Most contracts have provisions whereby the Engineer, or his equivalent under other forms of contract, is required to make a fair determination of the claim. They also include a requirement that the parties attempt to reach amicable agreement in situations where either party does not accept the Engineer’s determination.

If such agreement is not reached, then the contract usually provides a further procedure whereby the issue is referred to mediation, conciliation, arbitration or other form of dispute resolution and ultimately, of course, the parties may find themselves in litigation. Sub-Clause 3.5 (Determinations) of FIDIC has this to say on the subject of attempted agreement and the Engineer’s determination…

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