FIDIC CONTRACT ADVICE

Using FIDIC Red Book For this Hotel project we had to examine its contract before signing on a $100+ million project.

  1. Home
  2. FIDIC Case Studies
  3. FIDIC Red Book Advice
  •   PROJECT:

    HOTEL, BAHRAIN

  •   CONTRACT:

    FIDIC 1999 RED BOOK

  •   CONSULTANT:

    FRANS TALJAARD

  •  

  •  

  •  

PROBLEM RECEIVED:

We were appointed by the General Contractor to examine its Contract before signing on a $100+ million project. The Contract was a bespoke FIDIC 1999 Red Book Contract. It included British Standards and Bahrain Common law provisions guiding the Works.


THE PROCESS & SOLUTION:

TDS received the Contract provided by the Engineer, on behalf of the Client, for acceptance and signature.

Contractual clauses omitting culpability from the work of other Contractors from the Client were addressed. Risks associated with Employer supplied material were added to entitle the Contractor for delays out of their control. Entitlement to claims for culpable Employer delays was added to the Contract. Exuberant Liquidated Damages amounts were scrapped.

Payment terms from 90 days were reduced to 30 days after invoicing. Plus the use of scaffolding supplied by the Contractor to other Contractors would be compensated.

THE BENEFIT:

The Contractor negotiated favourable terms for the Construction Contract. During the Contract Period, the Contractor would be able to claim for variations, delays, breaches by the Employer and Variation Orders. It helped the cash flow considerably to have a shorter payment window.