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FIDIC CONDITIONS OF
CONTRACT FOR
CONSTRUCTION
1999 EDITION 1

Flow Charts

Clause 20.4
Is there a
dispute
between the
parties?
yes
Clause 20.4
Has either
party referred*
the matter in
dispute to the
DAB, copy to
other party?
yes
Clause 20.4
Has DAB given
notice of his
decision* to
both parties
within 84 days
of receipt of
reference?
yes
Clause20.4
Has either party,
within 28 days of
DAB's decision,
given notice to
other party, of
dissatisfaction
yes
Clause 20.5
Is attempt at
amicable
settlement
successful?
no
Clause 20.5
Arbitration may
commence
after 56 days
(Clause 20.6
Sets down the
rules applying
to the
arbitration
process)
no no no yes
Clause 20.4
not activated
Clause 20.4
After 84 days,
parties may
proceed to 20.5
Clause 20.4
DAB's decision
becomes final
and binding
Dispute
resolved in
terms of
settlement
(procedure not
set down)
Notes: Party means the Employer or the Contractor
* Reference/Decision must state that it is issued pursuant to Clasue 20.4
Settlement of Disputes
FIDIC 1999 SETTLEMENT OF DISPUTES
CLAUSES 20.4 AND 20.5
Clause 8.4
Contractor
considers himself
entitled to EOT
yes
Clause 8.4 and
20.1
Contractor
advises Engineer
within 28 days of
event first arising
yes
Clause 20.1
Contractor provides
Engineer with
detailed particulars
within 42 days and
interim particulars at
intervals of not more
than 28 days if
continuing event
Clause 20.1
Engineer within 42
days of receipt of claim
or particulars must
respond on the
principles of the claim
with approval or
rejection with detailed
comments and proceed
in accordance with
Clause 3.5
Clause 3.5
Engineer must
consult with
Employer and
Contractor to reach
agreement on EOT
and additional
payment if any
no no
Clause 20.1 2nd
Paragraph
No EOT may be
given and
Employer
discharged from
liability
Clause 20.1
Amount of claim may
be limited if failure
has prevented or
prejuduced proper
investigation but
Contractor may still
be entitled to EOT
Extension of Time for Completion
FIDIC 1999 EXTENSIONS OF TIME CLAUSE 8.4
Clause 13.1
Engineer forms
the opinion that
a variation is
needed?
yes
Clause 13.3
Engineer
instructs
Contractor to
execute
variation?
yes
Contractor
gives notice
that cannot
procure goods
no
Clause 12.3
and 3.5
Valuation is
determined by
the Engineer,
but consults
with Contractor
and Employer
yes
Clause12.3
Are rates and
prices in
Contract
suitable to
value variation?
no
Clause 12.3
and 3.5
Engineer
consults with
Employer and
Contractor
yes yes
Engineer to act
Clause 12.3
Such rates and
prices used
Variations in Form, Quality or Quantity of work
FIDIC 1999 VARIATIONS CLAUSE 13
Clause 14.3
After end of
each month,
Contractor
submits
statement of
claim to
Engineer
yes
Clause 14.6
Engineer
assesses
claim and
determines
amount due to
Contractor
yes
Clause 14.6
Is the amount
due to the
Contractor
more than
Minimum
Amount?
yes
Clause 14.6
Engineer
delivers Interim
Payment
Certificate to
Employer
within 28 days
yes
Clause 14.7
Employer
pays
Contractor
within 56 days
of receipt by
the
Contractor's
statement
no
Clause 14.8
Contractor
entitled to
interest at rate
stated in
Appendix
no no no
Unspecified
Amount need
not certified
Unspecified
Engineer
issues
Taking-Over
Certificate
yes
Clause 14.10
Within 84 days
of Taking-Over
Certificate,
Contractor
provides
Statement at
Completion
yes
Clause 14.10
Engineer
certifies IPC as
per Clause
14.6 above
yes
50% of
retention
released
Interim Payment Certificates
Initial Finalisation Process
Note: Schedule of Payment approach Clause 14.4, may be written into the
FIDIC 1999 PAYMENT CERTIFICATES CLAUSE 14.3
Clause 14.11
Within 56 days
of issue of
Performance
Certificate
Contractor
submits draft
final statement
yes
Clause14.11
Engineer
agrees with
draft?
no
Clause 14.11
Contractor
submits further
information
yes
Clause 14.11
Engineer
agrees with
revised draft?
no
Clause 14.11
Engineer
certifies IPC
as per Clause
14.11 for parts
not in dispute
Dispute then
setlled as per
Clause 20.4 or
20.5
yes
Clause 14.7
Employer
pays IPC
within 28 days
no
Clause 14.8
Contractor
entitled to
interest at rate
stated in
Appendix
no yes yes
unspecified yes
Note: Upon the issue of the Taking-Over Certificate, one half of the Retention Money shall certified by the Engineer for payment to the Contractor
Upon the expiration of the Defects Notification Period, the other half of the Retention Money shall certified by the Engineer for payment to the Contractor
unless there is outstanding work pursuant to Clauses 11 and 14.9.
Copyright Cardno MBK International Pty Ltd
Clause 14.8
Contractor
entitled to
interest at rate
stated in
Appendix
Clause 14.11 Contractor submits Final Statement
Clause 14.12 Contractor submits written discharge
Clause 14.13
Engineer
issues Final
Payment
Certificate to
Employer,
copy to
Contractor
within 28 days
Final Payment Certificate
yes
Clause 14.7
Employer
pays FPC
within 56 days
no
FIDIC 1999 PAYMENT CERTIFICATES CLAUSE 14.11