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Fidic Q A

The document provides a comprehensive overview of FIDIC contracts, including definitions, roles, and procedures related to various contract types such as the Red, Yellow, Silver, and Green Books. Key topics include claims, disputes, payment processes, and the roles of the Engineer and Employer. It emphasizes the importance of timely notifications and clear documentation for effective contract management.

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0% found this document useful (0 votes)
309 views8 pages

Fidic Q A

The document provides a comprehensive overview of FIDIC contracts, including definitions, roles, and procedures related to various contract types such as the Red, Yellow, Silver, and Green Books. Key topics include claims, disputes, payment processes, and the roles of the Engineer and Employer. It emphasizes the importance of timely notifications and clear documentation for effective contract management.

Uploaded by

orlendo wp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

FIDIC Contract 100 Q&A Summary

Q1: What does FIDIC stand for?


A: International Federation of Consulting Engineers.

Q2: What is the FIDIC Red Book used for?


A: For building and engineering works designed by the Employer.

Q3: What does the Yellow Book refer to?


A: Design and Build contracts where the contractor designs the works.

Q4: What is the Silver Book used for?


A: EPC/Turnkey projects where the contractor assumes most risk.

Q5: What is Clause 20 about?


A: Claims, disputes, and arbitration.

Q6: What is meant by Commencement Date?


A: The date the contractor is instructed to start work.

Q7: What is Time for Completion?


A: The period in which the contractor must complete the works.

Q8: What is an Engineer’s role in FIDIC?


A: Administer the contract and act impartially.

Q9: What is an Interim Payment Certificate (IPC)?


A: Certificate by the Engineer to release periodic payments.

Q10: What is a Performance Certificate?


A: Issued after the Defects Notification Period, marking contract completion.

Q11: What is the time limit for notifying a claim under Clause 20?
A: 28 days from the event giving rise to the claim.

Q12: What happens if the contractor fails to notify within 28 days?


A: The claim may be time-barred unless the delay is justified.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q13: Who controls the use of the Provisional Sum?
A: The Engineer.

Q14: What is meant by “Unforeseeable”?


A: Conditions which could not have been foreseen by an experienced contractor.

Q15: What is a Cost Plus Contract?


A: Payment is based on actual cost plus a fee.

Q16: Are FIDIC contracts cost plus?


A: Not necessarily — they are generally lump sum or remeasurement contracts.

Q17: What is Force Majeure under FIDIC 1999?


A: Unforeseen events beyond control of the parties affecting contract
performance.

Q18: What replaced Force Majeure in FIDIC 2017?


A: “Exceptional Events”.

Q19: Is a pandemic considered Force Majeure or Exceptional Event?


A: Yes, if it meets the definition under FIDIC.

Q20: What is the Final Payment Certificate?


A: A statement of account at the end of the contract showing the final amount
due.

Q21: What is Performance Security?


A: A guarantee provided by the contractor to secure performance obligations.

Q22: What is the Green Book in FIDIC?


A: A short form contract for simple or small projects.

Q23: What are Particular Conditions?


A: Contract-specific modifications to General Conditions.

Q24: When is Retention released?


A: Usually after Taking Over; balance released after Defects Notification Period.

Q25: What is the typical value of Performance Security?


A: Usually 10% of the Contract Price.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q26: What triggers the Commencement Date?
A: Engineer’s notice after contract signing and conditions precedent are met.

Q27: What is the Defects Notification Period (DNP)?


A: A period (usually 1 year) after Taking Over for the contractor to fix defects.

Q28: What is Taking Over?


A: The stage when the Employer formally accepts the works from the contractor.

Q29: Who issues the Taking Over Certificate?


A: The Engineer.

Q30: What is Suspension of Work?


A: Temporary halting of work, usually instructed by the Engineer.

Q31: What is the Defects Notification Period (DNP)?


A: A period (usually 1 year) after Taking Over for the contractor to fix defects.

Q32: What is Taking Over?


A: The stage when the Employer formally accepts the works from the contractor.

Q33: Who issues the Taking Over Certificate?


A: The Engineer.

Q34: What is Suspension of Work?


A: Temporary halting of work, usually instructed by the Engineer.

Q35: Can the contractor suspend work?


A: Yes, under Clause 16 (e.g., for non-payment).

Q36: What is the difference between Suspension and Termination?


A: Suspension is temporary; termination ends the contract.

Q37: Who may terminate the contract?


A: Both the Employer and Contractor, under specific conditions.

Q38: What is the Employer’s right to terminate?


A: For convenience, contractor’s default, or prolonged suspension.

Q39: What clause allows the Employer to terminate for convenience?


A: Clause 15.5.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q40: What is the contractor's right to terminate?
A: For prolonged non-payment or Employer’s serious breach (Clause 16.2).

Q41: What is meant by EOT (Extension of Time)?


A: Additional time granted to complete the works due to delays beyond the
contractor's control.

Q42: What are common causes of EOT?


A: Variations, delays in drawings, force majeure, late site access, etc.

Q43: What is meant by BOQ?


A: Bill of Quantities – detailed document listing items of work and quantities.

Q44: What is Dayworks?


A: Payment for work on a time and material basis, typically instructed by
Engineer.

Q45: What is meant by a Claim?


A: A formal request by a party for additional payment or time under the
contract.

Q46: How are claims evaluated?


A: By the Engineer, based on substantiation and contract terms.

Q47: What is Adjudication?


A: A dispute resolution process under FIDIC Clause 20 using a Dispute
Adjudication/Avoidance Board.

Q48: Is Adjudication binding?


A: It is binding unless and until revised by arbitration.

Q49: What is Arbitration?


A: A formal legal process for dispute resolution if adjudication fails.

Q50: What is the typical dispute resolution route under FIDIC?


A: Engineer’s Decision → DAAB → Arbitration.

Q51: What is a Variation under FIDIC?


A: Any change to the Works, including addition, omission, or modification,
instructed by the Engineer.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q52: Can the Contractor propose a Variation?
A: Yes, for value engineering or technical improvements (Clause 13.2).

Q53: How is a Variation valued?


A: Using BOQ rates, derived rates, or dayworks, as per Clause 12.3.

Q54: What is the procedure for initiating a Variation?


A: Engineer issues instruction → Contractor responds with valuation and time
impact → Engineer certifies.

Q55: What is the purpose of the Performance Security?


A: To secure contractor's performance obligations, typically in the form of a
bank guarantee.

Q56: When can the Performance Security be released?


A: After issue of the Performance Certificate or as per contract terms.

Q57: What is the difference between Retention and Performance Security?


A: Retention is money withheld from payments; Performance Security is a
guarantee provided upfront.

Q58: What is the Advance Payment?


A: Payment made to the contractor in advance for mobilization and early
expenses.

Q59: How is Advance Payment recovered?


A: Through deductions from interim payments as per the recovery schedule.

Q60: What security is required for Advance Payment?


A: An Advance Payment Guarantee, typically from a bank.

Q61: What does Clause 20.1 require for Claims?


A: Contractor must give notice within 28 days of becoming aware of the event.

Q62: What happens if a claim notice is late?


A: The claim may be rejected as “time-barred.”

Q63: What are the time frames for submitting full claim details?
A: Within 42 days of the event or as agreed with the Engineer.

Q64: Can claims be for both time and money?


A: Yes – examples include variations, delays, unforeseen conditions, etc.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q65: What is Force Majeure under FIDIC?
A: Events beyond control (e.g., war, natural disasters) that prevent performance.

Q66: What is the effect of Force Majeure?


A: Entitlement to EOT and possibly cost, depending on the situation.

Q67: What is meant by Suspension by Engineer?


A: Engineer can suspend work for reasons such as safety, errors, or Employer
instructions.

Q68: Is the Contractor entitled to compensation for Suspension?


A: Yes, if the suspension is not due to contractor fault (Clause 8.9).

Q69: What is a Taking Over Certificate (TOC)?


A: Issued when the works are complete and ready for use.

Q70: What happens after Taking Over?


A: DNP begins; contractor remains liable to fix defects during this period.

Q71: What is the role of the Engineer under FIDIC?


A: Acts on behalf of the Employer, supervises the works, and makes fair
decisions.

Q72: Can the Engineer act independently?


A: Yes – especially in certifying payments, assessing claims, and resolving
disputes fairly.

Q73: What is the role of the Employer?


A: Provides site access, pays the contractor, appoints Engineer, and approves
variations.

Q74: What is the Engineer’s Instruction (EI)?


A: Formal instruction issued by Engineer for variations or clarifications.

Q75: How should a Contractor respond to an Engineer’s Instruction?


A: By acknowledging, evaluating time/cost impact, and complying.

Q76: What is the Interim Payment Certificate (IPC)?


A: Monthly certification by Engineer of amounts due for executed work.

Q77: How often are Interim Payments made?


A: Typically monthly, depending on contract terms.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q78: What is the Final Payment Certificate?
A: Issued after Defects Notification Period and settlement of all claims.

Q79: What is a Schedule of Payments?


A: A breakdown of payments linked to milestones or percentages of completion.

Q80: What is a Program of Works?


A: Contractor’s schedule showing planned progress, sequence, and timeframes.

Q81: Is submission of a Program mandatory?


A: Yes – required shortly after Commencement Date (Clause 8.3).

Q82: What is Liquidated Damages (LD)?


A: Pre-agreed amount deducted for delays beyond completion date.

Q83: Is LD the same as penalty?


A: No – LD is enforceable under law; penalty may not be.

Q84: Can the Contractor dispute LD?


A: Yes, if delay was excusable or LD amount is unreasonable.

Q85: What is Clause 20 related to?


A: Claims, Disputes, and Arbitration.

Q86: What is the DAB/DAAB?


A: Dispute Adjudication/Avoidance Board – resolves disputes before arbitration.

Q87: Is the DAB decision binding?


A: Yes, unless revised in arbitration.

Q88: What is a Notice of Dissatisfaction (NOD)?


A: A party’s objection to DAB’s decision; must be issued within 28 days.

Q89: What happens if no NOD is issued?


A: DAB decision becomes final and binding.

Q90: What is the Arbitration Clause under FIDIC?


A: Clause 20.6 – refers disputes to final settlement via arbitration.

Q91: What is the Red Book used for?


A: Building and engineering works designed by the Employer.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)
Q92: What is the Yellow Book used for?
A: Design and Build contracts where Contractor does the design.

Q93: What is the Silver Book used for?


A: EPC/Turnkey projects – Contractor assumes most risk.

Q94: What is the Green Book used for?


A: Small-scale/simple projects (Short Form of Contract).

Q95: What is the Pink Book used for?


A: MDB harmonized version of Red Book (used by development banks).

Q96: What is the Gold Book used for?


A: Design-Build-Operate contracts with long-term maintenance.

Q97: What is the role of the BOQ in payments?


A: Serves as the basis for measurement and payment.

Q98: What are Conditions of Particular Application (COPA)?


A: Custom amendments to General Conditions.

Q99: What are General Conditions?


A: Standard clauses applicable to all FIDIC contracts.

Q100: What is the best way to manage FIDIC contracts?


A: Timely notifications, clear documentation, understanding roles, and proactive
communication.

Reference Note
This document has been prepared based on practical insights from:
• FIDIC Contract Conditions (Red, Yellow, and Silver Books – 1999 & 2017 Editions)
• Pragmatic Project Consilium resources and project management practices
• Real-world contract administration and dispute resolution experience in the GCC
region

Special thanks to industry-standard references and expert summaries provided by


Pragmatic Project Consilium, known for its clear, structured, and field-tested project
advisory content.

Hafees Mohamed - Quantity Surveyor | Estimation Specialist | HND in Civil


Engineering (UK)

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