FIDIC Management of Projects

GENERAL CONDITIONS
FIDIC 1999 RED BOOK

By: M. Edwin Wiranegara

Jakarta 26 March 2022 (Session 3)
General Conditions – Structure of the documents
(cont’d)
General Conditions – Structure of the documents
(cont’d)
Time periods in the Condition of Contract
Time periods in the Condition of Contract (cont’d)
 Progress
Requirement
 Progress
Requirement
(cont’d)

Continue as Procedures for Disputes (at

Session 5)
 Procedures
for
Workmanship

Continue as Procedures for Completion of Works (at the following

page)
Procedures at Completion of Works
Procedures
during
Defects
Notification
Period
TANGGAL MULAI PELAKSANAAN /
COMMENCEMENT DATE

1.1.3.2 ”Commencement Date”

means the date notified under Sub-Clause 8.1 [Commencement of Works].

8.1 Commencement of Works

The Engineer shall give the Contractor not less than 7 days' notice of the
Commencement Date. Unless otherwise stated in the Particular Conditions, the
Commencement Date shall be within 42 days after the Contractor receives the
Letter of Award.
The Contractor shall commence the execution of the Works as soon as is
reasonably practicable after the Commencement Date, and shall then proceed
with the Works with due expedition and without delay.
MASA PELAKSANAAN

1.1.3.3 ”Time for Completion”

means the time for completing the Works or a Section (as the case may be)
under Sub-Clause 8.2 [Time for Completion] as stated in the Appendix to
Contract (with any extension under Sub-Clause 8.4 [Extension of Time for
Completion]), calculated from the Commencement Date.

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].
 Acceleration – DC - etc

If not, issue letter (Request for

Must get EI prior to
Acceleration Confirmation / RFC) refer to
execution (involve extra No response Re-do RFC
matter s.c 1.5 Consent etc; & s.c 2.5
Resources)
Instruction in writing

Basis for
Got positive Refer to
additional Still
response Applicable
resources’s No response
(Shall be EI) Law
Claim *

C full responsible
for the whole of Stop (no
works to DC acceleration)
(PC 59.7.4) see #

# Notes:
 Kecuali warranty atas work quality & material
 Appointment of DC (maka menjadi penting untuk
masuk tgl2 appointment of DCs pada Master
Schedule di tender stage, agar mengikat) dan
jika late appointment maka C dapat hak utk EOT
dan cost
* Notes:
 Walau ada potensi saving prelim atas schedule
yang diperpendek
 Namun konsekuensi jika delay atas schedule
akselerasi maka bisa saja berpotensi terkena LD
(jika ada kesepakatan baru yang eksplisit,
otherwise tidak ada LD krn percepatan adalah
menjadi benefit 2 pihak yang mana kalau sedikit
meleset mestinya bisa diterima & pandai2nya
Owner mengatur dengan User nya)
ALASAN EXTENSION OF TIME (EoT) &
TAMBAHAN OVERHEAD
8.4 Extension of Time for Completion
The Contractor shall be entitled subject to Sub-Clause 20.1 [Contractor’s
Claims] to an extension of the Time for Completion if and to the extent that
completion for the purposes of Sub-Clause 10.1 [Taking Over of the Works and
Sections] is or will be delayed by any of the following causes:
(a) a Variation (unless an adjustment to the Time for Completion has been
agreed under Sub-Clause 13.3 [Variation Procedure]) or other substantial
change in the quantity of an item of work included in the Contract,
(b) a cause of delay giving an entitlement to extension of time under a Sub-
Clause of these Conditions,
(c) exceptionally adverse climatic conditions,
8.4 Extension of Time for Completion
(cont'd)

(d) Unforeseeable shortages in the availability of personnel or Goods

caused by epidemic or governmental actions, or
(e) any delay, impediment or prevention caused by or attributable to the
Employer, the Employer's Personnel, or the Employer's other
contractors on the Site.
If the Contractor considers himself to be entitled to an extension of the
Time for Completion, the Contractor shall give notice to the Engineer in
accordance with Sub-Clause 20.1 [Contractor's Claims]. When
determining each extension of time under Sub-Clause 20.1, the Engineer
shall review previous determinations and may increase, but shall not
decrease, the total extension of time.
DENDA KETERLAMBATAN

8.7 Delay Damages

If the Contractor fails to comply with Sub-Clause 8.2 Time for Completion, the
Contractor shall subject to Sub-Clause 2.5 [Employer's Claims] pay delay
damages to the Employer for this default. These delay damages shall be the
sum stated in the Appendix to Contract, which shall be paid for every day
which shall elapse between the relevant Time for Completion and the date
stated in the Taking-Over Certificate. However, the total amount due under this
Sub-Clause shall not exceed the maximum amount of delay damages (if any)
stated in the Appendix to Contract.
8.7 Delay Damages (cont'd)

These delay damages shall be the only damages due from the
Contractor for such default, other than in the event of termination
under Sub-Clause 15.2 [Termination by Employer] prior to completion
of the Works. These damages shall not relieve the Contractor from his
obligation to complete the Works, or from any other duties,
obligations or responsibilities which he may have under the Contract.
10.1 Taking Over of the Works and Sections
Except as stated in Sub-Clause 9.4 [Failure to Pass Tests on Completion], the
Works shall be taken over by the Employer when
(i) the Works have been completed in accordance with the Contract, including
the matters described in Sub-Clause 8.2 [Time for Completion] and except as
allowed in sub-paragraph (a) below, and
(ii) a Taking-Over Certificate for the Works has been issued, or is deemed to have
been issued in accordance with this Sub-Clause.
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.
10.1 Taking Over of the Works and Sections
(cont'd)
The Engineer shall, within 28 days after receiving the Contractor's application:
(a) issue the Taking-Over Certificate to the Contractor, stating the date on
which the Works or Section were completed in accordance with the Contract,
except for any minor outstanding work and defects which will not
substantially affect the use of the Works or Section for their intended purpose
(either until or whilst this work is completed and these defects are remedied),
or
(b) reject the application, giving reasons and specifying the work required to
be done by the Contractor to enable the Taking-Over Certificate to be issued.
The Contractor shall then complete this work before issuing a further notice
under this Sub-Clause.
10.1 Taking Over of the Works and
Sections (cont'd)

If the Engineer fails either to issue the Taking-Over Certificate or to reject

the Contractor's application within the period of 28 days, and if the
Works or Section (as the case may be) are substantially in accordance
with the Contract, the Taking-Over Certificate shall be deemed to have
been issued on the last day of that period.
PENYELESAIAN SEBAGIAN &
PROSEDUR SERAH TERIMA PERTAMA

10.2 Taking Over of Parts of the Works

The Engineer may, at the sole discretion of the Employer, issue a Taking-Over
Certificate for any part of the Permanent Works.
The Employer shall not use any part of the Works (other than as a temporary
measure which is either specified in the Contract or agreed by both Parties)
unless and until the Engineer has issued a Taking -Over Certificate for this
part. However, if the Employer does use any part of the Works before the
Taking-Over Certificate is issued:
10.2 Taking Over of Parts of the Works
(cont'd)

(a) the part which is used shall be deemed to have been taken over as
from the date on which it is used,
(b) the Contractor shall cease to be liable for the care of such part as
from this date, when responsibility shall pass to the Employer, and
(c) if requested by the Contractor, the Engineer shall issue a Taking-
Over Certificate for this part.
10.2 Taking Over of Parts of the Works
(cont'd)

After the Engineer has issued a Taking-Over Certificate for a part of the
Works, the Contractor shall be given the earliest opportunity to take such
steps as may be necessary to carry out any outstanding Tests on
Completion. The Contractor shall carry out these Tests on Completion as
soon as practicable before the expiry date of the relevant Defects Liability
Period.
If the Contractor incurs Cost as a result of the Employer taking over
and/or using a part of the Works, other than such use as is specified in
the Contract or agreed by the Contractor, the Contractor shall
10.2 Taking Over of Parts of the Works
(cont'd)

(i) give notice to the Engineer and

(ii) be entitled subject to Sub-Clause 20.1 [Contractor's Claims] to
payment of any such Cost plus reasonable profit, which shall be
included in the Contract Price.
After receiving this notice, the Engineer shall proceed in accordance with
Sub-Clause 3.5 [Determinations] to agree or determine this Cost and
profit.
10.2 Taking Over of Parts of the Works
(cont'd)

If a Taking-Over Certificate has been issued for a part of the Works (other
than a Section), the delay damages thereafter for completion of the
remainder of the Works shall be reduced. Similarly, the delay damages for
the remainder of the Section (if any) in which this part is included shall also
be reduced. For any period of delay after the date stated in this Taking-Over
Certificate, the proportional reduction in these delay damages shall be
calculated as the proportion which the value of the part so certified bears to
the value of the Works or Section (as the case may be) as a whole. The
Engineer shall proceed in accordance with Sub-Clause 3.5 [Determinations]
to agree or determine these proportions. The provisions of this paragraph
shall only apply to the daily rate of delay damages under Sub-Clause 8.7
[Delay Damages], and shall not affect the maximum amount of these
damages.
MASA PEMELIHARAAN

1.1.3.7 Defects Liability Period

”Defects Liability Period” means the period for notifying defects in the Works
or a Section (as the case may be) under Sub-Clause 11.1 [Completion of
Outstanding Work and Remedying Defects], as stated in the Appendix to
Contract (with any extension under Sub-Clause 11.3 [Extension of Defects
Liability Period]), calculated from the date on which the Works or Section is
completed as certified under Sub-Clause 10.1 [Taking Over of Works and
Sections].

11.1 Completion of Outstanding Work and

Remedying Defects
In order that the Works and Contractor's Documents, and each Section, and
shall be in the condition required by the Contract (fair wear and tear
excepted) by the expiry date of the relevant Defects Liability Period or as soon
as practicable thereafter, the Contractor shall:
11.1 Completion of Outstanding Work and
Remedying Defects (cont'd)
(a) complete any work which is outstanding on the date stated in a
Taking-Over Certificate, within such reasonable time as is instructed by
the Engineer, and
(b) execute all work required to remedy defects or damage, as may be
notified by (or on behalf of) the Employer on or before the expiry date of
the Defects Liability Period for the Works or Section (as the case may be).

If a defect appears or damage occurs, the Contractor shall be notified

accordingly, by (or on behalf of) the Employer.
11.3 Extension of Defects Liability Period

The Employer shall be entitled subject to Sub-Clause 2.5 [Employer’s

Claim] to an extension of the Defects Liability Period for the Works or a
Section if and to the extent that the Works, Section or a major item of
Plant (as the case may be, and after taking over) cannot be used for the
purposes for which they are intended by reason of a defect or damage.
However, a Defects Liability Period shall not be extended by more than
two years.
11.3 Completion of Outstanding Work and
Remedying Defects (cont'd)

If delivery and/or erection of Plant and/or Materials was suspended under

Sub-Clause 8.8 [Suspension of Work], or Sub-Clause 16.1 [Contractors
Entitlement to Suspend Work] the Contractor's obligations under this
Clause shall not apply to any defects or damage occurring more than two
years after the Defects Liability Period for the Plant and/or Materials would
otherwise have expired.
 FURTHER CASES / QUESTION

REGARDING
• APA YANG ANDA KETAHUI PERIHAL ITP?, KLAUSUL MANA DIDALAM FIDIC 99 TERKAIT ITP
INI? SEBERAPA PENTINGNYA?
• SOME FEATURES OF THE INSPECTION PROCESS TO WATCH OUT FOR
• ANY INSTRUCTION FOR DEFECTS REPAIR AFTER MASA PEMELIHARAAN
• SYARAT – SYARAT BAST 1
• SALAH SATU SYARAT BAGI OWNER JIKA INGIN MEMPERPANJANG MASA PEMELIHARAAN
APA YANG ANDA KETAHUI PERIHAL ITP?,
KLAUSUL MANA DIDALAM FIDIC 99 TERKAIT
ITP INI? SEBERAPA PENTINGNYA?

• Inpsection & Testing Plan

• Diajukan sesuai Prosedur s.c 8.3
• Sangat penting karena akan menjadi barometer
semua Pihak ketika terjadi kejanggalan dalam
prosesnya
Beberapa ciri-ciri proses Inspeksi
yang perlu diwaspadai
 Syarat – syarat BAST 1
 BAPP
 Tidak ada major defect (minor defect boleh masuk defect list sebagai lampiran
BAST 1)
 As built dwgs
 Operation & maintenance manual (if any)
 Testing sudah selesai sesuai Spec (if any)
 Test & comm sudah tuntas sesuai Spec (if any)
 Lokasi kerja sudah ditempati pihak lain/Owner (if any)
 Jika ada permintaan khusus yang tertera di LoA / Contract Document (if any)
•
• Klausul rujukan:
 11.9 Performance Cert
 4.1 (d) Contractor’s General Obligations
 7.4 Testing
 9.1 Tests on Completion
 10.1 BAST 1
 8.2 Time for Completion
 8.3 & 1.1.6.1 Programme & Contractor’s Document
 SALAH SATU SYARAT BAGI OWNER JIKA INGIN
MEMPERPANJANG MASA PEMELIHARAAN (DNP)
 beri Notice sebelum DNP berakhir (keterangan ini ada pada s.c 2.5,
bukan di 11.3)

Klausul rujukan:
 11.3 (Extension of DNP)
 2.5 (Employer’s Claim)
 1.3 (Communication)
DISCLAIMER • The content of these SLIDES ARE not legal advice,
and is intended for educational purposes only.
You should always consult a suitably qualified
professional regarding a particular legal issue.
FURTHERMORE THE CONTENT ARE CONSIDER AS
DYNAMIC SLIDES AND SUBJECT TO CONTINOUS
IMPROVEMENT IN FUTURE
• The content of these SLIDES contains general
information and may not reflect current legal
developments or information. The information is
not guaranteed to be correct, complete or
current. We make no warranty, expressed or
implied, about the accuracy or reliability of the
information at these SLIDES or at any other
SLIDES/NOTES to which it is linked.
• The content is used for education purposes only
• The Cases example will be shared in a very
limited exposure due to confidentiality on each
individual Project
References:
• FIDIC Red Book – 1st Edition 1999
• FIDIC user’s guide – a practical guide to the 1999 Red Book by Brian W Totterdill
• Contract Administration Handbook (for use w/ FIDIC CoC for Construction) by Euginie Lip,
2009
• FIDIC Red Book – A companion to the 2017 Construction Contract by Jakob B Sorensen
• Michael D. Robinson – An Employer’s & Engineer’s Guide to the FIDIC CoC – Blackwell -
Wiley (2013)
• Michael D. Robinson – A Contractor’s Guide to the FIDIC CoC – Wiley (2011)
• Mr. Mirza Zulfi BSc, MRICS – personal notes and some references
• Mr. Peter Robinson MRICS – intense discussion regarding FIDIC 1999
• From Youtube – 2nd Edition Fidic 2017 Overview Comparison to 1st Edition 1999
• https://fidic.org
• https://www.charlesrussellspeechlys.com
• https://www.thenbs.com/knowledge/a-brief-introduction-to-fidic-contracts
• https://www.pinsentmasons.com/out-law/guides/standard-form-contracts-fidic
• possible other resources not mentioned
 THANK YOU 🙏
M. Edwin Wiranegara
Ir (Civ/Str) MM (Stra. Mgmt) MSc/LLM candidate (Cons. Law) CPPM FRICS
Email: edwinwiranegara@gmail.com, mobile: +62 815 13045431

SENIOR LEGAL MANAGER – TOTAL BANGUN PERSADA Tbk