New Masters Seminar: FIDIC 2017 – Enrol now!
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First Edition of the FIDIC 2017 Masters Seminar – March 2018.
MASTERS SEMINAR: THE NEW FIDIC 2017 CONTRACTS
A Comprehensive, Independent Critique & Contractual/Legal Analysis (Red/Yellow Books)
Take The Lead In Gaining Specialised Knowledge & Expertise of FIDIC’s New Contracts Which Will Dominate The Construction Industry & Replace FIDIC 1999
After Almost 2 Decades, FIDIC Has Released A New Suite Of Contracts, Which Introduces Radical Changes To FIDIC 1999.
N.M.Raj will present an INDEPENDENT legal/contractual analysis and review of the FIDIC 2017 Contracts
Key Topics Include:
- FIDIC 2017: All critical issues you need to be aware of
- Pros & Cons: An objective critique of the radical changes and new clauses
- The “New Engineer”: Review of the Engineer’s significantly amended role/powers
- The Employer: New risks and liabilities that developers/investors need to be cognisant of
- The Contractor: Additional/Extensive contract administration & project management responsibilities
- Reciprocity Between The Parties: New obligations/rights to promote collaboration
- Amended Variation Provisions: Significant changes: “Cardinal Change” doctrine introduced but is it contractually effective?
- New Time Bars: The new 28 day time bar may not be contractually effective – A legal analysis
- New Claims Clauses/Procedures: A dissection of the enhanced claims provisions
- Extensive Change To DAB Rules: DAAB (Dispute Avoidance/Adjudication Board) & Dispute Resolution….and Many More Topics including Termination, Risks/Insurance, Concurrent delays et al.
MASTERS SEMINAR PROGRAMME
FIDIC 2017 v FIDIC 1999: An In-Depth Analysis Of The Substantial & Key Variances From FIDIC 1999
- Amendments to FIDIC’s core structure/New definitions
- Introduction of new & mandatory contract administration procedures
- Additional obligations for both Parties (including advance warning notices)
- Substantially enhanced/increased contractual/administrative procedures
- Complex “deeming provisions” – 58 clauses contain deeming provisions v FIDIC 1999 (26 Clauses)
- Reciprocity of rights and obligations – new uncapped liabilities
- Key amendments to claims provisions, dispute resolution et al.
- The Engineer: Significant Changes To The Engineer’s Role (Including additional Risks)
The FIDIC 2017 Engineer has several additional duties, functions and is obliged to administer the Contract in a manner, which is substantially different from FIDIC 1999. The changes include (but are not limited to):
- Deletion of contractual procedures from FIDIC 1999 and addition of new ones
- Additional project management functions – newly prescribed time limits for various functions
- Paradigm shift as far as the “decision-making process” is concerned
- Critical amendments to contract administration duties
- The Engineer’s revised role is analysed in detail and advice given on what to do and what not to do
The Contractor: Massive/New Risks & Opportunities
- Additional triggers for termination / New options for the Employer to terminate (Incl. Immediate termination)
- Contractor’s indemnity requirements increased – FFP (Fit For Purpose) requirements changed
- Limits to raising questions about the Employer’s financial arrangements
- Claims: Enhanced and highly complex claims procedure – Additional requirements for Programme
- Loss of profit claims
- Crucial changes to insurance risks
- It is critical for contractors to gain a clear understanding of the various complexities associated with new obligations and rights arising from FIDIC 2017.
The Employer: Introduction Of New Obligations, Liabilities And MAJOR RISKS
- In FIDIC 2017, the Employer is obliged to take on a more “hands-on” role and be pro-actively involved in major contract administration, claims and project management issues.
- Employer’s Claims: The Employer must adhere to a strict procedure – Employer’s claims can be time barred
- Major issues arising from “Termination for Convenience”
- Critical amendments to “Fit for Purpose” obligations (Contractor designed works) – changed from FIDIC 1999.
- Contractor’s Claims: Significant new risks
- Contractor’s risks reduced for hidden defects
- List of risks expanded – E.g. Contractor has more options to terminate the contract or suspend works
Variations: Extensive Changes To Key Provisions
- Introduction of the “Cardinal change” doctrine but is it contractually effective?
- New possibilities for the Employer to omit works and have it executed by other contractors
- Claims: Significant changes to EOT procedures for instructed variations
- Additional possibilities for the Contractor to refuse variations
- Contractor has options to submit “Loss of Profit” claims
Claims Clauses/Procedures: New Complex, Prescriptive Claims Provisions
A FIDIC 2017 compliant sample Notice template will be provided to all delegates
- “Claims” are now separate from “Dispute Resolution” and complicated procedural rules have been added
- Enhanced claims mechanism with multiple time bars and notification requirements
- Claims have to be “Fully Detailed” with additional condition precedent prerequisites
- Specified remeasured variance from estimated BoQ quantities would entitle the Contractor to an EOT/Payment
- New definition of “Notice” will cause additional problems for contractors
- The new 28 day time bar may not be contractually effective – A legal analysis
- A NEW 3rd category of claim has been introduced which will result in complex contractual/legal scenarios
- Key time bars may be waived
DAAB (Dispute Avoidance/Adjudication Board) & Dispute Resolution
- New Clause that deals specifically with dispute avoidance and resolution
- Enhanced mechanism for appointing DAABs.
- DAAB’s “informal assistance” to parties
- Unwaivable time bars introduced which are extremely risky for employers and contractors alike
- An analysis of the how to crystallise a dispute under FIDIC 2017
- Enforcement of DAAB’s decisions augmented via new contractual clauses
- Arbitration rules amended
FIDIC 2017: Amended Provisions – Changes To Other Issues Which Will be Addressed
- Concurrent delays
- Exceptional events
- Site Access – New Risks
- Design issues