The 2017 Red Book, Yellow Book, and Silver Books begin with a series of comprehensive flow charts which typically show in visual form the sequence of activities that characterize the FIDIC forms of contract.

These charts are illustrative, however, and not meant to be taken into consideration in the interpretation of the Conditions of Contract. They simply indicate the time frame for each activity and the related clauses incorporated as a reference.

One of the biggest benefits of these flowcharts is the ability to visualize multiple activities and their sequence together which indeed increases efficiency, effective coordination, problem-solving skills, etc. Elements included in the flowcharts are a sequence of events or actions, decisions that must be made, people who become involved, the time involved at each step, and/or the process, etc.

The typical sequence of principal events during the life cycle of the contracts:

All three books show similar types of activities with identical time constraints for each of them.

Starting from the ‘Issue of Tender Documents’ to the ‘Return of Performance Security’ during the tender period, tender is issued with a base date normally of 28 days, followed by tender submission and the Contractor receiving the Letter of Acceptance (LOA).

Within 28 days from receiving this LoA, the Contractor shall submit the performance guarantee in Sub-clause 4.2.1. Either the Engineer shall give notice to the Contractor stating the commencement date not less than 14 days before the proposed commencement date or as stated in the particular conditions; if nothing is stated in the particular conditions, the commencement date shall be within 42 days after the contractor receives the LoA.

However, in the Silver Book, this timeline starts from the date of signing the contract agreement instead of the issuance of the LoA. The time for completion needs to be stated in the contract data as a number of days to which delays attributed to the Contractor are added up.

Considering the extension of time, the Contractor may apply for the taking over certificate by giving notice to the Engineer not more than 14 days before the works will, in the contractor’s opinion, be complete and ready for taking over and by when the Contractor should have completed test and completion.

Depending on the type of work, the Engineers shall, within 28 days after receiving the Contractor’s notice, shall either issue a taking over certificate to the Contractor or reject the application by giving notice to the Contractor with reasons. Then comes the Defects Notification Period, which shall be stated as a number of days to which any extensions are added.

However, the Defects Notification Period (DNP) shall not be extended by more than a period of two years after the expiry of the DNP stated in the contract data. This period covers the notification of defects, notes, and remedy of defects, followed by issue of the performance certificate within 28 days after the latest of the expiry dates of the DNP representing the acceptance of the works. Within 21 days from the issue of the performance certificate, the Employer shall return the performance guarantee to the Contractor.

This guest post was written by Mansoor Ali, FICCP. It is the first in a four-part series and was originally published as a LinkedIn video, viewable here. If you would like to see examples of the flowcharts referenced in this post, please click the link to watch the video.