12.06.

2018

The new FIDIC Rainbow

Auslandsausschuss Sitzung
Braunschweig
Juni 2018

FIDIC Services

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 12.06.2018

Short Version

FIDIC Contracts since 1957

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FIDIC Contracts since 1957

• “Engineer” means the 
person named in the 
Contract Data 
appointed by the 
Employer to act as the 
Engineer for the 
purposes of the 
Contract, or any 
replacement appointed 
under Sub‐Clause 3.6 
[Replacement of the 
Engineer]

YELLOW BOOK The FIDIC Suite of Contracts – currently being updated:

Conditions of Contract for Plant 
and Design Build, for Electrical 
and Mechanical Plant, and For 
Building and Engineering Works, SILVER BOOK
Designed by the Contractor Conditions of Contract for 
‐ launched: December 2017 EPC*/Turnkey Projects
‐ pre‐conference edition  ‐ launched: December 2017
published 2016

RED BOOK
Conditions of Contract for
Construction for Building
and Engineering Works
Designed by the Employer
‐ launched: December 2017

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Underlying philosophies of the 
update of the FIDIC Rainbow Suite
• The fundamental principles which underlie all FIDIC contracts 
are: 
• 1) FIDIC contracts are drafted by engineers experienced in 
design and construction, 
• 2) FIDIC contracts embody a balanced risk allocation between 
the Parties, and 
• 3) The role of ‘the Engineer’ under FIDIC Contracts is critical. 
• The core aim of the majority of the changes in FIDIC’s 2017 
contract updates is increased clarity and certainty, to reduce 
the risk of disagreements regarding the interpretation of 
contract terms and, as a result, increase the probability of 
successful projects. 

Underlying philosophies of the 
update of the FIDIC Rainbow Suite
• Consistent with the above, FIDIC has improved the contract 
provisions by making them more prescriptive and introducing step‐
by‐step project management and procedural mechanisms, by 
setting out exactly what is expected from the Employer, the 
Contractor and the Engineer during the performance of the 
Contract. 
• In updating the three forms of contract, FIDIC has also attempted 
to use simple language since ’ the mother‐tongue of many users is 
not English. This approach is also intended to facilitate the 
translation of the documents into other languages. 

• FIDIC Red, Yellow and Silver Books, second edition 2017: a Review 
of the updated General Conditions of Contract 
– Disributed by FIDIC to IBC users´conference speakers, November 
2017

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Underlying philosophies of the 
update of the FIDIC Rainbow Suite
• The 2nd Edition of the FIDIC Red Book continues FIDIC’s 
fundamental principles of balanced risk sharing while 
seeking to build on the substantial experience gained 
from its use over the past 18 years. For example, the 
new edition provides:
1.greater detail and clarity on the requirements for 
notices and other communications;
2.provisions to address Employers’ and Contractors’ 
claims treated equally and separated from disputes;
3.mechanisms for dispute avoidance and
4.detailed provisions for quality management, and 
verification of Contractor’s contractual compliance.

Content
• Clauses 1 to 21. . . . . . . . . . . . . . . . . . . 1
• Appendix: General Conditions of Dispute
Avoidance/Adjudication Agreement. . . 107
• Annex: DAAB Procedural Rules . . . . . 117
• Index of Sub-Clauses. . . . . . . . . . . . . 124

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Content
• Guidance for the Preparation of Particular Conditions
• Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
• Introductory Guidance Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
• Particular Conditions Part A – Contract Data . . . . . . . . . . . . . . . . . . . . . . . 3
• Particular Conditions Part B – Special Provisions. . . . . . . . . . . . . . . . . . . . 8
• Notes on the Preparation of Tender Documents. . . . . . . . . . . . . . . . . . . . .10
• Notes on the Preparation of Special Provisions . . . . . . . . . . . . . . . . . . . . .13
• Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 14
• Advisory Notes to Users of FIDIC Contracts
Where the Project is to Include
Building Information Modelling Systems. . . . . . . . . . . . . . . . . . . . . . . . . . 53
• Annexes: Forms of Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Content
• Forms of Letter of Tender, Letter of Acceptance, 
Contract Agreement and Dispute 
Adjudication/Avoidance Agreement
• Letter of Tender. . . . . . . . . . . . . . . . . . . . . . . . . . . . i
• Letter of Acceptance. . . . . . . . . . . . . . . . . . . . . . .  ii
• Contract Agreement. . . . . . . . . . . . . . . . . . . . . . .  iii
• Dispute Avoidance/Adjudication Agreement. . .  iv

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Base  Submission  Performance 

Date of Tender Certificate

Contract Taking‐Over 
Date Certificate
28 
Days

Pre Design & 
DNP
Contract Build

+ 28 DAAB 
Site Visit
in place

Scrutiny Yellow Book Timeline

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© RA Dr. Hök

Base  Submission  Performance 

Date of Tender Certificate

Contract Taking‐Over 
Date Certificate
28 
Days

Pre Design  DNP

Contract & Build Delay
attributable

to the
Time for Completion Contractor
Tender Period
Reme‐
of detects
diation

Site Visit Yellow Book Timeline

Scrutiny 14
© RA Dr. Hök

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Perspective of Consultant Engineers
• Contract Administration Services [Time]: 
[Procurement]  Contract Date / 
Commencement Date  Taking‐Over  DNP 
 Performance Certficate [Risk: Extensions]
• Contract Administration Services [Content]: 
„Normal course“ or „terminated contract“ or
reduction of Contract Price
• Additional Risk: Claims and Disputes, 
Engineer´s duties to give Notices …

Long Version

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Differences or Changes
• No fundamental  • Editorial changes
changes in policies • Fundamental Changes
• Still balanced risk • Increase of words + 
allocation more definitions
• Different procurement • Procedural aspects
routes retained become much more
• But  important

The Updates
• After roughly 18 years of experience with FIDIC 
1999 it was time to look forward
• The new suite of Contracts will provide users with
– Editorial changes & clarifications
– Fundamental and substantial changes
– Improved approach as to risk & insurance & force
majeure
– Very structured and complex claims´ & disputes´
machinery

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Highlights
• FIDIC "strongly supports best practice", but 
users must be committed to comply with it
• FIDIC outlined a new claims´ procedure that 
includes traditional and a significant number 
of new elements
• FIDIC promises “better results", though this 
promise offers little in the way of specifics.

Updating the ‘Rainbow’ 1999 ‐ sources
• Contract Users’ feedback
• More Contract User’s feedback!
• FIDIC Conditions of Contract for Design, Build and Operate Projects, 1st Edition 
2008 (‘the Gold Book’)
• FIDIC Conditions of Contract for Construction Multilateral Development Banks 
(MDB) Harmonised Edition [2010]
• FIDIC CC’s Special Advisors’ proposed update items
– Dr. N. Bunni, Axel Jaeger, M.M Hawkins, Chris Wade
• Latest international construction trends and good‐practices
• Feedback (not project‐specific) from the ICC (International Chamber of 
Commerce)
• Court judgments (where relevant)
• Friendly reviewers’ feedback  update of Yellow Book, Red Book & Silver Book
• >50 eminent professionals from around the world representing many 
stakeholders: Employers, Contractors, Engineers, construction lawyers, 
funding institutions, professional organisations, governmental agencies, 
equipment suppliers …

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YB Update 2017
• Editorial changes
• Definitions in an alphabetical order
• Abbreviations used [e.g. IPC, NOD, DNP, FPC, etc.]
• Clauses subdivided in Sub‐Sub‐Clauses, e.g. S‐C 3.7.1 …, 
4.12, 20.1 etc.
• Extension to 21 Clauses
• Now: 172 Sub‐Clauses plus Sub‐Sub‐Clauses
• Renaming of Clauses [e.g. FM = Exceptional Risks]
• Former S‐C 4.10 divided in S‐C 2.5 [Site Data] and S‐C 4.10 
[Use of Site Data]
• Restructuring of Clauses [Insurance now Clause 19, 
Employer´s Claims now Clause 20, Dispute Resolution now
Clause 21]

YB 2017
New Definitions
• Contract Data [S‐C 1.1.11]
• CV System [S‐C 1.1.7]
• Dispute [S‐C 1.1.29]
• Exceptional Event (formerly
FM) [S‐C 1.1.37]
• Fully detailed Claim [20.2.4]
• Key Personnel [S‐C 1.1.48]
New Definitions (cont´d)
• No‐objection [S‐C 1.1.55]
• Notice [S‐C 1.1.56]
• NOD [S‐C 1.1.57]
• Performance Damages [S‐C 
1.1.63]
• QM System [S‐C 1.1.69]
• Review [S‐C 1.1.71]

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YB Update 2017
• Fundamental Changes
– Errors in the ER (YB)
• YB S‐C 5.1: ~ wording YB 1999, now combined with
• S‐C 1.9: Variation approach (formerly Cost plus profit)
– Financial Arrangements [S‐C 2.4]: (1) Arrangements 
as per Contract Data (2) entitlement to evidence
only if particular conditions are met
– Engineer to act „neutrally“ [S‐C 3.7]
• More specific: The Engineer shall make a fair 
determination of the matter or Claim, in accordance with 
the Contract, taking due regard of all relevant 
circumstances (S‐C 3.7.2]

YB Update 2017
• Fundamental Changes
– Engineer to proceed within time limits [S‐C 3.7.3]
– Effects of Engineer´s actions clearly stated [S‐C 3.7.4]
– Requirement to give NOD in respect of Engineer´s
determinations (including requirement to motivate
NOD) [S‐C 3.7.5]
– Wording proposes that „Determination“ and „NOD“ 
are a condition precedent for adjudication [S‐C 
3.7.5]
– Management Meetings [S‐C 3.8]; formerly a mere
option in Guidance Notes

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YB Update 2017
• Fundamental Changes (cont´d)
– Extended Health & Safety requirements [S‐C 4.8]
– Extended Quality Management requirements [S‐C 4.9]
• Quality Management System [S‐C 4.9.1]
• Compliance Verification System [S‐C 4.9.1]
– Protection of the Environment [S‐C 4.18]
– Programming –> much more detailed [S‐C 8.3]
– Advance warning now owed reciprocally [S‐C 8.4]
– Enhanced wording on EOT,  concurrency [S‐C 8.5]
– Extended wording regarding „Delays caused by Authorities“, e.g. 
private utility entities [S‐C 8.6]
– Amended wording regarding TOC [S‐C 10.1 (a) to (e)]
– Amended wording regarding post contractual liability for plant 
and equipment [S‐C 11.10]

YB Update 2017
• Fundamental Changes (cont´d)
– Amended wording regarding Value Engineering [S‐C 13.2 (ii)]: Eng. 
shall consider the sharing of benefits, costs and/or delay
– Amended wording regarding Variation procedure [S‐C 13.3.1]
• Notice requirement [S‐C 3.5]
• Variation by instruction & Variation by Request for Proposal
• Evaluation of Variations
– Special Advance Payment Certificate [S‐C 14.2.2]
– Additional assessment rule [sanction] in respect of IPCs [S‐C 14.6.2 
(c)]
– Correction procedure regarding Payment Certificates [S‐C 14.6.3]
– FPC procedure [S‐C 14.13]
– Revised wording in respect of Employer´s claims in connection with
termination for cause [S‐C 15.4]
• Rectifying previous shortcomings
– Revised consequence of termination for convenience [S‐C 15.6 (b)]: 
„entitlement to loss of profit or other losses and damages …“ 

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YB Update 2017
• Fundamental Changes (YB)
– Re‐re‐formatted risk allocation wording
• Gold Book approach abondoned
– Extension of Contractors´s liability for failure to achieve fitness for
purpose [S‐C 17.4]: express duty to indemnify and hold harmless
against all errors in the Contractor´s design of the Works and
other professional services which result in the Works not being fit 
for purpose
– New mitigation wording [S‐C 17.6]
– New requirement to provide insurance against the Contractor´s
breach of professional duties [S‐C 19.2.3] for period as specified in 
Contract Data
• PI insurance required
– Amicable Settlement before arbitration now reduced to 28 days

YB Update 2017
• Fundamental Changes
– Revised Claims´ procedures‐
• Unified Approach Employer´s & Contractor´s Claims
• Straightforward claims´ corridor similar as under FIDIC 
Gold Book, 2008, but much more sophisticated
– New claim related features like, „initial notice“, 
„NOD“, new time bars also for Engineer´s duties
– Revised and separate Dispute Resolution Clause
21
– New name: DAB  DAAB

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YB Update 2017 Procedural Aspects
• Claim
– 1.1.5 “Claim” means a request by either Party for an entitlement (which may include 
any matter of entitlement, not limited to payment and/or extension of time) under 
these Conditions, or in connection with or arising out of the Contract, and to which 
Sub‐Clause 20.1 [Claims] applies.
• Dispute
– 1.1.29 “Dispute” means a situation where: … 
• Claim as defined – or other matter to be determined by the Engineer
– Rejection …  not acquiese … 
• Possible Conclusion: If there is no Claim there is no Dispute,
– but need to read Clauses 20 and S‐C 3.7
• DAB Decision
– Do DAABs still have jurisdiction?
• to decide on legal or technical questions without reference to „a request … for an entitlement“?
– Thesis: Yes, if there is a „matter which requires a determination by Engineer“
• to decide on clarifications or instructions?
• to decide on bad quality without discussing Employer´s claims?
– What happens if a condition under Sub‐Clause 1.1.29 is not met?

Programme
• 1.1.67 “Programme”  • S‐C 8.3 
means a detailed time  • Programme to be
programme prepared  submitted + 28 days
and submitted by the  • Programming software
Contractor to which the  to be used
Engineer has given (or is 
deemed to have given) 
a Notice of No‐
objection under Sub‐
Clause 8.3 
[Programme].

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Programming Content
• (a) the Commencement Date and the Time for  • (e) the sequence and timing of inspections and 
Completion, of the Works and of each Section (if  tests specified in, or required by, the Contract;
any); • (f) for a revised programme: the sequence and 
• (b) the date right of access to and possession of  timing of the remedial work (if any) to which the 
(each part of) the Site is to be given to the  Engineer has given a Notice of No‐objection 
Contractor in accordance with the time (or times)  under Sub‐Clause 7.5 [Defects and Rejection] 
stated in the Contract Data. If not so stated, the  and/or the remedial work (if any) instructed 
dates the Contractor requires the Employer to  under Sub‐Clause 7.6 [Remedial Work];
give right of access to and possession of (each  • (g) all activities (to the level of detail specified in 
part of) the Site; the Employer’s Requirements), logically linked 
• (c) the order in which the Contractor intends to  and showing the earliest and latest start and 
carry out the Works, including the anticipated  finish dates for each activity, the float (if any), and 
timing of each stage of design, preparation and  the critical path(s);
submission of Contractor’s Documents,  • (h) the dates of all locally recognised days of rest 
procurement, manufacture, inspection, delivery  and holiday periods (if any);
to Site, construction, erection, installation, work  • (i) all key delivery dates of Plant and Materials;
to be undertaken by any nominated 
Subcontractor (as defined in Clause 4.5  • (j) for a revised programme and for each activity: 
[Nominated Subcontractors]), testing,  the actual progress to date, any delay to such 
commissioning and trial operation; progress and the effects of such delay on other 
activities (if any); and
• (d) the Review periods under Sub‐Clause 5.2.2 
[Review by Engineer], and periods for Review for  • (k) a supporting report which includes:
any other submissions specified in the Employer’s  – …
Requirements or required under these 
Conditions;

Programming Content
Commencement Sequence of work
Access to the Site
Date activities

Commencement
Review Periods Tests & Inspections
Date

Key Delivery days of
Remedial work Local Rests & holidays
supplies

Resources

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Resource based Programme

• (k) a supporting report which  • ~ resource based programme
includes: – Method statements
– (i) a description of all the major stages  – Staff and Labour
of the execution of the Works; – Contractor´s Equipment 
– (ii) a general description of the methods 
which the Contractor intends to adopt 
in the execution of the Works;
– (iii) details showing the Contractor’s 
reasonable estimate of the number of 
each class of Contractor’s Personnel, 
and of each type of Contractor’s 
Equipment, required on the Site, for 
each major stage of the execution of 
the Works;
– (iv) if a revised programme, 
identification of any significant 
change(s) to the previous programme
submitted by the Contractor; and
– (v) the Contractor’s proposals to 
overcome the effects of any delay(s) on 
progress of the Works.

1.1.88 “Variation” means any change to the Works, which is 
instructed as a variation under Clause 13.
• S‐C 3.5 • 13.3.1 The Engineer may instruct a Variation 
• If an instruction states that it constitutes a  by giving a Notice (describing the required 
Variation, Sub‐Clause 13.3.1 [Variation by  change and stating any requirements for the 
Instruction] shall apply. recording of Costs) to the Contractor in 
• If not so stated, and the Contractor considers  accordance with Sub‐Clause 3.5 [Engineer’s 
that the instruction: Instructions].
– (a) constitutes a Variation (or involves work  • 13.3.2 The Engineer may request a proposal, 
that is already part of an existing Variation);  before instructing a Variation, by giving a 
or Notice (describing the proposed change) to 
– (b) does not comply with applicable Laws or  the Contractor
will reduce the safety of the Works or is 
technically impossible
• the Contractor shall immediately, and before 
commencing any work related to the 
instruction, give a Notice to the Engineer 
with reasons. If the Engineer does not 
respond within 7 days after receiving this 
Notice, by giving a Notice confirming, 
reversing or varying the instruction, the 
Engineer shall be deemed to have revoked 
the instruction. Otherwise the Contractor 
shall comply with and be bound by the terms 
of the Engineer’s response.

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Claims ‐ New Clause 20
• Employer´s & Contractor´s claims are dealt with likewise [S‐C 20.1]
• Claim Notice with time bar + sanction [S‐C 20.2.1] [28 days]
• Engineer´s Initial Response, with reasons [S‐C 20.2.2] [14 days]
• Record keeping imposed on both Parties + sanction [S‐C 20.2.3]
• Fully detailed claim with time bar + sanction [S‐C 20.2.4] [84 
days], 
– including details regarding dissatisfaction with Engineer´s Initial 
Response
• Engineer to give a Notice in respect of delayed submission of
particulars [S‐C 20.2.4]
• Agreement   if not Determination
– Reference to S‐C 3.7 [S‐C 20.2.5] – Determination by fully neutral 
Engineer

Matters as referred to in S‐C 1.1.29

• „Dispute“ means where
– A „matter to be determined by the Engineer under 
these Conditions” has appeared / “was made” (one 
Party makes a claim … which may be …)
– (which means one Party has made an undefined “claim”)
• Thesis: “… under these conditions” does not exclude 
“matters” which are not expressly subject to a 
determination in accordance with S‐C 3.7
– The other Party or the Engineer has rejected the 
undefined “claim” or “matter”
– The first Party does not acquiesce …

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Delayed Notice and/or Particulars

• Claim Notice
Claim  Record Particulars
• Engineer´s Initial Response Notice Keeping [20.2.4 a‐d]

• Dissatisfaction procedure within within

28 days 84 days
• Record keeping
• Particulars Engineer´s Engineer´s
• Engineer´s Response Response Response

• Delays will be treated
– at determination level Excused Excused
delay delay

Claim Notice

Too late 

Particulars (b) too late  claim notice except
no claim deemed to have lapsed

(a) a detailed description of the event or if Engineer fails to give a Notice 

circumstance giving rise to the Claim; within 14 days  vaild notice, or

(b) a statement of the contractual 
and/or other legal basis of the Claim;
Engineer has given such Notice and the other Parties
(c) all contemporary records on which  disagrees with the as deemed as „valid notice“ 
the claiming Party relies; and determination on failure

(d) detailed supporting particulars of the amount of additional payment claimed (or 
amount of reduction of the Contract Price in the case of the Employer as the claiming 
Party), and/or EOT claimed (in the case of the Contractor) or extension of the DNP 
claimed (in the case of the Employer).

19
 12.06.2018

1st delay 2nd delay
S‐C 20.2.1 S‐C 20.2.3 S‐C 20.2.4 S‐C 20.2.5 S‐C 3.7.3 S‐C 3.7.3
+28 +14 (42) +42 +42

Fully Request for Consulta‐

Claim  Record tion Determina‐
detailed more
Notice Too Keeping (Endeavour to tion
late Claim Too details agree) 
late

Engineer´s YES  Engineer´s Describe

Notice of
Response NO Response required
Agreement
S‐C 2.2.2 S‐C 2.2.4 details

Sanction Give response

Dissastis‐ Dissatis‐
Assessment  on contractual
faction faction basis
Rule No
Eng. Res‐
ponse
S‐C 20.2.6 S‐C 20.2.5
Deter‐ Deter‐
mination mination

Main Path Notice Details Consultation Determination NOD Referral to DAB

S‐C 3.7.5  S‐C 21.4.1  S‐C  21.4.3 

+42 +28 +42 +84
Consul‐ Referral
tation

YES  Determina‐ YES  YES  DAB 

NO NO NOD NO
tion Referral

No
Deemed No DAB 
Determina‐ No NOD Decision
rejected Referral
tion

Determi‐ NOD 
Deemed
nation =  deemed to S‐C 21.4.1
rejected
final have lapsed

20
 12.06.2018

Determination of Matters
• 1.9 (YB) [errors in ER]
• 4.7.3 [errors in items of reference]
• 10.2 [reduction DD]
• 11.2 [determination of Cause]
• 13.3.1/2 [adjustment of Contract
Price]
• 13.5 [resources]
• 13.7 [Changes in Law]
• 14.4 [revised instalments]
• 14.6 [IPCs]
• 14.5 [amounts for shipped materials]
• 15.3 [Valuation of Perma‐nent
Works]
• 15.6 [Valuation of „work done“]
• 18.5 [Valuation of „work done“]
• 20 [Claims]

Claims, Other Matters, Determination
Undefined
{Route 1} claim
{Route 2} {Route 3?}

[Defined]  Other matter to be determined by the 

Claim Engineer under these Conditions, or 
1.1.5 otherwise

Request by one  3.7 Dispute Referral DAB

Party to the other 
Party for an

entitlement under any Clause of these Conditions or 
or otherwise, in connection with, or arising out 
of, the Contract or the execution of the 
relief Works

21
 12.06.2018

Dispute Resolution ‐ New Clause 21
– Change to the policy pay now argue later [S‐C 
21.4.3 (b)]
– Amendments regarding NODs (reasons for
dissatisfaction must be given)
– New avoidance of disputes clause [S‐21.3]
– Modifications regarding the enforcement of DAB 
decisions [S‐C 21.7]
– No payment certificate required any more, [S‐C 
21.4.3]

Reasonable
grounds

Request
Referral for Security Decision NOD

S‐C 21.4.3 para. 5 (ii): the DAB may, at the  Issue:

request of a Party and as part of the  What happens, if no 
decision, require the payee to provide an  NOD will be given?
appropriate security in respect of such  Is there a gap? 
payment

Requirement to with
provide appropriate
security reasons
Issue:
What happens, if no 
reasons will be given?
Will the decision become
final & binding

22
 12.06.2018

Request
Referral for Decision NOD
Security
require anyway

security
S‐C 21.4.3
(b) the DAB may, at  Submit
the request of a 
Party and as part of 
invoice
the decision, require 
the payee to provide 
an appropriate 
security in respect of 
such payment
Payment

GH1
GH2 Dispute Avoidance 1st option
1st delay 2nd delay
S‐C 20.2.1 S‐C 20.2.3 S‐C 20.2.4 S‐C 20.2.5 S‐C 3.7.3 S‐C 3.7.3
+28 +56 (84) +42 +42

Fully Request for Consulta‐

Claim  Record tion Determina‐
detailed more
Notice Keeping (Endeavour to tion
Claim details agree) 

Engineer´s YES  Engineer´s Describe

Response Response required S‐C 21.3: 
NO
S‐C 2.2.2 time, but …
S‐C 21.3 at anyS‐C 2.2.4 details prohibited while
S‐C 21.3 Dispute Avoidance Activities upon joint request exercising duties
Sanction Give response
in acc. with S‐C 
Dissatis‐ Dissatis‐
faction
Assessment 
faction
on contractual 3.7
Rule basis
No
Eng. Res‐
ponse
S‐C 20.2.6 S‐C 20.2.5
Determi‐ Determ‐
nation ination

23
Folie 46

GH1 S-C 21.3 provides: Such joint request may be made at any time, except during the period that the
Engineer is carrying out his/her duties under Sub-Clause 3.7 [Agreement or Determination] on the
matter at issue or in disagreement unless the Parties agree otherwise.
Götz-Sebastian Hök; 03.01.2018

GH2 What does this mean? Do the dutie sof the Enginer start on when he has received a fully detailed
claim or already when he starts monitoring record keeping?
Götz-Sebastian Hök; 03.01.2018
 12.06.2018

Programming shall include…

the date right of 
Commencement Order of work Activity Activity
access to and 
Date activities 1 2 …
possession of the SIte

Sequence &  Sequence &  Days of rest  Key delivery 

Review 
timing of tests timing of and holiday  dates of Plant 
Periods
& inspections remedial works periods and Materials

In respect of each activity the actual progress 
to date, any delay to such progress and the 
effects of such delay on other activities (if any)

showing the earliest and latest start and finish dates for each activity, the float (if any), and 
the critical path(s

Extension of Time
• Extension of Time for Completion – Sub‐Clause 8.5:

• Sub‐paragraph (c) “exceptionally adverse climatic conditions”

– i.e. “climatic conditions at the Site which are Unforeseeable having regard to climatic 
data made available by the Employer under Sub‐Clause 2.5 [Site Data and Items of 
Reference] and/or climatic data published in the Country for the geographical 
location of the Site”.

• Last paragraph ‐ concurrent delay:

– “If a delay caused by a matter which is the Employer’s responsibility is concurrent with 
a delay caused by a matter which is the Contractor’s responsibility, the Contractor’s 
entitlement to EOT shall be assessed in accordance with the rules and procedures 
stated in the Particular Conditions (if not stated, as appropriate taking due regard of 
all relevant circumstances).”

• Delays Caused by Authorities (& Private Utilities …) – Sub‐Clause 8.6:

– ‐ addition of delay caused by “private utility entities”

24
 12.06.2018

Taking‐Over of Works or Section

• Taking Over the Works and Sections – Sub‐Clause 10.1:
• Additional new conditions for taking over:

– Notice of No‐objection (actual or deemed) to as‐built records & O&M manuals
– Completion of training, if any.

• If Engineer does not issue Taking‐Over Certificate (ToC) or give Notice of rejection < 28 
days but conditions have been fulfilled:

– the Works / Section deemed to have been completed on 14th day after Contractor’s application for 
ToC,
– and ToC deemed to have been issued.

• Clarification

– “If any Part of the Works is taken over under Sub‐Clause 10.2 [Taking Over Parts], the remaining 
Works or Section shall not be taken over until the conditions described in sub‐paragraphs (a) to (e) 
above have been fulfilled.”

Taking‐Over of Parts
• Taking Over Parts – Sub‐Clause 10.2:
– Contractor to give Notice to Engineer if Employer 
uses any part of the Works
• identifying the part & describing the use
– Engineer shall “immediately” issue a ToC for that 
part
– Reduction of Delay Damages: after deemed taking 
over (not after TOC – as YB1999)

25
 12.06.2018

Interference
• Interference with Tests on Completion – Sub‐
Clause 10.3:
• Contractor prevented > 14 days: “either a continuous 
period, or multiple periods which total more than 14 
days)”
– Contractor to give Notice to Engineer – describing 
the prevention
– Engineer shall “immediately” issue a ToC for the 
Works / Section

Changes in Cost
• Adjustments for Changes in Cost – Sub‐Clause 
13.7:
– Formula in YB1999 replaced: “schedule(s) of cost 
indexation”
– No schedule in the Particular Conditions “this Sub‐
Clause shall not apply”.

26
 12.06.2018

Contract Price / Payment
• “Cost Plus Profit” – “Cost plus the applicable percentage for profit stated in the 
Contract Data (if not stated, five percent (5%))
– … only be added to the Contract Price, where the Contractor is entitled under a Sub‐Clause of these 
Conditions”.

• Provisional Sums – Sub‐Clause 13.4:
• ‐ the Engineer’s instruction “may include a requirement for the Contractor to submit 
one or more quotations from his suppliers and/or subcontractors”
• Engineer´s: instruct Contractor to accept particular quotation(s) or revoke instruction
• No Engineer’s response < 7 days: “at the Contractor’s discretion”
• Adjustments for Changes in Laws – Sub‐Clause 13.6:
• Added: • change in “any permit obtained by the Employer” under s‐c 1.13
• change in “the requirements for any permit, permission, licence and/or 
approval to be obtained by the Contractor” under s‐c 1.13
• Decrease in Cost: “the Employer shall be entitled subject to Sub‐Clause 20.2 [Claims 
For Payment and/or EOT] to a reduction in the Contract Price”
• Change in execution of the Works: Notice to/from the Contractor from/to the 
Engineer and  Engineer to instruct a Variation or request proposal for Variation

Payments
• Advance Payment – Sub‐Clause 14.2:
– 14.2.1: Advance Payment Guarantee
– 14.2.2: Advance Payment Certificate
– 14.2.3: Repayment of Advance Payment

• Application for Interim Payment – Sub‐Clause 14.3:
– new items to be included in the Statement:
– amounts for Provisional Sums,
– amounts for release of retention money
– deductions for utilities provided by Employer.

• Schedule of Payments – Sub‐Clause 14.4:
– if revised instalments, Engineer to proceed under s‐c 3.7 [Agreement or 
Determination]

27
 12.06.2018

Payments
• Plant and Materials intended for the Works – Sub‐Clause 14.5:
• Amount: Engineer to proceed under s‐c 3.7 [Agreement or Determination]
• Sum to be certified for payment = 80% of the amount agreed/determined.
• Issue of IPC – Sub‐Clause 14.6:
• S‐C 14.6.1: The IPC  amount: “the Engineer fairly considers to be due”
– including additions/deductions due: under s‐c 3.7 or under the Contract or 
otherwise
• S‐C 14.6.2: Withholding (amounts in) an IPC
• Engineer to give Notice “with supporting particulars of the value withheld”
• If Engineer finds “any significant error or discrepancy” in Statement:
– “the amount of the IPC may take account of the extent to which this error or 
discrepancy has prevented or prejudiced proper investigation of the amounts in 
the Statement until such error or discrepancy is corrected in a subsequent 
Statement”
– but: “… the Engineer shall detail his calculation of the amount and state the 
reasons for it being withheld”

Correction of previous IPCs

• 14.6.3: Correction or modification
– “If the Contractor considers that an IPC does not include 
any amounts to which he is entitled, he shall identify these 
amounts in his next Statement (the “identified amounts” in 
this paragraph). The Engineer shall then make any 
correction or modification that should properly be made 
in the next Payment Certificate” if Contractor not satisfied 
with next IPC and S‐C 3.7 [Agreement or Determination] 
does not apply and “the accumulated total of the 
identified amounts that remain uncertified for payment 
exceeds five percent (5%) of the Accepted Contract 
Amount” Contractor can refer it to the Engineer for 
agreement/determination under S‐C 3.7

28
 12.06.2018

Punctual and Unpunctional Payments

• Payment – Sub‐Clause 14.7:
– Periods for payment as stated in Contract Data, but default:
• advance payment: 21 days after Employer receives the Advance Payment Certificate
• interim payment: 56 days after Engineer receives the Statement
• final payment: default 56 days after Employer receives the FPC.
• Delayed Payment – Sub‐Clause 14.8:
– express statement that no requirement for Contractor to comply with Sub‐
Clause 20.2 [Claims for Payment and/or EOT].
• Release of Retention Money – Sub‐Clause 14.9:
– Contractor to include retention monies to be released in his Statement
– Engineer to certify release in the next IPC after receiving each such 
Statement
• Statement at Completion – Sub‐Clause 14.10:
– estimated amounts to be shown separately for:
• Contractor’s claims
• any matter referred to DAB
• any matter for which NOD given to DAB’s decision.

Final Payment
• Final Statement – Sub‐Clause 14.11:
– 14.11.1: Draft Final Statement: including estimates for claims, matters referred 
to DAB, matters for which NOD given to DAB’s decision
– 14.11.2: Agreed Final Statement
• if no estimated amounts under 14.11.1 ‘Final Statement’
• if estimated amounts under 14.11.1  Engineer/Contractor discussions
• ‘Partially Agreed Final Statement’ with disagreed amounts shown 
separately.
• Discharge – Sub‐Clause 14.11:
– no discharge submitted  deemed to have been issued when conditions (a)&(b) 
met
• discharge “shall not affect either Party’s liability or entitlement in respect of any Dispute 
for which arbitration is in progress under Sub‐Clause 21.6 [Arbitration]”.
• Issue of FPC – Sub‐Clause 14.13:
– amount “the Engineer fairly considers to be due”
• including additions/deductions due under S‐C 3.7 or the Contract or otherwise
• giving credit to the Contractor for: amounts paid by the Contractor and
• received by the Employer under the Performance Security
– Then: Engineer to issue an IPC for Partially Agreed Final Statement

29

Claims ‐ News
Rainbow Edition 1999
• No definition of claim
• No definition of Notice
• No definition of Dispute
Rationale GB
• Establish an operational pipeline
from an event [intake] to a decision
of a dispute [outlet]
• In order to avoid shortcomings and
gaps in the treatment of „matters“
the intake must be broad enough..
Claims´ Procedure
• Both Parties shall
proceed in accordance
with Sub‐Clause 20.2
– Become aware of the
event or circumstance
not
– Give Notice [not later than
28 days after having
become aware or should
have become aware of the
event or circumstance]
– Keep contemporary
records
– Submit full details
Otherwise
12.06.2018
YB Update
• Definition of „Claim“ [S‐C 1.1.5]
• Definition of „Notice“ [S‐C 
1.1.56]
• Definition of „Dispute“ [S‐C 
1.1.29]
• Defintion of „NOD“ [S‐C 1.1.57]
• Definition of „Fully Detailed
Claim“ [S‐C 20.2.4] 
• Engineer shall 
– If Notice was given too late
give initial response [S‐C 
20.2.2]
If
– give exceptionally his/her 
response on the contractual 
or other basis under [S‐C 
20.2.5, 20.2.6]
If
not – If details are too late give
preliminary response [S‐C 
20.2.4]
– proceed in acc. with S‐C 3.7
• Consult with both Parties & 
make a determination
30
 12.06.2018

Sub-Clause 1.1.5 … a request … for an entitlement or relief …

Sub-Clause 20.1 Sub-Clause 20.2 // and Sub-Clause 3.7

A Claim arise, if … Contemporary Records S-C 3.7 S-C 3.7
accessible to the Engineer

Within Within
within within further further
start 28 days 84 days 42 days 42 days
Event

the Party the Party shall the Party shall the Engineer the Engineer
the became or give notice and send a „fully shall consult make a
event should have particulars detailed with both deter-
occurs become describing the claim“ which Parties in mination in
aware of the event giving includes full the accordance
event rise to the supporting endeavour with Sub-
as soon as practicable
claim latest particulars of to reach Clause 3.7
and agreement
considers within 28 days the basis of cut-off
the claim cut-off
himself to period
cut-off period period
be entitled deemed to
cut-off period deemed to be rejected
be rejected

Claim Process has become streamlined

If no Agreement If no Determination  If no NOD 
If no Particulars claim
was achieved claim is deemed to Determination 
is foreclosed
3.7.2 applies be rejected becomes final

84
28 days +56 days +42 days +42 days +28 days

E N P D NOD
Particulars Response Determi
Event Notice NOD
[Fully Detailed] on basis of claim nation
+14 +14(optional)
IN  IN 
1 2
Consultation
Excuse Excuse

Approval – Disapproval‐
Consultation‐ must be IN‐initial Response, 
20.2.2 / 20.2.4
carefully surveyed

31
 12.06.2018

Fully Detailed Claim [S‐C 20.2.4]

• In this Sub‐Clause 20.2, "fully detailed  • Questions
Claim" means a submission which  – Does the language „a submission“ 
includes: suggest that either Party has a single
• (a) a detailed description of the event  shot (submission) only?
or circumstance giving rise to the  • What does „detailed“ mean?
Claim; – Arguably Claim substantiation is the 
• (b) a statement of the contractual  process of proving and documenting 
and/or other legal basis of the Claim; that the claims a Party plans to make 
• (c) all contemporary records on  are true. Reasonable proof and 
which the claiming Party relies; and appropriate documentation must be in 
• (d) detailed supporting particulars of  place.
the amount of additional payment  – German Courts frequently use the
claimed (or amount of reduction of  term „burden of substantiation“ in 
the Contract Price in the case of the  same breath with the term „burden of
Employer as the claiming Party),  proof“. 
and/or EOT claimed (in the case of  – Inadequate substantiation may result
the Contractor) or extension of the  in the claim being
DNP claimed (in the case of the 
Employer).

•
Duty to Substantiate
It is settled case law that representations of a party are appropriately substantiated if they 
include facts which in connection with a legal theory are suitable to support the view that 
the claimant is entitled to the remedy sought for.
• German Constitutional Court WM 2012, at page 492 § 16
• In cases where the abstract representation (the assertion) of the discrete elements of the 
cause of action does not suffice in itself, the one who owes the duty to substantiate must 
substantiate its assertions. The extent of the duty to substantiate varies upon the 
representations of the respondent, meaning that if a party submits very detailed facts the 
submission of the other party must be as detailed.
• Whether and to which extent the party who does not bear the burden of proof must 
substantiate the facts can only be determined based on the interplay of assertion and 
objection, the amendment and substantiation being, in case of appropriate objection by the 
opponent, at charge of the party bearing the burden of proof.
• German Federal Supreme Court, 25.03.2014, ref: VI ZR 271/13, MDR 2014, 674‐675
• It is not necessary that the Claimant represents all facts, like the place and date when things 
happened, if the Respondent does not object the general assertion.
• German Federal Supreme Court, NJW 2002, 1488
• If it is the Claimant´s case that a specific Contract was executed the Respondent is not 
required to explain in detail why no contract was executed. Rather he may object the fact 
that a contract was executed resulting in the Claimant now being responsible to represent 
the discrete facts which in his view support the view that a contract was made. Regarding 
these facts the Respondent shall rebut as detailed.
• German Federal Supreme, Court 25.03.2014, ref: VI ZR 271/13, MDR 2014, 674‐675

32
 12.06.2018

Determination Procedure
• Engineer to act „neutrally“ [S‐C 3.7]
• Response & Consultation
– Optional: Engineer to give his “response on the contractual or other basis of 
the Claim” [S‐C 20.2.5] – no longer the rule; rather the exception
– Mandatory: Engineer to proceed with consultation in the endavour to reach
agreement [S‐C 3.7.1]
– Subsequently: Engineer to proceed making a determination [S‐C 3.7.2]
• FIDIC 1999 no fixed delay for consultation + making determinations
• Updates introduce two delays [S‐C 3.7.3]:
– Notification of Settlement Agreement 
• 42 days after having received … or a „fully detailed“ Claim …
– Determination
• 42 days after “the date corresponding to his obligation to proceed under the last 
paragraph of Sub‐Clause 3.7.1
– Sanction: Failure to comply with timelines  deemed to have given a 
determination rejecting the Claim

IPA ‐ IPC
Application for an interim payment

IPC
14.6: Contractor considers that an IPC 
Full satisfaction Dissatisfaction =
does not include any amounts to which 
the Contractor is entitled
Contractor considers that IPC fails to
include amounts

Application to correct

Engineer  Engineers fails
corrects to correct

Notice to apply the procedure

under Sub‐Clause 3.7
 with consequential DAAB involvement

33
 12.06.2018

IPA/IPC Determination procedure
Engineer receives Engineer to proceed
the Notice under Sub‐Clause 3.7 

Consult with Parties in the endaevour

to reach agreement

Failure to reach
Reach agreement
such agreement

Engineer proceeds making
a determination

 Condition precedent to DAAB procedure

Statement at Completion / Certificate
• Procedure
– Date of Completion
– Application for Interim Payment
– Engineer to proceed under Sub‐Clause 14.6 [IPC] 
to issue the IPC
• Questions: 
• What happens if not?
• What happens if the Contractor is dissatisfied?

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 12.06.2018

Sub‐Clause 14.11
• Application for Final Payment [14.11]
• Engineer to proceed to issue the FPC or IPC 
[14.13]

Final Statement / FPC
Performance  Contractor to submit draft
Certificate final statement [14.11.1]

Engineer to request Final Statement (if

further information, if full consent was  If no consent
necessary [14.11.1] achieved) [14.11.2]

(the “Partially Agreed 
FPC [14.13]
Submission of
Statement 
= Final Statement” in these 
Conditions)

on the agreed  IPC [14.13 + 
amounts,  14.6] 

the estimated 
amounts and

the disagreed 
amount(s) 

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 12.06.2018

Contractor´s Claims 
17.2 1.9
• 1.1.20 Cost • 8.12
1.13

Plus Profit • 10.2
• 1.9
16.3 2.1

• 10.3
16.2 4.6
• 1.13 • 11.7
• 2.1 • 11.8
• 4.6
16.1 4.7

•
1.1.20 
Cost Plus 
Profit 16.1
11.8 7.4
• 4.7 • 16.2
• 7.4 • 16.3
11.7 7.6

• 7.6 • 17.2
10.3 8.10
• 8.10
10.2 8.12

Contractor´s Claims 
• 1.1.19 Cost
4.7 • 4.7
18.4 4.12.4 • 4.12.4
• 4.15 [Access Routes]
1.1.20  • 4.23 [Archaelogical & 
Cost Geological Findings]
13.6 4.15
• 13.3.2 Proposal Cost
• 13.6 Changes in Law
13.3.2 4.23
• 18.4 Exceptional Event

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Contractor´s Claims
18.4
1.9

• •
1.13

17.2 2.1
1.1.38 EOT 8.5
16.2.2 4.6
• 1.9 • 8.6
• 1.13 • 8.10
16.1 4.7
• 2.1 • 8.12
• 4.6 • 10.3
• •
13.6 4.12.4
1.1.38 
EOT 4.7 13.3
13.3 4.15
• 4.12.4 • 13.6
• 4.15 • 16.1
10.3 4.23

• 4.23 • 16.2.2
8.12 7.4 • 7.4 • 17.2
8.10

8.6 8.5
7.6
• 7.6 • 18.4

Employer´s Claims
• 1.13 Entitlement to • 11.4 Entitlement to
„costs“ „costs“ & reduction
• 7.4 Entitlement to of Contract Price
„costs“ for delayed • 11.8 Entitlement to
tests „costs“
• 7.6 Entitlement to • 11.9 Entitlement to
„costs“ „costs“
• 8.7 Entitlement to • 13.6 Entitlement to
„costs“ reduction of
• 8.8 Delay Damages Contract Price
• 9.2 Entitlement to • 15.4 Entitlement to
„costs“ (a) additional costs
• 9.4 Reduction of for execution of the
Contract Price,  Works, (b) any
subject to TO  losses and damages
though Works have (c) Delay Damages
failed to pass Tests 
on Completion

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 12.06.2018

DAAB
• Disputes
• as in YB 1999:  Dispute ad hoc  DAB              Arbitration
• … but (in the future) 
standing DAAB Dispute  DAAB Arbitration
• separate Clause 21
• New definitions
– “Dispute” ‐ where:
• (a) one Party makes a claim against the other Party (which may be a Claim, as defined in these Conditions, 
or a matter to be determined by the Engineer under these Conditions, or otherwise), or a matter to be 
determined by the Engineer under these Conditions, or otherwise)
• (b) the other Party (or the Engineer under S‐C 3.7.2) rejects the claim in whole or part
• and
• (c) the first Party “does not acquiesce” (by giving a NOD under S‐C 3.7.5 or otherwise)
– “provided however that a failure by the other Party to oppose or respond to the claim, in whole or in part, may 
constitute a rejection if, in the circumstances, the DAB or the arbitrator(s), as the case may be, deem it reasonable for 
it to do so”.
– “DAAB” or “Dispute Avoidance/Adjudication Board” ‐ sole member or three members 
(selected/agreed) or appointed under either S‐C 21.1 or 21.2
– “DAAB Agreement” ‐ agreement entered into by both Parties and (each) DAB member 
“incorporating by reference the “Dispute Avoidance/Adjudication Board (DAB) Rules” published by 
FIDIC”

DAAB
• Dispute: ‐ Sub‐Clause 1.1.29 – in a nutshell “determination by Engineer” to the 
dissatisfaction of either Party is a condition precedent
• Constitution of the DAAB – Sub‐Clause 21.1 ~ wording of S‐C 20.2 of YB 1999
– Partially significantly amended with some new provisions
• Selection of members from a list, 
• Failure to Appoint DAAB Member(s) – Sub‐Clause 21.2 ~ wording S‐C 20.3 of YB 
1999
– New conditions for appointment of DAAB member by appointing entity/FIDIC with 
consequential DAAB Agreement
• New express wording on Avoidance of Disputes – S‐C 21.3
– New language: DAAB facilitates “assistance and/or informally discuss and attempt to 
resolve any issue or disagreement that may have arisen”; DAAB may be proactive –
invitation to make a request
• Obtaining DAAB’s Decision – Sub‐Clause 21.4 ‐
– 21.4.1 Reference of a Dispute to the DAB
– 21.4.2 The Parties’ obligations after the reference
– 21.4.3 The DAB’s decision
– 21.4.4 Dissatisfaction with DAB’s decision

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 12.06.2018

DAAB
• The DAAB shall be deemed to be constituted on the date that the 
Parties and the sole member or the three members (as the case 
may be) of the DAAB have all signed a DAAB Agreement.
• “DAAB Agreement” means the agreement signed or deemed to 
have been signed by both Parties and the sole member or each of 
the three members (as the case may be) of the DAAB in accordance 
with Sub‐Clause 21.1 [Constitution of the DAAB] or Sub‐Clause 21.2 
[Failure to Appoint DAAB Member(s)], incorporating by reference 
the General Conditions of Dispute Avoidance/Adjudication 
Agreement contained in the Appendix to these General Conditions 
with such amendments as are agreed.
• Complementary Rules in Sub‐Clause 9.3 General Conditions of DAA 
Agreement. “DAA Agreement deemed to have been signed 
special procedure on non agreed fees – temporarily fees as 
proposed by member  review by Appointing Body.

Arbitration
• Amicable Settlement – Sub‐Clause 21.5 ~ S‐C 20.5 
of YB1999
– cooling down period (unchanged)
• Arbitration – Sub‐Clause 21.6 ~ S‐C 20.6 of 
YB1999 with additional provision
– Unchanged Reference to ICC Rules of Arbitration
• Failure to Comply with DAB’s Decision – Sub‐
Clause 21.7 ~ S‐C 20.7 of YB1999
– amended with some new provisions
• No DAB in place – Sub‐Clause 21.8 ~ S‐C 20.8 of 
YB1999

39
 12.06.2018

White Book

Vertical
level 1
Client

Horizontal level
Vertical level 2
Model Joint Venture 
Client/Consultant  (Consortium) 
Model Services  Agreement 2nd Edition 
Agreement (White  (2017)
Book) 5th Ed, 2017

Sub‐Consultancy 
Agreement 2nd Edition 
(2017)

40
 12.06.2018

Agreement Date
Give notice Price Adjustment

EOT Claim under Sub-

Time for Completion Clause 4.4 –
EOT &
for the Services Exceptional Costs
Scope and Exceptional
Costs as the case may be

White Book Timeline, 5th Edition

Services Variations Variations

(change of scope) (affecting time)

Payments as stated in Appendix 3 (excluding time 

related costs, claimable pursuant to S‐C 4‐4‐3)
81

Client/Consultant Agreement
White Book 5th Edition – 2017
Content

Form of Agreement

Particular Conditions - Template

Rules for Adjudication

General Conditions of
Client/Consultant MODEL
Client/Consultant Model  SERVICES AGREEMENT
Services Agreement 
(White Book) 5th Ed, 2017

82

41
 12.06.2018

Client/Consultant Agreement
White Book 5th Edition – 2017

• suitable for general use for most services provided 
by consulting engineers [but also architects, 
project managers, quantity surveyors], including
– pre‐investment and feasibility studies, 
– detailed design, 
– construction management and contract administration, 
– supervision, 
– project management, and  
– quantity surveying

83

Documents
forming part of the Agreement [in practice]

• Agreement a) Form of Agreement

b) The Client/Consultant 
Model Services 
Agreement 1. Scope of Services
i. Particular Conditions 2. Personnel,
Equipment, Facilities
ii. General Conditions & Services of Others
to be provided by
c) Appendices 1‐5 Client
3. Remuneration &
d) Any letter of acceptance Payment
4. Programme
by the Client … 5. Rules for
Adjudication
e) Any letter of
offer/proposal by the
Consultant …

84

42
 12.06.2018

Client/Consultant Agreement
White Book 5th Edition - 2017

White Book now has 10 sections

1. General Provisions – definitions
and general matters
2. The Client - duties and obligations
3. The Consultant - duties and
obligations
4. Commencement and Completion
5. Variation to Services New
6. Suspension and Termination
New
7. Payment
8. Liabilities
9. Insurance
10. Disputes – adjudication and
arbitration
85

FIDIC White Book Services

DAB

Engineer

Contractor Employer

• Contractual relations

• Powers of the Engineer

• Powers of the DAB

86

43
 12.06.2018

Good to read: NH International (Caribbean) Ltd v National Insurance Property 
Development Company Ltd (Trinidad and Tobago), [2015] UKPC 37

Sub-Clause Sub-Clause 7.1.2

1.5.2, 4.4.3, etc.

as soon as If 14 days
practi- necessary
Start cable
Event

the the Consultant the Consultant the the Client pays

event becomes aware shall give notice Consultant reasonable
occurs of the event gives a notice rates & prices +
condition to amend the cost of all
and considers precedent??
himself to be provisions of expenditure
entitled Agreement (if reaonsably
Exceptional necessary, incurred
Costs e.g. 1.5.2)

[with] Client´s Confirmation 13.2 of Proposal

Date of
Date of JV  Services 
Agreement Agreement
Ante Joint
Venture Joint Venture Period

Negotiation of Execution
Services

Appointment of Post 
Negotiation Representatives &  Performance 
Lead Consultant of Services

Unanimous Establishing Discharge & 

Consent of All  Steering post
Members Committee contractual
liability

44
 12.06.2018

Power to represent
Power of
Attorney Member 
JV Member Repre‐
sentative

Power of
JV Member Member 
Attorney Project 
Repre‐
Lead sentative
Director
Power of
Power of Attorney
Attorney Member 
JV Member Repre‐
sentative

ProjectMana
‐ger
Steering
JV
Committee
Pre‐bid Bidding Acceptance Execution

JV‐Organigram

JV  Lead
Represen
Member  Clause
‐tative
1 7.2 Chair
Represen
JV  ‐tative
Member  Represen Steering
2 ‐tative Committee Clause
7.5

JV  Project 
Member  Represen Director
3 ‐tative

45
 12.06.2018

Claims – WB‐JW‐links
• WB Requirements • JV answers
• Claims under WB, i.e. 4.4.1  • The Leading Member shall take 
substantial claim, 4.4.3  the lead in the management of 
procedural rules the Joint Venture's affairs
– i.e. prompt notice • Project Director is 
representative of the Joint 
Venture for the purpose of 
correspondence and discussions 
… (S‐C 7.5)
• However, S‐C 7.6 requires a 
decision by Steering Committee
Event
Notice
WB Steering
Committee
decision Success

Vielen Dank für Ihre Aufmerksamkeit

46