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6CN011 Contract Law and

Dispute Resolution (Qatar)

Lecture 2
Contract Execution + Role of
Employer

Todays session to cover


Some aspects of FIDIC:
An introduction to the red
book
Priority of contract
documents
Key personnel
Roles of the Employer

An introduction to
FIDIC Standard Forms of
International Construction Contract
FIDIC is acronym for:
Fdration International des
Ingnieurs -Conseils (French)
International Federation of
Consulting Engineers (English)
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The new FIDIC forms


(1999)
1. Conditions of Contract for Construction (for
building and engineering works designed by
the employer) (the 1999 Red Book)
2. Conditions of Contract for Plant and DesignBuild (for electrical and mechanical plant and
for building and engineering works designed
by
the contractor) (the 1999 Yellow Book)
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The new FIDIC forms


(1999)
3. Conditions of Contract for EPC
(engineer-procure-construct)
Turnkey Projects (the 1999 Silver
Book)
4. Short Form of Contract (for
contracts of relatively small value)
(the 1999 Green Book)
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Balance of risk

The 1999 Red Book attempts to


allocate risks fairly between the
parties

Contractor can only price for those


conditions which are known to
them or which they can foresee
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Structure of the FIDIC Red Book


Divided into 3 sections:
1.General Conditions - clauses 1 to 20 with
Conditions and Procedures on Dispute
Resolution
2.Guidance for the Preparation of Particular
Conditions and Notes on the Preparation of
Tender Documents together with Annexes
3.Forms of Letter of Tender, appendix to
Tender, Contract Agreement and Dispute
adjudication Agreement
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FIDIC: The Priority of


Contract Documents
1.
2.
3.
4.
5.
6.
7.
8.
9.

The Contract Agreement


The Letter of acceptance
The Letter of Tender
The Particular Conditions
The General Conditions
The Specification
The drawings
The schedules
Any further documents
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On Contract Documents
Exercise Discuss in groups of 3:
From yesterdays lecture, compare
and contrast the contract documents
in a project based on FIDIC and
another based on say, the JCT

Key personnel in FIDIC


Contracts
1.
2.
3.

Employer
Contractor
Engineer appointed by Employer
and acts in two separate
capacities:

As an Agent of the Employer, and


As a professional decision maker
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Exercise: Contract
Agreement

Working in groups of 3:
One person = Employer (Em)
One person = Contractor (C)
One person = Engineer
1.Decide on a project which you want
to carry out somewhere in Doha
2.Using the template provided, propose
a contract between the Em & C
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FIDIC Contract execution


timelines

See FIDIC Document /


printout

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6CN011 Lecture No.2

Short Break

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The Employer (Clause 2):


Roles of

Nominating Engineer
Giving possession of the site on time (2.1)

C may be entitled to EoT, cost & profit for the


Es delay in granting access / possession of site

Obtaining planning permissions for the


Permanent works
Providing assistance to obtain permits
(2.2)

Plus obtain laws (1.13)


Plus export/import
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The Employer (Clause 2):


Roles of

Cooperate with the Contractor, generally

Ensuring own personnel comply with


safety requirements & protect the
environment (2.3)

Making payment upon certification

Provide to the Contractor evidence of


financial arrangement to pay the
Contract price (2.4)
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The Employer (Clause 2):


Roles of

Giving notices to the Contractor of claims or


termination of the Contract (2.5)
Claims for:
1.
Payment
2.
Extension of Defects Notification Period
Employer to provide necessary information
Engineer to assess
Deduction in price/certificates
Employer entitled to set-off and/or claim
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Todays session has


covered

Some aspects of FIDIC:


An introduction to the red
book
Priority of contract
documents
Key personnel
Roles of the Employer
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End of lecture

Questions &
Answers

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