FIDIC YELLOW BOOK
This second edition of the FIDIC Yellow Book continues FIDIC's fundamental principles of balanced risk sharing while seeking to build on the substantial. Book edition and ) in Hanoi and Hochiminh. 1. Contents of training course: FIDC Conditions of Contract: Plant and Design-Built (Yellow Book 1st. During its past work in updating the Red and Yellow Books, FIDIC has noted that certain projects have fallen outside the scope of the existing Books. Accordingly.
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The International Federation of Consulting Engineers (“FIDIC”) is an The Yellow Book is a lump sum contract intended for use where the work. FIDIC Yellow Book - Download as PDF File .pdf), Text File .txt) or read online. CNC Vietnam is proud to briefly introduces the comparison between typical rainbow suits (Red Book, Yellow Book, and Silver Book) which are reputed as the .
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Janaka Wijesinghe. It is indicated that one of the areas that participants found difficult in international projects was the use of unfamiliar contract forms.
CNC Vietnam is proud to briefly introduces the comparison between typical rainbow suits Red Book, Yellow Book, and Silver Book which are reputed as the leading contracts in international engineering and construction projects for both practitioners, Employers, Contractor , and professional Lawyers, legal executive, contract executive etc.
The administered by the administered by the Contract is administered Engineer appointed by the Engineer appointed by the directly by the Employer or Employer who shall Employer who shall its representative who determine any claim for determine any claim for endeavours to reach extension of time and extension of time and agreement with the additional payment, certify additional payment, certify Contractor on each claim.
Errors in the Setting Out effect of, the circumstances effect of, the circumstances data Sub-Clause 4. Site data Sub-Clause There are a number of There are a number of 4.
Unforeseeable difficulties or costs Sub- 1. Errors in the Setting Out 1.
Errors in the Setting Out Clause 4. Site data Sub-Clause 2. Site data Sub-Clause to: A longer period for preparation of a tender is therefore usually required, in particular to inspect the Site and examine data hydrological and subsurface data and also to scrutinise the Employer's Requirements.
The shall remedy any defects in stated in the Employer's Contractor shall be the Works. The Employer shall not be Works, and such design responsible for any error, of each item of Plant The Contractor warrants inaccuracy or omission of and Materials as is that he, his designers and any kind in the Employer's required for the item to design Subcontractors have Requirements as originally be in accordance with the experience and included in the Contract the Contract, and capability necessary for and shall not be deemed the design.
Any data Engineer at all reasonable or information received by The Contractor shall, times, until the expiry date the Contractor, from the whenever required by the of the relevant Defects Employer or otherwise, shall Engineer, submit details of Notification Period. No significant the Contractor shall However, the Employer alteration to these scrutinise the Employer's shall be responsible for the arrangements and methods Requirements including correctness of the following shall be made without this design criteria and portions of the Employer's having previously been calculations and the items Requirements and of the notified to the Engineer.
If of reference mentioned in following data and the Contract specifies that Sub Clause 4.
FIDIC Yellow Book: A companion to the 2017 Plant and Design-Build Contract
Such part shall not be considered to be completed for the purposes of taking over under Sub-Clause However, if within 28 days after the any part of the Works is Commencement Date, to be paid according to a proposed breakdown quantity supplied or of each lump sum price in work done, the the Schedules. The provisions for Engineer may take measurement and account of the evaluation shall be as breakdown when stated in the Particular preparing Payment Conditions.
PAYMENT The Employer shall make an The Employer shall make an The Employer shall make an advance payment, as an advance payment, as an advance payment, as an interest-free loan for interest-free loan for interest-free loan for mobilisation, when the mobilisation, when the mobilization and design, Contractor submits a Contractor submits a when the Contractor CNC Vietnam Consultant Co.
Unless and until guarantee.
Unless and until submits a guarantee. The Performance not apply.
Which FIDIC Contract should I use?
The Performance 1. The Performance showing in detail the Security Security amounts to which the Contractor considers 2. The first estimate shall be If the Contract does not If the Contract does not submitted within 42 days include a schedule of include a schedule of after the Commencement payments, the Contractor payments, the Contractor Date.
The first estimate shall be The first estimate shall be submitted within 42 days submitted within 42 days after the Commencement after the Commencement Date. Contract for errors: Engineer shall instruct. In considering the results Unless otherwise stated in Unless otherwise stated in of the Tests on Completion, the Particular Conditions, the Particular Conditions, the Engineer shall make the Tests on Completion the Tests on Completion allowances for the effect shall be carried out in the shall be carried out in the of any use of the Works following sequence: As soon as the Works, which shall include the which shall include the or a Section, have passed appropriate inspections appropriate inspections any Tests on Completion, and "dry" or "cold" and "dry" or "cold" the Contractor shall submit functional tests to functional tests to a certified report of the demonstrate that each demonstrate that each results of these Tests to the item of Plant can safely item of Plant can safely CNC Vietnam Consultant Co.
The Contractor operating conditions; and operating conditions; and shall carry out the Tests on such day or days within c. The Tests on are ready for any other are ready for any other Completion shall then be Tests on Completion, Tests on Completion, deemed to have been including performance tests including performance tests carried out in the presence to demonstrate whether the to demonstrate whether the of the Contractor and the Works conform with criteria Works conform with criteria results of the Tests shall be specified in the Employer's specified in the Employer's accepted as accurate.
Variation Procedure A greater degree of clarity has been added to the variation procedure set out in Sub-Clause Sub-Clause 1. The intention is, no doubt, to avoid uncertainty as to whether a particular communication is intended to be a Variation instruction. Application for Interim Payment Sub-Clause The Contractor is now expected to submit its Statement to the Engineer in one paper original copy, one electronic copy and additional copies as set out in the Contract Data.
Why Use FIDIC Contracts?
Further, the list of items that the Statement is to cover has been extended to include amounts to be added for Provisional Sums, release of retention money and any amount to be deducted for utilities provided by the Employer for Contractor use. Interestingly, the Employer pays for the increase but does not receive any saving if there is a decrease in the value of the Performance Security.
Limitations of Liability Subtle amendments have been made restructure Sub-Clause Sub-Clause In other words, Contractors may be exposed to unlimited liability for fitness for purpose.
It is not yet known whether this is an error in the pre-release version that may be picked up in the final version issued for release. However, if it does make it through to the final version, Contractors should be aware of this exposure and the potential risk.
Claims The Sub-Clause dealing with Employer Claims in the 1st edition has been deleted in its entirety, and instead of individual clause provisions for Employer claims former Sub-Clause 2.
The new claims provisions are now much more detailed, with the claims procedure in Sub-Clause Whereas before it was only the Contractor who was subject to a 28 day period from the date it became aware of the event or should have become aware of the event to serve Notice, the Employer must now do the same. As such, the time bar on notification is now reciprocal whereas, prior to this change, the Employer was not subject to a time bar and only needed to provide Notice as soon as reasonably practicable.
The practical effect is that, to be valid, the Notice must describe itself as a notice and refer to the relevant clause, in addition to complying with the other notification provisions in Sub-Clause 1.
This is no doubt intended to further the objective of ensuring that claims are resolved as early as possible. The new FIDIC contracts would seek to address this and lock the parties into an escalating procedure leading to agreement or determination or ultimately to arbitration. The Engineer is also required, as another positive obligation, to give a Notice to the effect that the claim has lapsed if the claiming Party fails to provide, within the prescribed period, particulars of the contractual or other basis of the Claim in a fully detailed claim.
Accordingly, the time bar on the fully detailed claim only appears to apply if the fully detailed claim has either not been provided at all, or completely fails to set out its contractual or legal basis. The time bars and preliminary notice provisions are subject to a new Sub-Clause Agreement or Determination Far greater detail has been inserted in relation to the role of the Engineer in arriving at determinations.
In particular, the job and function of the Engineer has been more specifically described. Among other things, the Engineer has a greater role to play in helping the parties to reach agreement within specific time limits.
A failure to achieve agreement within this 42 day period gives the Engineer a second time limit a further 42 days to arrive at a fair determination. A failure by the Engineer to arrive at a determination within the timescales is deemed a rejection, and allows for the commencement of dispute resolution proceedings.
The new FIDIC Yellow Book: It's about time
A Notice of Dissatisfaction NOD can be made by the dissatisfied party to the other Party with a copy to the Engineer, provided it is done so within 28 days. A failure to comply with this time period means that the dispute is final and binding on the parties, unless revised by a DAB. Under Sub-Clause It appears that many changes to the FIDIC Yellow Book build on the positive changes introduced in the Gold Book in as well as reflecting the success of the NEC3 Contract suite to date, which has focused heavily on project management.The purpose behind the revision of the FIDIC Rainbow Suite, and specifically the Yellow Book, is to achieve greater reciprocity between the employer and contractor, to incorporate international best practice and to reflect the changes in the construction industry since Description Table of Contents Author s Bio.
Claims, time bars and disputes clause Contract for errors: Is the Contractor going to do most of the design?
If drafters wish to amend the provisions found in the General Conditions, the place for doing this is in the Particular Conditions Part B — Special Provisions, as mentioned above, and not by making changes in the General Conditions as published. Certificate to be issued. Chapters in Part 2 provide a brief introduction to each of the Clauses and Sub-Clauses in the Yellow Book, and explain how they are interlinked.