The FIDIC Short Form of Contract

The FIDIC Short Form of Contract – Green Book was drafted as a minor works contract to complement
the other standard forms in the FIDIC suite of contracts. Initially the Contract was drafted for simple
works with a value of less than USD 500,000 however it has evolved and now it is used for non-complex
works regardless of value as it is clearly the complexity of the works which will determine if the short
form is appropriate or not. Currently no financial limited is stated within the standard form or its
accompanying notes.

The Green Book continues to reflect the principles and allocation of risk between the parties as the FIDIC
Red and Yellow Books. It allows for either lump sum or other pricing and allows for design by either the
Employer or the Contractor. There is no Engineer as with the Red and Yellow Books, but the Employer
may nominate his Representative which may or may not be a professional engaged to manage the
Contract Works. As the name suggests the Short Form is much briefer than the more detailed Red and
Yellow Books with only fifteen clauses and four thousand five hundred words compared to the thirty
thousand plus, word count for the Red Book.

This standard form includes a combined Offer and Acceptance form of Agreement.
All variables such as values, dates time limits and similar items are dealt with and addressed in an
Appendix. Definitions are consistent with the other FIDIC standard forms.
The events that are termed as the Employer’s risks are gathered into a single clause. Disputes are
referred directly to a single adjudicator appointed jointly by the parties in the absence of an Engineer
being available to provide a decision in the first instant.

Sub-Clause 3.1 of the Green Book provides for the nomination of an Authorised Person to have authority
and act for the Employer in all matters under the Contract. The said person shall be nominated by the
Employer and stated in the Appendix or may be notified to the Contractor by the Employer from time to
time.

Sub-Clause 3.2 allows the Employer to additionally nominate another representative by stating:
“The Employer may also appoint a firm or individual to carry out certain duties. The appointee may be
named in the Appendix, or notified by the Employer to the Contractor from time to time. The Employer
shall notify the Contractor of the delegated duties and authority of this Employer’s representative.”

Unlike the Red Book it is important to note that the above clause does not allow the Contractor to
assume that the Employer’s Representative has authority and so must check the notice of delegation to
ensure that anything that the Employer’s Representative does is within his delegated authority.

The Green Book allows either traditional design provided by the Employer or it may be used in a design
and build manner with design being provided by the Contractor.
Sub-Clause 5.1 States: ”The Contractor shall carry out design to the extent specified, as referred to in
the Appendix. The Contractor shall promptly submit to the Employer all designs prepared by him. Within
14 days of receipt the Employer shall note any comments or, if the design submitted is not in accordance
with the Contract, shall reject it stating the reasons. The Contractor shall not construct any element of
the permanent work designed by him within 14 days after the design has been submitted to the
Employer or where the design for that element has been rejected. Design that has been rejected shall be
promptly amended and resubmitted. The Contractor shall resubmit all designs commented on taking
these comments into account as necessary.”

Sub-Clause 5.2 deals with the responsibility for design and states: ”The Contractor shall remain
responsible for his tendered design and the design under this Clause, both of which shall be fit for the
intended purposes defined in the Contract and he shall also remain responsible for any infringement of
any patent or copyright in respect of the same. The Employer shall be responsible for the Specification
and Drawings.”
It attempts to provide a distinct limit of responsibility for the Specification which would be termed as the
Employer’s Requirements under the Yellow or Silver Book. In effect the Short Form makes each party
responsible for their own design as is required to be provided under the Contract. It has been said that
this will lead to debate as to if any design flaws can be effectively tracked back to the design of the
Contractor or Employer. The Short Form, however, does avoid the possibility of disputes stemming from
shared ownership or responsibility for a document.

Sub-Clause 6.1 lists the Employer’s Liabilities which are events which can be found in nearly all standard
forms as being valid reasons for considering and awarding of financial and time claims. Items (a) to (e)
are the normal collection of risks such as wars, riots and nuclear contamination which one becomes
accustomed to seeing in standard forms. Delays and costs caused by the Employer are covered by (f)
early use, (g) Employer’s design, 6) suspension, (k) failure by the Employer and (m) variations. Force
majeure and unforeseeable forces of nature are at items (h) and (i). Changes of law are at (n) and

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inevitable losses and damage which are the consequence of the works are covered by (o) and (p). The
actual Extension of Time and Rights to Claim Additional Payment are dealt with in Sub-Clauses 7.3 and
10.4

There is no express obligation on the Employer to provide soils data or indeed upon the Contractor to
have examined the Site prior to tendering. Both of these factors will have to be taken into account when
considering what is reasonably foreseeable by an experienced contractor. The more data that is given to
the Contractor, the less he will be able to plead reasonable.

Sub-Clause 7.3 is short and simple:

“Subject to Sub-Clause 10.3, the Contractor shall be entitled to an extension to the Time for Completion
if he is or will be delayed by any of the Employer’s Liabilities.
On receipt of an application from the Contractor, the Employer shall consider all supporting details
provided by the Contractor and shall extend the Time for Completion as appropriate. “

Sub-Clause 7.4 deals with late completion where if the Contractor is late, then he pays a stated amount
per day however there is no notice provision which may be viewed by some as an oversight, but in the
context that the contract is for use in connection with minor works the omission may be justified and the
inclusion of an early warning provision in sub-clause 10.3 does place obligations on the Contractor to
minimise and notify the Employer as follows:
“A Party shall notify the other as soon as he is aware of any circumstance which may delay or disrupt the
Works, or which may give rise to a claim for additional payment. The Contractor shall take all reasonable
steps to minimise these effects.

The Contractor’s entitlement to extension to the Time for Completion or additional payment shall be
limited to the time and payment which would have been due if he had given prompt notice and had taken
all reasonable steps. “
Although this provision would not address to all possible circumstances it should limit the Contractors
recovery of loss and expense in the event that the Contractors failure to notify of an event leading to
time or cost implications where such notification would have allowed the Employer to take steps to
minimise or mitigate such delays or additional costs.

Claims for additional payment are dealt with in Sub-Clause 10.4 which as with Sub-Clause 7.3 refers to
the list of Employer’s Liabilities in Sub-Clause 6.1. The Contractor is paid “Cost” which has the same
definition as the other FIDIC forms, being:
“All expenditure properly incurred (or to be incurred) by the Contractor, whether on or off the Site,
including overheads and similar charges, but does not include profit”.

Variations are dealt with by Sub-Clause 10.1 which simply states:

“The Employer may instruct Variations.”
The terms “Variation” is defined as “a change to the Specification and/or Drawings (if any) which is
instructed by the Employer under clause 10.1.”
The Procedure for Variations and Claims is detailed in Sub-Clause 10.5 which says:
“The Contractor shall submit to the Employer an itemised make-up of the value of Variations and claims
within 28 days of the instruction or of the event giving rise to the claim. The Employer shall check and if
possible agree the value. In the absence of agreement, the Employer shall determine the value.”
Variations are then valued in accordance with Sub-Clause 10.2 at an agreed lump sum, or at contract
rates, or at new rates based on existing rates or new rates considered appropriate by the Employer or at
Daywork rates.

Force Majeure is defined under Sub-Clause 1.1.14 in a similar manner to the major forms but without the
list of examples that are traditionally found in force majeure clauses:
“Force Majeure” means an exceptional event or circumstance: which is beyond a Party’s control; which
such Party could not reasonably have provided against before entering into the Contract; which, having
arisen, such Party could not reasonably have avoided or overcome; and, which is not substantially
attributable to the other Party.
Force majeure is one of the Employer’s Liabilities and also has its own Sub-Clause 13.2 which permits a
party prevented from performing to suspend and, if the event prevents performance for 12 weeks or
more, to terminate by giving 28 days’ notice.

Clause 12 deals with termination and provides that the Employer may give a 14-day notice to correct
some default under the contract. If the Contractor has not “taken all practicable steps remedy the
default” within the 14 days, then the Employer may terminate.
Similarly, the Contractor can give a 7-day notice of non-payment. If the money does not arrive within the
7 days, then the Contractor can suspend. Three weeks later (28 days from the first notice), if payment is

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still not forthcoming, the Contractor may terminate, again with immediate effect any time in the next 3
weeks.
Compensation recoverable due to termination is dealt with under Sub-Clause 12.4 which states:
“After termination, the Contractor shall be entitled to payment of the unpaid balance of the value of the
Works executed and of the Materials and Plant reasonably delivered to the Site, adjusted by the
following:
a) any sums to which the Contractor is entitled under Sub-Clause 10.4,
b) any sums to which the Employer is entitled,
c) if the Employer has terminated under Sub-Clause 12.1 or 12.3, the Employer shall be entitled
to a sum equivalent to 20% of the value of those parts of the Works not executed at the date of
the termination,
d) if the Contractor has terminated under Sub-Clause 12.2 or 12.3, the Contractor shall be
entitled to the Cost of his suspension and demobilisation together with a sum equivalent to 10%
of the value of those parts of the Works not executed at the date of termination.

The net balance due shall be paid or repaid within 28 days of the notice of termination.
The 20% stated Sub-Clause 12.4 (c) represents an estimate of the typical extra costs of engaging an
alternative contractor to complete the Works where a Contractor has defaulted; and the 10% stated in
Sub-Clause 12.4 (d) represents fair compensation for lost profit where the Employer has defaulted.

Clause 15 provides for disputes to be referred to adjudication by a single adjudicator to be agreed or

appointed by the President of FIDIC unless another nominating body is named in the Appendix. The Rules
are unique to the Green Book and give the adjudicator 8 weeks to make a decision.
The decision is final unless one party gives notice of dissatisfaction in accordance with Sub-Clause 15.2
within 4 weeks which states:
“If a Party is dissatisfied with the decision of the adjudicator or if no decision is given within the time set
out in the Rules, the Party may give notice of dissatisfaction referring to this Sub-Clause within 28 days
of receipt of the decision or the expiry of the time for the decision. If no notice of dissatisfaction is given
within the specified time, the decision shall be final and binding on the Parties. If notice of dissatisfaction
is given within the specified time, the decision shall be binding on the Parties who shall give effect to it
without delay unless and until the decision of the adjudicator is revised by an arbitrator. “

There is no provision for amicable settlement, and at any time after the notice of dissatisfaction a party
may commence arbitration. The UNCITRAL arbitration rules are suggested but alternative rules for
arbitration may be substituted.

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Mapping between Green and Yellow book

1 GENERAL PROVISONS 1 GENERAL PROVSIONS

2 THE EMPLOYER 2 THE EMPLOYER
3 EMPLOYER'S REPRESENTATIVES 3 THE ENGINEER
4 THE CONTRACTOR 4 THE CONTRACTOR
5 DESIGN BY CONTRACTOR 5 DESIGN
6 EMPLOYER'S LIABILITIES
7 TIME FOR COMPLETION 8 COMMENCEMENT, DELAYS AND SUSPENSION
8.2 TIME FOR COMPLETION
8 TAKING-OVER 10 EMPLOYER'S TAKING OVER
9 REMEDYING EFFECTS 11 DEFECTS LIABILITY
11.1 Completion of Outstanding Work and Remedying
Defects
10 VARIATIONS AND CLAIMS 13 VARIATIONS AND ADJUSTMENTS
11 CONTRACT PRICE AND PAYMENT 14 CONTRACT PRICE AND PAYMENT
12 DEFAULT
13 RISK AND RESPONSIBILITY 17 RISK AND RESPONSIBILITY
14 INSURANCE 18 INSURANCE
15 RESOLUTION OF DISPUTES 20 CLAIMS, DISPUTES AND ARBITRATION

Clauses not used in Green Book

6 STAFF AND LABOUR
7 PLANT, MATERIALS AND WORKMANSHIP
9 TESTS ON COMPLETION
12 TESTS AFTER COMPLETION
15 TERMINATION BY EMPLOYER
16 SUSPENSION AND TERMINATION BY CONTRACTOR

Mapping between Green and Yellow book detail

Green Book Yellow Book

1 GENERAL PROVSONS 1 GENERAL PROVISIONS 1
1.1 Definitions 1.1 Definitions
The Contract 1.2 Interpretation
Persons 1.3 Communications
Dates, Times and Periods 1.4 Law and Language
Money and Payments 1.5 Priority of Documents
Other Definitions 1.6 Contract Agreement
1 .2 Interpretation 1.7 Assignment
1 .3 Priority of Documents 1.8 Care and Supply of Documents
1.4 Law 1.9 Errors in the Employer's Requirements
1 .5 Communications 1.10 Employer's Use of Contractor's Documents
1 .6 Statutory Obligations 1.11 Contractor's Use of Employer's Documents
1.12 Confidential Details
1.13 Compliance with Laws
1.14 Joint and Several Liability
2 THE EMPLOYER 2 THE EMPLOYER
2.1 Provision of Site 2.1 Right of Access to the Site
2.2 Permits and Licences 2.2 Permits, Licences or Approvals
2.3 Employers Instructions 2.3 Employer's Personnel
2.4 Approvals 2.4 Employer's Financial Arrangements
2.5 Employer's Claims
3 EMPLOYER'S REPRESENTATIVES 3 THE ENGINEER
3.1 Authorised Person 3.1 Engineer's Duties and Authority
3.2 Employers Representatives 3.2 Delegation by the Engineer
3.3 Instructions of the Engineer
3.4 Replacement of the Engineer
3.5 Determinations

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4 THE CONTRACTOR
4.1 General Obligations
4.2 Contractors Representative
4.3 Subcontracting
4.4 Performance Security
5 DESIGN BY CONTRACTOR
5.1 Contractors Design
5.2 Responsibility for Design
6 EMPLOYER'S LIABILITIES
6.1 Employers Liabilities
7 TIME FOR COMPLETION
7.1 Execution of the Works
7.2 Programme
7.3 Extension of Time
7.4 Late Completion
The FIDIC Short Form of Contract.doc
4 THE CONTRACTOR
4.1 Contractor's General Obligations
4.2 Performance Security
4.3 Contractor's Representative
4.4 Subcontractors
4.5 Nominated Subcontractors
4.6 Co-operation
4.7 Setting Out
4.8 Safety Procedures
4.9 Quality Assurance
4.10 Site Data
4.11 Sufficiency of the Accepted
4.12 Contract Amount
4.13 Unforeseeable Physical Conditions
4.14 Rights of Way and Facilities
4.15 Avoidance of Interference
4.16 Access Route
4.17 Transport of Goods
4.18 Contractor's Equipment
4.19 Protection of the Environment
4.20 Electricity, Water and Gas
4.21 Employer's Equipment and Free-Issue
Material
4.22 Progress Reports
4.23 Security of the Site
4.25 Contractor's Operations on Site
4.26 Fossils
5 DESIGN
5.1 General Design Obligations
5.2 Contractor's Documents
5.3 Contractor's Undertaking
5.4 Technical Standards and Regulations
5.5 Training
5.6 As-Built Documents
5.7 Operation and Maintenance Manuals
5.8 Design Error
6 STAFF AND LABOUR
6.1 Engagement of Staff and Labour
6.2 Rates of Wages and Conditions of Labour
6.3 Persons in the Service of Employer
6.4 Labour Laws
6.5 Working Hours
6.6 Facilities for Staff and Labour
6.7 Health and Safety
6.8 Contractor's Superintendence
6.9 Contractor's Personnel
6.10 Records of Contractor's Personnel and
Equipment
6.11 Disorderly Conduct
7 PLANT, MATERIALS AND WORKMANSHIP
7.1 Manner of Execution
7.2 Samples
7.3 Inspection
7.4 Testing
7.5 Rejection
7.6 Remedial Work
7.7 Ownership of Plant and Materials
7.8 Royalties
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8 TAKING-OVER 8 COMMENCEMENT, DELAYS AND SUSPENSION
8.1 Completion 8.1 Commencement of Works
8.2 Taking-Over Notice 8.2 Time for Completion
8.3 Programme
8.4 Extension of Time for Completion
8.5 Delays Caused by Authorities
8.6 Rate of Progress
8.7 Delay Damages
8.8 Suspension of Work
8.9 Consequences of Suspension
8.10 Payment for Plant and Materials in Event
of Suspension
8.11 Prolonged Suspension
8.12 Resumption of Work
9 REMEDYING EFFECTS 9 TESTS ON COMPLETION
9.1 Remedying Defects 9.1 Contractor's Obligations
9.2 Uncovering and Testing 9.2 Delayed Tests
9.3 Retesting
9.4 Failure to Pass Tests on Completion
10 VARIATIONS AND CLAIMS 10 EMPLOYER'S TAKING OVER
10.1 Right to Vary 10.1 Taking Over of the Works and Sections
10.2 Valuation of Variations 10.2 Taking Over of Parts of the Works
10.3 Early Warning 10.3 Interference with Tests on Completion
10.4 Right to Claim 10.4 Surfaces Requiring Reinstatement
10.5 Variation and Claim Procedure
11 CONTRACT PRICE AND PAYMENT 11 DEFECTS LIABILITY
11.1 Valuation of the Works 11 .1 Completion of Outstanding Work and
11 .2 Monthly Statements Remedying
11 .3 Interim Payments Defects
11 .4 Payment of First Half of Retention 11.2 Cost of Remedying Defects
11 .5 Payment of Second Half of Retention 11.3 Extension of Defects Notification Period
11 .6 Final Payment 11.4 Failure to Remedy Defects
11.7 Currency 11.5 Removal of Defective Work
11 .8 Delayed Payment 11.6 Further Tests
11 .7 Right of Access
11.8 Contractor to Search
11.9 Performance Certificate
11.10 Unfulfilled Obligations
11.11 Clearance of Site
12 DEFAULT 12 TESTS AFTER COMPLETION
12.1 Default by Contractor 12.1 Procedure for Tests after Completion
12.2 Default by Employer 12.2 Delayed Tests
12.3 Insolvency 12.3 Retesting
12.4 Payment upon Termination 12.4 Failure to Pass Tests after Completion
13 RISK AND RESPONSIBILITY 13 VARIATIONS AND ADJUSTMENTS
13.1 Contractors Care of the Works 13.1 Right to Vary
13.2 Force Majeure 13.2 Value Engineering
13.3 Variation Procedure
13.4 Payment in Applicable Currencies
13.5 Provisional Sums
13.6 Daywork
13.7 Adjustments for Changes in Legislation
13.8 Adjustments for Changes in Cost

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14 INSURANCE 14 CONTRACT PRICE AND PAYMENT
14.1 Extent of Cover 14.1 The Contract Price
14.2 Arrangements 14.2 Advance Payment
14.3 Failure to Insure 14.3 Application for Interim Payment
Certificates
14.4 Schedule of Payments
14.5 Plant and Materials intended for the Works
14.6 Issue of Interim Payment Certificates
14.7 Payment
14.8 Delayed Payment
14.9 Payment of Retention Money
14.10 Statement at Completion
14.11 Application for Final Payment Certificate
14.12 Discharge
14.13 Issue of Final Payment Certificate
14.14 Cessation of Employer's Liability
14.15 Currencies of Payment
15 RESOLUTION OF DISPUTES 15 TERMINATION BY EMPLOYER
15.1 Adjudication 15.1 Notice to Correct
15.2 Notice of Dissatisfaction 15.2 Termination by Employer
15.3 Arbitration 15.3 Valuation at Date of Termination
15.4 Payment after Termination
15.5 Employer's Entitlement to Termination
16 SUSPENSION AND TERMINATION BY
CONTRACTOR
16.1 Contractor's Entitlement to Suspend Work
16.2 Termination by Contractor
16.3 Cessation of Work and Removal of
Contractor's
Equipment
16.4 Payment on Termination
17 RISK AND RESPONSIBILITY
17.1 Indemnities
17.2 Contractor's Care of the Works
17.3 Employer's Risks
17.4 Consequences of Employer'S Risks
17.5 Intellectual and Industrial Property Rights
17.6 Limitation of Liability
18 INSURANCE
18.1 General Requirements for Insurances
18.2 Insurance for Works and Contractor's
Equipment
18.3 Insurance against Injury to Persons and
Damage to Property
18.4 Insurance for Contractor's Personnel
19 FORCE MAJEURE
19.1 Definition of Force Majeure
19.2 Notice of Force Majeure
19.3 Duty to Minimise Delay
19.4 Consequences of Force Majeure
19.5 Force Majeure Affecting Subcontractor
19.6 Optional Termination, Payment and
Release
19.7 Release from Performance under the Law

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 20 CLAIMS, DISPUTES AND ARBITRATION
20.1 Contractor's Claims
20.2 Appointment of the Dispute Adjudication
Board
20.3 Failure to Agree Dispute Adjudication
Board
20.4 Obtaining Dispute Adjudication Board's
Decision
20.5 Amicable Settlement
20.6 Arbitration
20.7 Failure to Comply with Dispute
Adjudication Board's Decision
20.8 Expiry of Dispute Adjudication Board's
Appointment

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Detail Clauses
Green Book
2.1 Provision of Site
The Employer shall provide the Site and right
of access thereto at the times stated in
the Appendix.
2.2 Permits and Licences
The Employer shall, if requested by the
Contractor, assist him in applying for
permits, licences or approvals which are
required for the Works.
3.2 Employer's Representative
The Employer may also appoint a firm or
individual to carry out certain duties. The
appointee may be named in the Appendix, or
notified by the Employer to the Contractor
from time to time. The Employer shall notify
the Contractor of the delegated duties and
authority of this Employer's representative.
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Yellow Book
2.1 Right of Access to the Site
The Employer shall give the Contractor right of access to,
and possession of, all parts of the Site within the time (or
times) stated in the Appendix to Tender. The right
and possession may not be exclusive to the Contractor.
If, under the Contract, theEmployer is required to give (to
the Contractor) possession of any foundation, structure,
plant or means of access, the Employer shall do so in the
time and manner stated in the Employer's Requirements.
However, the Employer may withhold any such right or
possession until the Performance Security has been
received.
If no such time is stated in the Appendix to Tender, the
Employer shall give the Contractor right of access to, and
possession of, the Site within such times as may
be required to enable the Contractor to proceed in
accordance with the programme submitted under Sub-
Clause 8.3 [Programme].
If the Contractor suffers delay and/or incurs Cost as a
result of a failure by the Employer to give any such right
or possession within such time, the Contractor shall
give notice to the Engineer and shall be entitled subject
to Sub-Clause 20.1 [Contractor's Claims] to:
(a) an extension of time for any such delay, if completion
is or will be delayed, under Sub-Clause 8.4 [Extension of
Time for Completion], and
(b) payment of any such Cost plus reasonable profit,
which shall be included in the Contract Price.
2.2 Permits, Licences or Approvals
The Employer shall (where he is in a position to do so)
provide reasonable assistance
to the Contractor at the request of the Contractor:
(a) by obtaining copies of the Laws of the Country which
are relevant to the Contract but are not readily available,
and
(b) for the Contractor's applications for any permits,
licences or approvals required by the Laws of the
Country:
(i) which the Contractor is required to obtain under Sub-
Clause 1.13 [Compliance with Laws],
(ii) for the delivery of Goods, including clearance through
customs, and
(iii) for the export of Contractor's Equipment when it is
removed from the Site.
3.1 Engineer's Duties and Authority
The Employer shall appoint the Engineer who shall carry
out the duties assigned to him in the Contract. The
Engineer's staff shall include suitably qualified engineers
and other professionals who are competent to carry out
these duties.
5.2 Responsibility for Design
The Contractor shall remain responsible for
his tendered design and the design under
this Clause, both of which shall be fit for the
intended purposes defined in the Contract
and he shall also remain responsible for any
infringement of any patent or copyright in
respect of the same. The Employer shall be
responsible for the Specification and
Drawings.
5.1 Contractor's Design
The Contractor shall carry out design to the
extent specified, as referred to in the
Appendix. The Contractor shall promptly
submit to the Employer all designs
prepared by him. Within 14 days of receipt
the Employer shall notify any comments
or, if the design submitted is not in
accordance with the Contract, shall reject it
stating the reasons. The Contractor shall not
construct any element of the
permanent work designed by him within 14
days after the design has been submitted to
the Employer or where the design for that
element has been rejected.
Design that has been rejected shall be
promptly amended and resubmitted. The
Contractor shall resubmit all designs
commented on taking these comments into
account as necessary.
7.1 Execution of the Works
The Contractor shall commence the Works
on the Commencement Date and shall
proceed expeditiously and without delay and
shall complete the Works within the Time for
Completion.
8.2 Taking-Over Notice
The Employer shall notify the Contractor
when he considers that the Contractor has
completed the Works stating the date
accordingly. Alternatively, the Employer may
notify the Contractor that the Works,
although not fully complete, are ready for
taking over, stating the date accordingly.
The FIDIC Short Form of Contract.doc
5.3 Contractor's Undertaking
The Contractor undertakes that the design, the
Contractor's Documents, the execution and the completed
Works will be in accordance with:
(a) the Laws in the Country, and
(b) the documents forming the Contract, as altered or
modified by Variations.
5.1 General Design Obligations
The Contractor shall carry out, and be responsible for, the
design of the Works. Design shall be prepared by qualified
designers who are engineers or other professionals who
comply with the criteria (if any) stated in the Employer's
Requirements. Unless otherwise stated in the Contract,
the Contractor shall submit to the Engineer for consent
the name and particulars of each proposed designer and
design Subcontractor.
The Contractor warrants that he, his designers and design
Subcontractors have the experience and capability
necessary for the design. The Contractor undertakes that
the designers shall be available to attend discussions with
the Engineer at all reasonable times, until the expiry date
of the relevant Defects Notification Period.
Upon receiving notice under Sub-Clause 8.1
Commencement of Works], the Contractor shall scrutinise
the Employer's Requirements (including design criteria
and calculations, if any) and the items of reference
mentioned in Sub-Clause 4.7 [Setting Out]. Within the
period stated in the Appendix to Tender, calculated from
the Commencement Date, the Contractor shall give notice
to the Engineer of any error, fault or other defect found in
the Employer's Requirements or these items of reference.
After receiving this notice, the Engineer shall determine
whether Clause 13 [Variations and Adjustments] shall be
applied, and shall give notice to the Contractor
accordingly. If and to the extent that (taking account of
cost and time) an experienced contractor exercising due
care would have discovered the error, fault or other
defect when examining the Site and the Employer's
Requirements before submitting the Tender, the Time for
Completion shall not be extended and the Contract Price
shall not be adjusted.
8.2. Time for Completion
The Contractor shall complete the whole of the Works,
and each Section (if any), within the Time for Completion
for the Works or Section (as the case may be), including:
a. achieving the passing of the Tests on Completion,
and
b. completing all work which is stated in the Contract as
being required for the Works or Section to be considered
to be completed for the purposes of taking over under
Sub-Clause 10.1 [Taking Over of the Works and
Sections].
10.1 Taking Over of the Works and Sections
The 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 complete
and ready for taking over. If the Works are divided into
Sections, the Contractor may similarly apply for a Taking-
Over Certificate for each Section.
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10.1 Right to Vary
The Employer may instruct Variations.
10.5 Variation and Claim
The Contractor shall submit to the Employer
an itemised make-up of the value of
Procedure Variations and claims within 28
days of the instruction or of the event giving
rise to the claim. The Employer shall check
and if possible agree the value. In the
absence of agreement, the Employer shall
determine the value.
14 Insurance
14.1 Extent of Cover
The Contractor shall, prior to commencing
the Works, effect and thereafter maintain
insurances in the joint names of the Parties:
a) for loss and damage to the Works,
Materials, Plant and the Contractor's
Equipment,
b) for liability of both Parties for loss,
damage, death or injury to third parties or
their property arising out of the Contractor's
performance of the Contract, including the
Contractors liability for damage to the
Employer's property other than the Works,
and
c) for liability of both Parties and of any
Employer's representative for death or
injury to the Contractor's personnel except
to the extent that liability arises from the
negligence of the Employer, any Employer's
representative or their employees.
The FIDIC Short Form of Contract.doc
13.1 Right to Vary
Variations may be initiated by the Engineer at any time
prior to issuing the Taking-Over Certificate for the Works,
either by an instruction or by a request for the Contractor
to submit a proposal. A Variation shall not comprise the
omission of any work which is to be carried out by others.
13.3 Variation Procedure
If the Engineer requests a proposal, prior to instructing a
Variation, the Contractor shall
respond in writing as soon as practicable, either by giving
reasons why he cannot
comply (if this is the case) or by submitting:
(a) a description of the proposed design and/or work to
be performed and a programme for its execution,
(b) the Contractor's proposal for any necessary
modifications to the programme according to Sub-Clause
8.3 [Programme] and to the Time for Completion, and
(c) the Contractor's proposal for adjustment to the
Contract Price.
The Engineer shall, as soon as practicable after receiving
such proposal (under SubClause
13.2 [Value Engineering] or otherwise), respond with
approval, disapproval or comments. The Contractor shall
not delay any work whilst awaiting a response.
Each instruction to execute a Variation, with any
requirements for the recording of Costs,
shall be issued by the Engineer to the Contractor, who
shall acknowledge receipt.
Upon instructing or approving a Variation, the Engineer
shall proceed in accordance with Sub-Clause 3.5
[Determinations] to agree or determine adjustments to
the Contract Price and the Schedule of Payments. These
adjustments shall include reasonable profit, and shall
take account of the Contractor's submissions under
SubClause 13.2 [Value Engineering] if applicable.
18.2 Insurance for Works and Contractor's Equipment
18.3 Insurance against Injury to Persons and Damage
to Property
18.4 Insurance for Contractor's Personnel
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