FIDIC Guidance Memorandum to Users of the 1999 Conditions of Contract dated 1st April 2013

The FIDIC Contracts Committee and its special advisors have prepared a special Guidance Note to Users of the 1999 Conditions of Contract. This advice is designed to make explicit the intentions of FIDIC in relation to the enforcement of DAB decisions that are binding and not yet final.

This Guidance Memorandum is designed to make explicit the intentions of FIDIC in relation to the enforcement of the DAB decisions that are binding and not yet final, which is that in the case of failure to comply with these decisions, the failure itself should be capable of being referred to arbitration under Sub-Clause 20.6 [Arbitration], without Sub-Clause 20.4 [Obtaining Dispute Adjudication Board’s Decision] and Sub-Clause 20.5 [Amicable Settlement] being applicable to the reference. This intention has been made manifest in the FIDIC Conditions of Contract for Design, Build and Operate Projects, 2008 (‘Gold Book’) by the equivalent Sub-Clause 20.9.

To make FIDIC’s intention explicit this Guidance Memorandum provides changes to be made to the FIDIC dispute resolution Clause 20 and in particular to Sub-Clause 20.7 and, as a consequence, to 14.6 and 14.8 of the FIDIC Conditions of Contract for Construction, 1999 (the ‘Red Book’), the FIDIC Conditions of Contract for Plant and Design-Build, 1999 (‘Yellow Book’), and the EPC/Turnkey Projects, 1999 (‘Silver Book’). Compliance with the guidance provided in this Memorandum is highly recommended when using the 1999 FIDIC Red, Yellow or Silver books.

Download the FIDIC Guidance Memorandum to Users of the 1999 Conditions of Contract dated 1st April 2013.pdf.

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