What are the best practices for managing time-related claims under FIDIC contracts?

Demonstrate cause and effect in the claim and break down the cost into prelims, labour plant and equipment. Only claim cost incurred during the delay period.

Timely Submission: Submit the notice of claim as soon as the event or circumstance giving rise to the claim is recognized. FIDIC contracts typically require notice within 28 days. Clear Documentation: Ensure the notice is clear and concise, detailing the event, its date, and the contract provisions under which the claim is made. Receipt Confirmation: Obtain and document confirmation of receipt from the other party to avoid disputes about whether the notice was received.

In FIDIC contracts a notice of claim is a formal notification from a contractor or employer regarding a claim for additional payment or time due to specific circumstances, this process typically requires the party to provide details about the claim, its impact on project performance, timely submissions is crucial as FIDIC contracts have strict deadlines for notifications to ensure fair resolution of claim.

Comprehensive Information: Provide detailed information about the claim, including the nature of the delay, the impact on the project schedule, and any relevant contractual provisions. Supporting Evidence: Include all relevant supporting documents such as site diaries, correspondence, schedules, and any other pertinent records. Methodology Explanation: Explain the methodology used to quantify the delay and its impact on the project, such as the critical path method (CPM).

Objective Analysis: The Engineer (or Contract Administrator) should perform an unbiased assessment based on the evidence provided. Consultation with Parties: Engage in discussions with both the contractor and the employer to understand all perspectives and ensure transparency. Timely Decision: Make determinations within the contractually stipulated time frame to avoid unnecessary project delays.

ADR Mechanisms: Utilize Alternative Dispute Resolution (ADR) mechanisms such as mediation or conciliation before resorting to arbitration or litigation. Dispute Adjudication Board (DAB): Refer disputes to the DAB if included in the contract, as this can provide a binding but temporary resolution. Arbitration: Ensure that arbitration clauses are clear and that both parties understand the process and potential outcomes.

Effective management of time-related claims under FIDIC contracts requires meticulous record-keeping that captures every aspect of the claim from initiation to resolution. This ensures substantiation and defence of the claim, mitigating disputes and delays. Comprehensive records should include: -Notice and claim details -Correspondence and communication - Supporting evidence and documentation - Determinations and reasons - Comments and objections - DAB/arbitral tribunal decisions and awards - Payments and adjustments Accurate record-keeping promotes transparency and efficiency in the claims resolution process, ensuring timely project delivery while minimizing the risk of potential disputes.

Daily Logs: Maintain daily site logs and records of all activities, including weather conditions, workforce levels, equipment usage, and any disruptions. Correspondence Archive: Keep a comprehensive archive of all correspondence related to the project and the claim. Document Management System: Use a document management system to organize and retrieve documents efficiently.

Regular Meetings: Hold regular meetings between the contractor, engineer, and employer to discuss progress and any potential issues that could lead to claims. Open Dialogue: Foster an environment of open communication where issues can be raised and addressed promptly. Collaborative Approach: Encourage a cooperative approach to problem-solving, focusing on finding mutually acceptable solutions to time-related claims.

As per FIDIC, the contractor shall formally notify the engineer of the claim within 28 days after it first becomes aware of the occurrence (or vice versa depending on claiming party), including a rough estimate for the time and cost (if any) impacts. The detailed claim submission shall be made within 42 days after the notification, covering contractual basis and entitlement, facts (background), relevancy b/w delay event and delay / disruption, and quantum (delay analysis method used (usually TIA), EoT calculation, any cost impact, etc.). The engineer has to issue its determination within 42 days after the claim submission. In case of any dispute, FIDIC respectively refers to amicable settlement, adjudication through a DAB, and arbitration.