Fdration Internationale des Ingnieurs-Conseils

FIDIC CONDITIONS OF CONTRACT FOR CONSTRUCTION 1999 EDITION 1

Flow Charts

FIDIC 1999 SETTLEMENT OF DISPUTES CLAUSES 20.4 AND 20.5

Settlement of Disputes

Clause 20.4 Is there a dispute between the parties? yes

Clause 20.4 Has either party referred* the matter in dispute to the DAB, copy to other party?

yes

Clause 20.4 Has DAB given notice of his decision* to both parties within 84 days of receipt of reference?

yes

Clause20.4 Has either party, within 28 days of DAB's decision, given notice to other party, of dissatisfaction

Clause 20.5 Is attempt at amicable settlement successful? yes no

Clause 20.5 Arbitration may commence after 56 days (Clause 20.6 Sets down the rules applying to the arbitration process)

no Clause 20.4 not activated

no Clause 20.4 After 84 days, parties may proceed to 20.5

no Clause 20.4 DAB's decision becomes final and binding

yes Dispute resolved in terms of settlement (procedure not set down)

Notes:

Party means the Employer or the Contractor * Reference/Decision must state that it is issued pursuant to Clasue 20.4

FIDIC 1999 EXTENSIONS OF TIME CLAUSE 8.4

Extension of Time for Completion

Clause 8.4 Contractor considers himself entitled to EOT yes Clause 8.4 and 20.1 Contractor advises Engineer within 28 days of event first arising Clause 20.1 Contractor provides Engineer with detailed particulars within 42 days and interim particulars at intervals of not more than 28 days if continuing event Clause 20.1 Engineer within 42 days of receipt of claim or particulars must respond on the principles of the claim with approval or rejection with detailed comments and proceed in accordance with Clause 3.5 Clause 3.5 Engineer must consult with Employer and Contractor to reach agreement on EOT and additional payment if any

yes

no Clause 20.1 2nd Paragraph No EOT may be given and Employer discharged from liability

no Clause 20.1 Amount of claim may be limited if failure has prevented or prejuduced proper investigation but Contractor may still be entitled to EOT

FIDIC 1999 VARIATIONS CLAUSE 13

Variations in Form, Quality or Quantity of work

Clause 13.1 Engineer forms the opinion that a variation is needed? Clause 13.3 Engineer instructs Contractor to execute variation? Contractor gives notice that cannot procure goods yes no Clause 12.3 and 3.5 Valuation is determined by the Engineer, but consults with Contractor and Employer Clause12.3 Are rates and prices in Contract suitable to yes value variation? Clause 12.3 and 3.5 Engineer consults with Employer and Contractor

yes

no

yes

yes Clause 12.3 Such rates and prices used

Engineer to act

FIDIC 1999 PAYMENT CERTIFICATES CLAUSE 14.3

Interim Payment Certificates
Clause 14.3 After end of each month, Contractor submits statement of claim to Engineer no Unspecified Clause 14.6 Engineer assesses claim and yes determines amount due to Contractor Clause 14.6 Is the amount due to the Contractor more than Minimum Amount? Clause 14.6 Engineer delivers Interim Payment yes Certificate to Employer within 28 days Clause 14.7 Employer pays Contractor yes within 56 days of receipt by the Contractor's statement Clause 14.8 Contractor entitled to interest at rate stated in Appendix

yes

no

no Amount need not certified

no Unspecified

Initial Finalisation Process

Engineer issues Taking-Over Certificate Clause 14.10 Within 84 days of Taking-Over Certificate, Contractor yes provides Statement at Completion Clause 14.10 Engineer certifies IPC as per Clause 14.6 above yes

yes 50% of retention released Note: Schedule of Payment approach Clause 14.4, may be written into the

FIDIC 1999 PAYMENT CERTIFICATES CLAUSE 14.11

Final Payment Certificate

Clause 14.11 Within 56 days of issue of Performance Certificate Contractor yes submits draft final statement Clause14.11 Engineer agrees with draft? no Clause 14.11 Contractor submits further information yes Clause 14.11 Engineer agrees with revised draft? no Clause 14.11 Clause 14.7 Engineer Employer certifies IPC pays IPC as per Clause within 28 days 14.11 for parts not in dispute yes Dispute then setlled as per Clause 20.4 or 20.5 Clause 14.8 Contractor entitled to interest at rate stated in Appendix

no

no unspecified

yes

yes yes Clause 14.13 Engineer issues Final Payment Certificate to Employer, copy to Contractor within 28 days Clause 14.7 Employer pays FPC within 56 days yes no Clause 14.8 Contractor entitled to interest at rate stated in Appendix

Clause 14.11 Contractor submits Final Statement Clause 14.12 Contractor submits written discharge

Note: Upon the issue of the Taking-Over Certificate, one half of the Retention Money shall certified by the Engineer for payment to the Contractor Upon the expiration of the Defects Notification Period, the other half of the Retention Money shall certified by the Engineer for payment to the Contractor unless there is outstanding work pursuant to Clauses 11 and 14.9. Copyright Cardno MBK International Pty Ltd