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FIDIC Plant and Design-Build Form of Contract Illustrated

ISBN: 978-1-118-89621-1
344 pages
October 2015, Wiley-Blackwell
FIDIC Plant and Design-Build Form of Contract Illustrated (1118896211) cover image

Description

The Conditions of Contract prepared by FIDIC are used extensively as the standard contract of choice in international construction and civil engineering projects. Engineers working on these projects need to be aware of these contracts, but as the forms are complex it can be difficult to draw together all the sub-clauses relating to a particular issue.

The FIDIC Plant and Design-Build Forms of Contract Illustrated crystallizes the requirements of the FIDIC P&DB contract into a range of simple to follow flow charts, providing a clear and concise way to rapidly assimilate the requirements of each clause. The relationship between the various clauses in the contract, the concepts, process methods and actors involved in each sub-clause are all easily seen, and key issues around each topic (such as periods allowed, notices, etc) are all documented. In addition, related sub-clauses and/or important additional documents are linked so that the reader has a full understanding of the wider implications of each clause.

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Table of Contents

Why is Reading This Book of Value? xiii

Acknowledgements xv

Concept ]flow Diagraming 1

Which is Which? Differentiating Among Obligations, Responsibilities and Rights 1

Summary Table 12

1 P&DB General Provisions 15

P&DB 1.2 Interpretation 15

P&DB 1.3 Communications 16

P&DB 1.4 Law and Language 18

P&DB 1.5 Priority of Documents 19

P&DB 1.6 Contract Agreement 21

P&DB 1.7 Assignment 22

P&DB 1.8 Care and Supply of Documents 23

P&DB 1.9 Errors in the Employer’s Requirements 25

P&DB 1.10 Employer’s Use of Contractor’s Documents 27

P&DB 1.11 Contractor’s Use of Employer’s Documents 28

P&DB 1.12 Confidential Details 29

P&DB 1.13 Compliance with Laws 30

P&DB 1.14 Joint Several Liability 32

2 P&DB The Employer 33

P&DB 2.1 Right of Access to the Site 33

P&DB 2.2 Permits, Licences or Approvals 37

P&DB 2.3 Employer’s Personnel 38

P&DB 2.4 Employer’s Financial Arrangements 39

P&DB 2.5 Employer’s Claims 40

3 P&DB The Engineer 43

P&DB 3.1 Engineer’s Duties and Authority 43

P&DB 3.2 Delegation by the Engineer 46

P&DB 3.3 Instructions of the Engineer 48

P&DB 3.4 Replacement of the Engineer 49

P&DB 3.5 Determinations 50

4 P&DB The Contractor 51

P&DB 4.1 Contractor’s General Obligations 51

P&DB 4.2 Performance Security 53

P&DB 4.3 Contractor’s Representative 57

P&DB 4.4 Subcontractors 60

P&DB 4.5 Nominated Subcontractors 61

P&DB 4.6 Co ]Operation 62

P&DB 4.7 Setting Out 64

P&DB 4.8 Safety Procedures 67

P&DB 4.9 Quality Assurance 68

P&DB 4.10 Site Data 69

P&DB 4.11 Sufficiency of the Accepted Contract Amount 71

P&DB 4.12 Unforeseeable Physical Conditions 72

P&DB 4.13 Rights of Way and Facilities 75

P&DB 4.14 Avoidance of Interference 76

P&DB 4.15 Access Route 77

P&DB 4.16 Transport of Goods 79

P&DB 4.17 Contractor’s Equipment 80

P&DB 4.18 Protection of the Environment 81

P&DB 4.19 Electricity, Water and Gas 82

P&DB 4.20 Employer’s Equipment and Free ]Issue Material 83

P&DB 4.21 Progress Reports 86

P&DB 4.22 Security of the Site 89

P&DB 4.23 Contractor’s Operations on Site 90

P&DB 4.24 Fossils 92

5 P&DB Design 94

P&DB 5.1 General Design Obligations 94

P&DB 5.2 Contractor’s Documents 97

P&DB 5.3 Contractor’s Undertaking 102

P&DB 5.4 Technical Standards and Regulations 103

P&DB 5.5 Training 106

P&DB 5.6 As ]Built Documents 107

P&DB 5.7 Operation and Maintenance Manuals 108

P&DB 5.8 Design Error 109

6 P&DB Staff and Labour 110

P&DB 6.1 Engagement of Staff and Labour 110

P&DB 6.2 Rates of Wages and Conditions of Labour 111

P&DB 6.3 Persons in the Service of Employer 112

P&DB 6.4 Labour Laws 113

P&DB 6.5 Working Hours 114

P&DB 6.6 Facilities for Staff and Labour 115

P&DB 6.7 Health and Safety 116

P&DB 6.8 Contractor’s Superintendence 118

P&DB 6.9 Contractor’s Personnel 119

P&DB 6.10 Records of Contractor’s Personnel and Equipment 120

P&DB 6.11 Disorderly Conduct 121

7 P&DB Plant, Materials and Workmanship 122

P&DB 7.1 Manner of Execution 122

P&DB 7.2 Samples 123

P&DB 7.3 Inspection 124

P&DB 7.4 Testing 127

P&DB 7.5 Rejection 131

P&DB 7.6 Remedial Work 133

P&DB 7.7 Ownership of Plant and Materials 135

P&DB 7.8 Royalties 136

8 P&DB Commencement, Delays and Suspension 137

P&DB 8.1 Commencement of Work 137

P&DB 8.2 Time for Completion 139

P&DB 8.3 Programme 140

P&DB 8.4 Extension of Time for Completion 143

P&DB 8.5 Delays Caused by Authorities 145

P&DB 8.6 Rate of Progress 146

P&DB 8.7 Delay Damages 149

P&DB 8.8 Suspension of Work 150

P&DB 8.9 Consequences of Suspension 151

P&DB 8.10 Payment for Plant and Materials in Event of Suspension 154

P&DB 8.11 Prolonged Suspension 155

P&DB 8.12 Resumption of Work 157

9 P&DB Tests on Completion 158

P&DB 9.1 Contractor’s Obligations 158

P&DB 9.2 Delayed Tests 164

P&DB 9.3 Retesting 167

P&DB 9.4 Failure to Pass Tests on Completion 168

10 P&DB Employer’s Taking Over 170

P&DB 10.1 Taking Over of the Works and Sections 170

P&DB 10.2 Taking Over of Parts of the Works 173

P&DB 10.3 Interference with Tests on Completion 177

P&DB 10.4 Surfaces Requiring Reinstatement 180

11 P&DB Defects Liability 181

P&DB 11.1 Completion of Outstanding Work and Remedying Defects 181

P&DB 11.2 Cost of Remedying Defects 183

P&DB 11.3 Extension of Defects Notification Period 185

P&DB 11.4 Failure to Remedy Defects 186

P&DB 11.5 Removal of Defective Work 188

P&DB 11.6 Further Tests 189

P&DB 11.7 Right of Access 190

P&DB 11.8 Contractor to Search 191

P&DB 11.9 Performance Certificate 192

P&DB 11.10 Unfulfilled Obligations 193

P&DB 11.11 Clearance of Site 194

12 P&DB Tests after Completion 196

P&DB 12.1 Procedure for Tests After Completion 196

P&DB 12.2 Delayed Tests 199

P&DB 12.3 Retesting 201

P&DB 12.4 Failure to Pass Tests After Completion 202

13 P&DB Variations and Adjustments 206

P&DB 13.1 Right to Vary 206

P&DB 13.2 Value Engineering 208

P&DB 13.3 Variation Procedure 209

P&DB 13.4 Payment in Applicable Currencies 211

P&DB 13.5 Provisional Sums 212

P&DB 13.6 Daywork 214

P&DB 13.7 Adjustments for Changes in Legislation 216

P&DB 13.8 Adjustments for Changes in Cost 218

14 P&DB Contract Price and Payment 222

P&DB 14.1 The Contract Price 222

P&DB 14.2 Advance Payment 224

P&DB 14.3 Application for Interim Payment Certificates 227

P&DB 14.4 Schedule of Payments 229

P&DB 14.5 Plant and Materials Intended for the Works 231

P&DB 14.6 Issue of Interim Payment Certificates 234

P&DB 14.7 Payment 237

P&DB 14.8 Delayed Payment 238

P&DB 14.9 Payment of Retention Money 239

P&DB 14.10 Statement at Completion 241

P&DB 14.11 Application for Final Payment Certificate 242

P&DB 14.12 Discharge 244

P&DB 14.13 Issue of Final Payment Certificate 245

P&DB 14.14 Cessation of Employer’s Liability 247

P&DB 14.15 Currencies of Payment 248

15 P&DB Termination by Employer 251

P&DB 15.1 Notice to Correct 251

P&DB 15.2 Termination by Employer 252

P&DB 15.3 Valuation at Date of Termination 258

P&DB 15.4 Payment After Termination 259

P&DB 15.5 Employer’s Entitlement to Termination 260

16 P&DB Suspension and Termination by Contractor 261

P&DB 16.1 Contractor’s Entitlement to Suspend Work 261

P&DB 16.2 Termination by Contractor 264

P&DB 16.3 Cessation of Work and Removal of Contractor’s Equipment 268

P&DB 16.4 Payment on Termination 269

17 P&DB Risk and Responsibility 270

P&DB 17.1 Indemnities 270

P&DB 17.2 Contractor’s Care of the Works 272

P&DB 17.3 Employer’s Risks 274

P&DB 17.4 Consequences of Employer’s Risks 276

P&DB 17.5 Intellectual and Industrial Property Rights 278

P&DB 17.6 Limitation of Liability 280

18 P&DB Insurance 281

P&DB 18.1 General Requirements for Insurances 281

P&DB 18.2 Insurance for Works and Contractor’s Equipment 286

P&DB 18.3 Insurance Against Injury to Persons and Damage to Property 292

P&DB 18.4 Insurance for Contractor’s Personnel 294

19 P&DB Force Majeure 295

P&DB 19.1 Definition of Force Majeure 295

P&DB 19.2 Notice of Force Majeure 297

P&DB 19.3 Duty to Minimize Delay 298

P&DB 19.4 Consequences of Force Majeure 299

P&DB 19.5 Force Majeure Affecting Sub ]Contractor 301

P&DB 19.6 Optional Termination, Payment and Release 302

P&DB 19.7 Release from Performance Under the Law 304

20 P&DB Claims, Disputes and Arbitration 305

P&DB 20.1 Contractor’s Claims 305

P&DB 20.2 Appointment of the Dispute Adjudication Board 312

P&DB 20.3 Failure to Agree Dispute Adjudication Board 315

P&DB 20.4 Obtaining Dispute Adjudication Board’s Decision 316

P&DB 20.5 Amicable Settlement 319

P&DB 20.6 Arbitration 320

P&DB 20.7 Failure to Comply with Dispute Adjudication Board’s Decision 322

P&DB 20.8 Expiry of Dispute Adjudication Board’s Appointment 324

Keywords 325

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Author Information

Raveed Khanlari drafts, modifies and negotiates contracts on behalf of Farab Co., both from the view point of the contractor and employer, for projects that Farab is developing or maintaining.

Dr Mahdi Saadat Fard is Contract and Financing Manager, with Farab Co., with over 10 years of experience in power plant construction in Iran, Kenya, Sri Lanka, Iraq and Tajikistan, both from contractor and employer's side.

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