SUSTAINABLE PROCUREMENT ENVIRONMENT AND SOCIAL STANDING

CENTRE OF EXCELLENCE (SPESSCE).

AHMADU BELLO UNIVERSITY, ZARIA.

COURSE CODE: ACPM103

COURSE TITLE: PROCUREMENT MANAGEMENT

ASSIGNMENT

PREPARE AND DELIVER A PRESENTATION ON THE CLAUSE DISPUTE AND

ARBITRATION IN ANY VERSION OF FIDIC

GROUP 11 MEMBERS

S/N NAME REG. NUMBER

1. AUWAL ALKASIM AHMAD AC22/PM/0139
2. JOHN ODEH AC22/PM/137
3. DANIEL JOSEPH DAMSA AC22/PM/134
4. HOSEA ILIYA AC22/PM/135
5. ABDULSALAM AUWAL AC22/PM/
6. MUHAMMAD HAMISU AC22/PM/136
7. YAMUSA ABDULLAHI MUHAMMAD AC22/PM/138

LECTURER

PROF. MUSTAPHA ABDULRAZAQ

26TH JANUARY, 2023.

Introduction
FIDIC International Federation of Consulting Engineers (commonly known
as FIDIC, acronym for its French name Fédération Internationale Des Ingénieurs-
Conseils) is an international standards organization for construction technology and
consulting engineering. The organization is best known for the FIDIC suite of contract
templates.
The founding members of FIDIC were Belgium, France and Switzerland. FIDIC led a
difficult life until the late 1940s with changing numbers of members, all from European
countries. In 1959, these were joined by Australia, Canada, South Africa and the USA. The
first member associations from the developing world, from Central Africa (now Malawi),
Zambia and Zimbabwe, joined in 1962. Colombia joined in 1967. FIDIC has members in 104
countries.
In the pre-1999 documents (for example, in Clause 67 of the old Red Book), the procedure
for handling claims and disputes involved principally the Engineer making a fair and
impartial determination and decision which was binding on the parties unless and until either
party was dissatisfied with that decision and chose to take the matter one stage further - and
that was arbitration.
This procedure worked well for many years until some people - notably lawyers and
the World Bank - began questioning whether the Engineer (as a Party paid by the Employer)
could realistically be expected to act in the manner required by Clause 67 -that is
"impartially".

Reasons for dispute

A Claim is essentially a request from one party (usually the Contractor) for something which
he considers is due to him under the terms of the Contract - and a Dispute arises when the
other party disagrees with the Claimant either on fact or quantum, and the parties cannot
reach an amicable solution.
So Clause 20 is there to allow Contractors their basic right to claim additional compensation
(money or time) in the event that they (the Contractors) feel they have an entitlement under
the Contract to such compensation. And it goes on to provide a mechanism for handling those
claims and any disputes which may arise as a result. As compared to the provisions of the old
Red Book, the 1999 documents have tried to tighten up the rules and procedures concerning
all claims and remove some of the weaknesses and loopholes found in the earlier documents.
Remember also that when the Contractor submits a claim, the burden of proof lies with the
Contractor. It is the Contractor's job to prove his case - it is the Engineer's job to evaluate the
evidence and decide whether the case is proven. The first step is for the Contractor to give
Notice. This he must do within 28 days of becoming aware of the event. This Notice is
important because:
 everyone involved becomes aware that here is an event or circumstance where extra
time or payment may be due to the Contractor
 proper records can then be kept and agreed, to avoid future argument
 alternative measures may also be possible to reduce the effects
 maybe the matter can be resolved at an early date
 if the event or circumstance turns out to be of insignificant effect, then it is not
necessary to follow up the Notice with a formal claim.
Arbitration
The arbitration provisions for non-final DAB (dispute adjudication board) decisions are
effectively the same under both contracts, the party may either refer the dispute to be
finally decided in international arbitration.
The last resort is international arbitration - a long, complicated and expensive process! The
parties are free to agree on rules and procedures, however, if they accept the provisions of
Clause 20.6, then:
 Arbitration shall be according to the ICC (International Chamber of Commerce) rules
and procedures.
 There will be 3 arbitrators appointed according to ICC Rules
 The arbitration will be conducted in the language for communications (Clause 1.4)
 Arbitrators have power to open up, review and revise any decisions,
 Engineer may be called as a witness
 Arbitration may be commenced before or after completion of Works

Conclusion
The international engineering federation FIDIC (the International Federation of Consulting
Engineers) believes that its member associations and their members should strive to achieve
the highest degree of quality and standards. FIDIC has always had policy statements that it
expects its members to follow to ensure high standards of service in the infrastructure
industry. These standards are reflected in FIDICs contracts, policy work, events and
committees.

Reference

1.  "FIDIC | History | International Federation of Consulting Engineers". fidic.org.

Retrieved 2022-11-19.
2.  "FIDIC website". www.fidic.org. 2018.