FIDIC for a Project

Introduction

It is accepted that as the number and size of construction projects increase, so does the number of claims and more often than not their size. This is a feature, which also relates to Counterclaims. Whilst such claims and counterclaims cannot be totally avoided, they can be successfully dealt with if they are predicted and if proper and careful planning, preparation, and control are exercised. It is also true that many of these claims and counterclaims end in bitter disputes that are fought the whole way to arbitration. On the road to arbitration, the parties are expected to deal with the multi-tier dispute resolution mechanisms now available. The Dispute Resolution process can be extremely expensive and time-consuming.
This program forms one of our carefully chosen and researched programs for the construction industry. It is especially designed for the Middle East and provides specialist knowledge not only in the area of claims and counterclaims but also in the area of Dispute Resolution: how they arise; how they are initiated; submitted, calculated, and analyzed; how they can be properly and successfully dealt with and controlled; and finally how they can be avoided. The program also includes sessions on Amicable Dispute Resolution methods and their characteristics, advantages, and disadvantages.

Objectives

In particular, the program is presented by an internationally acknowledged authority on the subject who will discuss such detailed topics as

• • How to draft claims and counterclaims and how to assess them successfully.
  • The most commonly occurring disputes and how they can be avoided
  • The relationship between risks, events, notices, and claims.
  • The recent developments in claim avoidance
  • The program includes practical examples on claims and their formulation in the form of workshops at the end of each of the five days of the program.

Training Methodology

The training methodology is interactive with group exercises and is suitable for all employees involved in functions management. The pace and level of the training workshop are customized to the understanding of the delegates. Ongoing backup and support are available after the training on request to the supplier, and the training course is also available for in-house presentation as well as for “Competency Transfer”.

Who Should Attend?

The following audience will obtain maximum benefit from attending this event: Contractors, Sub-Contractors, Architects, Quantity Surveyors, Civil Engineers, Financiers, Lawyers, Legal Advisors, Project Managers, Design Consultants, Loss Adjusters, Registered Arbitrators and Insurance Consultants.

Course Outline

Day 1: Essential Principles of a Contract

• Definitions
• Pre-requisites of a contract
• Legal concepts
• Rights & Obligations​

Distinguishing Features of the Construction Contract

• Why are Construction Contracts unique
• The multiplicity of technical & legal areas covered
• The concepts that must be taken care of
• Risk Allocation​​​

​The Array of Construction Contracts

• Services contract
• Construction Contract
• Subcontracts
• Supply Contracts
• Joint Ventures
• BT, BOT, BOOT, etc. Contracts​

Standard Forms of Contract Used Internationally

• The FIDIC Forms of Contract: The White; The 4th Edition of the Red Book; The 3rd Edition of the Yellow Book; The Orange Book; The New Red Book, 1999; The New Yellow Book, 1999; The Silver Book, 1999; The Green Book, 1999; and Dredging Contract
• Variation based on FIDIC
• The World Bank Forms of Contract: Services; Works; Small Works; Goods; and Plant & Equipment
• Financing Agencies Forms​

Standard Forms of Contract Used internationally - continued

• Variation based on FIDIC
• The World Bank Forms of Contract: Services; Works; Small Works; Goods; and Plant & Equipment
• Financing Agencies Forms​​

Day 2: Criteria for Selection of the Appropriate Contract Conditions

• The Functions to be Performed
• The Risks to be Allocated
• The Method of Remuneration
• Management Roles

The Role of the Engineer in Construction Contracts

• As a Designer
• As a Supervisor
• As an Agent of the Employer
• As an Adjudicator
• As an Adviser in Dispute Settlement Procedures
• What is the Engineer’s role under the various FIDIC Forms​

Recent Developments in Alternatives to the Engine

• The Contractor as a designer
• The Employer’s Representative
• In Dispute Resolution Mechanisms
• Dispute Review Boards
• Dispute Adjudication Boards

Essentials of FIDIC’s Red and Yellow Book Contracts

• FIDIC‘s Red Book 4th Edition 1987, as amended in 1992
• FIDIC‘s Yellow Book 3rd Edition 1987, as amended in 1988​

Changes in Form and in Substance from the Old to the New Forms

• FIDIC‘s New Red Book 1st Edition, 1999
• FIDIC‘s New Yellow Book 1st Edition, 1999
• EPC Turnkey Contracts, FIDIC‘s Silver Book 1st Edition, 1999
• Small Contracts, FIDIC‘s Green Book 1st Edition, 1999

​Day 3: Workshop No.1

• Analysis of Workshop No.1
• The Design Function and its variations under the various Forms
• The design function under FIDIC‘s Old and New Red Books
• The design function under FIDIC‘s Old and New Yellow Books
• The design function under FIDIC‘s Silver Book
• The design function under Small Contracts, FIDIC‘s Green Book
• Claims Procedures and its variations under the different Forms
• The Claims procedure under FIDIC‘s Old Red Book
• The Claims procedure under FIDIC‘s Old Yellow Book
• The Claims procedure under FIDIC‘s New Suite of Contracts
•  Contractor’s Claims –v- Employer’s Claims
•  Time limits barring claims
• 15-Workshop No. 2
• 16-Analysis of Workshop No. 2​​

Day 4: 17-The progression from Claim to Dispute & Dispute Resolution Mechanisms

• Dispute Resolution Mechanisms under FIDIC‘s Old Red Book
• Dispute Resolution Mechanisms under FIDIC‘s Old Yellow Book
• Dispute Resolution Mechanisms under FIDIC‘s New Suite of Contracts
•  The Differences between the Old and the New Forms
• Time limits

Alternative & Amicable Dispute Resolution

•  Amicable, Affordable, Appropriate and Alternative
• Negotiation
•  Conciliation/Mediation
• Mini Trials
•  Rent a Judge
•  ICC Pre-arbitral Referee procedure

Dispute Boards

• Dispute Review Boards
• Dispute Adjudication Boards
• The Rules
• The Agreements
• Standing and Adhoc
• Function in formal and informal dispute resolution​

20-Workshop No. 3

21-Analysis of Workshop No. 3​

Day 5: 22-ADR –v- Arbitration

• Advantages and Disadvantages
• Where to use each and where not to do so
• Time, cost, and finality

23-Arbitration

• Features
• Arbitration under the FIDIC Contracts
• The Law of Arbitration and the Rules of Arbitration
• Institutional and ADHOC
• Domestic and International​

24-The various stages in arbitration

• The Appointment of arbitrators
• The Preliminary Meeting
• Procedural and substantive matters
• Evidence
• Expertise
• The Hearing
• After the Hearing
• The Award