UNDERSTANDING THE NEW FIDIC RED BOOK A CLAUSE-BY-CLAUSE COMMENTARY 8 | 0 Mi | 9 Belel Keen bye REL Em eMC ereL) UNDERSTANDING THE NEW FIDIC RED BOOK ‘A CLAUSE-BY-CLAUSE COMMENTARY totoAUSTRALIA Ee Book Co ‘dacs CANADA AND USA ‘Carew HONG KONG Sweet Masel Asa NEW ZEALAND rockers Wellaaton SINGAPORE and MALAYSIA ‘Suet & Massel As Singipoee and Kuala Lampor UNDERSTANDING THE NEW FIDIC RED BOOK A CLAUSE-BY-CLAUSE COMMENTARY JEREMY GLOVER PARTNER, FENWICK ELLIOTT SOLICITORS SIMON HUGHES, KEATING CHAMBERS. AND AN INTRODUCTION BY (CHRISTOPHER THOMAS QC. KEATING CHAMBERS LONDON ‘SWEET & MAXWELL 70m‘ype Cap ih oe rae Nou ne te dee x Goro evn wl Ge Per Si ‘Sout poping anor eerie poco. Appa nso fr herve ght era oso dreecs e ptaed SHUG fc poe Sree cong a CONTENTS. Feenond Incdution Furr Reading Aakonedgernts Table of eases Tae of sass CLAUSE 1 GENERAL PROVISIONS, TI Deitions 13 Commaniations 14 Lawand Language LS Prority of Documents 16 Contact Apeement 13 Aaigement Uk Careand Sippy of Document 19. Deed Dames of instractions 0 Employer Us of Contactors Documents EM Cantctors Use of Employers Dosunents 12 Conde Deas 13 Compliance with Lan Ekg Joint and Several Labity TES Ispetions a Angi by the Bank (CLAUSE 2 THE PMPLOVER: 21 Right of Access to the ite 22 Permit Lzeses o Approvals 23. Employes Personne! 24 Employers Fanci Arrangements 25 mployers Cin (CLAUSE 3 THE ENGINEER uu 2 a Me Enginor® Duis pd Autosty Delegation by the Engineer Instatons of the Eapee Replacement of the Engineer Determinations ‘Managment Meetiogs on na ase ast 1 bors ton vows Lon one 10s 1103 2001 om ay, dos 3.001 dow sap boat sos(CLAUSE 4TH CONTRACTOR ped a aa 46 ae 0 to iW a5 a6 an as 9 420 an 2 aa 4 Comets Ge Onions Contractors Repesenatine Sabsontactor| [Asipnmet of Benet of Sutcontest Co-operation Seine Ot Sale) Procedures uty Asarane SieDuce Sufcney ofthe Accepted Contact Amount UUntorsseate Pascal Conditions, Rights of Way ana Felts, ‘Aside of Interference ‘ses Route ‘Tramior of Goods Conuacior’sEgupnest Protection of the Enionmsat lec, Water ad Ga Enployers Equipment and Fre tue Mati Progress Reports Sey ofthe Site CConractr's Operations on Site Fowl CLAUSE 5 NOMINATED SUBCONTRACTORS 3 3 sa Defaon of “Nominated Subsoneactor” Objection to Nomination Payment to Nominated Subcontractors (CLAUSE 6- STAFF AND LABOUR : a 4 e 8 Engagement of Sal and Labour Rates of Wags and Conditions of Labour sons inthe Serie of the Employer Labour Lane Working Hours Palit fr Stuf ad Laur Heath and Safety Contacts Personae! +001 4a a0 $53 5) par ton ‘$083 ‘oe sin ot + on oe par ise 6s on fin son S016 001 eo eon fs ea, 35 eon cout 610 Records of Contactors Personnel and Equipment 6-083 11 Disorderly Conduct 60st G1. MDB Hstnoned Edson tbe Parca Localiy Causes. 6-065 on CLAUSE 7 - PLANE, MATERIALS AND WORKMANSHIP 11 Mamerof Exceuton 2001 12 Samples 008 23 Iespecion por 7A Teng ron 15 Reecton 7028 1 Remedial Work 10 1) umes of Plant and Mater yon 78 Royale. 509 ‘CLAUSE 8 COMMENCEMENT, DELAYS AND SUSPENSION 81 Commencement of Works oor 12 Time for Completion son £3. Programme £017 4 Extension of Time for Completion S025 85 Delay Casa hy Authors Sst 16 Racal Progress Base 87 Delay Damages S06! 8 Saspuaion of Work son 49 Comequeneof Superson son {10 Payment or Plant and Matron Event of Suspension 8-08 5.1 roloned Suspension 8085 S12 Resumption of Work S00) CLAUSES TESTS ON COMPETITION 941 Contactors Obigatons on 52 Dalgjed Tess oom 93 ReTstng oon 94 allure to Pass Tes on Completion 506 (CLAUSE 10- EMPLOYER'S TAKING OVER 104 Taking Over ofthe Woks and Setons 0-001 102 ‘Taking Ove of Parts of the Works 10.0 13 erence with Teron Completion reat 108 Soros Roquiing Resueaet (0-00(CLAUSE 11 DEFECTS 14 ay 1H Completion of Outstanding Work and Remoting Deets 112 Cosof Reming Detects 113 Extension of Delete Notieation Ptiod 114 Fate ro Remedy Defects 15S Remora of Deets work LT Rightot Asse 118 Contractor to Search 110 Unfiled Obigaons ILM Clearance of Ste (CLAUSE 12- MEASUREMENT AND EVALUATION ‘Works abe Mets Meth of Mestarenet sunton Omissone ‘CLAUSE 13- VARIATIONS AND ADJUSTMENTS BL Right io Vary 182 Vale Eogincring 1533 Varton Prosedre 1B Payment in Apple Caren 155 Proton Sus 136 Dajwor 137 Adjutmens or Change in Legislation 1S Adjsiments or Change in Cont (CLAUSE 14- CONTRACT PRICE AND PAYMENT 1M The Contact Price 182 Advance Payment 143 Appleton for trim Payment Crates 1a Shel of Payments 1S Plant and Mater nen for the Works 146 Sue tern Payment Ceniictes 147 Pasmen 148 Delage Payment 149 _ Payne of Retention Money IO Stteme at Completion TCL Application fr Fal Payment Certfate (aie Dacharse TI3_ sie of Final Payment Cette 11-001 1-006 ho Hoi han tas 1036 no 001 one crated a9 001 108 101s 10m) thom ia as 1000 001 rong torr io 108 teas Mout 1046 1082 1059 1068 ron 14.14 Cessation of Employes Lily wore LEIS Cueaies o Psment hee 1416. Foaling Arrangements eos? (CLAUSE 15 ~ TERMINATION BY EMPLOVER 151 Notice to Comet 1s.001 182 Termination by Emploner som 153 Valuation at Date of Tevmiation is019 IS4 Payment ater Termination sa 185 Erployers Eaest to Texination iar 136 Conupt or Frandlent Procter 1500 (CLAUSE 16 SUSPENSION AND TERMINATION BY CONTRACTOR 16 Contrstrs Etileno Suspend Work 16.001 162 Termination by Contactor re-aos 163 Caaton of Work ané Removal of Contactor’ Eguipment 16018 164 Payment on Teination toon (CLAUSE 17- RISK AND RESPONSIBILITY 124 ndennies 1001 173 Contactors Careof the Works 1-6 173 Employers Risks reo 124 Consequences of Employers Risks vr0i9 17S futsal and Industral Property ih me 126 Limitation f Libis a0 177 Use ofthe Employer Accommodation Facies 1109 (CLAUSE 18 INSURANCE, 181 General Requirements for Inserances son 182 Insurance for Works snd Contests Egupent w0i0 183 Insrance agin nary lo Pesos ad Damage to Property 1-019 184 Insurance for Contactors Personnel tas (CLAUSE 19 - FORCE MAJEURE 191 Deion of Force Majeure 1-01 192 Nota Force Majeure 1-010 193 DayytoMiaimise Dey om 1954 Consoqences of Fore Majure ole 1955 Rove Majeure Affecting Sconce isan 1916 Option! Termination, Payment and Reese 19.036 197 Relesue fom Peformance uns th Law v.03CLAUSE 20- CLAIMS, DISPUTES AND AR 201 Contactors Chins 202 Appointment ofthe Dispute Adjudication Boand 203 Falweto Agee Dapete Adjneation Board 114 Obiing Date Aujudeaton Board's Deon 405 Amie Settement 206 Atbiation 27 Fae‘ Comp ih Dip Adan Bots Expiry of Dispute Adjuition Bours Appointment meation ans GENERAL CONDITIONS OF DISPUTE ADIUDICATION AGREEMENI Definitions Gener Provisions Geral Obligation ofthe Member General Obtigtion ofthe Eiployer and the Contractor ‘Termaation Detal of the Member Dispute Anne Proce Res ‘srpendi 2001 doo joms ao 20.098 208 20-051 20-056 20-060 2-063 2-06 aoe 20-02 oe not 2-4 Pr as FOREWORD BY THE HON. SIR VIVIAN RAMSEY ‘The FIDIC ov as ben in common ise fr irationa cmscuction Projet sine sncpton 1957, Whit te oma foloned he Conon Df Contre pled hy the Inston of Ch Engine he to Fens Fine now diverged: Tihs been moet noticeable wi the publeton of the ICE Tied and inthe develops! of the FIDIC suo sandal forms tnd, evn mae recent, the publication of the FIDIC. Mien! Delpment Rank Hannon in in 2008 wih amendments 2086 Tntertational construction contats cesar adopt popes aw wich eft the coe af hove ilerstonal pares Walt on hoe bala English iv the partes sully decide on hw which fet the county of ‘oe ofthe parent the projet othe pace ofthe poe pee ithas bea found thatthe FIDIC for, deste betng roused in xpestons ‘ered um Eapscomeon law provides a comprehensive code wich ‘asi applied in este bad on 8 hl oe o,f sans, obi ‘Son under slam The nmin the FIDIC for within he se. ‘loa construction community bas trough advantages bath in ending odin projet managnen. “The commen la presage of the FIDIC form makes it appropriate for thisbook thie been produced by a team of secs Enlihconstution loses demu on the stength af Fenwick Ett and Keating Chambere Jeremy Giver a parts at Fenwick Eliot witha welt of pact kro ges sutra the majority ofthis ook ated Ry hiscollegue Yana ‘Gutempres Sion Hughes a Keating Charber bas ab contbuted to ‘te main commentary and Chstophe Thomas # Ques Counsel ith {peat expenene i intreatonn! construction ly’ tat, povided the Tnoducton That authrshig woud sn itll be a sufcen eommends thee coments cof that provides aon and pact ga nce Through the ise of tn ovr of hey fetes gives helpful ‘Summary of the main pins ofeach clase before embarhing on 8 ad Eowmetay ons auey le hai Thi n dy academe nook Tt ince for instance, the practi segeston tha contactor boul sok "copy ofthe contrat Between the employer andthe engine whist pointing fut tht tees no elgaton on the poy to pass his oo. ‘By cation of core decisions in diferent jursitions swell as aries by tinguished esl commentator it provides a well founded commentary ich covers the ground for how who are werking ner the FIDIC form also provides guidance o pl ugumentsTor those wh fe seking gc advice whe, as inital the compen tequements 9 constuction-ojests ge tet questions on the scope and eet of blgatons. The opto of « Dispute Adjudication Board nthe FIDIC for shoud ed