continuing effect, what clause will apply to the Claims?

Claims of continuing effect clause Signup and view all the answers

If the claiming Party disagrees with the Engineer's Notice, what must they do?

Include details of the disagreement in the fully detailed claim. Signup and view all the answers

What does the agreement or determination of the Claim include?

Whether the Notice of Claim shall be treated as valid, taking into account the details of the claiming Party’s disagreement or late submission justification. Signup and view all the answers

Study Notes

FIDIC 2017 General Conditions: Claims and Disputes

FIDIC 2017 General Conditions outline the process for handling claims in construction contracts.
The claiming party must promptly give notice to the other party, describing the particulars and reasons for the claim.
The engineer must respond to the claim within a specified time limit, providing the contractual or legal basis for the response.
Interim fully detailed claims must be submitted at monthly intervals, with a final fully detailed claim due within 28 days after the event's effects end.
Late submissions of claims may be accepted depending on the potential prejudice to the other party and their prior knowledge of the event or circumstance.
The Engineer includes substantiated claim amounts in each Payment Certificate until the claim is agreed or determined.
The Employer can only claim payment, extend the Defects Notification Period (DNP), or make deductions by complying with Sub-Clause 20.2.
Failure to comply with the claim process may affect additional payment, extension of time, or extension of the DNP, taking into account any prevention or prejudice to proper investigation.
Disputes are decided by a Dispute Adjudication/Avoidance Board (DAAB) in accordance with the contract.
The Parties jointly appoint the DAAB members within a specified time after the Contractor's receipt of the Letter of Acceptance.
The DAAB comprises either one suitably qualified member or three members, selected from a list in the Contract Data, with the possibility of a chairperson.
The Parties mutually agree on the terms of remuneration for the DAAB members and any expert consulted.

FIDIC Contract Claims Procedure

The Engineer has the right to inspect the Contractor's records during normal working hours and request copies if necessary.
A "fully detailed Claim" submission must include a detailed description of the event, contractual/legal basis, contemporary records, and supporting particulars of the amount claimed.
The claiming Party must submit a fully detailed Claim within 84 days of becoming aware of the event, or should have become aware.
If the Engineer deems that the Notice of Claim was not given within 28 days, they must give a Notice to the claiming Party within 14 days with reasons.
Failure to submit a fully detailed Claim within the specified time limit will result in the Notice of Claim being deemed invalid, unless the Engineer fails to give a Notice within 14 days.
If the claiming Party disagrees with the Engineer's Notice, they must include details of the disagreement in the fully detailed claim.
In case of a continuing effect, the Claims of continuing effect clause will apply.
After receiving a fully detailed Claim, the Engineer proceeds to agree or determine the additional payment or time extension entitled to the claiming Party.
The agreement or determination of the Claim will include whether the Notice of Claim shall be treated as valid, taking into account the details of the claiming Party’s disagreement or late submission justification.
If the Engineer requires additional particulars after receiving the fully detailed Claim, the claiming Party must provide them.
The Engineer will review any disagreement in the agreement or determination of the Claim.
If there is a continuing effect, an interim or final fully detailed Claim must be submitted, and the Engineer will then proceed to agree or determine the Claim.

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Description

Test your knowledge of the FIDIC 2017 General Conditions related to claims and disputes in construction contracts. Explore the procedures for handling claims, the role of the Engineer, deadlines for claim submissions, and the resolution of disputes through the Dispute Adjudication/Avoidance Board (DAAB).