FIDIC White Book – a brief overview Part 3

This is the third post in a four-part series on the FIDIC White Book 2017 edition. In this instalment, we will discuss some of the critical points introduced in the updated contract. Notices and Communications Notices and communications can take any form of an agreed system of electronic transmission, as stated in the particular conditions. Notices and communications should be clearly stated, with reference to the relevant sub-clauses, and should not be unreasonably withheld or delayed. Sub-Consultants and Sub-Contracts When the appointment of a Sub-Consultant is included in the Consultant's offer or proposal, consent from the Client is not required. However, subcontracting part or all of the works requires written consent from the Client. Intellectual Property Under Sub-Clause 1.7 (Intellectual Properties), the Consultant shall grant the Client a royalty-free worldwide license to use and copy the foreground intellectual property for any purpose related to the project. While…

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FIDIC White Book – a brief overview Part 2

This is the second in a multi-part series on changes to the FIDIC White Book 5th Edition published in 2017. The previous post provided an overview of changes. In this post, a clause-by-clause comparison will examine the difference between the 2006 and 2017 editions. Detailed Differences in Each Clause - 2006 Vs 2017 Editions Clause 1 (General Provisions). Although there were 10 Sub-Clauses in the 4th edition, the 2017 edition has 16 Sub-Clauses. While Communications and Notices were two separate Sub-Clauses earlier, in the 5th edition, the two have been combined as with the entire 2017 FIDIC Rainbow Suite. The new Sub-Clauses include Confidentiality, Relationship of Parties, Agreement Amendment, Severability, Non-Waiver, and some important additions like Priority of Documents and Good Faith. Copyright in the previous edition has been changed to Intellectual Property –copyright is one form of intellectual property. The new sub-clause is much broader and covers four items: patents,…

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FIDIC White Book – a brief overview Part 1

This is the first in a four-part series on the FIDIC White Book. In this instalment, we will consider the major differences between the 2006 4th Edition and the 2017 5th Edition. The FIDIC White Client/Consultant Model Agreement was last updated in 2017. FIDIC also published the 2nd edition of the Sub-Consultancy Agreement to be in line with the new White Book. Through this book, a fair balance of risk is provided between the Client and the Consultant and intends to cover the minimum requirements of a typical appointment contract between Client & Consultant. As you all know, the Consultants get engaged in bankable documents, feasibility studies, detailed design, tender engagement and /or site supervision and project management works for traditional Employer-designed projects or DB projects or EPC and lately in DBO project–FIDIC White Book is suitable for any of these services and is very much used preparing agreements between Client & Consultant. The story of the White Book…

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ICCP Online Conference: Coming September 2023

We are delighted to announce that the ICCP will deliver its first conference this year: Construction Claims and Dispute Avoidance: How to Achieve Successful Outcomes Date: 20th September Time: 9:00am - 1:00pm BST This conference is for professionals who work in the specialist area of construction claims. Whether you work for a developer, a contractor, a consultant or within the legal profession, your priority is always to achieve a successful outcome for your claims. How can we establish effective contract administration processes for claims? How can we create good project management strategies to avoid claim situations? If we do find ourselves in a claim situation, how do we compile and deliver a well-substantiated claim? How do we put ourselves in the best position to settle at project level and avoid disputes? We will bring top experts together to discuss all these topics and much more. Invest half a day of time; leave with clarity and new perspectives to help you achieve…

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Formulation of a Balanced Construction Contract Part 2

This is the second in a two-part series. The previous post examined what an equitable contract is. This post will look at a case study of how an equitable contract was achieved on a Public Sector project in India. To briefly recap the previous post, there are two ways in which Employers formulate contracts: The Employer ‘de-risks’ itself by allocating maximum risks to the Contractor. This is normally found in bespoke contracts. Risks are allocated equitably based on certain principles which have been best illustrated in works of Max Abrahamson and Nael Bunni. Standard contracts like FIDIC are based on this. I propose a third way, which is, that each and every clause should be ‘war gamed’ for maximum contingencies and the clause should be formulated: to be in the best interests of the project, cater for maximum contingencies without leading to disputes. This should be done in consultation with prospective bidders. Case Study We will now examine one Directed Acceleration clause that…

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