FIDIC 2017: What You Need to Know Now
It is now 5 years since the FIDIC 2017 editions of the Red, Yellow and Silver Books were published. As anticipated, it’s taking the industry some time to get on board and adopt these latest editions on projects.
Change Can Be Uncomfortable....But it's Inevitable
Nobody likes change. Employers and engineers are no different. It can be uncomfortable and it takes time and effort to take effect. But, as time moves on more and more projects will move to the FIDIC 2017 editions and it's critical that project teams understand these contracts.
I also suspect that Read more
Increases in Material & Other Costs
The consultancy side of our business has recently received enquiries along the lines of the following. “We have come to the end of our project and are facing a huge loss due to increases in the cost of materials and shipping and because of measures that we have had to adopt to control COVID-19. What can we do?”
FIDIC 2017 Notices
A guide to the requirements, content and composition of notices under the FIDIC 2017 Red, Yellow and Silver books
Some of the biggest mistakes that contractors make when it comes to claims under FIDIC 2017 relate to notices. Such failures include failure to:
- Give notices when obliged to do so by the contract.
- Give notices within the time frames specified in the contract.
- Properly identify communications as notices.
- Record the necessary information within notices.
- Cite the contractual clause under which the notice is given.
- Address and/or copy the notice to the correct party.
- Deliver to the notice to the place specified in the contract.
- Deliver to the notice by the means of communication specified in the contract.
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.
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.
FIDIC 1999 Notices - Andy Hewitt's Latest Book
At the end of 2019 I was working with a contractor-client on several extension of time and additional cost claims. I needed to demonstrate that the contractor had complied with the contractual notice provisions in FIDIC.
This client had sent some notices. In most cases though, these didn’t comply with the contract requirements. In many cases they were completely meaningless as notices.
When Should You Use Abbreviations and Acronyms?
I have one piece of simple advice about using abbreviations and acronyms. Whether in claims, responses, contractual letters, reports or any important communications on your project:
Do not use them….
at all…
ever!
Let’s look at a real-life example of why this is so important.
Our consultancy business, Hewitt Decipher Partnership, was recently appointed by a contractor. Our job was to prepare claims on behalf of the contractor for an extension of time and additional payment on a large project.
Payment for Work Not in Accordance with the Contract
A former Claims Class student asked my advice on a matter which I thought would be an interesting case study to share. The Contract conditions are FIDIC and the question around non-payment of work which was not in accordance with the contract.
Background
Each month the Engineer makes deductions in the payment certificate for Non-Conformance Reports under Sub-Clause 14.6 (Issue of Interim Payment Certificates), sub-paragraphs (a) & (b).
The Contractor does not contest the Non-Conformance Reports. They state that the defects will be rectified. A problem being that this is likely to take some time to achieve.
Notices: Should a Contractor submit if he is not sure whether he intends to make a claim?
A Claims Class blog follower recently asked for advice on the correct interpretation of FIDIC Sub-Clause 20.1 (Contractor’s Claims). What happens in situations where the Contractor is not sure if it will submit a claim or not - should they submit a notice of claim?
Often the Contractor becomes aware of an event that may cause delay, additional Cost or entitlement for additional payment. At that time, he may not be aware of the final effect of the event.
Read more
The Second Edition of the FIDIC Rainbow Suite has Arrived
At a packed International Contract Users’ Conference held in London on 5-6 December 2017, FIDIC finally unveiled the Second Edition of the 1999 Rainbow Suite, Red, Yellow and Silver Books. Whilst the Second Edition largely follows the 2016 pre-release version of the Yellow Book, FIDIC have taken on board some of the comments made by the friendly reviewers, and made a number of important changes.Read more
