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Administration of a FIDIC Contract - Pre-Contract Phase -

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Presentation on theme: "Administration of a FIDIC Contract - Pre-Contract Phase -"— Presentation transcript:

1 Administration of a FIDIC Contract - Pre-Contract Phase -
Administration of a FIDIC Contract - Phase 1 Administration of a FIDIC Contract - Pre-Contract Phase -

2 Checklist for Pre-Contract Phase (Mainly for Employer and Engineer)
Negotiations Results of any negotiation must be recorded in a formal document signed by both parties and will be part of the contract. Establish priority of negotiated documents in relation to all other contract documents. - Remind Clause 1.5 (documents priority)!

3 Contract Agreement – Content (document in upper position prevails)
the Contract; the Particular FIDIC Contract Conditions (Part II); the General FIDIC Contract Conditions (Part I); Technical Specifications/ Employers’s Requirements; Drawings; Bills of Quantities + prices (after arithmetical corrections)/ Schedules of Prices (Payments) The Tender and related annexes; Any other documents forming part of the contract Addenda/ Memoranda to Tender Documents

4 Checklist for Pre-Contract Phase
Administration of a FIDIC Contract - Phase 1 Checklist for Pre-Contract Phase Specific issues that may be assessed, prior to award of Contract Insurances - it is recommended to agree exact terms of insurances This is particularly relevant relating to Clause Insurance for Works and Contractor’s Equipment Dispute Adjudication Board - it is an option for an agreement to be reached as to the Member(s) of the DAB. At least both Partners should prepare Nominee(s) to be appointed

5 Pre-Award Checklist - Forming the Contract Team -
Communications – Clause 1.3 Addresses confirmed for: Employer Engineer Contractor a) & b) may be different to that stated in the tender documents c) can be confirmed from preferred Tenderer Check wording of Clause 1.3 in order to ensure practical methods of communications are being achieved

6 Checklist for Pre-Contract Phase
Administration of a FIDIC Contract - Phase 1 Checklist for Pre-Contract Phase Clause Duties and authority of Engineer Employer has to nominate the Engineer in the Appendix to Tender Employer has to mention in the Particular Conditions limitations of Engineer authority Employer has to send a formal letter to Contractor after contract award, in which he clearly establishes any restraints imposed to Engineer’s authority, indicating the Clauses numbers These restraints must be the same as in the tendering phase of the Services Contract

7 Checklist for Pre-Contract Phase
Administration of a FIDIC Contract - Phase 1 Checklist for Pre-Contract Phase Clause Delegation by the Engineer In most cases the Engineer is not resident in the construction site, so it is very important to establish in advance of the award of the Contract, which personnel will be responsible on site to undertake the Engineer’s duties, and how much authority will be delegated It is recommended that a clear structure of command is established from the Engineer to the site supervision personnel, and this should require the appointment of an Engineer’s Representative (RE) A letter of Authority should be prepared setting out the RE’s authority, ready to be issued to the Contactor on the award of the Contract (providing the Engineer is already appointed)

8 Checklist for Pre-Contract Phase
Clause Determination by the Engineer Policy relating to the making of determinations by the Engineer should be considered by the Employer at this stage Unless otherwise agreed between the Employer and the Contractor (either before or during the contract) then the Engineer cannot delegate any of his authority and responsibilities under Clause 3.5 The practicalities of this clause should be assessed, as often the Engineer may be domiciled far from the construction site or even overseas. Remember, the Engineer is not a person, but the Company appointed as such

9 Checklist for Pre-Contract Phase Employer’s Risk
Clause Right of Access to the Site The Employer is obligated to give the Contractor right of access to the site in accordance with the terms stated in the Appendix to Tender It is prudent to ensure that all necessary permissions for the commencement of construction that are the responsibility of the Employer, are obtained prior to award of the contract The penalties for not meeting these obligations are set out in Clause 2.1. They may lead to massive delays and cost increase

10 Checklist for Pre-Contract Phase Employer’s Risk
Clauses 1.8 & Provision of Specifications and Drawings The Employer has an obligation to provide all necessary specifications and drawings to the Contractor Unless otherwise agreed, the Employer should be planning to provide all the necessary documents at the commencement date of the works contract If this is not practicable, then it is advised that Employer and Contractor agree the timetable for the provision of documents before the award of the contract, eventually during negotiation phase, when the Contractor has not signed yet the contract and will be more flexible Once contract signed, such agreements will be more difficult to reach


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