Jaeger / Hök FIDIC - A Guide for Practitioners

1. Auflage 2009
ISBN: 978-3-642-02100-8
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 446 Seiten

In 1999, a suite of three new conditions of contract was published by FIDIC, following the basic structure and wording harmonised and updated around the previous FIDIC Design-Build and Turnkey Contract (the 1992 ''Orange Book''). These conditions, known as the ''FIDIC rainbow, were the Conditions of C- tract for: l Construction, the so-called Red Book, for works designed by the Employer l Plant and Design-Build, the so-called Yellow Book, for works designed by the Contractor l EPC/Turnkey Projects, the so-called Silver Book, for works designed by the Contractor The ?rst is intended for construction works where the Employer is responsible for the design, as for per the previous so-called Red Book 4th Edition (1987), with an important role for the Engineer. The other two conditions of contract are intended for situations when the Contractor is responsible for the design. The Plant and Design-Build Contract has the traditional Engineer while the EPC/Turnkey Contract has a two-party arran- ment, generally with an Employer's Representative as one of the parties.

Dr. Götz-Sebastian Hök, Berlin is a lawyer, arbitrator, adjudicator, lecturer at the University of Applied Science in Berlin and a senior and partner at the law office, Dr. Hök, Stieglmeier & Kollegen, which has its seat in Berlin. His area of practise includes international construction contract law, international public procurement and trans-border real estate law. He has specialised in these areas of law since becoming a lawyer in 1991. As such, he has a great deal of experience in advising developers, contractors, employers, consulting engineers and architects. He also acts as a mediator, adjudicator and arbitrator at the international level. He is the author of a considerable number of papers and articles on topics in the field of contract administration and has also published several books in the fields of international contract law and international dispute resolution. His work, the Handbuch des internationalen und ausländischen Baurechts is widely considered the leading book in international construction in German. He has also translated the FIDIC Red, Yellow and Silver Books into German and French. He has been an accredited FIDIC trainer since 2007, and was a friendly reviewer of the FIDIC Gold Book. Dipl.-Ing., Dipl.-Wirt.- Ing. Axel - Volkmar Jaeger, Cologne is a consulting engineer  for mechanical services and former partner at Schmidt Reuter Partner, Cologne. His area of practise includes the design, procurement and administration of inter-national construction projects worldwide. He has specialised in these areas of practise since becoming a consulting engineer in 1970. Accordingly, he has considerable experience in the management of major international construction projects. He is also the current chairman of the FIDIC Contracts Committee and past Executive Committee Member. He served as member of various FIDIC task groups for the drafts of the FIDIC Yellow and Orange Books, the 1999 FIDIC Rainbow Edition, the White Book and the FIDIC Gold Book. He has been a certified FIDIC trainer since 2001, and received the Louis Prangey Award in 2007. Both authors are responsible for the German FIDIC training at VBI (German Association of Consulting Engineers) and are members of the board for the assessment of German speaking adjudicators. International construction is an increasingly crucial factor in international business. For over 50 years the International Federation of Consulting Engineers (FIDIC), founded in 1913, has acted to support the international construction business. FIDIC contracts are used worldwide and recommended by international organisations such as the World Bank group and the International Financing Institutes, they are equally widley used by civil law and by common law practitioners. Against this background the book provides detailed advice and explanations with regard to the use of FIDIC contracts, especially outside of common law countries and finding a balance between both legal systems, and promotes a better understanding of the issues at stake.

Autoren/Hrsg.

Jaeger, Axel-Volkmar

Hök, Götz-Sebastian

Inhaltsverzeichnis

1;Foreword;5
2;Preface;7
3;Contents;9
4;Cases;19
5;German Abbreviations;33
6;French Abbreviations;34
7;Chapter 1: Legal Systems;35
7.1;English Contract Law;37
7.1.1;Relevant Provisions;37
7.1.2;English Legal System;38
7.1.3;Entering a Contract;38
7.1.3.1;Elements of Contracts;38
7.1.3.2;Offer and Acceptance;39
7.1.3.3;Consideration;42
7.1.4;Validity of Contract;43
7.1.5;Express Term or Representation;43
7.1.6;Implied Terms;44
7.1.7;Discharge;45
7.1.8;Common Features of English Construction Contracts;47
7.2;Finnish Contract Law;50
7.3;French Contract Law;51
7.3.1;Relevant Provisions;51
7.3.2;Entering a Contract;52
7.3.2.1;Definition of Contract Under French Law;52
7.3.2.2;Are There Any Formal Requirements for Contracts?;53
7.3.2.3;Validity of Contracts;53
7.3.3;Contract Interpretation;54
7.3.4;Effects of a Contract;55
7.3.5;Limitation Periods;56
7.3.6;Pre-contractual Liability;57
7.3.7;Good Faith;57
7.3.8;Performance;57
7.3.8.1;What Does ``Non-performance´´ Mean?;57
7.3.8.2;What Are the Available Remedies in Case of Non-performance?;58
7.3.8.3;Specific Remedies Available Against the Builder: The Decennial Liability;58
7.3.9;Damages and Limitation of Liability;59
7.3.9.1;Extent of Damages;59
7.3.9.2;Cases of Exemption;59
7.3.10;Penalty Clauses;60
7.3.11;Subcontracting;60
7.4;German Contract Law;61
7.4.1;Relevant Provisions;61
7.4.2;German Legal System;61
7.4.3;Entering a Contract;63
7.4.4;Contract Interpretation;64
7.4.5;Construction Contract;65
7.4.6;German Legal Concepts as to Construction Contracts;66
7.4.6.1;Duty to Achieve a Specific Result;67
7.4.6.2;Risk Allocation;69
7.4.6.3;Taking Over;70
7.4.6.4;Taking Over Under FIDIC Contracts;71
7.4.6.5;Breach of Contract;72
7.4.6.6;Defects Liability Period;73
7.4.6.7;Time for Completion;76
7.4.6.8;Caps;78
7.4.6.9;Termination;78
7.4.6.10;Security Mortgage and Other Securities;79
7.4.6.11;Subcontracting;79
7.5;Romanian Law;80
7.5.1;Relevant Provisions;80
7.5.2;Definition of Contract Under Romanian Law;80
7.5.3;Effects of the Contract;81
7.5.4;Limitation Periods;81
7.5.5;Does Romanian Law Recognize Pre-contractual Liability?;81
7.5.6;Non-performance Remedies;81
7.5.6.1;Normal Remedies;81
7.5.6.2;Specific Remedies Available Against the Builder: The Decennial Liability;82
7.5.7;Damages and Limitation of Liability;82
7.5.8;Penalty Clauses;83
7.6;Islamic Law;83
7.7;References;87
8;Chapter 2: Conflict of Laws;88
8.1;Introduction;88
8.2;Nature of the Cause of Action;89
8.3;Pre-contractual Stage;90
8.4;Proper Law of the Contract;91
8.4.1;Rome Convention;91
8.4.2;Rome I Regulation;93
8.5;Tort Law;95
8.6;Quasi Contracts;97
8.7;Choice of Law as to Extra-contractual Claims;98
8.8;In Rem Claims;99
8.9;The Importance for Choice of Law Issues;99
8.10;Compliance Rules;102
8.11;References;103
9;Chapter 3: English and International Standard Forms of Contract;104
9.1;Introduction;104
9.2;Types of Contracts;105
9.3;Common Characteristics of Standard Forms;106
9.3.1;The Position of the Engineer;106
9.3.2;Certification;107
9.3.3;Time;107
9.3.4;Programming;108
9.3.5;Substantial Completion and Taking Over;108
9.3.6;Liquidated Damages;108
9.3.7;Claims;109
9.3.8;Dispute Resolution;109
9.4;Contract Forms Overview;110
9.5;References;112
10;Chapter 4: Civil Law Business Terms;113
11;Chapter 5: Development Stages;115
11.1;Overview;115
11.2;Pre-contract Stage;118
11.2.1;Base Date;124
11.2.2;Information Transfer and Research;125
11.2.3;Survey Report;127
11.3;Tender Stage;127
11.4;Performance;128
11.5;References;130
12;Chapter 6: Understanding FIDIC: A Civil Law Approach;131
12.1;Introduction;131
12.2;Legal English;133
12.3;Conceptual Legal Background;134
12.4;Lex Mercatoria;138
12.5;English and Other Legal Terms;140
12.6;FIDIC Contracts Guide, Time Lines and Other Support;140
12.7;Unidroit Principles;152
12.8;References;154
13;Chapter 7: FIDIC Contract Documents;156
13.1;FIDIC Rainbow;156
13.1.1;Overview;156
13.1.2;Balanced Forms of Contract;158
13.1.3;International Scope;158
13.1.4;Interpretation;160
13.2;Drafting a Contract;162
13.3;General Observations as to the FIDIC ContractDocuments;164
13.4;Contract Documents Book by Book;165
13.4.1;Red Book;165
13.4.2;Green Book;166
13.4.3;Yellow Book;167
13.4.4;Silver Book;169
13.4.5;Gold Book;171
13.5;Contract Documents Manual;172
13.5.1;Contract Agreement;172
13.5.2;Particular Conditions;173
13.5.3;Employer´s Requirements;175
13.5.4;Contractor´s Proposal;185
13.5.5;Payment Schedule;186
13.5.6;Drawings;189
13.5.7;Specifications and Bills of Quantities;190
13.5.8;Further Documents (Gold Book);190
13.5.9;Dispute Adjudication Agreement;191
13.5.10;Guarantees;191
13.6;Contract Preparation and Pitfalls;192
13.6.1;Technical Standards;192
13.6.2;Delay Damages;193
13.6.3;Performance Damages;195
13.6.4;Defects Notification Period;196
13.6.5;Retention Money;197
13.6.6;Sections;197
13.6.7;Taxes, Levies and Customs;198
13.6.8;Copyright;199
13.6.9;Labour;200
13.6.10;Handback Requirements (only Gold Book, DBO);200
13.7;Alteration of FIDIC Conditions;201
13.7.1;Guiding Principles;201
13.7.2;Preparing Tender Documents - The FIDIC Contracts Guide -Guidance for the Preparation of Particular Conditions;201
13.7.3;Complementary Terms of Contract;202
13.7.4;Recommendations;204
13.7.5;Pitfalls and Issues;205
13.8;References;206
14;Chapter 8: Employer´s Duties;208
14.1;Introduction;208
14.2;Arrangement for Payments;208
14.3;Duty to Pay;209
14.3.1;Introduction;209
14.3.2;Contract Price;210
14.3.3;Provisional Sums;210
14.4;Duty to Co-operate;212
14.4.1;Access to the Site;212
14.4.2;Permits, Licences or Approvals;214
14.4.3;Duty to Minimise Delay;214
14.4.4;Duty to Make Financial Arrangements;214
14.4.5;Duty to Provide Information;216
14.4.6;Estoppel;217
14.5;Duty to Compensate;217
14.5.1;Compensation for Interference by Employer;220
14.6;References;221
15;Chapter 9: Contractor´s Duties;222
15.1;Introduction;222
15.1.1;Pre-contractual Duties;222
15.1.2;Completion of the Works;223
15.1.3;Design;224
15.1.4;Operation;224
15.2;Quality and Defects;229
15.2.1;Overview;229
15.2.2;Workmanlike Manner;229
15.2.3;Design Skills;231
15.2.4;Definition of the Term ``Defect´´;231
15.2.5;Operation Service;235
15.2.6;Final Remarks;236
15.3;Time for Completion;236
15.3.1;Duty to Comply with Time for Completion;236
15.3.2;Programme;236
15.3.3;Obligation to Proceed in Accordance with the Programme;238
15.3.4;Extension of Time;239
15.4;References;239
16;Chapter 10: Design Responsibility;240
16.1;Introduction;240
16.2;Employer´s Design;241
16.3;Contractor´s Design;243
16.4;Contractor´s Design Liability;244
16.5;Design Procedure;247
16.6;Design Warranties;249
16.7;Design Update;249
16.8;Deliverables;250
16.9;References;250
17;Chapter 11: Engineer;251
17.1;Introduction;251
17.2;The Role and Function of the Engineer;251
17.3;Determinations;257
17.4;Constraints and Restrictions on the Engineer;258
17.5;Powers of the Engineer;259
17.6;Instructions;260
17.7;White Book;260
17.7.1;Overview;261
17.7.2;Cooperation;261
17.7.3;Liability;262
17.7.4;Scope of Services;263
17.7.5;Payments;264
17.7.6;Changed Circumstances;264
17.7.7;Intellectual Property;265
17.7.8;Disputes;265
17.8;References;266
18;Chapter 12: Time for Completion;267
18.1;Introduction;267
18.2;The English Concept of Time for Completion;268
18.3;Civil Law Approach;272
18.4;Time Control;275
18.5;Extension of Time;277
18.6;Concurrent Delay;277
18.6.1;Common Law;279
18.6.2;Civil Law;282
18.6.3;FIDIC;284
18.7;SCL;286
18.8;Liquidated Damages and Penalties;286
18.8.1;Validity of Liquidated Damages Clauses;286
18.8.2;Delay Damages;288
18.8.3;Milestone Damages;289
18.9;References;289
19;Chapter 13: Variations;290
19.1;Introduction;290
19.1.1;Variations in General;290
19.1.2;Contract Clauses;291
19.1.3;Extent of Change Allowance Rules;292
19.1.4;Change Orders;293
19.1.5;Control;294
19.1.6;Consequences;295
19.1.7;Remarks;296
19.2;Variations Under FIDIC;297
19.2.1;Yellow, Silver and Gold Book;300
19.2.2;Red Book;302
19.3;Variation Procedure;305
19.4;Avoidance of Variations;308
19.5;References;310
20;Chapter 14: Tests;311
20.1;Introduction;311
20.2;Tests Until Completion;312
20.3;Tests on Completion;312
20.4;Tests After Completion;314
20.5;Tests During the Defects Notification Period;314
20.6;Delayed Tests;314
20.7;ISO Standard;315
20.8;Tailoring Test Procedures;316
20.9;References;316
21;Chapter 15: Certificates;317
21.1;Introduction;317
21.2;Taking Over;317
21.3;Performance;319
21.4;Payments;320
21.4.1;Introduction;320
21.4.2;Measurement;324
21.4.3;Valuation;327
21.4.4;Payment Procedures;327
21.4.5;Payment Delays;331
21.4.6;Late Payment;331
21.4.7;Retention Monies;332
21.5;Disputes;332
21.6;References;332
22;Chapter 16: Defects Notification Period and (Post Contractual) Defects Liability;333
22.1;Introduction;333
22.2;Duration of the Defects Notification Period;333
22.3;Duty to Remedy and to Search;334
22.4;Meaning of the Duty to Remedy;335
22.5;Removal of Defective Work;340
22.6;Failure to Remedy defects;340
22.7;Extension of the Defects Notification Period;341
22.8;Legal Liability;341
22.8.1;Normal Liability;341
22.8.2;Decennial Liability;342
22.9;References;343
23;Chapter 17: Termination;344
23.1;Introduction;344
23.2;Termination for Convenience;346
23.3;Termination with Good Cause;346
23.4;Notice;347
23.5;Particular Reasons for Termination;348
23.6;Consequences of Termination;348
23.6.1;Works;349
23.6.2;Payments;349
23.7;Termination Agreements;351
24;Chapter 18: Discharge, Frustration and Force Majeure;352
24.1;Risk and Risk Allocation;352
24.2;Normal Discharge;354
24.3;Rebus Sic Stantibus;356
24.4;Force Majeure;357
24.5;References;360
25;Chapter 19: Risk, Insurance and Exceptional Risk;361
25.1;Introduction;361
25.2;Legal Risk Allocation;362
25.3;Risk Assessment;365
25.3.1;Overview;365
25.3.2;Employer´s Risk;366
25.3.3;Care for the Works;366
25.3.4;Sub-contractor´s Risk;368
25.3.5;Fencing, Lighting and Guarding;368
25.3.6;Misinterpretation of Data;368
25.3.7;Bodily Injury;369
25.3.8;Caps;369
25.4;Insurance;370
25.5;Contractor´s All Risk Insurance;373
25.6;Uninsurable Risk;376
25.7;References;376
26;Chapter 20: Bonds, Guarantees, Letters of Credit;377
26.1;Introduction;377
26.2;Civil Law Security Types;378
26.3;Common Law Types;378
26.4;Letters of Credit;379
26.5;FIDIC;380
26.5.1;Performance Security;380
26.5.2;Advance Payment Security;381
26.6;Conclusion;382
27;Chapter 21: Claim Management;383
27.1;Introduction;383
27.2;Procedural Rules;387
27.3;Claim Review and Preparation;391
27.4;Claim Notice;397
27.5;Documentation Requirements;402
27.6;Presentation of Claims;402
27.7;Claim Avoidance;403
27.8;Extension of Time Claims;404
27.9;Money Claims;408
27.9.1;Cost;409
27.9.2;Profit;412
27.9.3;Loss of Productivity Claims;413
27.9.4;Legal Claims;413
27.10;Gold Book;414
27.11;References;417
28;Chapter 22: Disputes;418
28.1;Introduction;418
28.2;Dispute Resolution Methods;419
28.2.1;Introduction;419
28.2.2;Mediation;419
28.2.3;Dispute Review;421
28.2.4;Dispute Adjudication;421
28.2.5;Arbitration;422
28.2.6;Summary;423
28.3;FIDIC Dispute Adjudication;423
28.3.1;Introduction;423
28.3.2;Function and Role of the DAB;425
28.3.3;Appointment;425
28.3.4;Dispute Adjudication Agreement;426
28.3.5;Dispute Avoidance;427
28.3.6;Referral of a Dispute;427
28.3.7;Jurisdiction;427
28.3.8;Procedure;429
28.3.9;Applicable Law;431
28.3.10;Reaching a Decision;431
28.4;Issues;432
28.5;Dispute Adjudication in Civil Law Countries;434
28.5.1;Enforceability of Dispute Adjudication Agreements;435
28.5.2;Jurisdiction;436
28.5.3;Binding Effects of DAB Decisions on the Parties;436
28.6;New Features;438
28.7;References;441
29;Chapter 23: Samples;442
29.1;Sample I: Notice of Commencement Date;442
29.2;Sample II: Notice of an Event or Circumstance;443
29.3;Sample III: Notice that Work Is Ready;445
29.4;Sample IV: Notice of Approval;446
29.5;Sample V: Instruction;447
29.6;Sample VI: EOT Claim Following Variation;448
29.7;Sample VII: Rejection of Work;449
29.8;Sample VIII: Application for Taking-Over Certificate;450
29.9;Sample IX: Letter from Engineer, if Employer´s Approval Is Late;450
29.10;Sample X: Determination;452
29.11;Sample XI: Notice of Dissatisfaction with a Determination of the Engineer;453
29.12;Sample XII: Notice of Referral of Dispute;454
29.13;Sample XIII: Chairman of the DAB to Parties: Establishment of the Procedure;455
29.14;Sample XIV: Notice of Dissatisfaction with a Decision of the DAB;456
29.15;Sample XV: Addendum;457
30;Index;461