FIDIC suite of documents – The important details

FIDIC - Construction constract

The FIDIC suite of documents is set up to assist client and contractor with structure to establish the risks, liabilities and obligations of the parties to a contract and the administration procedures associated therewith.  The structure of the FIDIC suite of documents consists of many similar clauses that are duplicated in separate documents. Forms are altered as required for each contract and are based around 20 similar clauses.

Limitation of liability

FIDIC suite of documents covers.  This includes the loss of income and the loss of earnings, this being indirect and consequential.  It also covers other direct losses during the contract period, loss and damage to employer’s surrounding property and latent defects.  The details include that the contractor is liable, including for consequential loss, arising from breach of contract, negligence, or other legally actionable misdeed.

This amount is capped as stated in the contract, or if not stated it is the contract sum (with exceptions.)  This cap applies to the contractor only. With regard to other direct losses during the contract period, this is unlimited for defects to the extent which contractor is responsible.  With regard to latent defects, they are covered by the law of the contract in which the site is situated as FIDIC makes no comment.  When it comes to subcontracting, the Contractor is liable as if he had not subcontracted. Provision for Nominated Subcontracts is made. No back-to-back conditions of subcontract are provided.

Claims

The claims procedures of FIDIC suggest that the Engineer should be notified within 28 days of the situation giving rise to a claim. A  Contractor can do so if he considers himself entitled to make any claim for extension of time or additional payment.  After 28 days the Employer has no further liability. This is a strict / full time bar.

Dispute management

Each main contract document contains General Conditions of Dispute Adjudication Agreement an Appendix. Disputes need to be initially referred to a Dispute Adjudication Board (single person or three person board) for resolution. If no notice of disapproval is received it becomes final and binding. If dissatisfied, a party notifies the other and amicable settlement is instituted. If still no resolution, the parties proceed to international arbitration by three arbitrators under ICC rules, unless otherwise agreed by the parties.

ECS Associates can assist with FIDIC suite of documents management.

FIDIC