UNDERSTANDING THE
NEW FIDIC RED BOOK
A CLAUSE-BY-CLAUSE COMMENTARY
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UNDERSTANDING THE
NEW FIDIC RED BOOK
‘A CLAUSE-BY-CLAUSE COMMENTARY
totoAUSTRALIA
Ee Book Co
‘dacs
CANADA AND USA
‘Carew
HONG KONG
Sweet Masel Asa
NEW ZEALAND
rockers
Wellaaton
SINGAPORE and MALAYSIA
‘Suet & Massel As
Singipoee and Kuala Lampor
UNDERSTANDING THE NEW
FIDIC RED BOOK
A CLAUSE-BY-CLAUSE COMMENTARY
JEREMY GLOVER
PARTNER, FENWICK ELLIOTT SOLICITORS
SIMON HUGHES, KEATING CHAMBERS.
AND AN INTRODUCTION BY
(CHRISTOPHER THOMAS QC. KEATING CHAMBERS
LONDON
‘SWEET & MAXWELL
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CONTENTS.
Feenond
Incdution
Furr Reading
Aakonedgernts
Table of eases
Tae of sass
CLAUSE 1 GENERAL PROVISIONS,
TI Deitions
13 Commaniations
14 Lawand Language
LS Prority of Documents
16 Contact Apeement
13 Aaigement
Uk Careand Sippy of Document
19. Deed Dames of instractions
0 Employer Us of Contactors Documents
EM Cantctors Use of Employers Dosunents
12 Conde Deas
13 Compliance with Lan
Ekg Joint and Several Labity
TES Ispetions a Angi by the Bank
(CLAUSE 2 THE PMPLOVER:
21 Right of Access to the ite
22 Permit Lzeses o Approvals
23. Employes Personne!
24 Employers Fanci Arrangements
25 mployers Cin
(CLAUSE 3 THE ENGINEER
uu
2
a
Me
Enginor® Duis pd Autosty
Delegation by the Engineer
Instatons of the Eapee
Replacement of the Engineer
Determinations
‘Managment Meetiogs
on
na
ase
ast
1
bors
ton
vows
Lon
one
10s
1103
2001
om
ay,
dos
3.001
dow
sap
boat
sos(CLAUSE 4TH CONTRACTOR
ped
a
aa
46
ae
0
to
iW
a5
a6
an
as
9
420
an
2
aa
4
Comets Ge Onions
Contractors Repesenatine
Sabsontactor|
[Asipnmet of Benet of Sutcontest
Co-operation
Seine Ot
Sale) Procedures
uty Asarane
SieDuce
Sufcney ofthe Accepted Contact Amount
UUntorsseate Pascal Conditions,
Rights of Way ana Felts,
‘Aside of Interference
‘ses Route
‘Tramior of Goods
Conuacior’sEgupnest
Protection of the Enionmsat
lec, Water ad Ga
Enployers Equipment and Fre tue Mati
Progress Reports
Sey ofthe Site
CConractr's Operations on Site
Fowl
CLAUSE 5 NOMINATED SUBCONTRACTORS
3
3
sa
Defaon of “Nominated Subsoneactor”
Objection to Nomination
Payment to Nominated Subcontractors
(CLAUSE 6- STAFF AND LABOUR
:
a
4
e
8
Engagement of Sal and Labour
Rates of Wags and Conditions of Labour
sons inthe Serie of the Employer
Labour Lane
Working Hours
Palit fr Stuf ad Laur
Heath and Safety
Contacts Personae!
+001
4a
a0
$53
5)
par
ton
‘$083
‘oe
sin
ot
+
on
oe
par
ise
6s
on
fin
son
S016
001
eo
eon
fs
ea,
35
eon
cout
610 Records of Contactors Personnel and Equipment 6-083
11 Disorderly Conduct 60st
G1. MDB Hstnoned Edson tbe Parca Localiy Causes. 6-065
on
CLAUSE 7 - PLANE, MATERIALS AND WORKMANSHIP
11 Mamerof Exceuton 2001
12 Samples 008
23 Iespecion por
7A Teng ron
15 Reecton 7028
1 Remedial Work 10
1) umes of Plant and Mater yon
78 Royale. 509
‘CLAUSE 8 COMMENCEMENT, DELAYS AND SUSPENSION
81 Commencement of Works oor
12 Time for Completion son
£3. Programme £017
4 Extension of Time for Completion S025
85 Delay Casa hy Authors Sst
16 Racal Progress Base
87 Delay Damages S06!
8 Saspuaion of Work son
49 Comequeneof Superson son
{10 Payment or Plant and Matron Event of Suspension 8-08
5.1 roloned Suspension 8085
S12 Resumption of Work S00)
CLAUSES TESTS ON COMPETITION
941 Contactors Obigatons on
52 Dalgjed Tess oom
93 ReTstng oon
94 allure to Pass Tes on Completion 506
(CLAUSE 10- EMPLOYER'S TAKING OVER
104 Taking Over ofthe Woks and Setons 0-001
102 ‘Taking Ove of Parts of the Works 10.0
13 erence with Teron Completion reat
108 Soros Roquiing Resueaet (0-00(CLAUSE 11 DEFECTS 14
ay
1H Completion of Outstanding Work and Remoting Deets
112 Cosof Reming Detects
113 Extension of Delete Notieation Ptiod
114 Fate ro Remedy Defects
15S Remora of Deets work
LT Rightot Asse
118 Contractor to Search
110 Unfiled Obigaons
ILM Clearance of Ste
(CLAUSE 12- MEASUREMENT AND EVALUATION
‘Works abe Mets
Meth of Mestarenet
sunton
Omissone
‘CLAUSE 13- VARIATIONS AND ADJUSTMENTS
BL Right io Vary
182 Vale Eogincring
1533 Varton Prosedre
1B Payment in Apple Caren
155 Proton Sus
136 Dajwor
137 Adjutmens or Change in Legislation
1S Adjsiments or Change in Cont
(CLAUSE 14- CONTRACT PRICE AND PAYMENT
1M The Contact Price
182 Advance Payment
143 Appleton for trim Payment Crates
1a Shel of Payments
1S Plant and Mater nen for the Works
146 Sue tern Payment Ceniictes
147 Pasmen
148 Delage Payment
149 _ Payne of Retention Money
IO Stteme at Completion
TCL Application fr Fal Payment Certfate
(aie Dacharse
TI3_ sie of Final Payment Cette
11-001
1-006
ho
Hoi
han
tas
1036
no
001
one
crated
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001
108
101s
10m)
thom
ia
as
1000
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rong
torr
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108
teas
Mout
1046
1082
1059
1068
ron
14.14 Cessation of Employes Lily wore
LEIS Cueaies o Psment hee
1416. Foaling Arrangements eos?
(CLAUSE 15 ~ TERMINATION BY EMPLOVER
151 Notice to Comet 1s.001
182 Termination by Emploner som
153 Valuation at Date of Tevmiation is019
IS4 Payment ater Termination sa
185 Erployers Eaest to Texination iar
136 Conupt or Frandlent Procter 1500
(CLAUSE 16 SUSPENSION AND TERMINATION BY
CONTRACTOR
16 Contrstrs Etileno Suspend Work 16.001
162 Termination by Contactor re-aos
163 Caaton of Work ané Removal of Contactor’ Eguipment 16018
164 Payment on Teination toon
(CLAUSE 17- RISK AND RESPONSIBILITY
124 ndennies 1001
173 Contactors Careof the Works 1-6
173 Employers Risks reo
124 Consequences of Employers Risks vr0i9
17S futsal and Industral Property ih me
126 Limitation f Libis a0
177 Use ofthe Employer Accommodation Facies 1109
(CLAUSE 18 INSURANCE,
181 General Requirements for Inserances son
182 Insurance for Works snd Contests Egupent w0i0
183 Insrance agin nary lo Pesos ad Damage to Property 1-019
184 Insurance for Contactors Personnel tas
(CLAUSE 19 - FORCE MAJEURE
191 Deion of Force Majeure 1-01
192 Nota Force Majeure 1-010
193 DayytoMiaimise Dey om
1954 Consoqences of Fore Majure ole
1955 Rove Majeure Affecting Sconce isan
1916 Option! Termination, Payment and Reese 19.036
197 Relesue fom Peformance uns th Law v.03CLAUSE 20- CLAIMS, DISPUTES AND AR
201 Contactors Chins
202 Appointment ofthe Dispute Adjudication Boand
203 Falweto Agee Dapete Adjneation Board
114 Obiing Date Aujudeaton Board's Deon
405 Amie Settement
206 Atbiation
27 Fae‘ Comp ih Dip Adan Bots
Expiry of Dispute Adjuition Bours Appointment
meation
ans
GENERAL CONDITIONS OF DISPUTE
ADIUDICATION AGREEMENI
Definitions
Gener Provisions
Geral Obligation ofthe Member
General Obtigtion ofthe Eiployer and the Contractor
‘Termaation
Detal of the Member
Dispute
Anne Proce Res
‘srpendi
2001
doo
joms
ao
20.098
208
20-051
20-056
20-060
2-063
2-06
aoe
20-02
oe
not
2-4
Pr
as
FOREWORD
BY THE HON. SIR VIVIAN RAMSEY
‘The FIDIC ov as ben in common ise fr irationa cmscuction
Projet sine sncpton 1957, Whit te oma foloned he Conon
Df Contre pled hy the Inston of Ch Engine he to Fens
Fine now diverged: Tihs been moet noticeable wi the publeton of the
ICE Tied and inthe develops! of the FIDIC suo sandal forms
tnd, evn mae recent, the publication of the FIDIC. Mien!
Delpment Rank Hannon in in 2008 wih amendments 2086
Tntertational construction contats cesar adopt popes aw wich
eft the coe af hove ilerstonal pares Walt on hoe bala
English iv the partes sully decide on hw which fet the county of
‘oe ofthe parent the projet othe pace ofthe poe pee
ithas bea found thatthe FIDIC for, deste betng roused in xpestons
‘ered um Eapscomeon law provides a comprehensive code wich
‘asi applied in este bad on 8 hl oe o,f sans, obi
‘Son under slam The nmin the FIDIC for within he se.
‘loa construction community bas trough advantages bath in ending
odin projet managnen.
“The commen la presage of the FIDIC form makes it appropriate for
thisbook thie been produced by a team of secs Enlihconstution
loses demu on the stength af Fenwick Ett and Keating Chambere
Jeremy Giver a parts at Fenwick Eliot witha welt of pact kro
ges sutra the majority ofthis ook ated Ry hiscollegue Yana
‘Gutempres Sion Hughes a Keating Charber bas ab contbuted to
‘te main commentary and Chstophe Thomas # Ques Counsel ith
{peat expenene i intreatonn! construction ly’ tat, povided the
Tnoducton That authrshig woud sn itll be a sufcen eommends
thee coments cof that provides aon and pact ga
nce Through the ise of tn ovr of hey fetes gives helpful
‘Summary of the main pins ofeach clase before embarhing on 8 ad
Eowmetay ons auey le hai Thi n dy academe nook Tt
ince for instance, the practi segeston tha contactor boul sok
"copy ofthe contrat Between the employer andthe engine whist pointing
fut tht tees no elgaton on the poy to pass his oo.
‘By cation of core decisions in diferent jursitions swell as aries by
tinguished esl commentator it provides a well founded commentary
ich covers the ground for how who are werking ner the FIDIC form
also provides guidance o pl ugumentsTor those wh fe seking gc
advice whe, as inital the compen tequements 9 constuction-ojests ge tet questions on the scope and eet of blgatons. The
opto of « Dispute Adjudication Board nthe FIDIC for shoud ed