Procedures and Notices required Under FIDIC 1999

Procedures and Notices Required Under

FIDIC 1999 First edition

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 Procedures and Notices required Under FIDIC 1999

Clause 14 “Contract Price and Payments”

Engineer to certify Employer shall pay

Contractor submit
the approved to the contractor
his monthly payment
amount the certified amount

< 28 days
Monthly Payment
< 56 days

Employer to verify the final draft

Final Payment < 42 days
and contractor to submit
requested information

Contractor
submit final Employer shall
Contractor submit
Statement and pay to the
draft of final
the written contractor the
Statement
discharge Final Statement
amount

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 Procedures and Notices required Under FIDIC 1999

Clause 20 “Claims Dispute and Arbitration”

Either of the Either of the
parties notifies to parties can go to
refer the dispute Parties arbitration
to a D.A.B to assign D.A.B shall issue the
a D.A.B decision
Amicable settlement
Documents to be should be tried
submitted to the D.A.B
< 28 days
< 84 days < 28 days < 56 days

Either of the
parties shows
Either of the parties his
refers the dispute to dissatisfaction
D.A.B

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Procedures and Notices required Under FIDIC 1999

Clause 1.6 “Contract Agreement”

L.O.I

28 days

Parties shall enter into a

contract agreement

Clause 1.9 “Delayed Drawings or Instructions”

The contractor shall give notice to the Engineer whenever the works are
likely to be delayed or disrupted, the notice shall include details of the
necessary drawings or instruction, details of why and by when it should
be issued, and details of the nature and amount of the delay or
disruption likely to be suffered if it is late.

If the contractor suffers delay and or/incurs cost as a result of a failure

of the engineer to issue the notified drawings or instructions within a
time which is reasonable and is specified in the notice with supporting
details, the contractor shall give a further notice to the engineer and
shall be entitled subject to clause 20.1 to

Extension of time

Payment of any such cost

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Procedures and Notices required Under FIDIC 1999

Clause 2.1 “Right of Access to the Site”

If the Contractor suffers delay and or/incurs cost as a result of a failure

by the Employer to give any right or possession within such time as may
be required to enable the contractor to proceed in accordance with the
programme [8.3], the contractor shall give notice to the Engineer and
shall be entitled subject to clause 20.1 to

Extension of time

Payment of any such cost

Clause 2.4 “Employer’s Financial Arrangements”

Contractor may request an evidence from the employer to proof that

financial arrangement have been made and are being maintained which
will enable the Employer to pay the contract price (as estimated at that
time) in accordance with Clause 14[contract price and payment]

28 days
42 days
Employer shall issue such
evidence

If the Employer intends to

make any change to his
financial arrangements, the Contractor shall be entitled to terminate
employer shall give notice to the contract if he didn’t receive the
the contractor with detailed reasonable evidence in respect of a failure
particulars to comply with the financial arrangement

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Procedures and Notices required Under FIDIC 1999

Clause 3.2 “Delegation by the Engineer”

The assignment, delegation or

revocation from the engineer to
assistants shall be in writing
and shall not take effect until
copies have been received by
both parties

If the contractor questions any determination or

instruction of an assistant, the contractor shall refer the
matter to the engineer, who shall promptly confirm,
reverse or vary the determination or instruction

Clause 3.3 “Instructions of the Engineer”

Instructions given by the engineer shall be
in writing. If the engineer gives an oral
instruction

2 days

Contractor shall send a letter

confirming the above verbal
instruction.

2 days

If no contradiction in writing
Engineer to make a letter to
within 2 days, it shall be
contradict
deemed to be an instruction of
the Engineer.

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 Procedures and Notices required Under FIDIC 1999

Clause 3.4 “Replacement of the Engineer”

If the Employer intends to replace the

Engineer

42 days

The Employer shall give notice to the contractor not

less than 42 days before the intended date of
replacement of the name, address and relevant
experience of the intended replacement engineer

The Employer shall not replace the Engineer with person

against whom the contractor raises reasonable objection
by notice to the Employer, with supporting
documents

Contractor shall ensure that the performance security is valid and

enforceable until the contractor has executed and completed the
Clause 4.2 “Performance works Security and Performance
and remedied Certificate”
any defects. If the terms of the performance
security specify its expiry date and the contractor has not become
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Issuance of Letter of Acceptance entitled to receive the performance certificate by the date of 28
Page 7 of 31 days prior to the expiry date, the contractor shall extend the validity
of the performance security until the works have been completed
28 days and any defects have been remedied.
 Procedures and Notices required Under FIDIC 1999

Contractor shall Deliver the Performance Security to the Employer

and send a copy to the engineer.

Claim against the Performance Security Employer shall return the

Performance Security to the
Contractor shall extend the validity of the Performance Contractor within 21 days
Security after receiving a copy of the
Performance Certificate
Contractor shall pay the Employer an amount due, as
either agreed by the Contractor or as determined
under Clause, 2.5 within 42 days after this agreement
or determination

Contractor shall remedy a default within 42 days after

receiving the default to be remedied

Circumstances which entitle the Employer to termination

under Sub- Clause 15.2 irrespective whether notice of
termination has been given.

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Procedures and Notices required Under FIDIC 1999

Clause 4.7 “Setting Out”

If the contractor suffers delay and/or incurs cost from executing

work was necessitated by an error in the items (points, lines and
levels) of reference, contractor shall give notice to the engineer
Engineer shall proceed in
accordance with sub-clause
3.5[determinations] to agree
or determine these matters
Contractor shall be entitled subject to clause 20.1 to:

An extension of time for any such delay, if completion is or will

be delayed

Payment of any such cost plus reasonable profit, which shall be

included in the contract price.

Clause 4.12 “Unforeseeable Physical Conditions”

If the contractor suffered from unforeseen physical obstruction or

conditions

Contractor shall send a notice to the engineer and a copy to the

employer to determine an extension of time.
Engineer shall proceed in
accordance with sub-clause
3.5[determinations] to agree
Contractor shall be entitled subject to clause 20.1 to: or determine these matters

An extension of time for any such delay, if completion is or will be

delayed

Payment of any such cost plus reasonable profit, which shall be

included in the contract price.

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Procedures and Notices required Under FIDIC 1999

Clause 4.16 “Transport of Goods”

Contractor shall give the engineer not less than 21 days’ notice of the
date on which any plant or a major item of other Goods will be
delivered to the site

Clause 4.21 “Progress Reports”

Commencement date

7 days after the last day of the

period to which it relates

Contractor to submit
monthly progress
reports

Clause 4.24 “Fossils”

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 Procedures and Notices required Under FIDIC 1999

If the contractor suffers delay and/or incurs cost from complying with
the instructions of the engineer related to fossils.

Contractor shall send a notice to the engineer.

Engineer shall proceed in

accordance with sub-clause
3.5[determinations] to agree
Contractor shall be entitled subject to clause 20.1 to: or determine these matters

An extension of time for any such delay, if completion is or will be

delayed

Payment of any such cost plus reasonable profit, which shall be

included in the contract price.

Clause 7.4 “Testing”

Engineer should give a notice to
the contractor by his Intention
to carry inspection or test for
material

24 hours

Test or inspection to be done

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Procedures and Notices required Under FIDIC 1999

Clause 8.1 “Commencement of work”

Letter of acceptance

Engineer shall give the

42 Days contractor not less than 7 days’
notice of the commencement
Commencement date date.

Clause 8.3 “Programme”

Notice of Commencement

28 Days

Contractor shall submit the

detailed programme of works.

Engineer may give notice to the

contractor stating the extent to
21 Days which the programme does not
comply with the contract

Contractor shall proceed in

accordance with the
programme.

Clause 8.8-8.12 “Work suspension”

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Procedures and Notices required Under FIDIC 1999

Instruction to suspend the work

by the engineer

84 days

Contractor shall give notice

requiring permission to proceed
with the work.

28 days

If such permission is not

guaranteed

Suspension affect part of the scope, this part can be Suspension affects the full project; this will
considered by the contractor as omitted and shall be entitle the contractor to termination of the
treated under clause 13 contract and shall be treated under clause
16.2

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Procedures and Notices required Under FIDIC 1999

Clause 9.1 “Contractor’s Obligations”

Contractor is ready to carry out

each to the tests on completion

21 days

Contractor shall give notice to

the engineer.

14 days

Tests on completion shall be

carried out within 14 days.

Clause 9.2, 7.4, 10.3 “Delayed Tests”

Delay on Tests
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 Procedures and Notices required Under FIDIC 1999

Caused by the Employer Caused by the Contractor

Contractor to give notice If contractor is prevented

to the Engineer and shall
be entitled to extension
of time, cost related
expenses and reasonable
profit.
Engineer may, by notice,
for more than 14 days to
require to carry out the tests
carry out the tests,
within 21 days after receiving
Employer is deemed to
the notice.
have taken over the Works
or Section.

Engineer to issue a Taking

– over certificate

Issue a written notice to

Contractor to conduct
tests on Completion

14 days

Contractor to carry out the

tests on completion as
soon as practicable before
the expiry of defects
notification period
Clause 10.1 “Taking over of the works and sections”

Contractor may apply by notice

to the engineer for a taking-
over certificate not earlier than
14 days before the works will, in
the contractor’s opinion, be
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completed.
Page 15 of 31 Contractor’s application of
14 days taking over certificate
28days
 Procedures and Notices required Under FIDIC 1999

Engineer shall issue the taking-
over certificate
Engineer shall reject the
application, giving reasons and
specifying the work required to
be done by the Contractor
If the Engineer fails to
either issue the taking –
over certificate or to reject
the Contractor’s
application within 28 days
and if the works are
substantially in accordance
with the Contract, the
taking –over certificate
shall be deemed to have
been issued on the last day
of that period.

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 Procedures and Notices required Under FIDIC 1999

Clause 11.1- 11.11 “Defects Liability”

If there is defect or damage in the

contractor’s works

Employer or representative shall

notify the Contractor

Contractor to: Failure to remedy:

Complete any outstanding work within
reasonable time as instructed by the
Engineer
Execute all work required to remedy defects
or damage as may be notified by the
Employer/ representative on or before the
expiry date of the defects notification
period.
Employer may fix the date for Contractor to remedy the
defects.
If still failed to remedy, Employer may:
Carry out the work by himself or others at Contractor’s
cost
Reasonable reduction in Contract Price
it deprives the Employer of substantially the whole
benefits of the works, terminate the contract as a
whole.

Cost is at Contractor’s risk if work is attributable to: If due to any other cause, the Contractor will
Any design for which to contractor is responsible be notified by the employer/ representative,
Plant, materials or workmanship not being in accordance and it shall be treated as a variation
with the contract
Failure by the Contractor to comply with any other
obligation

28 days
For unfulfilled obligations, even after the issuance
Engineer shall issue a of the performance certificate, each party is liable
Performance Certificate for the unperformed obligations
after the latest of the
expiry dates of notice
Contractor to remove all
equipment, materials, etc.
28 days
Clause 12.1 “Works to be Measured”

Works to be
____________________________________________________________________________________
measured and valued

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Procedures and Notices required Under FIDIC 1999

Notice to be given to the

Contractor/ Representative

Contractor to attend or send

a representative to assist the
Engineer
Supply any particulars
requested by the Engineer

14 days
Contractor to give If no notice,
notice to the Engineer Contractor, it is
to which records are deemed as
inaccurate if he accepted and
disagrees to the accurate
measurement

Engineer to review the records

and confirm or vary the records

There is omission of any work

if:
Confirm Vary The Contractor will incur (or
has incurred cost which, if
the work had not been
Clause 12.4 “Omissions” omitted, would have been
deemed to be covered by a
sum forming part of the
Accepted Contract Amount
The omission of the work
Contractor to give notice to the will result (or has resulted)
Engineer with supporting in this sum not forming part
particulars of the Contract Price; and
This cost is not deemed to
____________________________________________________________________________________
be included in the
Page 18 of 31 evaluation of any
substituted work
Procedures and Notices required Under FIDIC 1999

Engineer shall proceed to

determine the cost which shall
be included in the Contract
price.

Clause 13.3 “Variation Procedure”

Variation is initiated by the

Engineer through:

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 Procedures and Notices required Under FIDIC 1999

Engineer requests a proposal for Engineer issues an Instruction

variation to the Contractor for variation to the Contractor

If Contractor
cannot
Contractor, in compliance, Contractor shall Contractor Contractor readily obtain
submits: inform the shall execute to the goods
A description of the proposed Engineer if he and be promptly required for
work to be performed and a cannot comply bound by give notice the variation
programme for its execution and give reasons each to the
The Contractor’s proposal for Engineer
therefor variation
any necessary modifications
stating the
to the programme
Contractor’s proposal for reasons
evaluation of the variation with
supporting
particulars

Engineer to
act on the
proposal

Approval Disapproval Comments

Clause 13.7- 13.8 “Adjustments for Changes in Price”

Changes in
price

Increase/ decrease caused by Increase/ decrease of costs of

a change in legislation/ laws labor, goods and other inputs to
of UAE the works
If there is no
If Contractor “Table of
suffered or will Adjustment
Contractor to give There is “Table of Adjustment data”
suffer delay data” in the
notice to the Engineer included in the Appendix to Tender
and/ or____________________________________________________________________________________ Appendix to
incurred or Tender, this
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will incur Sub- clause
additional cost will not apply.
Procedures and Notices required Under FIDIC 1999

Contractor is entitled The adjustment will be based upon the

for an extension of formulae:
time and payment of Pn= a + b Ln/Lo + C En/Eo + d Mn/Mo +
any cost

Engineer to proceed Engineer to determine a provisional

determining the index for the issue of interim payment
entitlement of the certificates
Contractor

The adjustment of
prices shall be based
on whatever is more
favorable to the
Employer, either:

On each index or price applicable Current index or price

on the date, 49 days prior to expiry
of the time of completion.
Clause 14 “Contract Price and Payments”

Letter of Acceptance OR Receipt of Performance Security The final payment certified

42 days 21 days
56 days
Whichever is later
Employer shall pay to the
contractor the final payment
Employer shall pay to the
contractor the first installment Note: if the contractor has not
of the advance payment applied for a final Payment
Certificate in accordance with
this Sub-Clauses, the engineer
Performance security received shall request the contractor to
do so. If the contractor fails to
56 days submit an application within a
____________________________________________________________________________________
period of 28 days, the engineer
shall issue the final payment
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certificate for such amount as
he fairly determines to be due
 Procedures and Notices required Under FIDIC 1999

Contractor shall submit, to the engineer, six copies of

a draft final statement with supporting documents

Contractor with the engineer shall agree with the final

statement

Disputed
Agreed

Contractor shall submit the final statement along with
a written discharge which confirms that the total of
the Final statement represents full and final
settlement of all the moneys due to the contractor
under or in connection with the contract
Engineer shall deliver to the employer
with a copy to the contractor an interim
payment certificate for the agrees parts
of the draft final statement, and a
dispute should be referred to D.A.B

28 days

Engineer shall issue, to the Employer, the Final

Payment Certificate

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Procedures and Notices required Under FIDIC 1999

Clause 14.9- 14.10 “Payment of Retention Money” and

“Statement of Completion”

Taking- over Certificate has been issued

Issued for the If issued for a Section

whole works or part of the Works

Engineer to certify Proportion of the 2/5 (or 20%) of the

the first half of the Retention Money proportion
Retention Money shall be certified
Proportion= estimated
and paid
contract value of the
84 days from receipt of Section or part
taking over certificate divided by estimated
final contract price

Contractor to
submit Statement
of Completion
with supporting
documents in six
copies

Engineer will certify

the payments

Clause 14.13 “Issue of Final Payment Certificate”

Contractor to submit Final Statement

____________________________________________________________________________________
and written discharge

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Procedures and Notices required Under FIDIC 1999

If Contractor has not 28 days

applied for a Final
Payment Certificate Engineer shall issue Final
Payment Certificate

Engineer shall make a

request to the Contractor
to do so

28 days
If the Contractor failed to
submit an application

Contractor to submit
an application

Engineer shall issue the

Final Payment Certificate

Clause 15-15.5 “Termination by Employer”

Termination notice to the

Contractor

28 days prior notice

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 Procedures and Notices required Under FIDIC 1999

Immediate effect

14 days prior notice Grounds are: At Employer’s convenience

Bankruptcy/ Insolvency
Bribery
With reason/s against Contractor

Clause 16 “Suspension and Termination by Contractor”

Employer fails to pay the OR 56 days after

Engineer fails to certify the
payment within 56 days from submitting
monthly payments within 28
contractor submittal the payment
days from contractor submittal

42 days after Contractor shall be

the 56 days entitled to terminate
Contractor shall give a notice to the
Contractor shall the contract. After
Employer of his intension to suspend the
be entitled to giving a 14 days’
work or reduce the rate of work
____________________________________________________________________________________
terminate the notice
contract. After
giving a 14 Page 25 of 31
days’ notice
Procedures and Notices required Under FIDIC 1999

21 days

Contractor shall be entitled to suspend the

work or reduce the rate of work

If the contractor suffers delay and/or incurs Cost as a result

of suspending work (or reducing the rate of work), the
contractor shall give a notice to the Engineer
Engineer shall proceed in
accordance with sub-clause 3.5
[determinations] to agree or
determine these matters
Contractor shall be entitled subject to clause 20.1 to:
An extension of time for any such delay, if completion is or will be
delayed
Payment of any such cost plus reasonable profit, which shall be
included in the contract price.

Clause 16.1 “Suspension of Work by Contractor”

Notice of Suspension

21 days prior notice

To the Employer

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 Procedures and Notices required Under FIDIC 1999

Clause 16.2 “Termination by Contractor”

Notice of Termination

Grounds:
Non receipt of evidence w/in 14 days
Immediate effect
42 days after giving notice of prior notice
termination w/ respect to
Financial Arrangements Grounds are:
Engineer fails to issue payment To the Employer
Prolonged suspension
certificate after 56 days after Bankruptcy/ insolvency of
receipt of statement and the Employer or has gone
supporting documents into liquidation
Non- payment of interim
payment certificate w/in 42
days after expiry of 56 days for
Employer to pay interim
payments
Non- performance of
obligation by the Employer
Failure to comply with the
Contract agreement by the
employer as regards signing of
contract agreement and
assignment of contract
Clause 17.5 “Intellectual and Industrial property Rights”

The party who’s intellectual and / or

industrial property rights have been
violated, has to give a notice of claim

Infringement (or
alleged infringement)
of Intellectual and/ or
industrial property Failure to do so, WAIVER
rights 28 days
of right to indemnity

Party who committed

the infringement
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Procedures and Notices required Under FIDIC 1999

Clause 19 “Force Majeure”

Occurrence of
Force Majeure
or should have
become aware

One time occurrence 84 continuous days OR

but less than 84 days Multiple periods totaling to 140 days

Within 14 days

Notice of Termination of Contract

Notice of circumstances of
the force majeure, specifying
the works prevented 7 days

Effective Termination

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 Procedures and Notices required Under FIDIC 1999

Clause 20.1 “Contractor’s Claim”

If the contractor considers himself to be entitled to any extension of the Time and/or
any additional payment under any Clause of these Conditions or otherwise,

The contractor became aware or should have become aware of the event or
circumstance

< 28 days

Contractor shall give notice of to

the Engineer, with a copy to the
Employer 42 days or any other period
agreed by the Engineer

Direct effect Continuing effect

Contractor shall send an

The Contractor shall send to the Interim Account
Engineer an account giving detailed
Repeated
particulars of the amount claimed every 28 days
and the grounds upon which the
claim is based
End of the event effect

42 days
28 days

The Engineer shall respond with Full Detailed Particulars of

approval, or with disapproval and cumulative account
detailed comments. He may also If 1 PERSON- Jointly
request any necessary further appointed by the
particulars, but shall nevertheless parties
give his response on the principles
If 3 PERSONS- each
of the claim within such time
party to nominate 1
Clause 20.2 “Appointment of the Dispute Adjudicationmember Board” for the
approval of the other
If either of the parties If either of the parties party. The 3rd member,
raised a dispute to DAB refers to DAB who shall act as the
____________________________________________________________________________________
CHAIRMAN, is selected
Page 29 of 31 by the parties with the
consultation of the 2
nominated members
 Procedures and Notices required Under FIDIC 1999

< 28 days
84 days or other
period agreed by DAB shall be appointed
the parties by the Parties

DECISION on the
NO DECISION Dispute Replacement of a
member of DAB

42 days from inability

to act or decline to act,
28 days of the member
The parties have to
agree upon the
NOTICE OF IF NO notice of appointment of the
DISSATISFACTION dissatisfaction, replacement. If not
decision is agreed, the appointing
FINAL & entity/ official named in
BINDING Particular Conditions
shall appoint the
member

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Procedures and Notices required Under FIDIC 1999

Clause 20.5 “Arbitration”

ARBITRATION
NOTICE OF
Notes:
Under the rules of arbitration
of international chamber of
commerce
56 days after notice
May be commenced prior to or
of dissatisfaction after the completion of the
Works
Obligations of the parties, the
On or after this period, to Engineer and the DAB shall
commence even without not be altered by any
attempt to settle amicably. arbitration being conducted.

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