FIDIC 1999 Claims book

FIDIC 1999 Claims

A Guide to Claims for Extensions of Time and Additional Payment Under the Red, Yellow and Silver Books

A new book by Andy Hewitt, FICCP, FCIOB, FCICES, FQSi

Inadequately expressed claims are one of the most frequent reasons for time-consuming and costly disputes. Andy Hewitt’s latest book examines each clause of the FIDIC Red, Yellow and Silver Books that provide entitlement to make a claim for an extension of time and additional payment.

Throughout, Andy explains in practical terms how the clauses should be interpreted and applied. He also discusses the FIDIC procedures for the giving of notices, the submission of detailed particulars of the claim and the Engineer’s responses and determinations.

More importantly, the book also informs the reader about what FIDIC does not say. Andy addresses common problems he sees time and time again including:

  • What should be included in the particulars of a claim?
  • How an extension of time should be demonstrated.
  • What costs should be included in a claim for additional payment?
  • How a claim should be compiled.
  • What an Engineer’s response or determination should consist of?

He shares his experience and advice, and provides detailed examples, all in accordance with best professional practice.

From the foreword by Paul Gibbons, President of the Institute of Construction Claims Practitioners.

"This is a must-have book for anyone dealing with FIDIC contracts and should be used by Employers, Contractors, Lawyers, Consultants and all those involved with effective contract administration and dispute resolution and avoidance. I highly recommend it."

About Andy Hewitt

Andy Hewitt has over 40 years’ experience in the construction industry which has been gained in the United Kingdom, Africa and the Middle East. His earlier career included senior positions with contractors, subcontractors and consultants in project, commercial and contract management roles. During this time, he worked on many major and prestigious international projects.

For the past 15 years, Andy has specialised in contractual matters, claims and disputes on a consultancy basis and providing training and education on such matters.

FIDIC 1999 Claims may be obtained from Amazon in hard cover, paperback, and e-book formats.


A New Era For Claims Class

Back in 2009, our founder Andy Hewitt was reviewing claims on a large project for an international contractor.

As a claims specialist, the poor standard of many of the claims that passed his desk day to day horrified him. He decided that something needed to be done.  So, he wrote his first book: ‘Construction Claims & Responses: effective writing and presentation’. Following its success, Andy was often asked to present seminars on the topic.

Claims Class Was Born

Back then, there was very little available in the way of education and training on construction claims. Like Andy, most of the specialists working in the industry at the time had learnt these skills on the job.

Just under ten years ago, Andy launched Claims Class. The goal was to provide training on construction contracts and claims. He began presenting training courses in person to construction professionals all over the world. Over the years, we expanded the subjects that students could study and offered online learning.

The Next Chapter

We are excited to announce the next step in our journey. Going forward, Claims Class will become part of Hewitt Decipher Partnership.

As he moves towards retirement, Andy will be taking a step back in his current role. Instead, MD of HDP, Paul Gibbons will be picking up the reins and overseeing Claims Class. Don’t worry though, Andy will still play an active role in training and course development.

What does this mean for you?

Nothing but good news. If you’re not already familiar with HDP, take a look at their website. Over the coming months and years, we will introduce some new courses, and focus on new subjects. Teaming up with the HDP team will give us access to even more knowledge. We’ll be able to tap into the skills of the wider team who continue to work on live projects and disputes all over the world.

This expertise, gained around the world, will bolster Andy’s extensive knowledge of FIDIC and all matters relating to claims and disputes. The HDP team will position Claims Class at the forefront of contracts, claims and dispute resolution training.

Continuity

Most things will remain just the same for now.

Nina will still be looking after all our clients from the point they sign up for a course, and our marketing and accounts team remain the same. However, if you are on our mailing list, you’ll see that our email addresses change to @hewittdecipher.com from the start of October. And if you’re not, why not sign up using the box at the bottom of this page to receive regular knowledge articles on construction contracts and claims.

 


interim claims

Interim Claims

How To Deal With Them

One of our Claims Class students asked for some advice on interim claims. It is a topic that often crops up, so I thought that readers of this blog might also benefit from some practical advice.

The principles discussed here are appropriate to many forms of construction contracts. However, for the purpose of this article I shall use the 1999 FIDIC contracts as an example.

Sub-Clause 20.1 (Contractor’s Claims) obliges the Contractor to submit a fully detailed claim with supporting particulars. You must be submit this within 42 days or the event or circumstance giving rise to the claim. However, sometimes you may not be able to ascertain the final effects of a claim event within the 42-day period.

Sub-Clause 20.1 (Contractor’s Claims) deals with such eventualities as follows:

… If the event or circumstance giving rise to the claim has a continuing effect:
(a) this fully detailed claim shall be considered as interim,
(b) the Contractor shall send further interim claims at monthly intervals, giving the accumulated delay and/or amount claimed, and such further particulars as the Engineer may reasonably require, and
(c) the Contractor shall send a final claim within 28 days after the end of the effects resulting from the event or circumstance, or within such other period as may be proposed by the Contractor and approved by the Engineer.

Consequently, if you cannot ascertain the final effects of a claim, the Contractor must submit an interim claim within 42 days. Following this, you should continue to submit monthly interim claims until the final effects are determined.

Each interim claim should be based on the best information available at the time. Each update should be based on additional or more accurate information as it becomes available. The Contractor should submit a final claim within 28 days after the effects have ended.

This procedure ensures that the Engineer and Employer are kept updated. They will have access as to the latest estimates of time and costs to enable them to take appropriate action.

What should a claim include?

In practical terms we have three options when considering what information, the interim and final claims should contain:

  1. The first interim claim will contain the project details, the details of the cause of the claim, a demonstration of contractual entitlement, the latest available information and an interim calculation of the effect in terms of time and/or payment. Subsequent interim claims and the final claim will present information that has subsequently become available. It should include revised calculations of time and payment.
  2. As the above, but the final claim will consolidate everything into a stand-alone document. This one document will contain the complete particulars of the claim.
  3. Each claim submission will contain everything related to the matter that is available at the time of submission. Each will tell the whole story to date.

There are some key points for effective claims that we repeat time and time again on this blog. Firstly, the reviewer’s job should be made as easy and pleasant as possible. Secondly, that a claim should comprise a stand-alone document to enable the respondent to make a fully reasoned response. Therefore, when considering the advice above, it is clear the third option is the best one.

In practical terms, the man-hours to achieve the best and most professional submissions will be about the same as the “easy” options. So, when preparing interim claim on behalf of our contractor clients, our consultancy practice always prepares each submission as a stand-alone document. Our advice to you, would be to do the same.


FIDIC 2017 Notices

A guide to the requirements, content and composition of notices under the FIDIC Red, Yellow and Silver books

Some of the biggest mistakes that contractors make when it comes to claims relate to notices. Such failures include:

  • Failure to give notices when obliged to do so by the contract.
  • Failure to give notices within the time-frames specified in the contract.
  • Failure to properly identify communications as notices.
  • Failure to record the necessary information within notices.
  • Failure to cite the contractual clause under which the notice is given.
  • Failure to address and/or copy the notice to the correct party.
  • Failure to deliver to the notice to the place specified in the contract.
  • Failure to deliver to the notice by the means of communication specified in the contract.

Read more


Claims class student

Claims Class Helps Student Secure US$1 Million

This month I am going to allow myself to pat myself on the back, because of a success story from a recent Claims Class student.

A gentleman from an African country contacted me to discuss enrolling on one of our claims courses. He had found out about Claims Class after purchasing a copy of my Book FIDIC 1999 Notices. This is what he told me.

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The Difference Between Claim and Dispute Submissions - FIDIC Omissions

The Difference Between A Claim to the Engineer & A Claim in Arbitration?

A student recently asked, "is there any difference between a claim submitted to the Engineer and one submitted for arbitration?" My response was along the lines of “Yes, there frequently is, but there shouldn’t be”.

The Scenario:

Let me explain why by describing a very frequent scenario related to claims.

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Variations and Preliminaries

Claims for Additional Preliminaries as a Result of Variations

Variations - something that comes up a lot in our courses. One question crops up time and time again. Does the contractor have entitlement to payment for additional preliminaries arising from variations?

The short answer to the question (as usual) is that it depends.

What Are Preliminaries?

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construction 2020

Reflections on Construction in 2020

To say that 2020 has been an unusual year would be an understatement. Not just for the construction industry, but for all of us around the world. Despite the challenges, things are not entirely doom and gloom. We have all learned in one way or another from the COVID-19 experience. Sometimes we need a challenge to force us to think about alternative ways of doing things.

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final account disputes

Why do Final Accounts lead to Disputes?

I recently provided advice on a dispute of US$250M. This sum includes variations, prolongation costs, acceleration costs, disruption costs and delay penalties. The dispute crystalised when the contractor submitted his final account. This is a familiar occurrence. In fact, a large proportion of disputes occur when the project is either nearing or after completion.

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Construction contract FIDIC 2017 notice of claim

How Does FIDIC 2017 Affect Claims?

I guess like many of you, I have not had the opportunity to examine the 2017 editions of the FIDIC contracts in much detail, because as yet, I have not come across any projects that are using them. This situation will, however, gradually change. As it does, we will need to know what has changed and how it has changed. As such projects reach final account stage there will undoubtedly be claims to resolve and disputes to settle. I have recently been doing research for a forthcoming book, so thought it would be worthwhile to highlight the changes from a claims perspective.

Employer's Claims

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