36 Questions
What happens if the Employer’s Representative does not give the Notice of agreement or determination within the relevant time limit?
The matter shall be deemed to be a Dispute
What is the effect of each agreement or determination?
It shall be binding on both Parties
When must the Contractor include the payment amount in the next Statement?
When an agreement or determination concerns the payment of an amount from one Party to the other Party
What happens if the determination is revised under Clause 21?
It is no longer binding
What is the time frame within which the Contractor can object to a nominated Subcontractor?
14 days
When is the submission of the health and safety manual required?
Within 21 days of Commencement Date
Who is responsible for setting out works and rectifying errors in positioning?
Contractor
What triggers the application of Sub-Clause 7.5 [Defects and Rejection]?
Non-compliance with the Contract
Who is required to provide fencing, lighting, safe access, and temporary works for public and adjacent land/property protection?
Contractor
What is the definition of 'Nominated Subcontractor'?
Subcontractor named in Employer's Requirements or instructed by the Employer under Provisional Sums
When must the JV members comply with health and safety regulations and laws?
At all times
What is the time frame for the Contractor to prepare and implement a Compliance Verification System?
Within 21 days of Commencement Date
What is the Contractor responsible for verifying?
Accuracy of reference items
Who is responsible for the care of all persons on the Site?
Contractor
What does the Compliance Verification System need to include?
Reporting method for inspection and test results
What is the consequence of non-compliance with the Contract?
Application of Sub-Clause 7.5 [Defects and Rejection]
Under Clause 4.10, what does compliance with the QM System and/or Compliance Verification System NOT relieve the Contractor from?
Any duty, obligation or responsibility under or in connection with the Contract
According to Clause 4.11, what is the Contractor responsible for verifying and interpreting?
All data made available by the Employer under Sub-Clause 2.5
Under Clause 4.12, what does the Contractor accept total responsibility for by signing the Contract Agreement?
Having foreseen all difficulties and costs of successfully completing the Works
According to Clause 4.13, who is responsible for bearing all costs and charges for special and/or temporary rights-of-way?
The Contractor
What does the Contractor need to obtain at their risk and cost according to Clause 4.13?
Any additional facilities outside the Site required for the Works
What is the Contractor deemed to have satisfied themselves as to under Clause 4.11?
The correctness and sufficiency of the Contract Price stated in the Contract Agreement
Under Clause 4.12, what is the Contract Price deemed to cover unless otherwise stated in the Contract?
All the Contractor’s obligations under the Contract and all things necessary for the proper execution of the Works
According to Clause 4.13, who must bear the costs and charges for special and/or temporary rights-of-way required for the purposes of the Works?
The Contractor
What is the time frame within which a Party may give a Notice of Dissatisfaction (NOD) if dissatisfied with the Employer's Representative's determination?
28 days
If only part of the determination is disputed, what must be done in the Notice of Dissatisfaction (NOD)?
It must be clearly identified
What may lead to arbitration under Sub-Clause 21.6 without prejudice to other rights?
Failure to comply with the agreement or determination
What must the Contractor do not less than 28 days before exercising certain powers as specified in the Contract Data?
Give the Employer a Notice
What is the Contractor responsible for managing, coordinating, and ensuring?
The work of all Subcontractors
What are the involved parties required to be fluent in for communications as defined in the Contract?
The language
What may the Contractor not subcontract works with a total accumulated value greater than?
The percentage stated in the Contract Data
What must the Employer's Representative advise the Parties of within 14 days after giving or receiving the notice of agreement or determination?
Typographical, clerical, or arithmetical errors
What happens if the determination is revised under Clause 21?
The revised determination becomes final and binding
What must be done if either Party requires the other to attend a management meeting?
Records of the meeting must be kept and distributed to attendees
What must the Contractor ensure about the Works?
They are fit for their intended purpose
What is the consequence of non-compliance with the agreement or determination?
Arbitration under Sub-Clause 21.6
Study Notes
FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects
- Subcontractor's appointment requires detailed particulars including relevant experience, work commencement, and site commencement
- "Nominated Subcontractor" defined as one named in Employer's Requirements or instructed by Employer under Provisional Sums
- Contractor can object to nominated Subcontractor within 14 days with detailed reasons
- Contractor entitled to EOT and/or payment for delay/cost due to Employer's instruction causing unforeseeable cooperation issues
- Contractor responsible for setting out works, verifying accuracy of reference items, and rectifying errors in positioning
- Contractor obligated to comply with health and safety regulations and laws, directives, and care for all persons on the Site
- Contractor to provide fencing, lighting, safe access, and temporary works for public and adjacent land/property protection
- Submission of health and safety manual required within 21 days of Commencement Date
- JV members also obligated to comply with health and safety regulations and laws
- Contractor to prepare and implement a Compliance Verification System to demonstrate compliance with the Contract
- Compliance Verification System to include reporting method for inspection and test results
- Non-compliance with the Contract triggers application of Sub-Clause 7.5 [Defects and Rejection]
FIDIC EPC/Turnkey Projects Contract - Key Provisions
- The Employer's Representative must immediately advise the Parties of any typographical, clerical, or arithmetical errors found within 14 days after giving or receiving the notice of agreement or determination.
- If dissatisfied with the Employer's Representative's determination, a Party may give a Notice of Dissatisfaction (NOD) within 28 days, and if no NOD is given, the determination is deemed final and binding.
- If only part of the determination is disputed, that part must be clearly identified in the NOD, and the remainder becomes final and binding.
- Failure to comply with the agreement or determination may lead to arbitration under Sub-Clause 21.6 without prejudice to other rights.
- Either Party may require the other to attend a management meeting to discuss future work and other matters, and records of these meetings must be kept and distributed to attendees.
- The Contractor is obligated to execute the Works in accordance with the Contract and ensure they are fit for their intended purpose.
- All involved parties must be fluent in the language for communications as defined in the Contract.
- The Contractor may not subcontract works with a total accumulated value greater than the percentage stated in the Contract Data or any part of the Works for which subcontracting is not permitted.
- The Contractor is responsible for managing, coordinating, and ensuring the work of all Subcontractors complies with the Contract.
- The Contractor must give the Employer a Notice not less than 28 days before exercising certain powers as specified in the Contract Data.
Test your knowledge of the key provisions and obligations outlined in the FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects, including subcontractor appointment, compliance verification system, dispute resolution, and management meetings.
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