Unit 8: Managing Time: FIDIC Red Book practice

D31PZ: Contracts and Procurement

The Parties
! ! !
The Employer
Denes the Works and pays the Contractor

The Contractor
Regularly and diligently Provides the Works

The Engineer
Uses the FIDIC Red Book contract to administer construction. Makes decisions to signify events.

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Dening the duration of the Works

!
Core FIDIC Red Book time-related denitions:

! ! ! ! ! ! ! ! !

Commencement Date Time for Completion Rate of Progress Tests on Completion Taking-over Taking-Over Certicate Defects Notication Period Delay Damages Performance Certicate
Unit 8: Managing Time: FIDIC Red Book practice

D31PZ: Contracts and Procurement

Commencement Date
! ! ! ! !
The FIDIC Red Book form also includes forms to ! structure the invitation to tender and tender ! ! ! acceptance processes.!! ! ! ! ! ! ! ! ! Once the Letter of Acceptance has been issued..." ... and the contract executed ..." " " " " " " ! ! ! " "

Annex A Annex B Annex C Annex B Annex C

the Engineer informs the Contractor of the Commencement Date, not less than 7 days before it.! The Commencement Date is usually within 42 days of the Contractors receipt of the Letter of Acceptance!

8.1 8.1

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Commencement Date
!
After the Commencement Date:

the Contractor must commence the Works as soon as is reasonably practical! ! ! !

8.1

Once the Works have been started they must be completed with due expedition and without delay! ! ! ! ! ! ! ! ! ! ! ! ! ! !

8.1

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

The programme
!
The Contractor must provide the Employer with a programme within 28 days of being told the Commencement Date.! ! ! ! ! ! ! ! ! !

8.3

The programme is not a contract document as it is provided by the Contractor.

The Employers Personnel shall rely upon the programme when planning their activities.

The programme must contain certain information. It will be rejected if it does not.

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

The programme
!
The programme must dene:" " " " " " " " " " 8.3

! ! ! !

the sequence and stages of the Works the Contractors Equipment that will be used sequence and timing of tests specied in the contract documents a supporting report containing:

! !

method statements estimates of quantities of Contractors Personnel and Contractors Equipment required in each stage

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

The programme
!
On receiving the programme, the Engineer has 21 days to reject it.! ! ! ! ! ! ! ! ! ! ! ! ! 8.3

! ! ! ! !

The Engineer must notify the Contractor of rejection. The Engineer must state the missing information.

If the programme is rejected, Contractor has another 28 days to submit a revised programme. No penalties for late provision or no provision. The Contractor can propose a revised programme in response to a Variation.!! ! ! ! ! ! ! ! ! 13.3(b)

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Time for Completion

! !
FIDIC Red Book does not dene a date for completion within the contract documents Instead, the Time for Completion is dened" " " " " 8.2

! ! !

The Contractor and Employer agree how long the Contractor will have to complete the Works. This is the Time for Completion ( ___ days ) This is entered in the Contract Data (Part A of the Particulars)
Time for Completion Commencement Date

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Time for Completion

!
Within the Time for Completion, the Contractor must:" "

10

8.2

! !

complete the Works sufciently for the Employers take-over ensure that the Works pass the Tests on Completion

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Extension of Time for Completion

! !
Extension of Time for Completion is managed using the claims process! ! ! ! ! ! ! ! If the Contractors progress is being held up by things it cannot control: ! !

11

20.1

! !

The Contractor can notify the Engineer and ask for an extension of the Time for Completion!! ! ! The Contractor must provide notice with 28 days of becoming aware (or should have become aware) of the delay! ! ! ! ! ! ! ! ! ! !

8.4

20.1

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Extension of Time for Completion

!
If the Contractor does not provide notice within 28 days, the extension of Time for Completion will not be granted - even if there are contractual grounds for doing so.

12

! !

The Employer shall be discharged from all liability! But:

20.1

! !

when did the 28 day period start? when should it have started?

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Extension of Time for Completion

!
After giving notice, the Contractor supports its request for an extension of the Time for Completion with contemporary records! ! ! ! ! ! ! ! After receiving notice, the Engineer can:" " " " "

13

! "

20.1 20.1

! ! !

inspect the records the Contractor is keeping instruct the Contractor to keep specic records "

The Contractor must submit the nal, fully-supported request for an extension of the Time for Completion within 42 days of becoming aware of the delay! ! !

20.1

If the cause of the delay is continuing, further requests are submitted with additional information at regular intervals
Unit 8: Managing Time: FIDIC Red Book practice

D31PZ: Contracts and Procurement

Extension of Time for Completion

!
With 42 days of receiving full claim, the Engineer must respond with a determination! ! ! ! ! ! ! ! 3.5

14

approval / disapproval / comments." "

"

"

"

"

20.1

42 days 21 days

42 days

Delay starts

Notice given

Claim submitted

Decision given

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Grounds for extension of Time for Completion

!
The Engineer must award an extension of Time for Completion if the Works have been delayed by:

15

! ! ! ! ! !

delayed provision of drawings or instructions" " delay in possession of the site" " " " " " " " " " " "

" " " "

" " " "

" " " " "

1.9 2.1 4.7 4.12 4.24 7.4

error in the information by which the Works are set out" unforeseeable physical conditions" " fossils, antiquities, etc." " " " "

instructions for tests other than the Tests after Completion "

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Grounds for extension of Time for Completion

!
The Engineer must award an extension of Time for Completion if the Works have been delayed by:

16

! ! ! ! ! ! !

delays caused by authorities"

"

"

"

" " "

" " " ! ! ! "

" " " ! ! ! "

" " " " ! ! ! "

" " " " ! ! ! "

8.5 8.9" 10.3 13.7 16.1 17.3, 17.4 19.4"

instructing the Contractor to suspend the Works " " interference with Tests on Completion" " changes in local legislation" " " " "

the Contractors suspension of the Works! ! an Employers Risk has occurred (war, etc.)! ! ! ! ! ! ! ! ! ! ! ! ! ! Force Majeure" " " " " " " " "

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Rate of Progress
!
If the Engineer determines that:

17

! !

the Contractor will not nish the Works within the Time for Completion; or the Contractor is not keeping to the programme

! !

the Engineer can instruct the Contractor to submit a revised programme and supporting report !! !

8.6

The Contractor must adopt the new programme unless the Engineer instructs the Contractor not to

All additional costs are borne by the Contractor.

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Force Majeure
! ! ! !
an exceptional event or circumstance that neither party could control! ! ! ! ! ! ! ! ! ! ! ! If either the Contractor or the Employer is being affected by Force Majeure, it must notify the other party within 14 days.! ! ! ! ! ! ! ! ! !

18

19.1

19.2 19.3 20.1 19.4 8.4!

Both parties are obliged to minimise the impact of ! ! Force Majeure on the project.!! ! ! ! ! ! ! ! If the Contractor requests it, the Engineer will grant! ! an extension of Time for Completion! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Force Majeure
!
If the Force Majeure continues for 84 days

19

! !

and progression of the Works is prevented The Contractor or the Employer can terminate the contract by providing notice to the other party!! 19.6

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Employers Taking-Over & Tests on Completion

! ! ! ! !
To complete the Works, the Contractor must perform the Tests on Completion dened in the contract! ! ! documents.! ! ! ! ! ! ! ! ! ! ! ! ! The Contractor must give at least 21 days notice of tests to the Engineer.!! ! ! ! ! ! ! ! ! ! If the tests are passed, the Taking-Over Certicate can be issued. The Contractor applies to the Engineer for the Taking-Over Certicate! ! ! ! ! ! ! ! ! ! ! !

20

! ! !

! ! !

7.4 9.1 9.1

10.1

If the tests are failed, the Work can be retested, replaced, or left unchanged (with deduction from the Contract Price).! ! ! ! ! ! ! ! ! ! ! !

9.1

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Delay Damages
! ! ! !
If the Contractor fails to complete the Works within the Time for Completion, then it must pay Delay Damages.! Delay Damages are paid at the rate agreed." " " 8.7

21

Contract Data

Delay Damages are paid every day between the end of the Time for Completion and the Engineers issue of the Taking-Over Certicate.!! ! ! ! ! ! The Contractors liability for Delay Damages may be limited by the Contract Data, if agreed when executing the contract.!! ! ! ! ! ! ! ! ! !

8.7

Contract Data

If present, the limit is a % of the Contract Price.

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Defects Notication Period

! !
Commences on issue of the Taking-Over Certicate" "

22

11.1
Contract Data

One year long."

"

"

"

"

"

"

"

"

"

"

"

Defects listed on the Taking-Over Certicate must be xed by the Contractor before the end of the Defects Notication Period.

! !

If a defect is not xed, a deduction from the Contract Price can be made, or another contractor employed!

11.4

At the end of the Defects Notication Period, or 28 days from when the last defect was xed, the Engineer issues the Performance Certicate.! ! ! !

11.9

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Terminology
! ! ! ! ! ! ! !
Commencement Date Time for Completion Tests on Completion Taking-Over Taking-Over Certicate Defects Notication Period Delay Damages Performance Certicate

23

D31PZ: Contracts and Procurement

Unit 8: Managing Time: FIDIC Red Book practice

Remember to read the full Unit notes and Appendices, and complete your independent study