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    FIDIC '87 and '99 - 10 Key Variances: Published On January 20, 2016

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    Nazmy Shakoor
    FIDIC '87 and '99 contracts differ in key ways from the contractor and employer perspectives. From the contractor's perspective, FIDIC '99 provides more clarity around financial arrangements, definitions, priority of documents, variations, payments and delayed payments. From the employer's perspective, FIDIC '99 gives more power regarding site access and return of performance security, and lengthens payment periods while strengthening requirements for extension of time claims. Overall, FIDIC '99 provides more definition and structure compared to '87.

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    FIDIC '87 and '99 - 10 Key Variances: Published On January 20, 2016

    Uploaded by

    Nazmy Shakoor
    58 views4 pages
    FIDIC '87 and '99 contracts differ in key ways from the contractor and employer perspectives. From the contractor's perspective, FIDIC '99 provides more clarity around financial arrangements, definitions, priority of documents, variations, payments and delayed payments. From the employer's perspective, FIDIC '99 gives more power regarding site access and return of performance security, and lengthens payment periods while strengthening requirements for extension of time claims. Overall, FIDIC '99 provides more definition and structure compared to '87.

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    Fidic 99 & 87

    Original Title

    SLQS Journal (1)

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    FIDIC '87 and '99 contracts differ in key ways from the contractor and employer perspectives. From the contractor's perspective, FIDIC '99 provides more clarity around financial arrangements, definitions, priority of documents, variations, payments and delayed payments. From the employer's perspective, FIDIC '99 gives more power regarding site access and return of performance security, and lengthens payment periods while strengthening requirements for extension of time claims. Overall, FIDIC '99 provides more definition and structure compared to '87.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    58 views4 pages

    FIDIC '87 and '99 - 10 Key Variances: Published On January 20, 2016

    Uploaded by

    Nazmy Shakoor
    FIDIC '87 and '99 contracts differ in key ways from the contractor and employer perspectives. From the contractor's perspective, FIDIC '99 provides more clarity around financial arrangements, definitions, priority of documents, variations, payments and delayed payments. From the employer's perspective, FIDIC '99 gives more power regarding site access and return of performance security, and lengthens payment periods while strengthening requirements for extension of time claims. Overall, FIDIC '99 provides more definition and structure compared to '87.

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    © All Rights Reserved
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    FIDIC '87 and '99 - 10 Key

    Variances
     Published on January 20, 2016
    RAMASUBRAMANIAN B.E. ACIArb

    FollowFollow
    Contracts Management Professional at ADROIT PMC10 articles
     22
    Like

     6
    Comment

     4

    From the Contractor’s perspective:

    1. Sub-clause 2.4 (FIDIC-'99) Employer’s Financial Arrangements - The


    Sub-clause enables the Contractor to request reasonable evidence of
    financial arrangements by the Employer. The employer shall submit
    such evidence within 28 days after receiving any such request from the
    Contractor.
    1. 2. Sub-clause 1.1 (FIDIC-'99)Definitions - There are 58 definitions
    compared to 32 in FIDIC87. The definitions like Accepted Contract
    Amount and Contract Price provide clear distinction between original
    contract sum and final contract sum. Further newly added definitions of
    Variations, Unforeseeable, Force Majeure, and Contractor’s
    Documents, etc. iron out the ambiguity existing in FIDIC-87.

    3. Sub-clause 1.5 (FIDIC-'99) Priority of Documents - FIDIC-99 has


    identified and prioritized eight documents compared to six in FIDIC-87.
    More importantly, the order of priority of Specifications and Drawings is
    identified. This was always an ambiguity to the parties and lead to disputes.
    To an extent the employer too would however benefit from this new detailed
    order of precedence.

    4. Variations - Variations are dealt in two different clauses in FIDIC-'99 ,


    clause 12, Measurement and Evaluation, and clause 13, Variations and
    Adjustments. These clauses have identified several positive steps.
    Introduction of variation procedure, a definition for variation, value
    engineering, formulae for price fluctuation etc. are few of them. Further
    classifying the provisional sums under variation too is a positive step and it
    will simplify the preparation of final account.

    5. Payments - A new detailed clause (14.2 - FIDIC-'99) for advance payment


    has been included to the conditions with a specimen for advance payment
    guarantee. The contractor has to prepare and submit his/her payment
    statement in a fully comprehensive manner identifying the deductions.
    Further, in the case of delayed payment by the employer, the applicable rate
    of finance has been given in the sub-clause 14.8, Delayed Payment.

    From the Employer’s perspective:

    1. Sub-clause 2.1 (FIDIC-'99) Right to Access to the Site - The Employer


    may withhold access to the site or possession until the Contractor
    submits the performance security in order to ensure adequate risk
    protection mechanism by the contractor.
    2. Engineer’s duty and Authority The engineer is deemed to act for the
    employer unless expressly stated in particular applications of
    conditions.
    3. Sub-clause 4.2 (FIDIC-'99) Performance Security- The employer shall
    return the performance security within 21 days after receiving a copy of
    the performance certificate whereas according to the FIDIC-87 it is 14
    days after of the issuance of the defects liability certificate. Unlike
    FIDIC-87, there is no requirement to notify the contractor prior to
    making a claim against the performance security.
    4. Payments - In accordance with clause 14.7. (c) (FIDIC-'99) the
    Employer shall pay to the contractor within 56 days after receiving of
    the interim payment application and final payment certificates from the
    Engineer unlike 28 days specified in FIDIC-87.
    5. Extension of Time FIDIC-99, sub-clause 20.1- Contractor’s Claim, has
    expressly stated that if the Contractor fails to give notice of claim for
    extension of time within such a period of 28 days, the time for
    completion shall not be extended and further, the Employer shall be
    discharged from all liability in connection with the extension of time
    claim.

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