Docslide.us_claim-mgt-fidic-clauses.docx

BE 4605- Claims Management

Provisions for Claims in FIDIC 1999

1.0 Contractor’s Claims Clause

Clause Name

Provision for Claim

Delayed Drawings or

If the contractor suffers due to delays or disruptions to the work

Instructions

due to the failure of the Engineer to issue necessary drawings or

Nr. 1.9

instructions within reasonable time, the Contractor can claim for Time, Cost and reasonable Profit under sub-clause 20.1. 2.1

Right to Access to the

If the Contractor suffers by not providing the access to and

Site

possession of any part of the site by the Employer within the time specified in Appendix to Tender or otherwise according to programme, the Contractor can claim for Time, Cost and Reasonable Profit. For such entitlement, the contractor should have submitted the performance security and the Employer’s failure should not been occurred due to the Contractor’s fault.

4.7

Setting Out

If the Contractor suffers from the errors in original points, lines and levels of reference provided by the Employer and if those errors cannot be reasonably discovered by an experienced Contractor, the Contractor can claim for Time, Cost and Reasonable Profit.

4.12

Unforeseeable

If the contractor suffers from unforeseeable adverse physical

Physical Conditions

conditions which are natural or manmade, including sub-surface and hydraulic conditions excluding climatic conditions, the Contractor can claim for Time and Cost. In the case of favorable conditions in the similar works than foreseen at the tendering stage, the cost may be reduced but all together it does not result in net reduction in the contract price.

4.24

Fossils

If the Contractor suffers from the Engineer’s instructions in the case of discovering fossils, coins, articles of value or antiquity and other items of geological or architectural interest, the Contractor can claim for Time and Cost incurred in dealing with those instructions.

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BE 4605- Claims Management

7.4

Testing

Provisions for Claims in FIDIC 1999

If the Contractor suffers from the Engineer’s instructions with regard to tests under clause 13 [Variations and Adjustments] or from employer’s delay, the Contractor can claim for Time, Cost and Reasonable Profit.

8.4

Extension of Time for

The contractor can claim and be entitled to increase of Time for

Completion

completion for the following reasons 1. Variation or other substantial change in the quantity 2. Delay giving entitlement to extension of time under any sub clause. 3. Adverse climatic conditions 4. Unforeseeable shortage in the personnel or goods 5. Obstruction caused by Employer’s side or other contractors on the site.

8.9

Consequences of

If the Contractor suffers from suspension of work instructed by

Suspension

the Engineer under sub clause 8.8, the contractor can claim for Time and Cost and is entitled for such provisions if the suspension was caused not because of the Contractor’s fault.

10.2

Taking Over of parts

If the Contractor suffers due to the Employer’s taking over

of the Work

and/or using a part of the works other than specified in the contract or agreed between the parties, the contractor can claim for Cost and Reasonable Profit.

10.3

Interference with

If the contractor suffers from delay in carrying out the tests on

Tests on Completion

completion by a cause for which the employer is responsible, the Contractor can claim for Time, Cost and Reasonable Profit.

13.7

Adjustment for

If the Contractor suffers as a result of the changes in the law of

Changes in

the country or in the judicial or official governmental

Legislation

interpretation of such laws, made after the base date, the Contractor can claim for Time and Cost incurred.

16.1

Contactor’s

If the contractor suffers from suspension of work by himself

Entitlement to

under sub clause 14.6 [Issue of Interim Payment Certificate],

Suspend work

sub-clause 2.4 [Employer’s Financial Arrangement] or subclause 14.7 [Payment], the contractor can claim for Time, Cost and Reasonable Profit.

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BE 4605- Claims Management

17.4

Provisions for Claims in FIDIC 1999

Consequences of

If the Contractor suffers from loss or damage to the work

Employer’s Risks

resulting from the Employer’s risks as listed in sub-clause 17.3, the Contractor can claim for Time and Cost incurred in rectifying them. In addition to that he can claim for ‘reasonable profit’ on the cost for following risks noted in sub-clause 17.3. f. Use or occupation by the Employer of any part of the permanent work, except as may be specified in the contract g. Design of any part of the works by the Employer’s personnel or by others for whom the Employer is responsible.

18.1

General Requirement

If the Employer fails to effect and keep in force an available

for Insurance

insurance (which is effected with insures and according to the terms approved by employer) and is required to maintain under the Contract and the Contractor neither approves the omission nor effects insurance for the coverage relevant to this default, any sum which should have been recoverable under this insurance shall be paid by the Employer under clause nr. 20.1 (Contractor’s claims).

19.4

Consequences of

Under this clause the contractor is eligible to claim for an

Force Majeure

extension of time and cost if the notice (under clause nr. 19.2) had been given within 14 days after contractor become aware or should have become aware of the relevant circumstances constituting Force Majeure which is defined under clause nr. 19.1. This clause is not applying to obligations of either Party to make payments to the other Party.

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BE 4605- Claims Management

Provisions for Claims in FIDIC 1999

2.0 Employer’s Claims Clause

Clause Name

Provision for Claim

Nr. 7.5

Rejection

The employer can claim for additional cost where as any repetition for tests found be defective on requested by the engineer

as

a

result

of

examination,

inspection,

and

measurement, testing and not in accordance with the contract. 7.6

Remedial Work

If the Contractor fails to proceed with the engineer’s instruction on remove or replace any plant or material or remove and reexecute any work and execute any work urgently required, the Employer employ and pay other person to carry out the work and the Employer can claim for additional cost for such a work

8.6

Rate of Progress

When the contractor unable to complete the work within the time, Engineer instruct to submit revised programme and method. If Employer incur any additional cost due to that method or the programme the Employer shall entitle to claim additional cost in addition to the delay damages.

8.7

Delay Damages

If the contractor fails to complete the whole of the work on due time employer is entitle to claim for delay damages these delay damages amounts and paying days are stated in the appendix to tender

9.4

Failure to Pass Tests

If the Contractor fail to pass the test on completion for any work,

on Completion

or work section under sub clause 9.3 retesting and the failure eliminate the employer benefit of that work or the work section, the Employer can claim additional cost for such a work as remedy.

11.3

Extension of Defect

If the Contractor fail to pass the test on completion for any work,

Liability Period

or work section under sub clause 9.3 retesting and the failure eliminate the employer benefit of that work or the work section, the Employer can claim additional cost for such a work as remedy.

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BE 4605- Claims Management

Clause

Provisions for Claims in FIDIC 1999

Clause Name

Provision for Claim

Nr. 11.4

Failure to Remedy

If the Contractor fails to remedy the defect or damage by the

Defects

date, fixed by Employer the employer may, carry out the works himself by the Employer and claim the cost under the Sub clause 2.5 (Employer’s Claims) by taking the responsibility of the that work himself. Other than that Employer may require the engineer to agree for a reasonable reduction in Contract Price or if the defect or damage deprives the Employer of substantially whole or major part of the work, terminate the Contract and recover all or part of the sum paid for works and financing cost, dismantling cost and returning Plant and Material to the Contractor.

15.4

Payment after

After giving notice of termination under clause 15.2 the

termination

employer may claim under sub clause 2.5 (Employer’s claims) to recover any losses and damages and any extra cost of completing the work.

18.1

General

If the Contractor fails to effect and keep in force an available

Requirement for

insurance (which is effected with insures and according to the

Insurance

terms approved by employer) and is required to maintain under the Contract and the Employer neither approves the omission nor effects insurance for the coverage relevant to this default, any money which should have been recoverable under this insurance shall be paid by the Contractor under clause nr. 2.5 (Employer’s claims).

18.2

Insurance for works

If more than one year after the Base Date, the cover for loss or

and Contractor’s

damage to a part of the Work which is attributable to the use or

Equipment

occupation by the Employer of another part of the work and loss or damage from risks ceases to be available at commercially reasonable terms, then the Employer is entitled to a payment of an amount equivalent to such commercially reasonable terms as the contractor should have expected to have paid for such cover under sub clause 2.5 (Employer’s Claims).

Department of Building Economics

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BE 4605- Claims Management

Department of Building Economics

Provisions for Claims in FIDIC 1999

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