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View the related checklists about FIDIC

Sub-contractor steps to take if contractor becomes insolvent—checklist

Sub-contractor steps to take if contractor becomes insolvent—checklist This Checklist sets out a number of practical steps that a sub-contractor should consider taking in the event that the main contractor on a construction project becomes insolvent during the course of the works. It assumes that the sub-contractor has been engaged on written terms by a main contractor for a specific sub-contract package on a construction project and that the main contractor has been paying the sub-contractor directly (ie there is no project bank account, escrow account or other arrangement as to payment). For guidance on how to spot potential problems with solvency and how to protect the sub-contractor’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—sub-contractors. In the event that the main contractor engaged on a construction project has become insolvent, the sub-contractor needs to act quickly and consider all the practical and legal steps it can take to protect its position. Steps that the sub-contractor should consider...

Contractor steps to take if employer becomes insolvent—checklist

Contractor steps to take if employer becomes insolvent—checklist This Checklist sets out a number of practical steps that a contractor should consider taking where the employer becomes insolvent during a construction project. This Checklist assumes that the employer has entered into a written contract with a main contractor for construction works which are not yet complete, and that the contractor has engaged sub-contractors. It assumes that it is not a PFI project. The actions to be taken in any specific situation will of course depend on the terms of the contract(s) between the parties and the status of the works at the time of the employer's insolvency, but this Checklist is intended to provide a starting point for the contractor to consider. For guidance on how to spot potential problems with solvency and how to protect the contractor’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—contractors. In the event that the employer has become insolvent, the contractor needs...

View the related flowcharts about FIDIC

Claims under the FIDIC Silver Book 2017 (clause 20.2)—flowchart

Claims under the FIDIC Silver Book 2017 (clause 20.2)—flowchart This flowchart sets out the process for claims by the Contractor or Employer under clause 20.2 of the FIDIC Silver Book 2017, which applies to: • claims by the Employer for: ◦ additional payment or a reduction in the Contract Price, and/or ◦ an extension of the Defects Notification Period • claims by the Contractor for: ◦ additional payment, and/or ◦ an extension to the Time for Completion The claiming party must also comply with any specific requirements stated in the clause in which the relevant entitlement is set out. For more information, see Practice Note: FIDIC contracts 2017—Contractor and Employer

Compensation event claims in the NEC3 Engineering and Construction Contract—flowchart

Compensation event claims in the NEC3 Engineering and Construction Contract—flowchart This flowchart illustrates the process of making a compensation event claim for additional time to complete the works and/or for additional payment under the NEC3 Engineering and Construction Contract. For more information on the NEC compensation regime generally, see Practice Notes: NEC contracts—interpreting the list of compensation events (clause 60) and NEC

View the related practice notes about FIDIC

FIDIC contracts (pre-2017 editions)—insurance

This Practice Note considers the insurance provisions in the 1999 editions of the FIDIC Red, Yellow and Silver Books. For guidance on the 2017 editions, see Practice Note: FIDIC contracts 2017—insurance.The FIDIC insurance provisionsThe insurance requirements in the FIDIC contracts, setting out which party takes out insurance, the amount and the type of cover required, can be found in:•the letter of acceptance of tender•the particular conditions (amendments to the general conditions), or•the general conditionsThis list is the order of precedence for determining which insurance provisions apply.The below sets out the requirements in the general conditions.Liability or risk in the works The Contractor’s risksThe Contractor’s liability for the works, that gives it an insurable interest in the works, is found at clause 17.2. The Contractor is required to take care of the works until take over. Any damage to the work must be rectified at the Contractor’s own risk and cost unless the damage was caused by an Employer risk.The Employer’s risksThe Employer risks are:•war, invasion, etc•rebellion, terrorism, etc•riot, commotion unless...

NEC contracts—design

NEC contracts—design Some suites of construction contracts include separate forms of contract to be used where the contractor is to take responsibility for designing, as well as building, the works—the JCT suite, for example, contains the well-known JCT Design and Build form. The NEC3/NEC4 suites of contract take a different approach and do not include a separate design and build contract. The NEC4 suite introduced the Design Build and Operate (DBO) contract, but this form, as the name suggests, is intended for use where the employer wishes the contractor to design and build, but also operate/maintain, an asset for a period of time. The NEC Engineering and Construction Contract (ECC) is intended to be suitable for use whether the Contractor has no design responsibility, responsibility for the whole design, or for any part of the design of the works. NEC envisage that the requirements as to design will be set out in the Works Information (in NEC3 terminology)/Scope (under NEC4). This Practice Note looks...

View the related precedents about FIDIC

Advice to clients—Appropriate contract selection

Advice to clients—Appropriate contract selection Appropriate contract selection We want to discuss with you the approach that should be taken when selecting the form of building contract which should be used in relation to [insert name/description of the project]. The first issue to be considered is that the contract chosen is appropriate for the sector that the works relate to. In the UK, there are a number of different standard form contracts which have been produced, each of which tend to be predominantly used depending on whether the works relate to the construction of buildings, infrastructure or civil engineering projects, energy projects, chemical/process plants or electrical and mechanical engineering projects. As the works in this case relate to [the construction of a building OR an infrastructure or civil engineering project OR an energy project OR a chemical/process plant OR an electrical/mechanical engineering project], we recommend that you use the [insert name of contract producer, eg JCT, NEC, FIDIC] suite of contracts for the works. The next point to consider...

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Is a contractor entitled to an extension of time if construction works are delayed due to the impact of coronavirus (COVID-19)?

Is a contractor entitled to an extension of time if construction works are delayed due to the impact of coronavirus (COVID-19)? The answer depends entirely on the contract between the parties. Standard form contracts provide for the granting of extensions of time and these usually include a provision for force majeure which would include the effects of coronavirus (COVID-19). The JCT standard forms of building contract contain an extension of time provision which defines the contractor’s entitlement to an extension of time by reference to ‘relevant events’. The definition of relevant events includes ‘force majeure’. The JCT standard forms do not contain a definition of force majeure, therefore, it is necessary to consider the common law position as it pertains to frustration. In Davis Contractors v Fareham UDC, the House of Lords gave what is now regarded as the classic definition of the doctrine when it said that frustration: ‘…occurs wherever the law recognises that without default of either party a contractual obligation has become...

What is decennial insurance?

What is decennial insurance? Decennial insurance is insurance that can be taken out by those responsible for the design and construction of buildings to cover the costs associated with the total or partial collapse of a building after completion or the discovery of latent/structural defects that compromise the building's safety or stability. Decennial liability originated in France in the early 1800s and has been enshrined in the French Civil Code ever since. The name derives from the fact that it imposed a ten-year liability, after completion of a project, on contractors and designers responsible for the design and construction of a building. Decennial liability acknowledges that the costs arising out of the complete or partial collapse of a building could be huge and may not be covered by other insurances. Cover under this type of insurance can include not just reinstatement of the building but also loss of use and/or loss of profits. Decennial liability is typically a form of strict liability, ie no proof is required...

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FIDIC signs five-year MoU with ADPIC

The International Federation of Consulting Engineers (FIDIC) has signed a five-year memorandum of understanding (MoU) with the Abu Dhabi Projects and Infrastructure Centre (ADPIC) to improve the standards of sustainability and quality in public infrastructure within the Emirate. The MoU covers several key areas of collaboration, including increasing Abu Dhabi's institutional capacity for infrastructure development, developing guidelines aligned with FIDIC's Golden Principles, and providing training and certification for industry professionals. It also focuses on capacity building in dispute resolution and adjudication of construction contracts, particularly concerning FIDIC Dispute Board Rules, as well as increasing the utilisation of dispute boards and dispute avoidance and resolution in Abu Dhabi projects.

Construction weekly highlights—5 December 2024

This week's edition of Construction weekly highlights includes publication of the Ministry of Housing, Communities and Local Government (MHCLG)’s new Remediation Acceleration Plan aimed at identifying unsafe buildings and expediting the removal of unsafe cladding, a case where the Technology and Construction Court (TCC) enforced an adjudicator’s decision in favour of a claimant in administration, subject to a stay of execution (Malin v Volkerfitzpatrick), a case where the TCC granted declarations sought by an employer in relation to unlawful suspension and termination of a design and build contract and the contractor’s consequent repudiatory breach (BNP Paribas v Briggs & Forrester), publication by the International Federation of Consulting Engineers (FIDIC) of a new practice note, focusing on the appointment of dispute boards and a review of the historic causes of insolvency, and analysis considering the lessons to be learned from recent case studies and the wider implications for key players in the industry.