This is the second in a multi-part series on Notices under the 2017 Edition of the FIDIC Silver Book. This post will cover the purpose or objective of serving notices as well as the mistakes that should be avoided by the Employer, Engineer, or Contractor while submitting notices.

The Purpose of Notices

  • Notices are a legitimate means of controlling claims management by considering and taking action to address and resolve an event or circumstance.
  • They alert the Employer to the fact that the Employer may have to pay the Contractor additional money or grant an Extension of Time by reason of a specified event or circumstance.
  • Notices enable matters to be investigated while they are still current.
  • They allow for forecasting the impact of an event on the master programme and project budget.
  • They allow the parties to consider implementing measures to mitigate the effect of a particular event, and act as a defensive or preventive action for both the Employer and Contractor for any event that could possibly occur.

Common Errors in Notices

There are several issues that frequently arise. One, if a notice is not given within a specified time limit from the event or circumstance giving rise to the claim, then the right to claim is lost. Similarly, failure to cite the contractual clause under which the notice is given, or failure to properly identify communications as notices and neglecting to record the necessary information within notices. Additionally, if the contract wording imposes a condition precedent about how notices are to be served, and if it is not followed, then the notice might not serve the purpose even if the notice was delivered into the hands of the other party.

Finally, it is important that all parties be aware of the correct party and as well as the address to which communication should be sent. Care must be taken by both parties to ensure that those working at the places to which communication is to be sent are also aware of such notices.

This series is now complete and is available as a PDF by emailing the subject line Silver Book Notices to hello@instituteccp.com. Each post can be read on the blog at these links:
Part 1: An Introduction to Notices under FIDIC Silver Book 2017 Edition
Part 2: The Objective of Notices and What to Avoid
Part 3: Notices under Clauses 1-3
Part 4: Notices under Clause 4
Part 5: Notices under Clauses 5-6
Part 6: Notices under Clauses 7-8
Part 7: Notices under Clauses 9-10
Part 8: Notices under Clause 11
Part 9: Notices under Clause 12
Part 10: Notices under Clauses 13-14
Part 11: Notices under Clause 15
Part 12: Notices under Clause 16
Part 13: Notices under Clauses 17-18
Part 14: Notices under Clause 20
Part 15: Notices under Clause 21

This guest post was written by Mansoor Ali, FICCP and Jishma Joy. It is the second post in a multi-part series and was originally published as a LinkedIn video, viewable here.