identify a communication as a Notice and/or to issue it in accordance with all of the

requirements in Sub-Clause 1.3 may give rise to a question as to whether it is a valid

Notice. While every case will depend upon its facts, it is suggested that a common sense
approach should be taken and that if a communication satisfies substantially all of the
requirements for a Notice, and especially if the recipient is not (or should not be)
prejudiced by any non-compliance, then this should be a basis for considering it to be a
valid Notice. (159)
P 261
While there is no requirement for a Notice to refer to the provision(s) of the Contract to
which it relates, it will be good practice for the Parties and the Engineer always to do so.
1.1.57 ‘Notice of Dissatisfaction’ or ‘NOD’
1.1.57 “Notice of Dissatisfaction” or “NOD” means the Notice one Party may
give to the other Party if it is dissatisfied, either with an Engineer’s
determination under Sub-Clause 3.7 [Agreement or Determination] or with
a DAAB’s decision under Sub-Clause 21.4 [Obtaining DAAB’s Decision].
This is a newly defined term in RB/17. A NOD is to be distinguished from a (normal)
Notice. (160) The timely giving of a NOD may be essential to prevent an Engineer’s
determination under Sub-Clause 3.7 [Agreement or Determination] or a DAAB’s decision
under Sub-Clause 21.4 [Obtaining DAAB’s Decision] from becoming ‘final and binding’ upon
the Parties, thereby time barring further consideration of a matter to be agreed or
determined, or a Claim or Dispute.
1.1.58 ‘Part’
1.1.58“Part” means a part of the Works or part of a Section (as the case may be)
which is taken over by the Employer under the first paragraph, or used
by the Employer and deemed to have been taken over under the second
paragraph, of Sub-Clause 10.2 [Taking-Over Parts].
The definition of ‘Part’ refers to a part of the Works or a Section (as the case may be)
which is taken over, or deemed to have been taken over, by the Employer under Sub-
Clause 10.2 [Taking-Over Parts] before a Taking-Over Certificate for the corresponding
Works or Section has been issued.
P 262

1.1.59 ‘Particular Conditions’

1.1.59“Particular Conditions” means the document entitled particular
conditions of contract included in the Contract, which consists of Part A -
Contract Data and Part B – Special Provisions.
Part A – Contract Data of the Particular Conditions has been commented on in relation to
the definition of Contract Data above. (161) Part B – Special Provisions comprise
principally options for amendments or additions to the General Conditions which may be
used by the Employer or its consultant. If used, they ‘will always over-rule and supersede
the equivalent provisions in the General Conditions’. (162) This is consistent with the
UNIDROIT Principles:
In case of conflict between a standard term and a term which is not standard
the latter prevails. (163)
1.1.60 ‘Party’ and ‘Parties’
1.1.60“Party” means the Employer or the Contractor, as the context requires.
“Parties” means both the Employer and the Contractor.
The Parties are to be distinguished from the Engineer who, although having an important
role under the Contract, (164) is not a Party to it. Where the Contractor is a JV, the
Contractor ‘Party’ may consist of several persons. (165)
P 263

1.1.61 ‘Payment Certificate’

1.1.61 “Payment Certificate” means a payment certificate issued by the
Engineer under Clause 14 [Contract Price and Payment].
These words refer to an Advance Payment Certificate issued under Sub-Clause 14.2.2
[Advance Payment Certificate], an Interim Payment Certificate (or IPC) issued under Sub-
Clause 14.6 [Issue of IPC] or a Final Payment Certificate (or FPC) issued under Sub-Clause
14.13 [Issue of FPC].
1.1.62 ‘Performance Certificate’
1.1.62“Performance Certificate” means the certificate issued by the Engineer
(or deemed to be issued) under Sub-Clause 11.9 [Performance Certificate].
The Performance Certificate issued (or deemed to be issued) by the Engineer under Sub-

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 Clause 11.9 [Performance Certificate] is a particularly important document as it
establishes that the Contractor has essentially completed its obligations under the
Contract. Only the Performance Certificate is ‘deemed to constitute acceptance of the
Works’. (166)
1.1.63 ‘Performance Security’
1.1.63“Performance Security” means the security under Sub-Clause 4.2
[Performance Security].
The Performance Security to be provided by the Contractor under Sub-Clause 4.2
[Performance Security] secures the Contractor’s ‘proper performance of the Contract’.
P 264 (167) It may take the form of a guarantee payable on demand issued by a bank or of a
surety bond issued by an insurance company or an affiliate of an insurance company, in
the amount and currencies stated in the Contract Data. RB/17 contains example forms of
both types of securities. (168)
1.1.64 ‘Permanent Works’
1.1.64“Permanent Works” means the works of a permanent nature which are to
be executed by the Contractor under the Contract.
Permanent Works are to be distinguished from Temporary Works defined in Sub-Clause
1.1.80. The Permanent Works are generally described in the Drawings and Specification.
1.1.65 ‘Plant’
1.1.65“Plant” means the apparatus, equipment, machinery and vehicles
(including any components) whether on the Site or otherwise allocated
to the Contract and intended to form or forming part of the Permanent
Works.
‘Plant’ is to be distinguished from ‘construction plant’ required by the Contractor for the
execution of the Works and which forms part of the ‘Contractor’s Equipment’. (169)
1.1.66 ‘Programme’
1.1.66“Programme” means a detailed time programme prepared and
submitted by the Contractor to which the Engineer has given (or is
deemed to have given) a Notice of No-objection under Sub-Clause 8.3
[Programme].
P 265
This is a newly defined term in RB/17. The definition only covers a detailed time
programme for the execution of the Works to which the Engineer has given (or is deemed
to have given) a Notice of No-objection under Sub-Clause 8.3 [Programme]. An initial
and/or revised programmes submitted by the Contractor under Sub-Clause 8.3 which
have not yet been the subject of a Notice of No-objection are excluded from the
definition.
A detailed time programme should include all the information listed in sub-paragraphs
(a) to (k) of Sub-Clause 8.3 and otherwise comply with that Sub-Clause and the
Specification. (170)
1.1.67 ‘Provisional Sum’
1.1.67 “Provisional Sum” means a sum (if any) which is specified in the Contract
by the Employer as a provisional sum, for the execution of any part of the
Works or for the supply of Plant, Materials or services under Sub-Clause
13.4 [Provisional Sums].
This definition is similar to the corresponding definition in RB/99 and almost identical
with the definition in GB/08. (171) With regard to the GB/08 definition, FIDIC has stated
that:
Provisional Sums may be included in the Contract by the Employer for various
reasons. Either he may wish to provide a sum of money for the execution of
additional work or the provision of additional services, or he may wish to
provide a sum of money for the purchase of a particular item of equipment
where he has not finally decided on all the details. It is he, the Employer, who
decides how many Provisional Sums he wishes to include and their purpose,
and it is he who puts a price against each one. The Contractor includes the
items and the sums in his tender, but they are only used to the extent ordered
by the Employer through his Representative [who under GB/08 performs the
role of the Engineer under RB/17]. (172)
P 266
Provisional sums are used to pay nominated Subcontractors, among others. (173)
1.1.68 ‘QM System’

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 1.1.68“QM System” means the Contractor’s quality management system (as
may be updated and/or revised from time to time) in accordance with
Sub-Clause 4.9.1 [Quality Management System].
The QM System is a project management tool designed to help the Contractor to
demonstrate to the Engineer that the Contractor is complying with the Contract. (174)
1.1.69 ‘Retention Money’
1.1.69“Retention Money” means the accumulated retention moneys which the
Employer retains under Sub-Clause 14.3 [Application for Interim Payment]
and pays under Sub-Clause 14.9 [Release of Retention Money].
Retention Money is money deducted for retention in Statements of the Contractor under
Sub-Clause 14.3 until the amount of retention reaches the limit stated in the Contract
Data. The amount to be retained from each IPC is calculated by applying the percentage
of retention stated in the Contract Data (commonly 5% to 10% of the Accepted Contract
Amount) to the estimated contract value of the executed Works (and certain other
amounts) until the amount so retained reaches the limit of Retention Money. (175)
P 267 Typically, the first half of the Retention Money is released to the Contractor after the
issue of the Taking-Over Certificate for the Works and the second half after the expiry of
the latest of the expiry dates of the DNPs. (176)
In practice, the Contractor may prefer to substitute a Retention Money Guarantee in the
form of a demand guarantee (177) for Retention Money and generally Employers will agree
to this. (178)
The Conditions do not specify the purpose of Retention Money. However, the example
form of Retention Money Guarantee annexed to RB/17, which may be issued in lieu of
Retention Money, provides that it is payable only after the ‘Beneficiary’ (the Employer)
has submitted, among other things, a written statement that the Contractor ‘has failed to
carry out his/her obligation(s) to rectify the following defect(s) for which he/she is
responsible under the Contract’. This implies that the sole purpose of Retention Money is
to provide security to ensure that the Contractor will rectify defects in the Works. If so,
this could have been expressed more clearly. (179)
1.1.70 ‘Review’
1.1.70 “Review” means examination and consideration by the Engineer of a
Contractor’s submission in order to assess whether (and to what extent) it
complies with the Contract and/or with the Contractor’s obligations
under or in connection with the Contract.
This is a newly defined term. Numerous Sub-Clauses provide that the Contractor must
P 268 submit specified documents to the Engineer ‘for Re view’, (180) meaning examination
by the Engineer, ‘as a skilled professional’, (181) in order to assess whether they comply
with the Contract. (182) If so, the Engineer issues a Notice of No-objection. (183)
1.1.71 ‘Schedules’
1.1.71 “Schedules” means the document(s) entitled schedules prepared by the
Employer and completed by the Contractor, as attached to the Letter of
Tender and included in the Contract. Such document(s) may include
data, lists and schedules of payments and/or rates and prices, and
guarantees.
The Schedules are prepared by the Employer or a consultant, on the Employer’s behalf,
included in the tender dossier and, where required, are to be completed by tenderers.
(184) While they are to be ‘attached to the Letter of Tender’, possibly by an oversight, the
form of Letter of Tender in RB/17 does not refer to them. The Schedules include the Bill of
Quantities, if any, (185) and may include other data, lists and schedules of payments
and/or rates and prices, and guarantees. Once completed they are included in the
Contract. (186)
P 269

1.1.72 ‘Schedule of Payments’

1.1.72 “Schedule of Payments” means the document(s) entitled schedule of
payments (if any) in the Schedules showing the amounts and manner of
payments to be made to the Contractor.
This is a newly defined term. A Schedule of Payments may or may not be included in the
Contract. (187) If none is included, the Contractor must submit, periodically, non-binding
estimates of the payments which the Contractor expects to become due, as provided for
in the last paragraph of Sub-Clause 14.4 [Schedule of Payments].
1.1.73 ‘Section’
1.1.73 “Section” means a part of the Works specified in the Contract Data as a
Section (if any).
If the Employer requires the taking over of the Works in stages, they should be defined as

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