Typical Sequence of Principal Events During Contracts for EPC/Turnkey Projects

1. The Time for Completion is to be stated (in the Contract Data) as a number of days, to which is added any
extensions of time under Sub-Clause 8.5.

2. In order to indicate the sequence of events, the above diagram is based upon the example of the Contractor
failing to comply with Sub-Clause 8.2.

3. The Defects Notification Period is to be stated (in the Contract Data) as a number of days, to which is added
any extensions under Sub-Clause 11.3.

4. Depending on the type of Works, Tests after Completion may also be required.

Issue of the Submission Signing the 8.1 1.1.21 11.9 Issue of

Tender of the Contract Commencement Date of Performance
Documents Tender Agreement Date Completion Certificate

Base Defects
Date 8.2 Time for Notification
Completion1 Period3

28d ≤28d ≤21d

11 Notifying
Delay of Defects
attributable
to the
Contractor2

Tender 4.2.1 Delivery of the 9. Tests on Remedying

period Performance Security Completion4 of Defects

4.2.3 Return of
the Performance
Security (subject to
Sub-Clause 11.11)

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 Typical Sequence of Payment Events Envisaged in Clause 14

14.3, 14.6.1 Employer 14.6 Employer gives 14.7 Employer makes

receives Contractor’s Notice of the amount the payment to the
Statement and considered due Contractor
Supporting documents

Each of the ≤56d

monthly (or
otherwise)
interim
≤28d
payments

≤56d
The final Employer verifies the
statement, Contractor
payment submits information

≤28d

14.11.1 Contractor 14.11.2 Contractor submits 14.13 Employer gives 14.7 Employer
submits draft final Final Statement and the Notice of the amount makes payment
Statement to the Employer 14.12 discharge considered finally due

Typical Sequence of Dispute Events Envisaged in Clause 21

Both Parties’ 21.1 Parties 21.4.1 A Party refers 21.4.4 A Party 21.6 A Party
signature of appoint the the Dispute to the may issue may initiate
the Contract DAAB DAAB a “Notice of arbitration
Agreement Dissatisfaction”

Parties present 21.5 Amicable

submissions to the DAAB settlement

≤28d* ≤84d ≤28d >28d

DAAB gives Arbitrator/s

its decision appointed

* If not stated otherwise in the Contract Data (Sub-Clause 21.1)

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 Typical Sequence of Events in Agreement or Determination under Sub-Clause 3.5

Scenario 11
Employer’s Representative Parties’ agreement Notice of error
[ER] starts performing duties Sub-Clause 3.5.1 by a Party/ER
Sub-Clause 3.5 Sub-Clause 3.5.4

ER’s Notice ER’s Notice of

of agreement corrected agreement
Sub-Clause 3.5.1 Sub-Clause 3.7.4
Consultations

≤42d ≤14d ≤7d

Sub-Clause 3.5.3
(a), (b) or (c)

Scenario 22
ER starts performing Parties advise the ER: ER’s Notice of Notice of
duties Sub-Clause no agreement determination Dissatisfaction
3.5 Sub-Clause 3.5.1(b) Sub-Clause 3.5.2 Sub-Clause 3.5.5

No Notice
of error

Consultations Period for making ER’s

determintaion

≤42d ≤42d ≤14d

Sub-Clause 3.5.3 ≤28d

(a), (b) or (c)

Scenario 33
ER starts No agreement ER’s Notice of ER’s Notice
performing duties between the Parties determination of corrected
Sub-Clause 3.5 Sub-Clause 3.5.1(a) Sub-Clause 3.5.2 determination
Sub-Clause 3.5.4

Notice of error Notice of

by a Party/ER Dissatisfaction
Sub-Clause 3.5.4 Sub-Clause 3.5.5

Consultations Period for making ER’s

determintaion

≤42d ≤42d ≤14d ≤7d

Sub-Clause 3.5.3 ≤28d

(a), (b) or (c)

1. Agreement is reached within 42 days, error found in the ER’s Notice of agreement and corrected.

2. The Parties’ early advice that agreement cannot be reached and so ER’s determination is necessary, no error
in ER’s determination.

3. No agreement within 42 days, ER determines within 42 days, error found in the ER’s determination and
corrected.

© FIDIC 2017