In our case the project was sponsored by the KFW Germany. Such requests may also include requests for the employees assistance in applying for any necessary government consent to the export of contractors equipment when it is removed from site. Contractor are of the opinion, that Contractor is neither the owner of the future project nor of the construction site which has been taken from the former owner by law enforcement and belongs now to the Employer. This we see as our obligation.
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In our case the project was sponsored by the KFW Germany. Such requests may also include requests for the employees assistance in applying for any necessary government consent to the export of contractors equipment when it is removed from site.
Contractor are of the opinion, that Contractor is neither the owner of the future project nor of the construction site which has been taken from the former owner by law enforcement and belongs now to the Employer.
This we see as our obligation. Contractor is however of the opinion: - that the owner Employer has to obtain the Construction Permit to erect the project as far as technical information is required, the Contractor will assist the Employer ; - that the same applies for the Discharge Permit as far as technical information are required, the Contractor will assist the Employer.
Answer The feeling of the drafting committee was that the Employer was best placed to help the Contractor in obtaining the various permits and approvals etc. It was not foreseen that the Employer would refuse since it is the Contractor who bears any costs involved. The problem is perhaps "what does assist mean? The question is perhaps whether the issuing authority will issue the permit or whatever without the signature of the Employer.
If he will, maybe there is no problem. If he will not, then a further approach and explanation to the Employer will be necessary. You also mention than under the Particular Conditions, the Employer is charging the Contractor rental for using the Site. This is most unusual, but if it was stated in the Particular Conditions that this would be the case, then I would think he has the right to do so.
We are sorry that we cannot be more helpful, but your understanding of Clause 2. Underestimated work Question I am contacting you in order to resolve some controversies that we have faced during the preparation of a Design-Build tender documents for a 64 Km water transmission tunnel project.
If during the construction period it is clarified that the amount of work must increase due to the underestimation of the design done by the construction firm as the winner of the contract is it under the general obligations of the contractor to perform the tasks that exceed the contract price on his own money or not?
If the answer of the abovementioned question is YES then what is the purpose of the variation Clause And if the answer is NO what percentage of the increase of the contract price is reasonable?.
Anyways, I would like you to guide us in order to amend the Clause 13 for this type of the variation, if it is possible. Answer Basically the answer is probably found in Clause 5. If he finds errors, etc. If he should have discovered the error, there is no variation - and vice versa.
We therefore have difficulty in giving an answer based on the information supplied, and it probably would entail a more detailed study of the actual circumstances to give a reliable reply.
If those seeking a reply wish it, FIDIC could arrange for someone to undertake to study the matter, but it would have to be on a commercial basis. Late completion Question For the Orange Book: how can the Employer recover additional costs which are due to late completion of the Works where the the Contractor has made little effort to expedite progress?
The Liquidated Damages under Sub - Clause 8. Answer Normally the liquidated damages named in Clause 8. The amount named in the Appendix is the pre-agreed by signing the Contract compensation for delay whatever the amount of the loss suffered by the Employer may be - on the one hand, the Employer does not have to prove any loss, and on the other, he cannot generally claim additional compensation if his losses exceed the amount in the Contract.
The intention of Clause 8. He could, for example, bring on more labour and plant, he could work longer shifts or weekends, he could change his method of working. If any of these measures but not the fact that he is behind programme as such cause the Employer additional costs - e.
The provisions in the last paragraph of Clause 8. In this case the Contractor will of course pay more in liquidated damages which is intended to compensate the Employer for the longer delay , but the Employer does have the right to terminate under Clause If termination is not an option, then one would guess that the Employer will have to rely on the payments he receives from liquidated damages.
There could well be circumstances, of which we are unaware, which could put a different legal interpretation on Clause 8. Notice of Claim Question The contract conditions Clause 20 requires the Contractor to give notice of an event causing a claim, and within 28 days to substantiate the claim.
Is it sufficient to acknowledge receipt of the claim and to state that it will be investigated, and responded to as soon as possible? Your advice will be appreciated. Answer The Engineer has to endeavour to reach agreement, and determine the matter fairly, without unreasonable delay. Therefore, when the Engineer has received a claim not just a notice of intention to claim it is insufficient simply to acknowledge it and defer investigation and detailed response, which seems to be the course of action you describe.
The Engineer should proceed to deal with the claim expeditiously, and also ensure compliance with Sub-Clause The best design-build contract to use Question In Conditions of Contract for Design-Build for a major highway, my country is in the process of upgrading its infrastructure, with particular emphasis on highways and bridges.
In an effort to "fast" the Works, we have been advised to go down the contractor design and build route using international contractors. The questions I have at the moment is: What is the appropriate Conditions of Contract to use? Whatever the choice, it will involve some modifications to suit our laws and procedures. Answer Since you are planning to let the work on a design and build basis, we would suggest that of the two books you mention, the Conditions of Contract for Plant and Design Build for Electrical and Mechanical Works Designed by the Contractor First Edition, is definitely the more suitable.
This document in effect replaces and up-dates the document Conditions of Contract for Design-Build and Turnkey. Although the title may suggest that the document is more appropriate for electrical and mechanical works, it is specifically written for works designed by the Contractor, whatever the discipline of the works involved, and is therefore very suitable for Contractor-designed civil works.
It also retains the use of the Engineer, and maintains appropriate involvement of the Employer during the execution of the Works. If you are intending to use the new FIDIC forms of Contract for future projects, and feel that some form of training seminar for the staff involved could be of benefit, FIDIC can arrange, for example, a one- or two-day seminar covering the use of the new documents for international construction projects.
The seminar leaders are members of the FIDIC Contracts Committee which was responsible for writing and preparing the new documents and thus have a unique insight into their content and use. Additional comments: we understand that you consider using a FIDIC contract as the standard for infrastructure works, although "it will involve some modifications to suit your Laws and Procedures". The FIDIC contracts are known and respected all over the world, in particular for their fair and transparent apportioning of risks and responsibilities between the Employer and the Contractor.
Any modification of this is likely to be noted by prospective contractors, who usually take this as a reason to significantly raise their bid prices, in order to compensate for a perceived increase in their risk. From a procedural point of view, any changes which are considered necessary should be made by using appropriately worded Particular Conditions, leaving the General Conditions unchanged.
This would also apply to changes necessary for conforming to local laws and procedures. With this in mind, we also highlight the importance of using duly purchased original FIDIC documents.
FIDIOC is convinced that this will be of benefit to the cost and quality of the infrastructure investments that you are undertaking.
About the legal and management system in the field of French foreign contracting engineering
The Orange Book may be used for individual items of plant, fidic orange book edition individual structures and for complete facilities, including the provision of facilities under turnkey contracts. It is envisaged that the Orange Book can be the basis fidlc all contracts which involve the provision of facilities designed by the Contractor, whether such facilities comprise building, civil engineering, chemical engineering, electrical engineering, mechanical engineering, or any combination. Yahoo Answers It should be evident that, as an international federation of consulting engineers, FIDIC cannot undertake to give legal advice. Interim and final payments for the works are evaluated by an impartial Engineer appointed by the Employer, the evaluation being based on fidic orange book edition quantities and contract rates. The Employer should first analyze the project financing arrangements, their consequences, the risks inherent in the type s of works and the other factors which affect the procurement process. Therefore, it is considered essential that the Employer has or procures expert technical services, in order to ensure that his requirements are elaborated in the tender fidic orange book edition and are achieved in practice.
Design-Build and Turnkey (1995 Orange Book) Guide (1st Ed 1996)
This assistance is focused on particular features of the Orange Book: the Guide is not intended to provide complete training material for the expertise required for the preparation of tender documents. Also, the comments are not intended to provide an authoritative legal interpretation of every aspect of each subject, which must depend on the law applicable to the particular contract. It is envisaged that the FIDIC Orange Book - Conditions of Contract for Design — Build and Turnkey can be the basis of all contracts which involve the provision of facilities designed by the Contractor, whether such facilities comprise building, civil engineering, chemical engineering, electrical engineering, mechanical engineering, or any combination. Throughout the drafting, the intention was to incorporate provisions applicable to for example housing, roads, refineries, generators, turbines, treatment works, etc. However, the Orange Book is not appropriate for the provision of facilities designed by the Employer or his consulting engineer, or for similar arrangements where the Contractor is not to be responsible for design. This arrangement reduces the problems which may on occasions arise from the division of responsibility between designer and constructor.
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The Red Book is the "Conditions of Contract for Works of Civil Engineering Construction": the fourth edition was published in and amended in and The Yellow Book is the "Conditions of Contract for Electrical and Mechanical Works": the third edition was published in and amended in Soft cover; pages Foreword The Red Book is intended for the construction of works designed by or on behalf of the Employer, with evaluation by measured quantities and contract rates. The Yellow Book is intended for the provision and erection of plant, often for items which are to be part of a large project. Recognizing that some Employers wanted to procure the construction of project works on a lump-sum contractor-design basis, FDIC initiated the preparation of an appropriate form of contract: it became known as the Orange Book. It had been prepared by a drafting committee referred to as the Orange Book Task Group, which consisted of.
FIDIC ORANGE BOOK 1995 EDITION DOWNLOAD
With the contract being based on an acceptable standard form, tenderers will be less inclined to make financial provision fidic orange book edition unfamiliar contract conditions, whose consequences they may have difficulty in assessing. Fidic orange book edition Guide does not, therefore, attempt to give legal interpretations of the Orange Book, although it does indicate some relevant legal issues. It is envisaged that the Orange Book can be the basis of all contracts which involve the provision of facilities designed by the Contractor, whether such facilities comprise building, civil engineering, chemical engineering, electrical engineering, mechanical engineering, or any combination. These Model Terms are reproduced towards the end of this Guide, after the comments on Clause The tender documents must be drafted with care, particularly in respect of quality, performance criteria and tests. With booi resulting increased complexity of contract conditions, it is becoming increasingly important to ensure that they are based upon a fidic orange book edition form of contract, with which the contracting parties and financing institutions are familiar, and which maintains a fair and fidic orange book edition balance between the differing objectives of these parties, allocating fairly the risks and responsibilities.