🔵 FIDIC 100: Practical Q&A Series for Construction Professionals

📌 Questions 1–25

1. What does FIDIC stand for? FIDIC stands for Fédération Internationale Des Ingénieurs-Conseils, the International Federation of Consulting Engineers.

2. What are the main types of FIDIC Contracts? Red Book, Yellow Book, Silver Book, Green Book, Gold Book, Blue Book.

3. What’s the difference between the Red and Yellow Books? Red: Employer-designed; Yellow: Contractor-designed.

4. Who prepares the contract under FIDIC? The Employer or its consultant usually drafts it using FIDIC templates.

5. Is FIDIC legally binding? Yes, once incorporated into a contract and signed.

6. What is the role of the Engineer in FIDIC Red Book? To administer the contract, supervise work, and make determinations.

7. What is Sub-Clause 20.1 about? It addresses the procedure for submitting claims.

8. What is the time limit for notifying a claim? 28 days from when the Contractor became aware of the event.

9. What happens if the claim is not notified within 28 days? The Contractor loses the right to claim.

10. What is a DAB? Dispute Adjudication Board – resolves disputes before arbitration.

11. Is the DAB decision final? It is binding unless and until revised by arbitration.

12. Can the contract be terminated under FIDIC? Yes, under specific circumstances like prolonged suspension or default.

13. What is Force Majeure under FIDIC? Events beyond the parties’ control that prevent performance.

14. What is the difference between Suspension and Termination? Suspension is temporary; termination ends the contract.

15. What is the typical liability period? 12 months Defects Notification Period after Taking-Over.

16. What is meant by Taking-Over Certificate? A certificate issued by the Engineer confirming completion.

17. When is the Performance Security returned? Usually after the Defects Notification Period ends.

18. Who is responsible for permits and licenses? Generally, the Employer, unless specified otherwise.

19. Can the Contractor subcontract work? Yes, with the Engineer’s consent.

20. What happens if there is a conflict between documents? FIDIC provides a priority of documents clause.

21. What does EOT mean? Extension of Time – for delays not caused by the Contractor.

22. Is VAT included in the Contract Price? Depends on the agreement and local law.

23. What is a Variation? Any change to the Works, instructed by the Engineer.

24. Can a Variation change the Contract Price? Yes, it can increase or decrease the price.

25. What is the purpose of Interim Payment Certificates? To certify payment due for work done during the project.

📌 Questions 26–50

26. What triggers an EOT under FIDIC? Delays caused by Employer risks, force majeure, or Engineer's instructions.

27. Is weather a valid ground for EOT? Only if it is unforeseeable and exceeds normal climatic conditions.

28. What are Employer’s risks? Listed in Sub-Clause 17.3, including war, rebellion, etc.

29. What is a Provisional Sum? An estimated amount for undefined work included in the contract.

30. Who approves Provisional Sum expenditure? The Engineer, usually in consultation with the Employer.

31. Can a Contractor claim for cost and profit on Variations? Yes, if the Variation causes additional expense.

32. What is the role of the Engineer in valuation? To assess and certify payments and Variations.

33. What if the Engineer fails to issue a certificate? The Contractor may notify and pursue remedies.

34. What is the meaning of "reasonable profit" in FIDIC? Usually a percentage agreed upon or set in the contract.

35. What is the effect of late certification? It may delay payments and can be a breach by the Employer.

36. Who issues the Final Payment Certificate? The Engineer, after the Defects Notification Period.

37. Can the Contractor dispute the Final Certificate? Yes, through the dispute resolution procedures.

38. Is there a cap on liquidated damages? Yes, usually expressed as a percentage of the Contract Price.

39. What is the typical LD cap? Often 10% of the Contract Price.

40. What if delay is due to multiple causes? FIDIC allows apportionment if both parties contribute to the delay.

41. What is an advance payment? An upfront payment to the Contractor to mobilize.

42. What is required to receive advance payment? A bank guarantee or insurance in the form of a bond.

43. When is advance payment recovered? Through deductions from interim payments.

44. What is the difference between Prolongation Cost and EOT? EOT is time relief; prolongation is financial compensation.

45. What is a Notice of Dissatisfaction (NoD)? A formal disagreement with the DAB’s decision.

46. What happens after an NoD? Parties proceed to arbitration if the dispute persists.

47. Can FIDIC be used for domestic contracts? Yes, with suitable amendments.

48. What is meant by the term "day" in FIDIC? It typically means calendar day unless stated otherwise.

49. Who bears the risk of unforeseen ground conditions? Generally, the Employer under Red Book.

50. Is there a standard format for Contractor’s claim submission? Yes, detailed in Sub-Clause 20.1.

📌 Questions 51–100

51. Can the Contractor suspend work under FIDIC? Yes, under certain circumstances, such as non-payment.

52. Who approves extensions to the Defects Notification Period? The Engineer, based on specific contract provisions.

53. What is meant by "employer's requirements" in the Yellow Book? A document detailing the project scope and technical requirements.

54. What is the typical dispute resolution process? Engineer’s decision → DAB → Arbitration.

55. What does "Time for Completion" mean? The period by which the Contractor must complete the works.

56. What is the role of the Contractor’s Representative? Acts on behalf of the Contractor and manages site operations.

57. Can the Engineer's decision be challenged? Yes, through the dispute resolution procedure.

58. What is meant by Taking Over of Parts? When parts of the works are taken over before full completion.

59. How is the Final Statement submitted? By the Contractor, within a specified time after completion.

60. Can a DAB consist of more than one person? Yes, it can be one or three members depending on the contract.

61. What happens if the DAB is not appointed? Disputes may proceed directly to arbitration.

62. What is the importance of Sub-Clause 3.5? It guides the Engineer in making determinations fairly.

63. Can the Contract Price be adjusted for inflation? Yes, if the contract includes price adjustment provisions.

64. What is meant by “fit for purpose”? The work must meet the intended use and performance criteria.

65. Can the Employer assign the contract? Only with the Contractor’s consent, unless otherwise stated.

66. Are there limitations on Contractor’s liabilities? Yes, typically capped as a percentage of the Contract Price.

67. What is the purpose of performance security? To guarantee the Contractor’s performance obligations.

68. Is retention money used in FIDIC? Yes, to ensure proper completion and defect correction.

69. What is a BOQ? Bill of Quantities – itemized list of works and quantities.

70. How are unforeseen events handled? Under the force majeure and Employer risk clauses.

71. What is a baseline program? The initial schedule submitted by the Contractor.

72. What is meant by float in programming? Extra time available without delaying the project.

73. Can the Engineer instruct acceleration? Yes, but usually with agreed cost implications.

74. What is a key date? A specific milestone that must be achieved by a set date.

75. Can EOT be claimed for delay in approvals? Yes, if caused by the Employer or Engineer.

76. What are concurrent delays? Delays caused simultaneously by both Contractor and Employer.

77. How are concurrent delays treated? Often result in time relief only, not cost.

78. Can Contractor claim for unforeseen utilities? Yes, under unforeseeable physical conditions.

79. What is the importance of records in claim submission? They support entitlement and help in evaluation.

80. What is mitigation of delay? Taking steps to reduce the impact of a delay.

81. Who approves the Contractor’s design in Yellow Book? The Engineer, as per the Employer’s Requirements.

82. Can a Variation omit work? Yes, provided it’s not to give it to others unfairly.

83. What is acceleration cost? Additional cost incurred to complete earlier.

84. What is a cost plus contract? Contractor is paid actual costs plus a fee.

85. What is deemed variation? A change treated as a variation even if not formally issued.

86. Can Contractor claim for inflation? Only if contract allows for price adjustment.

87. What is Early Warning Notice? A notice to highlight potential issues early.

88. What is a backcharge? Costs recovered by Employer for Contractor’s default.

89. Can interest be claimed on delayed payments? Yes, usually under Sub-Clause 14.8.

90. What is Value Engineering? Proposing cost-saving alternatives without quality loss.

91. Can the Employer reject a claim without reason? No, rejections must be reasoned and in good faith.

92. What is a time-bar clause? A clause preventing late claims.

93. Can a notice be oral? Not valid under FIDIC – must be in writing.

94. What is the difference between GC and PC? General Conditions and Particular Conditions.

95. What is a KPI in contracts? Key Performance Indicator – measures project success.

96. Who approves subcontractors? The Engineer, based on Contractor’s proposal.

97. What is the difference between nominated and domestic subcontractors? Nominated by Employer vs. selected by Contractor.

98. Is arbitration mandatory? Yes, unless both parties agree otherwise.

99. What is the governing law clause? Specifies which country’s laws apply.

100. Can FIDIC be modified? Yes, through Particular Conditions agreed by the parties.

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