Differences - 1

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Questions and Answers

What is the main source of profit for a business according to the text?

Adoption of simple procedures

Understanding of contracts

Efficient execution of works

Income from projects (correct)

According to the text, what is the difference between profit and expenditure?

Profit = Expenditure - Income

Profit = Income - Expenditure (correct)

Profit = Income + Expenditure

Profit = Income / Expenditure

What is emphasized as crucial for improving the prospects of profitability in the workshop?

Ignoring the contract terms

Adoption of complex procedures

Focusing solely on project execution

Basic understanding of the contract (correct)

According to the text, what applies to everyone in the project team?

Everything in construction is subject to the contract made Signup and view all the answers

What is the basis for tender risk analysis in the tendering process?

Tender documents Signup and view all the answers

Who is involved in the management of contracts, according to the text?

Tendering personnel, engineers, supervisors, and line management Signup and view all the answers

What is the preferred format for encouraging dialogue and interaction among participants in contract management workshops?

Workshop format Signup and view all the answers

What is the starting point for the process of managing a contract?

Formation of a legal agreement Signup and view all the answers

What is the purpose of a contracts management manual in contracting organizations?

To standardize contract management processes Signup and view all the answers

Why is managing change within a contract crucial?

For maximizing commercial returns Signup and view all the answers

What is important for maximizing commercial returns in contract management?

Identifying and addressing changes in contracts early on Signup and view all the answers

What is involved in the tendering process?

Understanding the employer's expectations Signup and view all the answers

What should be done before an employer issues tender documents?

Check them against a contents list Signup and view all the answers

What should be kept in a master file for future reference in the tendering process?

A clean set of tender documents Signup and view all the answers

What is the challenge associated with contracts management manuals in contracting organizations?

Enforcing its use Signup and view all the answers

What is the primary purpose of the material presented in the text?

Based on 'good practice' from real projects and years of experience Signup and view all the answers

What should be included in the file for a construction project?

Correspondence requesting clarifications or further information Signup and view all the answers

What should be maintained in a schedule summarizing all changes resulting from negotiations?

Date, document, and nature of the change Signup and view all the answers

What are the similar procedures applicable for, with the contractor acting as the employer and the sub-contractor as the contractor?

Sub-contract orders Signup and view all the answers

What must a contract be, requiring the parties to do something, with willingness on their part, and include terms governing the work, responsibilities, timing, payment, and standards of work?

Legal Signup and view all the answers

Where will the express conditions be written in a contract?

Conditions of Contract, Specification, drawings, and other documents Signup and view all the answers

What cannot override an express term in a contract and is subject to the law of the land and warranty terms?

Implied conditions Signup and view all the answers

What are the FIDIC forms of contract meant for use on?

Many types of projects Signup and view all the answers

What is not suitable for all projects, such as a ship conversion?

FIDIC forms of contract Signup and view all the answers

What obligations and responsibilities arise from the method of payment in contracts?

Possibilities of fixed lump sum or reimbursement of costs plus a fee Signup and view all the answers

What are the contracts between the contractor and sub-contractors referred to as?

Sub-contract agreements Signup and view all the answers

What must the list of all contract documents with full references be part of?

The agreement Signup and view all the answers

What should be issued and signed by both parties, preferably in the form of a schedule of agreed changes?

Minutes of meetings Signup and view all the answers

What does breach of contract entitle the wronged party to?

Compensation for costs or damages suffered Signup and view all the answers

How are damages for late completion expressed within the contract?

As Liquidated Damages Signup and view all the answers

What does extension of time entitle the contractor to?

An increased completion period Signup and view all the answers

What is the purpose of letters of intent (LOI)?

To solve time pressures and offer protection Signup and view all the answers

What may happen if the entire works are undertaken on a letter of intent?

Confusion about agreed terms and the basis of the contract Signup and view all the answers

What do contracts recognize about breaches?

That breaches will occur Signup and view all the answers

What is the intention of the compensation for breach of contract?

To restore the wronged party to their original position Signup and view all the answers

What does the contract set the baseline for in each project?

Responsibilities, tasks, and timelines Signup and view all the answers

What does the contract define payment terms, risk allocation, and provisions for?

Change in project scope Signup and view all the answers

What does the contract provide for in terms of completion period?

Completion period with allowance for changes due to delays or increased work Signup and view all the answers

What is the outcome if no formal contract is in place?

Reimbursement and completion time will be what is reasonable Signup and view all the answers

What does the last communication on un-agreed points before work starts may be taken as?

A legally binding agreement Signup and view all the answers

When was the ICE Conditions of Contract first issued?

1945 Signup and view all the answers

Which organization published the Red Book in 1957?

FIDIC Signup and view all the answers

When was the Fourth Edition of the Red Book published?

1978 Signup and view all the answers

What did FIDIC publish in 1996?

Supplement dealing with Dispute Resolution, Lump Sum Payments, and Delayed Certification by the Engineer Signup and view all the answers

Which set of Standard Forms did FIDIC publish in 1999?

Red, Yellow, Silver, and Green Signup and view all the answers

What is expected to replace previous editions of FIDIC forms?

The 1999 forms Signup and view all the answers

Which form is familiar and kept in general use together with the earlier and later editions?

The Fourth Edition of the Red Book Signup and view all the answers

What did FIDIC publish in 1999?

Four forms of contract: Red, Yellow, Silver, and Green Signup and view all the answers

What did FIDIC publish in 1995?

Orange Book Signup and view all the answers

What was the ICE form the basis of?

Similar standard forms adopted in many parts of the world Signup and view all the answers

What should the LOI cover?

Work description, time period, payment, terms and conditions Signup and view all the answers

Which form was closely modelled on the ACE Form?

Red Book Signup and view all the answers

Study Notes

Overview of FIDIC Forms of Contract

LOI should cover four elements: work description, time period, payment, terms and conditions
The ICE Conditions of Contract was first issued in 1945 and has reached the 7th edition in 1999
The ICE form inspired and became the basis of similar standard forms adopted in many parts of the world
FIDIC (Federation Internationale des Ingenieurs Conseils) published the Red Book in 1957, closely modelled on the ACE Form
The Red Book was updated with second and third editions in 1969 and 1977 respectively
The Fourth Edition of the Red Book was published in 1978, with further amendments in 1988 and 1992
FIDIC published a Supplement in 1996 dealing with Dispute Resolution, Lump Sum Payments, and Delayed Certification by the Engineer
Concurrent with the evolving Red Book, FIDIC also published the Yellow Book (1987) and the Orange Book (1995)
In 1999, FIDIC published a completely new set of Standard Forms: Red, Yellow, Silver, and Green
The 1999 forms reflect a radical change in contracting and are expected to replace previous editions
Familiarity with the Fourth Edition of the Red Book has kept it in general use together with the earlier and later editions
In 1999, FIDIC published four forms of contract: Red Book - Conditions of Contract for Construction

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Description

Explore the history and evolution of FIDIC forms of contract, including the Red Book, Yellow Book, and Orange Book. Learn about the key editions, supplements, and major changes introduced in the 1999 forms.

Differences - 1 - 1999