Podcast
Questions and Answers
What must be justified when time periods are changed in the Particular Conditions?
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?
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?
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?
What principle is GP4 consistent with?
Which example reflects a time period that is impractical under GP4?
Which example reflects a time period that is impractical under GP4?
What is a requirement for the General Conditions when time periods are specified?
What is a requirement for the General Conditions when time periods are specified?
What must the Particular Conditions avoid imposing on a contracting party?
What must the Particular Conditions avoid imposing on a contracting party?
When is it permissible to change the time periods specified in the General Conditions?
When is it permissible to change the time periods specified in the General Conditions?
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?
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?
In the context of GP4, which of the following statements accurately describes an acceptable timeframe change?
In the context of GP4, which of the following statements accurately describes an acceptable timeframe change?
Which of the following scenarios is most likely NOT compliant with GP4?
Which of the following scenarios is most likely NOT compliant with GP4?
Which principle underlies the requirements set forth in GP4 regarding time periods in the Particular Conditions?
Which principle underlies the requirements set forth in GP4 regarding time periods in the Particular Conditions?
Which of the following constraints is specified under GP4 for altering time periods within Particular Conditions?
Which of the following constraints is specified under GP4 for altering time periods within Particular Conditions?
How does GP4 address situations where time periods specified in the General Conditions may be altered?
How does GP4 address situations where time periods specified in the General Conditions may be altered?
What is a central aim of GP4 in relation to time periods defined in the General Conditions?
What is a central aim of GP4 in relation to time periods defined in the General Conditions?
Which example best illustrates an impractical time period that conflicts with GP4 principles?
Which example best illustrates an impractical time period that conflicts with GP4 principles?
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.
