Construction Claim Management & EOT Delay Analysis

CONSTRUCTION CLAIMS MANAGEMENT
&
EOT DELAYS ANALYSIS
Contract Module
Part 1
Presented by :
Hany Ismail, MSc, PMP
EOT DELAYS ANALYSIS
CONTRACT MODULE
CONTRACT IS ONE OF THE MOST IMPORTANT REFERENCES
AND DOCUMENTS FOR ANY CLAIM , YOU HAVE TO REFER
FOR EVERY ENTITLEMENT YOU ASKING FOR IN YOUR CLAIM
WITH THE CONTRACT REFERENCE AND ITS CLAUSE.
IN CONTRACT MODULE AND ITS LECTURES WE WILL FOCUS
ON SOME OF THE MOST IMPORTANT CONCEPTS AND
ESSENTIAL INFORMATION , YOU HAVE TO KNOW DURING
YOUR CLAIM PREPARATION FORM THE CONTRACT
ADMINISTRATION POINT OF VIEW.
WWW.PLANNINGENGINEER.NET
EOT DELAYS ANALYSIS
PART 1
INTRODUCTION ABOUT CONTACTS &
CONTRACTS TYPES
Construction Claims Management ( Contract Module – Part 1 )
Agenda
• Introduction
• Construction Industry Parties
• What is Contract ?
• Contract Strategy
• Contract Need
• Contract Documents
• Contract Documents Priorities
• Construction Contract Forms
• Contracting Process
• Types of Contract
• Conditions of Contract
• Legal Laws WWW.PLANNINGENGINEER.NET
Construction Industry Parties

The key parties involved in most construction projects
and considers what each of their roles are and how
they are linked to one another i.e. the contracts that are
entered into between them.
Employer
Contractor
Professional Team ( Engineer )
Sub-Contractors
Employer's Agent/Project Manager
Funder / Sponsor WWW.PLANNINGENGINEER.NET
Construction Industry Parties

The relationship between all the parties differs
according to the contract type ,form and conditions.
Employer
Engineer
Contractor
What is a Contract
 A contract is defined as: “An agreement made
between two or more parties which is enforceable by
law to provide something in return for something
else from a second party".
 The two parties are expected to perform the various

obligations they have undertaken, as expressed in a
mutually agreed set of contract documents.
Contract Strategy
 Contract strategy means selecting organizational
and contractual policies required for the execution
of a specific project.
 The development of the contract strategy comprises

a complete assessment of the choices available for
the management of design and construction to
maximize the probability of achieving project
objectives.
Contract Strategy
A proper contract strategy for a project involves Four
key decisions:
 Setting the project objectives and constraints.
 Selecting a proper project delivery method.
 Selecting a proper contract form / type.
 Contract administration practices.
Do you think …
All Agreements are Contracts ??
 Competent (legal standing) Parties

For an agreement to be a contract, there must be two or
more competent parties. In order to be considered
competent, a part must have a certain legal standing.
 Proper Subject Matter

For the subject matter of a contract to be proper, the first
requirement is that it was be clearly defined as to the
rights and obligations of each party. Second, the
purpose of the contract must not violate the law.
 Consideration
There must be a lawful and valuable consideration given
to both parties. A consideration often called "Something
for Something." A consideration must, also, be possible.
 Agreement
For valid contract, there must be a mutual agreement.
An agreement is considered to have been reached
when an offer made by one party is accepted by the
second party. Both parties must wish and intend their
bargain to be enforceable by law. WWW.PLANNINGENGINEER.NET
 Proper Form
The terms of a contract must be written so that both
parties are very sure of what their rights and
responsibilities are.
 Consent (agreement) of the Parties

The agreement must be free from Misrepresentation or
Duress (by force) , ..etc.
Contract Need
 Contracts provide a description of responsibilities and
liabilities.
 Contracts bind parties to their duties.
 Contracts can establish a time frame for duties.
 Contracts can secure payment.
 Contracts can provide resources.
What are the …
Contract Documents??
Contract Documents
The contract is defined by the contract documents,
which are developed from the tender documents.
Contract
Documents
Agreement General Special

Additional
Form Conditions Conditions
Contract Documents
1- Contract Agreement.
Which represent the final agreement document that is signed by both
parties and contains the full detailed information about them.
2- Letter of Tender.
Letter of Tender is the letter which is completed by the contractor and
contains the signed offer to the Employer.
3- Letter of Acceptance.
Letter of Acceptance” is the letter sent from the Employer to the
contractor including any annexed attached agreed between both parties.
If the Letter of Acceptance is not available it will be referred to the
Contract Agreement and related dates.
Contract Documents
4- Conditions of Contract.
1. Special Conditions.
2. General Conditions
Which represents the rights and obligations for both parties
5- Specifications.
Which should contain a detailed description on design and material used
in execution.
6- Drawings.
Which Indicates to the drawings specified in the Specification Document
and any drawing modifications written by the Consultant.
Contract Documents
7- Programme
Means the document(s) entitled schedules, completed by the
Contractor and submitted with the Letter of Tender, as included in
the Contract. Such document may include the Bill of Quantities,
data, lists, and schedules of rates and/or prices.
Contract Documents Power??
Contract Documents - Priorities

In the Case of any differences arising between the contract
documents, What is the order of documents power?
For Example :
1.The Contract Agreement 5.Drawings
2. Letter of Acceptance 6. Specifications
3. The Particular Conditions 7.B.O.Q
4. The General Conditions
Construction Contract Forms

They are forms guide the drafting of documents on civil
engineering and construction projects for the purpose of
obtaining tenders, awarding and administering Contracts.
As such they legally define the responsibilities and duties

of Employers (who commission work) and Contractors
(who carry out work) in the Works Information such as
( Fidic Contract Forms , NEC Form , …etc.).
Contracting Process
Identify Project
Prepare Scope
Select Contract
Prepare Tender Documents
Invite Tenders
Tender Meetings
Tender Evaluation
Place Contract
Types of Contracts
Cost Plus
Cost based
Target Cost
Contract
Unit Price
Price based
Lump Sum
Construction Claims Management & EOT Delay Analysis – Part 1
Unit Price contract

 Contract Value: Tender price is usually increased by
variations and claims.
 Payment : Payment is paid monthly for all work

completed during the month or any duration agreed .
 Design Changes : Offers a facility for the client to

introduce changes in the work defined in the tender
documents.
 Additional Payments : Additional payments for any

changes in the work content of the contract.
Unit Price contract

 Using : This contract is best suitable for repetitive
works.
 Variations : Not limited
 Additional Payments : For variations or quantity

increase of the items in the BOQ
Lump-sum contract
 Contract Value: Single tendered price is given for the
completion of specified work by a certain date.
 Payment : May be staged at intervals on the completion.
 Design Changes : Contract has a very limited flexibility

for design changes.
 Contract Final Price : Final price is known at tender.
 Contractor Risk : High Level of Risk.

 Employer Risks : Low Level of Risks, transfer risks to
the contractors. WWW.PLANNINGENGINEER.NET
Lump-sum contract
 Using : This contract may be used for a turn key
construction
 Important Risk : An important risk t the client is that of

not receiving competitive bids from desirable
contractors who may avoid a high-risk lump-sum
contract.
 Variations : limited variations are expected
 Additional Payments : For variations Only.

Construction Claims Reference

to the Contract
Construction Claims
• A construction claim is a request for payment or
time extension to which the contractor considers
him/herself entitled under the contract conditions
and terms . There are three types under which
claims are required:
Extension of time only.
 Additional cost.
 Both extensions of time and additional cost.

Legal systems
Legal Systems
Civil Law Common Law

) ‫( القانون المكتوب‬ )‫( السوابق القضائية‬
Egypt Applicable Law
Egypt Applicable Law
Civil Law Administrative Law

) »‫( القانون الخاص «القانون المدنى‬ ) »‫( القانون العام «القانون اإلدارى‬
Arbitration Law
Law 89 and its Law 119 year 2008 (Law 27 year 1997)
Amendments () ‫قانون البناء الموحد‬ ( ‫قانون‬
) ‫التحكيم‬
Thank You …
We hope you enjoy our lecture today
Hope to receive your feedback and recommendations
Contact Info
[email protected]
Mobile : +20 1277767728 /PlanningEngineerDotNet
/groups/4809645
&
EOT DELAYS ANALYSIS
Contract Module
Part (2)
Presented by :
EOT DELAYS ANALYSIS
PART (2)
FIDIC ( WHAT WE NEED TO KNOW )
Agenda
• Introduction
 Fidic Association
 Fidic Rainbow
• Red Fidic Clauses Overview
• The Obligations of the Employer
• The Obligations of the Contractor
• The Obligations of the Engineer
• The Obligations of the Dispute Adjudication Board

Introduction
• FIDIC is the International Federation of Consulting
Engineers and its members are comprised of national
associations of consulting engineers.
• Today, membership covers 99 countries of the World

and since it’s inauguration in 1913, the FIDIC standard
forms of contract have become the international
standard for contracts of an international nature and
are widely used in developing countries that have not
produced their own standard forms of contract.
Fidic Rainbow
• In 1999 FIDIC published a ‘suite’ of contracts, which
became known as ‘the Rainbow Suite’ because of the
various colors of the covers, these have been refined
and developed in the intervening years and today the
suite comprises the following contracts:
• It is all about risk allocation between the employer

and the contractor.
Fidic Rainbow
Project Type FIDIC Contract Form
Straight forward, quick or cheap project“ <500,000 $” Green Book
Employer design (Traditional project) Red Book

Employer design (Development Banks providing
Pink Book
finance)
Contractor design (Traditional project) Yellow Book
EPC/Turnkey project Silver Book
Design, build, operate project Gold Book
Fidic Rainbow
Red Fidic – General Conditions Clauses

 Clauses : 20 Clause
 Sub Clause : 193 Sub Clause
Clause Number Clause Title

Clause 1 GENERAL PROVISIONS
Clause 2 THE EMPLOYER
Clause 3 THE ENGINEER
Clause 4 THE CONTRACTOR
Clause 5 NOMINATED SUBCONTRACTORS
Clause 6 STAFF AND LABOUR
Clause 7 PLANT, MATERIALS AND WORKMANSHIP
Clause 8 COMMENCEMENT, DELAYS AND SUSPENSION
General Conditions Clauses – Cont’’

Clause Number Clause Title
Clause 9 TESTS ON COMPLETION
Clause 10 EMPLOYER’S TAKING OVER
Clause 11 DEFECTS LIABILITY
Clause 12 MEASUREMENT AND EVALUATION
Clause 13 VARIATIONS AND ADJUSTMENTS
Clause 14 CONTRACT PRICE AND PAYMENT
Clause 15 TERMINATION BY EMPLOYER
Clause 16 SUSPENSION AND TERMINATION BY CONTRACTOR
Clause 17 RISK AND RESPONSIBILITY
Clause 18 INSURANCE
Clause 19 FORCE MAJEURE
Clause 20 CLAIMS, DISPUTES AND ARBITRATION
Obligations
 Obligations of the Employer
 Obligations of the Contractor
 Obligations of the Engineer
 Obligations of the Dispute Adjudication Board
The Obligations of the Employer

CONSEQUENCES
CLAUSE OBLIGATIONS TIME FRAME OF NON-
COMPLIANCE
GENERALCONDITIONS
1 General Provisions
Within 28 days after the
1.6 Contract Enter into a Contract Agreement with the Contractor receives the
None.
Agreement Contractor. Letter of Acceptance, unless
agreed otherwise.
a) Keep the Specification and Drawings in custody

and care.
b) Supply two copies of the Contract and of each
1.8 Care and a) None.
subsequent
Supply of b) None. None.
Drawing to the Contractor.
Documents c) Promptly.
c) Give notice of errors or defects in any document
prepared
by the Contractor for use in executing the Works.
Obtain the planning, zoning or similar permission

for the
1.13 Permanent Works, and any other permissions
None. None.
Compliance described in
with Laws the Specification as having been (or being)
obtained by the
Employer.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
2 The Employer
a) Within the time (or times) Contractor shall
a) Give the Contractor right of access to, and stated in the Appendix to be
possession of, Tender, or if not stated, to entitled to an
2.1 Right of
all parts of the Site. enable the Contractor to extension of
Access to the
b) Give the Contractor possession of any proceed in accordance with time and
Site
foundation, the programme submitted under payment of Cost
structure, plant or means of access if required. Sub-Clause 8.3 [Programme]. plus reasonable
b) In the time and profit.
Provide reasonable assistance to the Contractor at

the request of the Contractor:
2.2 Permits, a) By obtaining copies of the Laws of the Country
Licenses or which are relevant but not readily available, and None. None.
Approvals b) For the Contractor’s applications for any
permits, licences or approvals required by the
Laws of the Country.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
2 The Employer
Ensure that Employer’s personnel and Employer’s
other contractors cooperate with the Contractor
2.3
and take actions similar to those which the
Employer’s None. None.
Contractor is required to take under Sub-Clause
Personnel
4.8 [Safety Procedures] and under Sub-Clause
4.18 [Protection of the Environment].
2.4 Contractor
Employer’s entitled to
Financial Suspend work,
Arrangements reduce the rate of
Submit reasonable evidence that financial work and to an
Within 28 days after receiving
arrangements have been made and are being extension of time
any request from
maintained which will enable the Employer to pay and additional
the Contractor.
the Contract Price. payment as a
result of such
actions
(Sub-Clause
16.1).

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
2 The Employer
Give notice and particulars to the Contractor if the
Employer considers himself to be entitled to any
As soon as practicable after
2.5 payment under any Clause of the Conditions or
becoming aware of the event or
Employer’s otherwise in connection with the Contract and/or to None.
circumstances giving rise to the
Claims any extension of the Defects Notification Period
claim.
(this obligation may be carried out by the
Engineer).
The Obligations of the Engineer

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
3 The Engineer
a) Appoint the Engineer to carry out the duties
3.1 Engineer’s assigned to him in the Contract.
Duties and b) Not to impose further constraints on the None. None.
Authority Engineer’s authority, except as agreed with the
Contractor..
a) Give notice to the Contractor of the name,

address and relevant experience of the intended
3.4 a) Not less than 42 days before
replacement Engineer.
Replacement the intended date
b) Not to replace the Engineer with a person None.
of the of replacement.
against whom the Contractor raises reasonable
Engineer b) None.
objection by notice to the Employer with
supporting particulars..
The Obligations of the Contractor

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
4 The Contractor
a) Cooperate with the Contractor to agree the
entity, country (or other jurisdiction) for the issue
of the Performance Security.
b) Cooperate with the Contractor to agree the a) None.
form of Performance Security if not in the form b) None.
4.2 Performance annexed to the Particular Conditions. c) None.
None.
Security c) Not to make a claim under the Performance d) Within 21 days after receiving
Security, except for amounts to which the a copy of the
Employer is entitled under the Contract (as Performance Certificate.
listed).
d) Return the Performance Security to the
Contractor.
a) Make available to the Contractor all relevant

data in the Employer’s possession on sub-
surface and hydrological conditions at the Site,
a) Prior to the Base Date.
4.10 Site Data including environmental aspects. None.
b) None.
b) Make available to the Contractor all such data
which come into the Employer’s possession
after the Base Date.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
4 The Contractor
a) Make the Employer’s Equipment (if any)
available for the use of the Contractor in the
execution of the Works in accordance with the
4.20 Employer’s details, arrangements and prices stated in the
a) As specified in the Contract.
Equipment and Specification.
b) As specified in the Contract. None.
Free-Issue b) Supply, free of charge, the “free-issue
c) Immediately.
Material materials” (if any) in accordance with the details
stated in the Specification.
c) Rectify the notified shortage, defect or default
in the free-issue materials.
Take possession and care of fossils, coins,

articles of value or antiquity and structures and a) Prior to the Base Date.
4.24 Fossils None.
other remains, or items of geological or b) None.
archaeological interest found on the Site.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
10 Employer’s Taking Over

10.1 Taking
Over of the When completed in accordance
Take over the Works. None.
Works and with the Contract.
Sections
If the Contractor
incurs Cost as a
result of the
Employer taking
Not to use any part of the Works (other than as
over and/or using
10.2 Taking a temporary measure which is either specified in
a part of the
Over of Parts of the Contract or agreed by both Parties) unless None.
Works, the
the Works and until the Engineer has issued a Taking-Over
Contractor shall
Certificate for this part.
be entitled to
payment of any
such Cost plus
reasonable profit.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
11 Defects Liability
Notify the Contractor (or ensure that notice is
11.2 Cost of
given by others) of any work to be remedied if
Remedying Promptly. None.
due to any cause outside the provisions of the
Defects
Contract.
If the Contractor
incurs Cost as a
result of the
Employer taking
In the case of failure by the Contractor to
over and/or using
remedy any defect or damage, notify the
11.4 Failure to a part of the
Contractor (or ensure that notice is given by Within reasonable time.
Remedy Defects Works, the
others) of the date by which the defect or
Contractor shall
damage is to be remedied.
be entitled to
payment of any
such Cost plus
reasonable profit.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
14 Contract Price and Payment

a) As stated in the Appendix to
a) Make the advance payment, as an interest- Tender and when the Contractor
14.2 Advance free loan for mobilization. submits a guarantee in
None.
Payment b) Cooperate with the Contractor to approve the accordance with this
form of the advance payment guarantee. Sub-Clause.
b) None.
14.5 Plant and

Cooperate with the Contractor to approve the
Material
form of a bank guarantee for shipped Plant and None None
intended
Materials.
for the Works

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS

Contractor
a) Within 42 days after issuing entitled to
the Letter of Acceptance or suspend work,
within 21 days after receiving reduce the rate of
the documents in accordance work and to an
with Sub-Clause 4.2 extension of time
a) Pay the first installment of the advance
[Performance Security] and and additional
payment.
Sub-Clause 14.2 [Advance payment as a
b) Pay the amount certified in each Interim
14.7 Payment Payment], whichever is later. result of such
Payment Certificate.
b) Within 56 days after the actions (Sub-
c) Pay the amount certified in the Final Payment
Engineer receives the Clause 16.1) and
Certificate.
Statement and supporting payment of
documents. financing
c) Within 56 days after the charges to the
Employer receives the Contractor
Final Payment Certificate. (Sub-Clause
14.8).

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS

a) When a Taking-Over
Certificate has been issued
and when the Engineer has The Contractor is
a) Pay the Contractor the first half of the
14.9 Payment of certified payment. entitled to receive
Retention Money.
Retention b) Promptly after the latest of financing charges
b) Pay the Contractor the outstanding balance of
Money the expiry of the Defects (Sub-Clause
the Retention Money.
Notification Periods and when 14.7).
the Engineer has certified
payment.
14.15
Pay the Contractor in the currency or currencies
Currencies None None
named in the Appendix to Tender.
of Payment

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
15 Termination by Employer
a) 14 days prior to the
termination date, or immediately
a) Give notice of intention to terminate the in the case of the Contractor
15.2
Contract. becoming bankrupt or gives or
Termination None
b) Give notice of release of the Contractor’s offers bribes or gratuities (or
by Employer
Equipment and Temporary Works. similar as defined in the
clause).
b) On completion of the Works.
15.4 Payment Pay the balance due to the Contractor after

after recovering any losses, damages and extra None None
Termination costs.
a) Give notice of intention to terminate the

Contract. a) 28 days prior to the
15.5 Employer’s
b) Return the Performance Security. termination date.
Entitlement to None
c) Not to terminate the Contract in order to b) None.
Termination
execute the Works himself or to arrange for the c) None.
Works to be executed by another contractor.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
16 Suspension and Termination by Contractor
a) Return the Performance Security to the

Contractor.
b) Pay the Contractor in accordance with Sub-
16.4 Payment
Clause 19.6 [Optional Termination, Payment
on Promptly.. None
and Release].
Termination
c) Pay to the Contractor the amount of any loss
of profit or other loss or damage sustained by
the Contractor as a result of this termination.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
17 Risk and Responsibility

Indemnify and hold harmless the Contractor, the
Contractor’s Personnel and their respective
agents, against and from all claims, damages,
losses and expenses in respect of bodily
17.1 Indemnities None. None
injury, disease or death which is attributable to
any negligence, willful act or breach of the
Contract by the Employer, the Employer’s
Personnel or agents.
a) Give notice of any claim under this clause.
b) Indemnify and hold the Contractor harmless
against and from any claim, which is or was an
a) Within 28 days of receiving a a) Waiver of right
unavoidable result of the Contractor’s
17.5 Intellectual claim. to indemnity.
compliance with the Contract or as a result of
and Industrial b) None. b) None.
any Works being used by the Employer.
Property Rights c) None. c) None.
c) If requested by the Contractor, assist in
d) None. d) None.
contesting the claim.
d) Not to make any admission, which might be
prejudicial to the Contractor.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
18 Insurance
a) Cooperate with the Contractor to approve the
terms of insurances.
b) Effect and maintain the insurances in terms
consistent with the details annexed to the a) None.
Particular Conditions, wherever the Employer is b) None.
a) None.
the insuring Party. c) The Contractor
b) None.
18.1 General c) Submit evidence that the insurance has been may effect the
c) Within the time frames
Requirements effected, provide copies of the policies and insurance and the
stipulated in the Contract Data.
for Insurances submit evidence of payment. Contract Price
d) As appropriate.
d) Inform the insurers of any relevant changes shall be adjusted.
e) None.
to the execution of the Works and ensure that d) None.
insurance is maintained. e) None.
e) Not to make any material alteration to the
terms of any insurance without approval of the
Contractor

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
19 Force Majeure
Give notice to the Contractor in the case that

19.2 Notice of the Employer is, or will be prevented from Within 14 days of becoming
None.
Force Majeure performing the Employer’s obligations by Force aware of the event.
Majeure.
a) Use all reasonable endeavors to minimize

any delay in the performance of the Contract as
19.3 Duty to
a result of Force Majeure. None. None.
Minimize Delay
b) Give notice when the effects of the Force
Majeure cease.

CONSEQUENCES
COMPLIANCE
GENERALCONDITIONS
20 Claims, Disputes and Arbitration

a) The appointing
entity or official
a) Jointly appoint the Dispute Adjudication named in the
20.2
Board (DAB). a) By the date stated in the Appendix to
Appointment
b) Not to consult the DAB without the Appendix to Tender. Tender
of the Dispute
agreement of the Contractor. b) None. shall appoint
Adjudication
c) Not to act alone in the termination of any c) None. (Sub- Clause
Board
member of the DAB. 20.3).
b) None.
c) None.
a) Make available to the DAB additional

20.4 Obtaining a) None.
information, access to the Site, and appropriate
Dispute b) The matter may
facilities as the DAB may require. a) Promptly.
Adjudication be referred to
b) Give effect to a DAB decision unless and b) None.
Board’s arbitration (Sub-
until it is revised in an amicable settlement or an
Decision Clause 20.7).
arbitral award.

CONSEQUENCES
COMPLIANCE
Annex – Procedural Rules

On the Commencement Date,
Give notice to the Dispute Adjudication Board
2 General or upon all parties signing the
Member that the Dispute Adjudication None.
Provisions Dispute Adjudication Agreement
Agreement has taken effect.
whichever is the later.
a) Not to request advice from, or consultation

with a DAB Member regarding the Contract
otherwise than in the normal course of the
5 General
DAB’s activities.
Obligations of
b) In the case of the DAB Member being
the Employer None. None.
required to make a site visit or attend a hearing,
and the
provide appropriate security for a sum
Contractor
equivalent to the reasonable expenses to be
incurred by the Member (this may be
undertaken by the Contractor).
a) Pay one half of the DAB fees to the The DAB Member
a) Within the monthly payments
Contractor. may suspend
6 Payment to the Contractor.
b) In the Case of the Contractor failing to pay services or resign
b) None.
the DAB Member, pay the due fees. the appointment

CONSEQUENCES
COMPLIANCE
Annex – Procedural Rules

Timing and
Jointly agree the timing of and agenda for each agenda shall be
2. None.
site visit by the DAB. decided by the
DAB.
a) Attend site visits by the DAB.

b) Co-ordinate site visits by the DAB in co-
operation with the
Contractor.
3. None. None.
c) Ensure the provision of appropriate
conference facilities
and secretarial and copying services to the
DAB.
a) Furnish to the DAB one copy of all
documents, which the DAB may request.
4. None. None.
b) Copy the Contractor on all communications
between the DAB and the Employer.
Thank You …
Contact Info
[email protected]
/groups/4809645
&
EOT DELAYS ANALYSIS
Contract Module
Part (3)
Presented by :
EOT DELAYS ANALYSIS
PART 3
CLAIMS, DISPUTES AND ARBITRATION
UNDER FIDIC
Agenda
• Introduction
• Disputes Adjudication Board “DAB”
• Arbitration
• Clause 20 : CLAIMS, DISPUTES AND ARBITRATION
• FIDIC Reading Session
Introduction
• FIDIC forms of contract include a fair risk allocation.
As a result of the risk apportionment claims have been
designated in the Contract.
• Also FIDIC gives clear guidelines for the prosecution

of claims arising out of, and in connection with the
Contract
Contactor Contactor Fully Engineer

Claim Notice Detailed Claim Response
28 42
Day Day
42
Day
Employer or Contractor Disagreed with

the Engineer Response
Dispute
DAB
56
Amicable Settlement Day
Arbitration
Claim Refuse ( Defendable – Non defendable)

• The Employer may present various arguments and
objections, which may be defendable or not defendable
such as :
Defendable Refuse Non- Defendable refuse
The relevant activity does not lie on the The claim notice was late.
critical path (no EOT).
The relevant circumstances were The preliminary notice was late.

subject of a previous determination.
An experienced Contractor could have
foreseen the encountered physical
conditions.
Claim Notice Important

• If the Contractor considers himself to be entitled to a claim,
the first step is for him to give notice (Sub-Clause 20.1) in
accordance with Sub-Clause 1.3 (Fig. 21.2).
This notice is important because:
 Everyone involved becomes aware that there is an event or
circumstance where extra time or payment may be owed to
the Contractor.
 Proper contemporary records must then be kept and
agreed, to avoid future argument.
 Alternative measures may also be possible to reduce the
effects.
 The matter may possibly be resolved at an early date.
FIDIC – Clause 20 – Sub Clauses

Sub Clause
20.1 Contractor's Claims
20.2 Appointment of the Dispute Adjudication Board
20.3 Failure to Agree Dispute Adjudication Board
20.4 Obtaining Dispute Adjudication Board's Decision
20.5 Amicable settlement

20.6 Arbitration
20.7 Failure to Comply with Dispute Adjudication Board's Decision
20.8 Expiry of Dispute Adjudication Board's Appointment
CLAIMS, DISPUTES AND

ARBITRATION
Thank You …
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Construction Claim Management & EOT Delay Analysis

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CONSTRUCTION CLAIMS MANAGEMENT

Construction Industry Parties

Construction Industry Parties

 The two parties are expected to perform the various

mutually agreed set of contract documents.

 The development of the contract strategy comprises

 Setting the project objectives and constraints.

 Selecting a proper project delivery method.

 Selecting a proper contract form / type.

 Contract administration practices.

All Agreements are Contracts ??

 Competent (legal standing) Parties

 Proper Subject Matter

 Consent (agreement) of the Parties

Duress (by force) , ..etc.

 Contracts bind parties to their duties.

 Contracts can establish a time frame for duties.

 Contracts can secure payment.

 Contracts can provide resources.

What are the …

Agreement General Special

Contract Documents Power??

Contract Documents - Priorities

1.The Contract Agreement 5.Drawings

2. Letter of Acceptance 6. Specifications

3. The Particular Conditions 7.B.O.Q

4. The General Conditions

Construction Contract Forms

As such they legally define the responsibilities and duties

Unit Price contract

variations and claims.

 Payment : Payment is paid monthly for all work

 Design Changes : Offers a facility for the client to

 Additional Payments : Additional payments for any

Unit Price contract

 Variations : Not limited

 Additional Payments : For variations or quantity

 Payment : May be staged at intervals on the completion.

 Design Changes : Contract has a very limited flexibility

 Contract Final Price : Final price is known at tender.

 Contractor Risk : High Level of Risk.

 Important Risk : An important risk t the client is that of

 Variations : limited variations are expected

 Additional Payments : For variations Only.

Construction Claims Reference

Extension of time only.

 Both extensions of time and additional cost.

Civil Law Common Law

Egypt Applicable Law

Egypt Applicable Law

Civil Law Administrative Law

Hope to receive your feedback and recommendations

• Red Fidic Clauses Overview

• The Obligations of the Employer

• The Obligations of the Contractor

• The Obligations of the Engineer

• The Obligations of the Dispute Adjudication Board

• Today, membership covers 99 countries of the World

• It is all about risk allocation between the employer

Straight forward, quick or cheap project“ <500,000 $” Green Book