PROGRAM DETAILS

Overview

FIDIC has always exercised its mandate in the production of various documents, contract forms, guides and manuals to assist Consulting Engineers, Clients/Employers, and Contractors all over the world to perform and deliver services and projects. These publications have facilitated the business practice of Consulting Engineers, Clients/Employers and Contractors alike to establish standards or norms that are used in the construction industry. FIDIC 1999 Conditions of Contract are used all over the world. These Conditions of Contract are used in the Middle East and the Gulf Region, in Europe, Africa, and Asia where Multi-Lateral Development Banks, including World Bank, Islamic Bank of Development, Asian Development Bank have adopted FIDIC 1999 Edition the New Red Book with modifications.

In the present context of the highly competitive construction field, knowing the Contract and the rights and obligations of the Parties under the Contract will avoid future problems, claims, and disputes. Some of the documents are very specific, while others are more of a guideline. Almost inevitably, all of the FIDIC products have had the benefit of a large number of members contributing to the total effort in developing such

Contracts by FIDIC.

The scope of the training workshop is to explain and illustrates how to use the FIDIC 1999 Conditions of Contract. The Course path through practical issues on the FIDIC 1999 Conditions of Contract, including the New Red Book (Construction), Yellow Book (Design-Build), and Silver Book (EPC). During the training workshop, the participants will have the opportunity to open discussions in order to clarify some of the practical issues they face in real life projects.

This special 5-day training workshop has been designed to offer a complete up-to-date review of the effective understanding and use of the FIDIC Contracts currently in use, and includes active participation in ‘hands-on’ workshops and discussion sessions. It also provides a detailed insight into the presentation and analysis of claims under the FIDIC 1999 Contracts. The workshop leader is highly experienced in the use of the FIDIC Contracts and Claims.

The International Federation of Consulting Engineers (FIDIC) has, over the years, issued a number of standard documents for use on construction projects. The contracts that are currently in most common use around the world are: The Conditions of Contract for Construction (The 1999 Red Book); The Conditions of Contract for Plant and Design-Build (The 1999 Yellow Book); The Conditions of Contract for EPC Turnkey Projects (The 1999 Silver Book).

Program Content

Day One:

FIDIC Introduction and presentation of 1999

FIDIC documents/contracts

(Construction Contract; Plant and Design-Build, EPC

Turnkey, Short Form Contract)

• FIDIC introduction
• Background and reasons for change
• Examination of various types of Contracts
• Which Form to Use?
• Allocation of Risks
• Method of Payment
• Measurement

 The Role of the Employer and the Engineer

• Employer’s financial arrangements
• Duties and authority of the Employer and the Engineer
• The changed role of the Engineer
• Determinations

 Notices and Claims Procedure

• Employer’s Claim – clause 2.5
• Contractor’s claims – clause 20
• Failure to notify and time-bar and/or waiver by the Contractor
• Unforeseeable physical conditions
• Prolongation and disruption
• FIDIC relevant clauses to Claims and Disputes

 Day Two:

Claims for Delay

• The Contractor’s obligation
• Extension of Time for Completion (Clauses 8.4 & 8.5)
• Force Majeure delays – clause 19
• Acceleration (direct or constructive acceleration)
• Delay Damages and Penalties for delay
• Delay types (variation orders, contradictions in documents, nominated subcontractors/suppliers, formation (existence) of contracts, not-foreseeable physical conditions)
• Reasons, avoidance, mitigation, analysis and compensation for delays under FIDIC contracts

 Management of Claims

• Claims Causes and Risk
• Inherent project risks
• Allocation of risks under various FIDIC 1999 Contracts
• Analysis of Contractual risk
• Claims procedure
• Clauses require notice by the Contractor
• Employer’s claims
• Delegation by the Engineer
• Engineer’s determination
• Contractor’s claims
• Notification of claims
• Engineer’s assessment
• Contemporary records
• Preparation of claims

Day Three:

Forensic Schedule Analysis for Delay

• Preparing and maintaining project schedule and updates (baseline vs actual progress)
• Time Impact Analysis (TIA)
• Who owns Float?
• Different Methods of Forensic Schedule Analysis
• Comparison of Strengths and Weaknesses of Analysis Methods
• Alternative means of demonstrating or disapproving entitlement for extension of time
• How to quantify delay impact and determine causation/liability (cause-effect)
• Assess responsibility and financial consequences for delay

Delay Problem Areas

• Concurrency of delays
• Acceleration (constructive vs. directed acceleration)
• Pacing delay and delay mitigation by the Contractor
• Compensable and non-compensable delays
• Time at large
• Contemporaneous records

  Claims for Additional Payment

• Payment certification and procedure
• Ground conditions – clause 4.12
• Late possession of site – clause 2.1
• Finance charges and bank interest charges
• Breaches of contract
• Variations
• Prolongation (Extended Site Overheads)
• Disruption and global claim
• Acceleration (crashing costs)

 Claims for Additional Payment

• Payment certification and procedure
• Ground conditions – clause 4.12
• Late possession of site – clause 2.1
• Finance charges and bank interest charges
• Breaches of contract
• Variations
• Prolongation (Extended Site Overheads)
• Disruption
• Cost or Value
• Profit margin
• Global claims

 Employer’s financial claims

• Delay damages
• Defects in work (material, workmanship) and design
• Retention and Bonds (Bank Securities/Guarantees)

Day  Four:

Termination and suspension

•  Responsibilities of the main parties
• Employer’s default
• Contractor’s default
• Termination by the Employer
• Termination by the Contractor
• Force majeure
• Financial consequences

 The Resolution of disputes

•  Principles governing the DAB
• Working with DAB
• Post DAB Decision
• FIDIC alternative – Engineer acting as DAB
• Amicable settlement
• Arbitration and ICC Rules

 The Dispute Boards Procedure and Practice

• General Adjudication Principle
• Procedural Rules
• Dispute Time Table and Position Papers
• Reaching the Decision

Other Alternative Dispute Resolution Methods

Day Five (Hands-On Practical Workshops):

We shall dedicate this day for hands-on practical workshops by the participants to apply the principles and techniques learned in the following areas:

1. Choosing the right procurement method
2. Claims notices and extension of Time under:
   1. The FIDIC 1999 Red Book
   2. The FIDIC 1999 Yellow Book
   3. The FIDIC 1999 Silver Book
3. Delay Analysis Method/Time Impact Analysis
4. Review and Analysis of Contractor’s delay and disruption claim
5. MOCK DAB hearing and decision