Professional Documents
Culture Documents
SESSION – II
Introduction to FIDIC
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC
Session II
Introduction to FIDIC in General
FIDIC contract types and major differences
Fundamentals of FIDIC Red Book and Yellow Book
Hybrid Contracts
Main Parties to the Contract and Responsibilities
Contract Documents as per FIDIC
FIDIC Project Management Tools
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Introduction to FIDIC - 2
This project is co-financed by the European
Union and the Republic of Turkey Stands for “Fédération Internationale des
Ingénieurs Conseils”
French acronym for “International Federation of
Consulting Engineers”
In Turkish: “Müşavir Mühendisler Uluslararası
www.fidic.org Federasyonu”
• Established in Switzerland in 1913, HQs is in Genève;
• First contract is printed in 1957;
• FIDIC represents Engineers and Consultants from
various countries;
• E&C Associations over 60 countries are FIDIC
members;
• Under this umbrella 30,000 firms and over 1,000,000
professionals are represented. REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC - 3
FIDIC is the international Federation of duly elected
associations of consulting engineers, representing the
profession in their respective countries.
Membership in the Federation is restricted to one association for
each country;
Members comply with a code of ethics guiding their professional
standards;
FIDIC works to promote the common interests of consulting
engineers through seminars, conferences and regular discussions
with the national associations and international financial
institutions (such as the World Bank)
Preparation of standard forms of contract and other documents is a
major activity REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC - 4
ATCEA – Association of Turkish Consulting Engineers and
Architects
(TMMMB - Türk Müşavir Mühendisler ve Mimarlar Birliği)
is the only representative body of FIDIC in Turkey;
Established in Ankara in 1980 and has over 200 members;
ATCEA is a member of FIDIC since 1987;
Sells and distributes its own publications as well as FIDIC’s
In EU funded projects, ATCEA is requested to appoint the
DAB
www.tmmmb.org.tr / www.atcea.org.tr REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC - 5
Standardisation both in technical and administrative matters is essential for
the successful completion of projects of civil engineering constructions;
FIDIC is known throughout the world for producing standard forms of contract
for civil engineering construction, and mechanical and electrical plant to
govern international contracts;
In 1999, FIDIC standardised its model contracts, with the publication of first
editions of a new family of contracts comprising four new standard forms of
contract:
Conditions of Contract for Construction (“Red Book”)
Conditions of Contract for Plant and Design-Build (“Yellow Book”)
Conditions of Contract for EPC/Turnkey Projects (“Silver Book”)
Short Form of Contract (“Green Book”)
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC - 6
Why FIDIC’s Standard Forms of Contracts?
BALANCED fair apportioning of risks, rights and obligations
between the parties
WELL TRIED long case history for earlier contracts
ACCEPTED known and recognised; in wide use for
international contracts
SUPPORTED recommended or required by development
banks, International Financial Institutions, large development funds,
etc.
EFFECTIVE clear and complete conditions; time limits;
provisions for adjudication
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Introduction to the FIDIC
This project is co-financed by the European
Union and the Republic of Turkey
Red Book and Yellow Book
Conditions of Contract for Construction
Designed by The Employer
Red Book:
Employer responsible for detailed design and
thus, carries the risk of increased contract
amount depending on the quality of design;
Partial Contractor design possible
Engineer, working for the Employer;
Bill of Quantities;
Payments based upon measurements of works
done based on unit prices; but lump sum could
be used;
Certification of payments by Engineer;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Introduction to the FIDIC
This project is co-financed by the European
Union and the Republic of Turkey
Red Book and Yellow Book
Conditions of Contract for Plant and Design Build
Yellow Book:
• Contractor responsible for detailed design in
accordance with the Employer’s requirements,
specifying the quality and scope of the completed work;
• Engineer, working for the Employer;
• Schedule of Payments with Lump sum pricing, but re-
measurement possible;
• Payments according to progress (when the Contractor
has completed defined stages/milestones in the
project);
• Certification of payments by Engineer.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Fundamentals of FIDIC Silver Book
Conditions of Contract for EPC (Engineer,
Procure, Construct) Turnkey Projects
Silver Book:
• Contractor takes full design and execution
responsibility (Contractor to cover extra
risks, so Employer pays more);
• No Engineer, but Employer may appoint a
Representative;
• Lump sum Contract Price (but adjustments
in limited specified cases);
• Payments according to progress;
Employer’s Requirements usually a
‘performance specification’.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Fundamentals of FIDIC Green Book
Short Form of Contract
Green Book:
Simple and repetitive works ( < US$ 500,000
and twelve months duration);
Design by either party; but commonly the
Employer takes over the design
responsibility;
Balanced risk sharing;
No Engineer, but Employer may appoint a
Representative;
Payment on lump sum or any other basis
according to value of Works executed and
Materials and Plant delivered to site;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Introduction to FIDIC
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC
Distinction between the Books is based on:
– who does the design?
– who bears risk for change in quantities?
EPC (Silver Book) provides for the Contractor taking
almost all risks
Short Form (Green Book) deals with the wide demand
for a simpler form of contract
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Max
Which Format
Owners Risk Min
This project is co-financed by the European Max Min
Union and the Republic of Turkey
Cost Reimbursable (I Chem. E Green Book)
Contractor's Risk
Min Max
Min Contractors Incentive Max
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Introduction to the FIDIC
This project is co-financed by the European
Union and the Republic of Turkey
Red Book and Yellow Book
The 2 Main Contracts’ Features (Similarities & Differences)
Similarities:
General Conditions
Guidance for the Preparation of the Particular Conditions
Letter of Tender (Tender Form)
Contract Agreement
Dispute Adjudication Agreements (Dispute resolution procedure
is: adjudication (DAB) >>> amicable settlement >>> arbitration
Twenty main clauses, covering similar matters
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Introduction to the FIDIC
Red Book and Yellow Book
This project is co-financed by the European
Union and the Republic of Turkey
Exceptions:
Clauses 5 and 12:
For
For Plant and D-B
Clause Construction
(Yellow Book)
(Red Book)
5 Sub-contractors Design
Tests after
12 Measurement
Completion
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC
Hybrid Contracts
Works designed by the Employer
with Partial Design by the
Contractor;
Payments: BoQ with Unit Prices and
Lump sum pricing;
Plant and Design-Build (design by
the Contractor) with partial works
designed by the Employer;
Payments: combination of Lump
Sum (Schedule of payments) and
Unit Prices;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
More on Hybrids
Under IPA Contracts needing a mix of Design-Build and
Construct-Only format, must be let under a single
contract either with Yellow Book or Red Book General
Conditions. The ITT must state how bidders are to fill in
the necessary BoQ and Schedules of Prices and how
these are summated to give an Accepted Contract
Amount.
Two separate Works Sections should be defined and
may have different damages for late delivery, completion
times and retention sums
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC
The Conditions of Contract consists of “General Conditions”,
which form Part I of the “Conditions of Contract;
and Part II which includes amendments and additions to such
General Conditions, referred as “Particular Conditions”;
so that Part I and Part II together comprise the conditions
governing the rights and obligations of the Parties (the Employer
and the Contractor) to the Contract.
and set out the legal/contractual arrangements that will apply to
the Contract
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Introduction to FIDIC
Management of FIDIC contracts is a broad and
complicated subject of study;
FIDIC knowledge improves by experiences and
execution;
Studying, Implementation and continuous Monitoring
are the keys to success.
The Engineer must be a 1st class administrator
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Employer:
The first party to the Contract and owner/sponsor of the
Works;
gives the contractor right of access to, and possession of
the Site;
makes the advance payment (if any) against a suitable
guarantee from the Contractor;
makes payments to the Contractor as certified by the
Engineer to be due under the contract;
takes over the Works following the issue of Certificates
by the Engineer;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Employer:
may authorise the Works to be completed by others if the
Contractor is in default;
terminate the Contract in the event of the Contractor
failing to perform or in certain other circumstances
defined in, and subject to, the law governing the Contract;
In our contracts, the Employer also means CA and is “IPA
Coordination and Implementation Directorate
within the MoSIT”.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Contractor:
The second party to the contract, who has the obligation
to execute and complete the Works within the time
specified in the contract;
provides the securities, guarantees and insurance policies
and commences the Works;
prepares the construction programme, provides all
necessary materials, Contractor’s Equipment, Temporary
Works, management, superintendence and labour and
selects the method of carrying out the Works;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Contractor:
executes the Works to the specified quality within the
defined time for completion and remedy any defects
therein in accordance with the Contract;
receives and complies with instructions from the Engineer
acting on behalf of the Employer;
responsible for the quality, adequacy, stability and safety of
all Site operations and methods of construction;
responsible for the care of the Works throughout the
construction period until the Works are officially taken
over by the Employer; REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Contractor:
responsible for his own staff and work force and for
taking out social and other insurances in respect of his
personnel and taking safety measures;
complies with all applicable laws, by-laws and
regulations;
responsible under the Contract for each sub-contractor’s
work and behaviour;
In the event of default by the Employer, the Contractor
may suspend progress of the work and claim an
appropriate extension of time and/or additional payment.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
The Engineer’s Power of
This project is co-financed by the European
Union and the Republic of Turkey
” Determination”
The Engineer:
Although the Engineer Represents the Employer, under
sub-clause 3.5 he/she has the right to act as a judge in
the resolution of disputes. If the Contractor does not
accept the Engineer’s determination he can move
towards dispute adjudication.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Engineer:
Not a party to the Contract between the Employer and the
Contractor but his terms of engagement are set out in a
Service contract with the Employer who appoints him to
administer the Contract.
Although the Engineer is not a party to the Contract, he
plays an important role in the development process of the
Works
his job is primarily to supervise and monitor the work in
strict accordance with the Contract; REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Responsibilities
Union and the Republic of Turkey
The Engineer:
issue of information and instructions to the Contractor as the Works
proceed;
comment on the Contractor’s proposals for carrying out the works;
ensure that quality of materials and workmanship are as specified;
agree measurements/percentages of work done;
check interim and final payment statements of the Contractor and
issue to the Employer the interim and final payment certificates;
give instructions relating to management of the Contract and changes
in the nature and extend of the work, the cost thereof and the time for
completion (subject to the authorisation by the Employer as stated in
Part II);
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
The Engineer:
give or refuse approval or consent, approve works, issue certificates;
make fair determination in accordance with the contract, taking due
regard of all relevant circumstances;
In administration of the Contract, all communications with the
Contractor pass through the Engineer, thus avoiding possible confusion
and misunderstanding;
His objective is to ensure that the Employer receives the works at
completion in accordance with the requirements of the Contract and
that the Contractor is suitably rewarded for the work he carries out.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Main Parties to the Contract and
This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities
Relationships in a EU-funded Project:
Employer – Contractor
FIDIC Conditions of Contract
Employer – Engineer
Service Contract as per EU Service contract condition (General and
Special)
Engineer – Contractor
FIDIC Conditions of Contract
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Contract Documents as per FIDIC
Contract Agreement (Contract Form)
Letter of Tender (Tender Form)
Appendix to Tender
Conditions of Contract
Specifications (Red Book) / Employer’s Requirements
(Yellow Book)
Drawings
Bill of Quantities (Red Book) / Schedule of Payments
(Yellow Book)
Any other document forming part of the Contract
(Addenda, Q/A)
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Contract Documents as per FIDIC
Contract Agreement (Contract Form):
standard form of contract signed by both parties, properly
recording all the terms agreed, including the documents listed as
forming part thereof.
Legally binding document, and thus must be carefully prepared to
comply with the requirements of the relevant law
Letter of Tender (Tender Form):
standard form of tender completed by the Contractor and includes
the signed offer to the Employer for the Works;
tenderer (the Contractor) confirms that he has read and understood
the requirements of the tender documents and states his
undertaking and fulfilling all his obligations under the Contract.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Contract Documents as per FIDIC
Appendix to Tender:
includes summary of the information originating from the Particular
and General Conditions of Contract.
prepared as a summary table and Includes Financial, Administrative
and Contractual Information, such as:
Contact Details of Parties / Law and Language of the Contract;
Contract Duration / Disputes and Arbitration;
Amounts for Securities and Guarantees / Delay damages;
Advance Payment and repayment amortization;
Retention Money (percentages for deductions and limits);
Minimum amount of Interim Payments;
Insurance provisions / DAB applications
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Contract Documents as per FIDIC
Conditions of Contract:
Part I: General Conditions of Contract (Standard Red or Yellow Book)
Part II: Particular Conditions of Contract
Particular Conditions changes / replaces / revises / deletes the Clauses
of the General Conditions;
Particular Conditions should be in line with the local law and law of the
contract;
Particular Conditions of Contract prevail the General Conditions;
Clauses in Particular Conditions should not be conflicting with the
clauses of the General Conditions;
Change only where change is necessary as any revisions / additions /
omissions done by the Particular Conditions should be based on
rational reasoning.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Contract Documents as per FIDIC
Conditions of Contract:
Clause 1.5 of PCs; «Priority of Documents» is
important and should be re-addressed for every
project.
Specimens for Performance Security, Advance
Payment and Retention Guarantees provided;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Contract Documents as per FIDIC
Specifications:
Defines:
the scope, general and the technical requirements of the
Contract;
materials standards and quality of workmanship;
details of samples to be provided and tests to be carried
out;
methods of executing the works;
provisions of access or space for other contractors REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Basis of FIDIC Yellow Book
Contractor is responsible for
Design
Specification of Mechanical and Electrical Equipment
(In the cases of water and wastewater works)
Process Commissioning
Operator training
There are two sets of Tests. “Tests on completion” and “Tests After
Completion" of the Works
Yellow Book can easily be configured in fixed-price format
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Basis of Yellow Book
In the Yellow Book the Contractor bids:
Against a set of performance criteria
Against a set of detailed specifications
The Contractor undertakes to meet the performance
criteria and does not get paid fully until he proves the
performance criteria have been met
Fulfillment of performance measured in pre-
established Tests On and Tests After completion.
Payment is made against a Schedule of Payments*
* There is no section on measurement and evaluation in FIDC 1999 Yellow
Book!
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
PERFORMANCE GUARANTEES
This project is co-financed by the European
Union and the Republic of Turkey
Introduction
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Payment Under FIDIC Red Book
1. Normally against monthly measurement but lump
sum payments or mixture of lump sums and re-
measurement possible.
2. Contractor does measurement of work to date and
plant and materials delivered to site.
(Normal practice for the contractor to do this in
conjunction with a representative of the Engineer.)
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Advanced Payment
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
RB Measurement & Payment Basis
This project is co-financed by the European
Union and the Republic of Turkey
Normally:
1. Designers produce detailed Bills of Quantities to a standard
form.
2. These have a preliminary costing to build up a cost estimate
(i.e. A “budget price”)
3. Bidders complete the Bills of Quantities to get the “Accepted
Contract Amount”
4. The Contractor uses his bid rates for items as a basis for
payment for additional items under the contract.
5. Claims for payment are monthly on the basis of work done
(and possibly for plant & materials delivered)
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Preamble to BoQ
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Ownership & Acceptance
In FIDIC Works Contracts, the Works is owned by the
Contractor until a defined taking over date and monthly
payments do not imply any transfer of assets.
It follows that monthly payments (whilst being as accurate as
possible) can be adjusted in the next interim payment if the
previous month’s payments was found too high or too low.
The only Contractor's statement and payment which needs to
be strictly correct is the final payment. (At 14.6 A Payment
Certificate shall not be deemed to indicate the Engineer's
acceptance, approval, consent or satisfaction)
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Interim Payment Statements
This project is co-financed by the European
Union and the Republic of Turkey
Normal to pay the Contractor against predefined milestones for all works as
set down in the schedule of payments.
Also possible to make advance payments under 14.5 for items either
delivered to site or ready for collection at a manufacturer. State Inco terms.
EXW EX WORKS (named place)
CIF COST, INSURANCE AND FREIGHT (named port of
destination)
DDP DELIVERED DUTY PAID (named place of destination)
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Payment Basis
This project is co-financed by the European
Union and the Republic of Turkey
Alternatively:
1. Tender Preparers make a list of lump sums payments which will become due
when certain activities or Works sections are complete. (The % breakdown of
the lump-sums is not alterable by bidders)
2. Bidders price these lump sums
3. The successful bidder receives payment when the lumps sum activities are
achieved (in any order)
4. No payments are due for semi-completion of lump-sum activities. (e.g. not
possible to receive 50% payment for 50% achievement of lump-sum). If
target for a lump sum payment is missed the Contractor submits a “Catch-up”
programme
*Has become popular payment method for 1999 Yellow Book
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Provisional Sums & Contingency
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Dayworks
Original Definition
Works performed at a daily, reimbursable rate for each element
of a job (plant, labour, fuel, etc. performed)
Common usage
Works performed incidental to Contract Work on a cost
reimbursable basis, where work elements are broken down into
Labour, Plant and Materials.
IPA contracts include the sum of a Dayworks Schedule within
the tender comparison price but NOT with the Accepted
Contract Amount
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Dayworks Clauses in FIDIC
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
Use in 1999 FIDIC
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before Contract Signature:
Employer gives award notice to the successful tenderer;
Contract Negotiations are done (if necessary);
Priority of documents is re-arranged if necessary due to contract
negotiations or clarifications during tender period;
Contract is signed by the Employer (and endorsed by EUD);
Contractor submits the required documents (e.g. performance
security) to the Employer together with the signed Contract;
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before the Construction Works Commence - 1:
Upon the signature of the Contract certain procedures
need to completed before the Contractor can commence
the works;
Cl. 18.2 Submission of All Risk Insurance;
Cl. 20.2 Identification of DAB (Dispute Adjudication Board)
member(s). – Sometimes identification is done on «Ad hoc»
bases;
Cl. 3.1 If not already in the Contract, the Employers informs
the Contractor about the details of the Engineer;
Communication lines and rules are established; REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before the Construction Works Commence - 1:
Cl. 1.8 & Cl. 1.9 Supply of Drawings and Instructions;
(RED Book) Drawings should be an integral part of the Contract
and should be provided based on a well structured calendar.
Cl. 3.2: The limits of the authority of the Engineer and its staff
should be defined
The authority of the Engineer is limited in projects funded by EU.
The personnel of the Employer, the Contractor and the Engineer to
be deployed on the project site are identified. (Cl. 4.3 - Contractor’s
Representative)
The limits of authority of each personnel are identified and a line of
communication is drafted. REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before the Construction Works Commence - 2:
Clause 2.1 Right of Access to Site
Employer should give the right to access and possession of the site to the
Contractor after the Contract Signature.
Employer should complete his responsibilities and should give the possession of
the site free of problems.
Delays in this task may cause extensions in the contract duration and increases
in the contract price.
1.13 Contractor should complete all the necessary local procedures and obtain
the necessary permits to start construction works.
Clause 8.1 unless otherwise stated in PCs the commencement date is within 42
days after the contract signature (“30 days after Signature of Contract” in some
of the IPA Projects);
Engineer shall give the notice not less than 7 days before the Commencement
Date.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before the Construction Works Commence - 2:
Clause 1.3 - Communications:
The rules stated in this clause should be followed.
Payment certificates, approvals, certifications and similar requests should be processed
within the durations stated in the Contract.
A copy of the notices should be shared by the Engineer.
Clause 1.9 - Delayed Drawings and Instructions
Delays which will cause claims should be avoided as much as possible
Clause 3.3 - Instructions of the Engineer
Engineer should issue instructions in line with its Authority.
Instructions can only be issued by the Engineer or its representative.
RED Book includes verbal instructions by written confirmations.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before the Construction Works Commence - 2:
Clause 4.21- Progress Reports
Unless otherwise stated, the Contractor should issue progress reports in certain intervals.
Usually as attachments to the interim payment certificates.
Reports compare the physical and financial realization with the planned and propose
programmes for the remaining duration.
Reports should be supported by pictures and test results.
Reports should include information about the production, delivery and assembly
schedules of the permanent works
Clause 6.10 - Records of Contractor’s Personnel and Equipment
Contractor should keep daily site records. The records should include site
activities as well as weather conditions.
Such information should be summarized in the progress reports.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Before the Construction Works Commence - 2:
Clause 2.5 Employer’s Claims and 20.1 Contractor’s Claims
Progress reports should list the Claims of both Parties;
The contractor should give notice in 28 days after he became aware of the event
or the circumstances. And shall submit a detailed claim in 42 days;
Engineer shall respond within 42 days after receiving a claim.
If not agreed with the Engineer’s decision, parties may refer the case to DAB
Dispute resolution procedure is:
adjudication (DAB) >>> amicale settlement >>> arbitration
Clause 14 - Contract Price and Payment
Progress reports should include sufficient level of information about cash flows,
to allow the Employer to make proper planning for funding.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
Certificates:
Clause 10 – Employer’s Taking Over
Contractor may apply for Taking Over Certificate 14 days
before the works are completed (Notice).
Engineer within 28 days after receiving the application (a)
issues the certificate or (b) rejects the application.
Clause 11 – Defects Liability
Upon the full completion of Contractor’s duties and
responsibilities under the contract and within 28 days after
the expiry of the Defects Notification Period; Engineer issues
the Final Acceptance Certificate.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
YELLOW Book; Payment Conditions:
Usually lump-sum contracts;
Sub items are defined for interim payments. Payments are
based on completion ratios (percentages);
Sub items should be arranged carefully in order not to
harm the Contractor’s cash flow. Unfair or unreasonable
payment conditions are always reflected to the work
progress;
Cl. 14.4 - Schedule of Payments and the Schedule of
Payments in Volume 4 should be in line with each other.
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY
This project is co-financed by the European
Union and the Republic of Turkey
Project Management, Tools & Milestones
REPUBLIC OF TURKEY
MINISTRY OF SCIENCE,
INDUSTRY AND TECHNOLOGY