The 2017 FIDIC Contracts. William Godwin

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and possession may not be exclusive to the Contractor, since he may, for example, be required to work with other contractors appointed by the Employer. If the Contract Data do not set times when possession or access are to be given to various parts of the site then the Employer's obligation is to give the Contractor right of access to and possession of those parts of the site within whatever times are necessary in order to enable the Contractor to proceed in accordance with the programme (or, if there is no programme at that time, the initial programme submitted under clause 8.3: see Section 7.3 below). If the Employer fails to provide the required access or possession then the Contractor may claim an appropriate extension of time and/or payment of cost plus profit if delay or cost was incurred in consequence; with the proviso that if the Employer's failure was itself caused by any error or delay by the Contractor, including in the submission of appropriate Contractor's documents, the Contractor will not be entitled to an extension or additional payment.

      In the Yellow and Silver Books, if Contractor's documents are needed before the Employer can give possession of any foundation, structure, plant or means of access, the Contractor is obliged to submit such documents to the Engineer or Employer in whatever time or manner is stated in the Employer's Requirements.

      3.1.2 Assistance

      3.1.3 Employer's Personnel and Other Contractors

      Clause 2.3 provides for the Employer's personnel and any other contractors on or near the site to cooperate with the Contractor and comply with relevant health and safety obligations and environmental protections.

      3.1.4 Employer's Financial Arrangements

      Clause 2.4 contains important provisions relating to the Employer's financial arrangements. This clause is far more extensive, and gives the Contractor greater protection, than the corresponding clause 2.4 in the 1999 editions. It is particularly important for the Contractor to be confident, or as confident as possible, about the Employer's ability to sustain payments during the project and to comply with any other Employer's financial obligations since, although the Contractor may be able to obtain security against performance of the Employer's financial obligations, this is often not obtained or may be inadequate. The Employer's failure to provide the appropriate evidence of his financial arrangements, in accordance with clause 2.4, is one of the grounds for suspension and termination by the Contractor under clause 16.

      Clause 2.4 of the 2017 editions provides that the Employer's arrangements for financing his obligations under the Contract are to be detailed in the Contract Data. If the Employer intends to make any material change to these arrangements, which are such that they might affect his ability to pay whatever balance of the Contract Price might be remaining, as estimated by the Engineer, or Employer if Silver Book, or if he has to do so because of changes in his financial situation, then the Employer must immediately give a notice to the Contractor with full supporting details.

      Additional protection is provided where the original Contract works are substantially changed by variations under clause 13, or where there has been non‐payment or a material change in the Employer's financial arrangements of which the Contractor has not received any notice. Thus if the Contractor:

      1 receives an instruction to execute a variation with a price greater than 10% of the Accepted Contract Amount (in the Red and Yellow Books) or the Contract Price stated in the Contract Agreement (in the Silver Book), or if the cumulative total of variations exceeds 30% of that Amount or Price; or

      2 does not receive payment in accordance with clause 14.7; or

      3 becomes aware of a material change in the Employer's financial arrangements of which he has not received a notice under clause 2.4,

      

      3.1.5 Site Data and Items of Reference

      Clause 2.5 in the 2017 editions deals with site data and items of reference. This clause provides for the Employer to make available to the Contractor before the Base Date all relevant data in his possession as to the topography of the site and sub‐surface, hydrological, climatic and environmental conditions at the site. If the Employer comes into possession of any such data after the Base Date then he is to provide them promptly to the Contractor. Original survey control points, lines and levels of reference, referred to collectively as ‘items of reference’ in the general conditions, are to be specified in the Employer's Requirements (in the Silver Book), or in the Employer's Requirements or issued to the Contractor by a notice from the Engineer in the Yellow Book, or (in the Red Book) in the Drawings and/or Specification or again issued to the Contractor by a notice from the Engineer. The Silver Book moreover expressly disclaims any responsibility of the Employer for the accuracy, sufficiency or completeness of the data and/or items of reference except to the extent stated in clause 5.1 (discussed in Section 5.1 below).

      3.1.6 Employer‐supplied Materials and Employer's Equipment

      Clause 2.6 provides for the Employer to make any Employer‐supplied materials and/or Employer's equipment listed in the Employer's Requirements (Yellow and Silver Books) or Specification (Red Book) available to the Contractor in accordance with specified details as to time, arrangements, rates and prices, the Contractor to be responsible for each item of Employer's equipment while in use or operation by any of the Contractor's personnel.

      As already mentioned in Section 1.2.1 above, the Engineer in both editions of the Red and Yellow Books has a central role. He is involved in all aspects of the project from start to finish and its success or failure depends significantly on his willingness and ability to perform his duties properly. In the FIDIC contracts those duties are essentially twofold:

      1 (i) the Engineer administers the Contract, being responsible for such matters as certifying payments and taking‐over of the works, monitoring progress, instructing variations, inspecting and attending the Contractor's testing, including tests on completion; and

      2 (ii) the Engineer has the function of seeking agreement on or, in default, determining various matters arising under the Contract including extensions of time, adjustments to the Contract Price for variations and a range of other matters.

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