FIDIC User’s Guide – A practical guide to the Red, Yellow, MDB Harmonised and Subcontract Books

Contents Foreword xi
Acknowledgements xiii
Preface to the third edition xv
Abbreviations xvii
About the authors xix
Part 1 Introduction to Part 1 1
1 Introduction to the FIDIC Conditions of Contract 3
1.1 Construction contracts 3
1.2 The FIDIC Conditions of Contract 4
1.3 The Traditional FIDIC Conditions of Contract 5
1.4 The 1999 FIDIC Conditions of Contract 6
1.5 The MDB Harmonised Construction Contract 8
1.6 Social clauses 8
1.7 Contents of this book 8
2 Comparison between the different FIDIC
Conditions of Contract 9
2.1 The Traditional and the 1999 Conditions of
Contract 9
2.2 The Traditional Old Red Book and the
Conditions of Contract for Construction 9
2.3 Comparison between the different 1999
Conditions of Contract 12
2.4 The Conditions of Contract for EPC/Turnkey
Projects (The Silver Book) 14
2.5 The Short Form of Contract (The Green Books) 16
2.6 The Contract for Dredging and Reclamation
Works (The Blue Book) 18
2.7 The MDB Harmonised Conditions of Contract
for Construction (The PNK Book) 18
2.8 Conditions of Contract for Design, Build and
Operate Projects (The Gold Book) 20
2.9 Conditions of Subcontract for Construction
(The Subcontract Book) 20
2.10 FIDIC Procurement Procedures Guide 21
3 The 1999 FIDIC Red, Pink, Yellow and
Subcontract Books 23
3.1 Contents of the FIDIC publication 23
3.2 Preparation of the Contract Documents 26
3.3 The layout of the General Conditions 32
3.4 The sequence of construction operations 40
3.5 Preparation of the Particular Conditions 41
4 Claims and dispute procedures 43
4.1 Introduction 43
4.2 Claims and the Conditions of Contract 44
4.3 Claims by the Contractor 44
4.4 Claims by the Employer 48
4.5 The Dispute Adjudication Board (DAB)/
The Dispute Board (DB) 50
4.6 Amicable Settlement 52
4.7 Arbitration 52
4.8 The Courts 53
5 Flow Charts 55
Part 2 The FIDIC Conditions of Contract for
Construction For Building and Engineering
Works designed by the Employer (RED and
PNK Books) 77
6 Introduction to Part 2 79
The Red Book 81
7 Clause 1: General Provisions 83
7.1 Definitions that depend on the date for the
submission of the Tender 89
7.2 Definition in the Letter of Tender that was
accepted by the Employer 89
7.3 Definitions that depend on the Letter of
Acceptance or the Contract Agreement 89
7.4 Definitions that depend on the Contract
documents, the Specifications or Schedules 90
8 Clause 2: The Employer 107
9 Clause 3: The Engineer 115
9.1 Additional Sub-Clause 3.6 (Management
Meetings) 122
10 Clause 4: The Contractor 125
11 Clause 5: Nominated Subcontractors 149
12 Clause 6: Staff and Labour 153
13 Clause 7: Plant, Materials and Workmanship 159
14 Clause 8: Commencement, Delays and
Suspension 167
15 Clause 9: Tests on Completion 179
16 Clause 10: Employer’s Taking Over 183
17 Clause 11: Defects Liability 189
18 Clause 12: Measurement and Evaluation 197
19 Clause 13: Variations and Adjustments 203
20 Clause 14: Contract Price and Payment 213
21 Clause 15: Termination by Employer 231
22 Clause 16: Suspension and Termination by
Contractor 237
23 Clause 17: Risk and Responsibility 241
24 Clause 18: Insurance 247
25 Clause 19: Force Majeure 255
26 Clause 20: Claims, Disputes and Arbitration 261
26.1 Alternative to Sub-clause 20.4 (Obtaining)
Dispute Adjudication Board’s decision 274
27 Appendix: General Conditions of Dispute
Adjudication Agreement 281
28 Annexes and Forms 289
The Pink Book 291
29 Introduction to the Pink Book 293
30 Clause 1: General Provisions 295
31 Clause 2: The Employer 299
32 Clause 3: The Engineer 301
33 Clause 4: The Contractor 303
34 Clause 5: Nominated Subcontractors 307
35 Clause 6: Staff and Labour 309
35.1 Sub-Clauses 6.12-6.22 for additional staff
and labour 310
36 Clause 7: Plant, Materials and Workmanship 313
37 Clause 8: Commencement, Delays and
Suspension 315
38 Clause 9: Tests on Completion 317
39 Clause 10: Employer’s Taking Over 319
40 Clause 11: Defects Liability 321
41 Clause 12: Measurement and Evaluation 323
42 Clause 13: Variations and Adjustments 325
43 Clause 14: Contractor’s Price and Payment 327
44 Clause 15: Termination by Employer 331
45 Clause 16: Suspension and Termination by
Contractor 333
46 Clause 17: Risk and Responsibilities 335
47 Clause 18: Insurance 337
48 Clause 19: Force Majeure 339
49 Clause 20: Claims, Disputes and Arbitration 341
50 Appendix: General Conditions of Dispute
Board Agreement 347
50.1 Changes to Annex: Procedural Rules 349
51 Particular Conditions and Standard Forms 351
51.1 Changes to standard forms 351
Part 3 THE FIDIC Conditions of Contract for Plant
and Design Build for Electrical and
Mechanical Plant, and for Building and
Engineering Works, designed by the
Contractor (Yellow Book, YLW Book) 353
52 Introduction to Part 3 355
53 Clause 1: General Provisions 361
54 Clause 2: The Employer 365
55 Clause 3: The Engineer 367
56 Clause 4: The Contractor 369
57 Clause 5: Design 373
58 Clause 6: Staff and Labour 381
59 Clause 7: Plant, Materials and Workmanship 383
60 Clause 8: Commencement, Delays and
Suspension 385
61 Clause 9: Tests on Completion 387
62 Clause 10: Employer’s Taking Over 389
63 Clause 11: Defects Liability 391
64 Clause 12: Tests after Completion 393
65 Clause 13: Variations and Adjustments 397
66 Clause 14: Contract Price and Payment 401
67 Clause 15: Termination by Employer 405
68 Clause 16: Suspension and Termination by
Contractor 407
69 Clause 17: Risk and Responsibility 409
70 Clause 18: Insurance 411
71 Clause 19: Force Majeure 413
72 Clause 20: Claims, Disputes and Arbitration 415
Part 4 The FIDIC Conditions of Subcontract for
Construction For Building and Engineering
Works Designed by the Employer
(SUBCONTRACT Book) 419
73 Introduction to Part 4 421
74 Clause 1: Definitions and Interpretation 423
75 Clause 2: The Main Contract 435
76 Clause 3: The Contractor 439
77 Clause 4: The Subcontractor 443
78 Clause 5: Assignment of the Subcontract and
Subcontracting 447
79 Clause 6: Co-operation, Staff and Labour 451
80 Clause 7: Equipment, Temporary Works, Other
Facilities, Plant and Materials 455
81 Clause 8: Commencement and Completion 459
82 Clause 9: Tests on Completion 465
83 Clause 10: Completion and Taking-Over the
Subcontract Works 467
84 Clause 11: Defects Liability 471
85 Clause 12: Measurement and Evaluation 475
86 Clause 13: Subcontract Variations and
Adjustments 479
87 Clause 14: Subcontract Price and Payment 483
88 Clause 15: Termination of the Main Contract
and Termination of the Subcontract by the
Contractor 493
89 Clause 16: Suspension and Termination by the
Subcontractor 499
90 Clause 17: Risk and Indemnities 503
91 Clause 18: Subcontract Insurances 507
92 Clause 19: Subcontract Force Majeure 511
93 Clause 20: Notices, Subcontractor’s Claims and
Disputes 513
Part 5 Future updates 525
Future updates 527
Part 6 Appendices 529
1 Notice Requirements for the RED and PNK
Books 531
2 Notice Requirements for the YLW Book 543
3 Notice Requirements for the Subcontract Book 555
4 Contents: General Conditions for the RED Book 563
5 Contents: General Conditions for the PNK Book 569
6 Contents: General Conditions for the YLW Book 575
7 Contents: General Conditions for the SUB Book 581
8 Forms and Annexes for the Red and Yellow
Books 585
Index 601