Construction contract FIDIC 2017

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

Read more

Claims Class

How to Manage and Minimise the Submission of Spurious Claims

The Claims Class blog has attracted loyal readers over the years. We get lots of comments as well as questions on issues that our readers are dealing with on their projects. And this often gives me inspiration for new articles. A reader recently told us that he spent a lot of time dealing with inadequate claims. He asked how he could effectively manage and minimise the submission of spurious contractor's claims. So here are my thoughts...

Consultants need to spend a lot of time and effort to manage and respond to contractor's claims. So it's worth making sure that you spend this time working on justifiable claims. Don't waste time reviewing and responding to claims where the contractor has no entitlement, or to those that have not been submitted in an appropriate manner.

Remember that the onus is on the claimant to prove the case. Most contracts require consultants toRead more

construction claims responses and determinations

The Engineer's Responses and Determinations: What Should be Included?

Earlier this year I presented a CPD talk to RICS members in Dubai on the topic of Engineer’s Responses and Determinations. I usually like to kick things of with a poll and I asked the group the following questions:

How many people have experienced a situation where the Engineer does not respond to a claim within the contractual time-frame? Almost everyone confirmed that they had.

How many people have experienced a situation where the Engineer’s response has done little to resolve the claim? Again, almost everyone confirmed that they had.

How many people have experienced a situation where the Engineer’s response has caused the matter to escalate to a dispute? Over 50% of attendees confirmed that they had.

How many think that failures of the Engineer to carry out their contractual obligations on claims is helpful to projects? No one thought that this helped projects.

This is clear feedback from RICS members that the Engineers often do not perform their obligations. This has a detrimental effect on projects.

So, what should Engineers be doing to help projects when responding to claims? Well, as usual, the contract provides the answers, so let’s have a look at what the FIDIC Red Book has to say on the subject.Read more

Determinations, Rocks and Hard Places

Most form of contract oblige the consultant responsible for determining the contractor’s claims (the Architect, Engineer or Contract Administrator), to make a fair and reasonable award or decision in accordance with the contract.Read more

Responses, Determinations and Decisions

Our Claims Class 2-day Intensive Training Course in London was slightly unusual in that the balance of the delegates was significantly weighted towards the client’s side and also included an arbitrator and an adjudicator.  These particular delegates were obviously interested in learning how claims should be responded to and in the case of the arbitrator and adjudicator, how decisions should be presented.Read more