Unit 8: Managing Time: FIDIC Red Book practice D31PZ: Contracts and Procurement
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The Parties !
The Employer Defines the Works and pays the Contractor
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The Contractor Regularly and diligently Provides the Works
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The Engineer Uses the FIDIC Red Book contract to administer construction. Makes decisions to signify events.
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Defining the duration of the Works !
Core FIDIC Red Book time-related definitions: !
Commencement Date
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Time for Completion
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Rate of Progress
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Tests on Completion
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Taking-over
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Taking-Over Certificate
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Defects Notification Period
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Delay Damages
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Performance Certificate
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Commencement Date The FIDIC Red Book form also includes forms to structure the invitation to tender and tender acceptance processes.
Annex A
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Once the Letter of Acceptance has been issued...
Annex B
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... and the contract executed ...
Annex C
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the Engineer informs the Contractor of the Commencement Date, not less than 7 days before it.
8.1
The Commencement Date is usually within 42 days of the Contractor’s receipt of the Letter of Acceptance
8.1
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Annex B Annex C
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Commencement Date ! After
the Contractor must commence the Works “as soon as is reasonably practical”
8.1
Once the Works have been started they must be completed “with due expedition and without delay”
8.1
!
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the Commencement Date:
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The programme !
The Contractor must provide the Employer with a programme within 28 days of being told the Commencement Date. !
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The programme is not a contract document as it is provided by the Contractor.
The Employer’s Personnel shall “rely upon the programme” when planning their activities. !
The programme must contain certain information. It will be rejected if it does not.
8.3
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The programme !
The programme must define: !
the sequence and stages of the Works
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the Contractor’s Equipment that will be used
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sequence and timing of tests specified in the contract documents
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a supporting report containing: !
method statements
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estimates of quantities of Contractor’s Personnel and Contractor’s Equipment required in each stage
8.3
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The programme !
On receiving the programme, the Engineer has 21 days to reject it. !
The Engineer must notify the Contractor of rejection.
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The Engineer must state the missing information.
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If the programme is rejected, Contractor has another 28 days to submit a revised programme.
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No penalties for late provision or no provision.
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The Contractor can propose a revised programme in response to a Variation.
8.3
13.3(b)
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Time for Completion !
FIDIC Red Book does not define a date for completion within the contract documents
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Instead, the Time for Completion is defined !
The Contractor and Employer agree how long the Contractor will have to complete the Works.
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This is the Time for Completion ( ___ days )
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This is entered in the Contract Data (Part A of the Particulars) Time for Completion
Commencement Date
8.2
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Time for Completion !
Within the Time for Completion, the Contractor must: !
complete the Works sufficiently for the Employer’s take-over
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ensure that the Works pass the Tests on Completion
8.2
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Extension of Time for Completion !
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Extension of Time for Completion is managed using the claims process
20.1
If the Contractor’s progress is being held up by things it cannot control: ! !
The Contractor can notify the Engineer and ask for an extension of the Time for Completion
8.4
The Contractor must provide notice with 28 days of becoming aware (or should have become aware) of the delay
20.1
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Extension of Time for Completion !
If the Contractor does not provide notice within 28 days, the extension of Time for Completion will not be granted - even if there are contractual grounds for doing so. !
“The Employer shall be discharged from all liability”
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But: !
when did the 28 day period start?
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when should it have started?
20.1
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Extension of Time for Completion ! After
giving notice, the Contractor supports its request for an extension of the Time for Completion with “contemporary records”
! After
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receiving notice, the Engineer can:
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inspect the records the Contractor is keeping
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instruct the Contractor to keep specific records
The Contractor must submit the final, fully-supported request for an extension of the Time for Completion within 42 days of becoming aware of the delay !
If the cause of the delay is continuing, further requests are submitted with additional information at regular intervals
20.1 20.1
20.1
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Extension of Time for Completion !
With 42 days of receiving full claim, the Engineer must respond with a “determination” !
approval / disapproval / comments.
42 days
20.1
42 days
21 days
Delay starts
Notice given
Claim submitted
3.5
Decision given
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Grounds for extension of Time for Completion !
The Engineer must award an extension of Time for Completion if the Works have been delayed by: !
delayed provision of drawings or instructions
1.9
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delay in possession of the site
2.1
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error in the information by which the Works are set out
4.7
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unforeseeable physical conditions
4.12
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fossils, antiquities, etc.
4.24
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instructions for tests other than the Tests after Completion
7.4
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Grounds for extension of Time for Completion !
The Engineer must award an extension of Time for Completion if the Works have been delayed by: !
delays caused by authorities
8.5
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instructing the Contractor to suspend the Works
8.9
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interference with Tests on Completion
10.3
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changes in local legislation
13.7
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the Contractor’s suspension of the Works
16.1
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an Employer’s Risk has occurred (war, etc.)
17.3, 17.4
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Force Majeure
19.4
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Rate of Progress !
If the Engineer determines that: !
the Contractor will not finish the Works within the Time for Completion; or
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the Contractor is not keeping to the programme !
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the Engineer can instruct the Contractor to submit a revised programme and supporting report
The Contractor must adopt the new programme unless the Engineer instructs the Contractor not to ! All
additional costs are borne by the Contractor.
8.6
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Force Majeure !
!
!
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“an exceptional event or circumstance” that neither party could control
19.1
If either the Contractor or the Employer is being affected by Force Majeure, it must notify the other party within 14 days.
19.2
Both parties are obliged to minimise the impact of Force Majeure on the project.
19.3
If the Contractor requests it, the Engineer will grant an extension of Time for Completion
20.1 19.4 8.4
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Force Majeure !
If the Force Majeure continues for 84 days !
and progression of the Works is prevented
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The Contractor or the Employer can terminate the contract by providing notice to the other party
19.6
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Employer’s Taking-Over & Tests on Completion !
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To complete the Works, the Contractor must perform the Tests on Completion defined in the contract documents.
7.4 9.1
The Contractor must give at least 21 days notice of tests to the Engineer.
9.1
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If the tests are passed, the Taking-Over Certificate can be issued.
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The Contractor applies to the Engineer for the Taking-Over Certificate
10.1
If the tests are failed, the Work can be retested, replaced, or left unchanged (with deduction from the Contract Price).
9.1
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Delay Damages !
If the Contractor fails to complete the Works within the Time for Completion, then it must pay Delay Damages.
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Delay Damages are paid at the rate agreed.
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Delay Damages are paid every day between the end of the Time for Completion and the Engineer’s issue of the Taking-Over Certificate.
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The Contractor’s liability for Delay Damages may be limited by the Contract Data, if agreed when executing the contract. !
If present, the limit is a % of the Contract Price.
8.7 Contract Data
8.7
Contract Data
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Defects Notification Period !
Commences on issue of the Taking-Over Certificate !
!
One year long.
11.1 Contract Data
Defects listed on the Taking-Over Certificate must be fixed by the Contractor before the end of the Defects Notification Period. !
If a defect is not fixed, a deduction from the Contract Price can be made, or another contractor employed
the end of the Defects Notification Period, or 28 days from when the last defect was fixed, the Engineer issues the Performance Certificate.
11.4
! At
11.9
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Terminology !
Commencement Date
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Time for Completion
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Tests on Completion
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Taking-Over
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Taking-Over Certificate
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Defects Notification Period
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Delay Damages
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Performance Certificate
Remember to read the full Unit notes and Appendices, and complete your independent study
