GP4 | Time Periods in FIDIC Contracts

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Questions and Answers

What must be justified when time periods are changed in the Particular Conditions?

The change must align with the original General Conditions time periods.

The change must be mutually agreed upon without any condition.

The change must be reasonable for and proportionate to the corresponding obligation. (correct)

The change must not exceed twice the length of the original time period.

Which statement is NOT consistent with GP4?

The FIDIC believes in reasonable durations based on experience.

Excessive revisions to time periods are acceptable with no justification. (correct)

Impractical time periods should not be specified in the PCs.

Time periods specified in the PC must be reasonable.

What is an example of a reasonable time period change in the Particular Conditions?

Extending the suspension notice period to 6 months.

Adjusting the Engineer’s determination delivery period to 56 days. (correct)

Setting the Commencement Date to 100 days after acceptance.

Changing the Contractor’s notice period to each month.

What principle is GP4 consistent with?

The fair and balanced risk/reward allocation principle. Signup and view all the answers

Which example reflects a time period that is impractical under GP4?

Contractor's notice of events in 5 days. Signup and view all the answers

What is a requirement for the General Conditions when time periods are specified?

They should be of reasonable duration based on experience. Signup and view all the answers

What must the Particular Conditions avoid imposing on a contracting party?

Unreasonably short time periods for rights exercise. Signup and view all the answers

When is it permissible to change the time periods specified in the General Conditions?

When there is a justifiable and reasonable basis. Signup and view all the answers

What must be considered when a time period stated in the General Conditions is altered in a way that diverges significantly from its original intent?

The change must be justifiable and reasonable for the obligations involved. Signup and view all the answers

In the context of GP4, which of the following statements accurately describes an acceptable timeframe change?

The Engineer’s determination period can be changed to 56 days in the Pink Book. Signup and view all the answers

Which of the following scenarios is most likely NOT compliant with GP4?

Extending the contractor's notice for a claim to 10 days. Signup and view all the answers

Which principle underlies the requirements set forth in GP4 regarding time periods in the Particular Conditions?

Fair and balanced risk/reward allocation is essential. Signup and view all the answers

Which of the following constraints is specified under GP4 for altering time periods within Particular Conditions?

Altering time frames must result in a proportionate allowance for obligations. Signup and view all the answers

How does GP4 address situations where time periods specified in the General Conditions may be altered?

Changes must typically include reasonable justification related to obligations. Signup and view all the answers

What is a central aim of GP4 in relation to time periods defined in the General Conditions?

To ensure that durations are based on FIDIC’s historical standards of reasonableness. Signup and view all the answers

Which example best illustrates an impractical time period that conflicts with GP4 principles?

A time period for claim notifications set at 3 days. Signup and view all the answers

Study Notes

Time Periods in FIDIC Contracts

Contract Participants must perform their obligations within a reasonable time frame.
GP4 requires that contract durations specified in General Conditions (GCs) should not be excessively reduced or prolonged in the Particular Conditions (PCs).
This principle aligns with the fair and balanced risk/reward allocation principle stated in GP3.
FIDIC believes that the time periods outlined in the GCs represent a reasonable timeframe based on experience.
Changes to these time periods in the PCs require justification and must be reasonable and proportionate to the performance of the corresponding obligation.
Even if the GCs allow for time changes through agreement, the PCs should not include unrealistic time periods that impose unreasonable conditions on the contracting parties.
Examples of acceptable PC provisions:
- Changing the time for the Engineer to deliver a determination to 56 days in the Pink Book.
- Setting the commencement date within 60 days of the Contractor receiving the Letter of Acceptance in the Red and Yellow Books.
Examples of unacceptable PC provisions:
- Requiring the Contractor to provide notice of a claim within 5 days of becoming aware of the event.
- Extending the Contractor's right to suspend work to 3 months before it can be exercised.

Contract Periods

All time periods in the contract should be reasonable.
The General Conditions (GCs) outline timeframes, considered reasonable by FIDIC based on experience.
While GCs may include clauses for "agreement" on time periods, changes in the Particular Conditions (PCs) must be justified.
Any changes in the PCs should be proportionate to the obligation.
Impractical time periods that create unreasonable conditions for a party to exercise their rights or fulfill obligations are not acceptable.
The fair and balanced risk/reward allocation principle (GP3) guides this rule.

Examples of Acceptable Changes

Extending the time for the Engineer to deliver a determination to 56 days in the Pink Book is considered acceptable
Changing the Commencement Date to within 60 days of the Contractor receiving the Letter of Acceptance (instead of 42 days) in the Red and Yellow Books is allowed

Examples of Unacceptable Changes

Requiring the Contractor to notify the Employer of a claim within 5 days of becoming aware (or should have become aware) of the event/circumstance is unacceptable
Imposing a 3-month notice period for the Contractor to suspend work (or reduce work rate) is unacceptable, as it significantly extends the original 21-day period.

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Description

This quiz explores the regulations and principles governing time periods within FIDIC contracts, focusing on the balance of obligations and the justification for changes in durations. Participants will review the implications of General Conditions and Particular Conditions, as well as the importance of reasonable and proportionate timeframes.