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Introduction to FIDIC Dispute Adjudication Board Provisions (Owen_2004)

Introduction to FIDIC Dispute Adjudication Board Provisions (Owen_2004)

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Published by: shady_sherif on Jul 28, 2009
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05/11/2014

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INTRODUCTION TO FIDICDISPUTE ADJUDICATION BOARDPROVISIONSCONDITIONS OF CONTRACT FORCONSTRUCTIONFIDIC 1999
COPY RIGHT 2004Gwen Owen
Page 1 of 61
 
1.0 INTRODUCTION
 This course reviews of the requirements and procedures for the FIDICConditions of Contract from a practical point of view with regard to theDispute Adjudication Board. It is a practical guide rather than a detailedlegal analysis, to assist engineers and others will use constructioncontracts.Reference will be made to the FIDIC form of contract and clausereferences will generally apply to clauses in the Conditions of Contractfor Construction 1999 edition, the new red book”. The notes arecomments on the clauses and references should be made by the readerto the complete wording in the FIDIC contract.
2.0 THE CONSTRUCTION CONTRACT
A construction contract is made between two parties:
An owner who is referred to as the Employer, who has decidedthat he needs the project and who will pay for the project. TheEmployer will need to establish his requirements, decide whowill prepare the detailed design and check that the constructionmeets his requirements, and
A Contractor who will prepare all or any part of the design asrequired by the employer and who will actually construct theworks. The project organisation for the design, supervision and constructionmay vary but the tasks must be carried out by someone, either onbehalf of the Employer or on behalf of the Contractor. The FIDICConditions of Contract for Construction are based on design by theEmployer. The actual design is usually carried out by a ConsultingEngineer, on behalf of the Employer. The Conditions of Contract forPlant and Design Build and the Conditions of Contract for EPC/TurnkeyProjects are based on design by the Contractor. Again, the actualdesign may be carried out by a Consulting Engineer, but on behalf of the Contractor.
3.0 THE CONDITIONS OF CONTRACT
 The Conditions of Contract include:
Page 2 of 61
 
General Conditions
Particular ConditionsFIDIC General Conditions of Contract are intended to be usedunchanged for every project. The Particular Conditions are prepared forthe particular project taking account of any changes or additionalclauses to suit the local and project requirements. Some employershave available their own versions of the General Conditions whichincorporate some changes to suit their own requirements.Normally General Conditions include the Appendix to Tender whichgives essential project information some of which must be completedby the Employer before issuing the tender documents, together withsome information which must be added by the tenderer uponsubmission of the tender.In any project in order to overcome problems it will often be necessaryto carry out additional work and this will take time and money. Themost common situation is that the Contractor spends money andclaims it back from the Employer.It is then necessary to decide whether the Employer must pay, orwhether the Contractor must bear the additional cost. The initialdecision will normally be made by the Employer’s Representative orEngineer. However this can only be an interim decision and is subjectto appeal to the Engineer or the Dispute Adjudication Board andultimately to an arbitrator or the courts. The actual dispute resolutionprocesses vary in different FIDIC forms of contract. The basis on which such decisions must be made is laid down in theConditions of Contract. The Conditions of Contract deal with the roles of the parties to the Contract and lays down their rights and obligationsunder the Contract.
4.0 INTERNATIONAL CONTRACTS
An international contract may be defined as a contract in which one of the parties is from a different country to the country of the project. Inmany cases the requirements outlined in the Conditions of Contract forinternational contracts are similar to those for domestic contracts, butthere are additional matters such as different legal systems, or localcustoms and procedures, currency which must be considered.
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