27/10/2022

The Resident Engineer

Roles and responsibilities under FIDIC 1999 Red Book

Amarnath Boyjoo

The Resident Engineer

Roles and responsibilities under FIDIC 1999 Red Book

One’s position
in a team

Amarnath Boyjoo

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The Resident Engineer

Roles and responsibilities under FIDIC 1999 Red Book

One’s position Tasks and duties of

in a team the particular role

Amarnath Boyjoo

FIDIC for Large or Complex Works

FIDIC Conditions of Contract are used for large or complex works.

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Contractual Relationships

Employer

Client/Consultant Construction Contract

Services Agreement

Engineer  Contractor
No Contractual
Relationship

FIDIC Red Book

• General Conditions
• Particular Conditions
• Appendix to Tender

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FIDIC Red Book

• General Conditions
• Particular Conditions
• Appendix to Tender

FIDIC's Golden Principles set out

the essential characteristics of its
general conditions of contract
that should not be amended if
the contract is to be regarded as
a genuine FIDIC document.

Clauses, Sub-Clauses, etc.

• 20 Clauses
• 163 Sub-Clauses
• paragraphs
• sub-paragraphs

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General Conditions - Clauses

1. General Provisions 11. Defects Liability
2. The Employer 12. Measurement and Evaluation
3. The Engineer 13. Variations and Adjustments
4. The Contractor 14. Contract Price and Payment
5. Nominated Subcontractors 15. Termination by Employer
6. Staff and Labour 16. Suspension and Termination by
7. Plant, Materials and Workmanship Contractor
8. Commencement, Delays and 17. Risk and Responsibility
Suspension
18. Insurance
9. Tests on Completion
19. Force Majeure
10. Employer’s Taking Over
20. Claims, Disputes and Arbitration

General Conditions – Sub-Clauses

1. General Provisions
2. The Employer
3. The Engineer
3. The Engineer
4. The Contractor 3.1 Engineer’s Duties and Authority
5. Nominated Subcontractors 3.2 Delegation by the Engineer
6. Staff and Labour 3.3 Instructions of the Engineer
7. Plant, Materials and Workmanship 3.4 Replacement of the Engineer
8. Commencement, Delays and 3.5 Determinations
Suspension
9. Tests on Completion
10. Employer’s Taking Over

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Index to General Conditions

INDEX OF SUB-CLAUSES
Sub-Clause Page
Accepted Contract Amount. Sufficiency of the 4.1.1 16
Access after Taking Over. Right of 11.7 34
Access for Inspection 7.3 24
Access Route 4.15 17
Access to the Site. Right of 2.1 8

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Roles of the Engineer

• Designer
• Drawings, Specification
• Quality Controller
• Materials, Workmanship
• Valuer The Engineer is an:
• Payment Certificates, Variations
• Employer’s Agent
• Certifier
• Taking Over, Approval of the Works • Independent Professional
• Quasi-Mediator
• Agreement between the Parties

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Sub-Clause 3.1

The Engineer shall have no authority to amend the Contract.

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Delegation by the Engineer

• The Engineer delegates SC 3.2: Delegation by the Engineer
duties and responsibilities to The Engineer may from time to time
a resident engineer (RE). assign duties and delegate authority to
assistants, and may also revoke such
assignment or delegation. These
assistants may include a resident
engineer, …

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Delegation by the Engineer

• The Engineer delegates SC 3.2: Delegation by the Engineer
duties and responsibilities to …
the Resident Engineer (RE). The assignment, delegation or
revocation shall be in writing and shall
not take effect until copies have been
received by both Parties.

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Timeline

Start

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Timeline

Start Construction

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Timeline

Defects
Start Construction Notification
Period

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Timeline

Defects
Start Construction Beyond
Notification

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Contents

• Insurances
• Advance Payment Guarantee
• Delegation of Authority • Contract Document
• Internal Start-up Meeting • Programme
• Outstanding Works • Disputes
• Principal Events • Cash Flow
• Defects • Settlement
• Start-up Meeting with • Supervision
• Performance Certificate • Arbitration
Contractor • Payment Certificates
• Performance Security • Meetings
• Claims
• Taking-Over Certificate

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Start

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Typical Organisation Chart

Engineer SC 3.2: Delegation by the Engineer

The Engineer may from time to time
assign duties and delegate authority to
Quality Administration
assistants, and may also revoke such
assignment or delegation. These
Engineers Resident Engineer Specialists assistants may include a resident
engineer, …
AREs

Inspectors Surveyors Others

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Typical Organisation Chart

Engineer SC 3.2: Delegation by the Engineer

The Engineer may from time to time
assign duties and delegate authority to
Quality Administration
assistants, and may also revoke such
assignment or delegation. These
Engineers Resident Engineer Specialists assistants may include a resident
engineer, …
AREs

Inspectors Surveyors Others

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Typical Organisation Chart

Engineer SC 3.2: Delegation by the Engineer

…
Quality Administration The assignment, delegation or
revocation shall be in writing and shall
not take effect until copies have been
Engineers Resident Engineer Specialists received by both Parties.

AREs

Inspectors Surveyors Others

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Delegation of Authority
Reference
Date
Contractor

Engineer Dear Sir

Contract (number, title, etc.)
Delegation of Authority to the Resident Engineer
In accordance with the provisions of Sub-Clause 3.2 of the Conditions of Contract, you
Quality Administration are advised that (name and title) has been appointed as the Engineer’s assistant with
immediate effect (or specific date). (Name and title) will be referred to as the Resident
Engineer.
All duties and authority of the Engineer given in the Conditions of Contract are
Engineers Resident Engineer Specialists delegated to (name and title), excluding duties and authority under the following Sub-
Clauses:
1. Sub-Clause 3.5 [Determinations]
2. Sub-Clause 8.8 [Suspension of Work]
AREs 3. Sub-Clause 10.1 [Taking Over of the Works and Sections]
4. Sub-Clause 13.3 [Variation Procedure]
5. Sub-Clause 11.9 [Performance Certificate]
6. Sub-Clause 14.13 [Issue of Final Payment Certificate].

Inspectors Surveyors Others Yours faithfully

Engineer
Copy: Employer

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Delegation of Authority
All duties and authority of the Engineer given in the
Engineer Conditions of Contract are delegated to (name and
title), excluding duties and authority under the
Quality Administration
following Sub-Clauses:
1. Sub-Clause 3.5 [Determinations]
2. Sub-Clause 8.8 [Suspension of Work]
Engineers Resident Engineer Specialists 3. Sub-Clause 10.1 [Taking Over of the Works and
Sections]
4. Sub-Clause 13.3 [Variation Procedure]
AREs 5. Sub-Clause 11.9 [Performance Certificate]
6. Sub-Clause 14.13 [Issue of Final Payment
Certificate].
Inspectors Surveyors Others

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Delegation of Authority
All duties and authority of the Engineer given in the
Engineer Conditions of Contract are delegated to (name and
title), excluding duties and authority under the
Quality Administration
following Sub-Clauses:
1. Sub-Clause 3.5 [Determinations]
2. Sub-Clause 11.9 [Performance Certificate]
Engineers Resident Engineer Specialists 3. Sub-Clause 14.13 [Issue of Final Payment
Certificate].

AREs SC 3.5 may be delegated if

both Employer and
Contractor agree
Inspectors Surveyors Others

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The Resident Engineer …

SC 3.2: Delegation by the Engineer
The Resident Engineer is an assistant a) any failure to disapprove any work,
of the Engineer. Plant or Materials shall not
constitute approval, and shall
therefore not prejudice the right of
His/her decisions may be reversed the Engineer to reject the work,
by the Engineer. Plant or Materials
b) if the Contractor questions any
determination or instruction of an
assistant, the Contractor may refer
the matter to the Engineer, who
shall promptly confirm, reverse or
vary the determination or
instruction.

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Internal Start-up Meeting

• Handing over of bid documents Engineer
of successful bidder
• Important design considerations Quality Administration

• Timing
Engineers Resident Engineer Specialists
• Financial
AREs

Inspectors Surveyors Others

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Internal Start-up Meeting

• Handing over of bid documents Engineer
of successful bidder
• Important design considerations Quality Administration

• Timing
Engineers Resident Engineer Specialists
• Financial
• Staffing deployment AREs

Inspectors Surveyors Others

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From here onwards …

… the Resident Engineer takes over the management of the project.

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Principal Events Under FIDIC Red Book

Before Commencement During Construction During DNP

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… and one more

Before Commencement During Construction During DNP Beyond

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Before Commencement …
Issue of Submission Issue of the SC 8.1
Tender of the Letter of Commencement
Documents Tender Acceptance Date

Base < 42 d
CIDB Certificate
Date of Registration
for foreign
Contractors

? 28 d < 28 d

Tender Period SC 1.6 Entering into a Contract Agreement

SC 4.2 Issue of Performance Security

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During Construction …
Issue of Submission Issue of the SC 8.1
Tender of the Letter of Commencement
Documents Tender Acceptance Date

Base < 42 d
Date Time for Completion Delay in Completion

? 28 d < 28 d

SC 1.6 Entering into a Contract Agreement

Tender Period SC 4.2 Issue of Performance Security
SC 9.1 Tests on
Completion

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During DNP …
Issue of Submission Issue of the SC 8.1 SC 10.1 Issue SC 11.9 Issue of the
Tender of the Letter of Commencement of Taking-Over Performance
Documents Tender Acceptance Date Certificate Certificate

Base < 42 d
Date Time for Completion Delay in Completion DNP

? 28 d < 28 d SC 11 < 21 d
Notification
of Defects
Remedying
SC 1.6 Entering into a Contract Agreement of Defects
Tender Period SC 4.2 Issue of Performance Security SC 4.2 Return of the
SC 9.1 Tests on Performance Security
Completion

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… and Beyond
Issue of Submission Issue of the SC 8.1 SC 10.1 Issue SC 11.9 Issue of the
Tender of the Letter of Commencement of Taking-Over Performance
Documents Tender Acceptance Date Certificate Certificate

Disputes
< 42 d Amicable Settlement
Base
Time for Completion Delay in Completion DNP Arbitration
Date

? 28 d < 28 d SC 11 < 21 d
Notification
of Defects
Remedying
SC 1.6 Entering into a Contract Agreement of Defects
Tender Period SC 4.2 Issue of Performance Security SC 4.2 Return of the
SC 9.1 Tests on Performance Security
Completion

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Start the Project

Convene the first meeting with the Contractor

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment
6. Planning & Mobilisation
7. Materials for the Works
8. Site
9. Environmental
10. Inspections
11. AOB

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Start-up Meeting with Contractor

1. General a. Introduction
2. Personnel & Communication b. Objective of Start-up Meeting
3. Statutory Requirements c. Contract Details
4. Performance Security & Insurances d. Contract Document
5. Payment e. Scope of Works
6. Planning & Mobilisation f. Signboard
7. Materials for the Works
8. Site
9. Environmental
10. Inspections
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication a. Employer’s Representative
3. Statutory Requirements b. Contractor’s Representative
4. Performance Security & Insurances c. Engineer
5. Payment d. Resident Engineer
6. Planning & Mobilisation e. Line of Communication
7. Materials for the Works
8. Site
9. Environmental
10. Inspections
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements a. Wayleave
4. Performance Security & Insurances b. Liaison with Authorities
5. Payment
6. Planning & Mobilisation
7. Materials for the Works
8. Site
9. Environmental
10. Inspections
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances a. Performance Security
5. Payment b. Insurances
6. Planning & Mobilisation
7. Materials for the Works
8. Site
9. Environmental
10. Inspections
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment a. Advance Payment Guarantee
6. Planning & Mobilisation b. Advance Payment
7. Materials for the Works c. Applications for Payment
8. Site
9. Environmental
10. Inspections
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements a. Commencement Date
4. Performance Security & Insurances b. Programme
5. Payment c. Cash Flow
6. Planning & Mobilisation d. Construction Methodology
7. Materials for the Works e. Health & Safety
8. Site f. Progress Reports
9. Environmental g. Contractor’s Site Organigram
10. Inspections h. Contractor’s Site Office & Working
11. AOB Area
i. Health & Safety

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment
6. Planning & Mobilisation
7. Materials for the Works a. Samples
8. Site b. Testing
9. Environmental c. Testing Laboratory
10. Inspections d. Compliance Certificates
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment
6. Planning & Mobilisation
7. Materials for the Works
8. Site a. Handing Over
9. Environmental b. Survey Datum
10. Inspections c. Joint Surveys
11. AOB d. Setting Out

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment
6. Planning & Mobilisation
7. Materials for the Works
8. Site
9. Environmental a. Protection
10. Inspections b. Monitoring
11. AOB c. Reinstatement

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment
6. Planning & Mobilisation
7. Materials for the Works
8. Site a. Daily Programme
9. Environmental b. Request for Approval
10. Inspections c. Calibration Certificates
11. AOB

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Start-up Meeting with Contractor

1. General
2. Personnel & Communication
3. Statutory Requirements
4. Performance Security & Insurances
5. Payment
6. Planning & Mobilisation
7. Materials for the Works
8. Site
9. Environmental When you have covered 1 – 10, there is
10. Inspections usually nothing more to discuss !
11. AOB

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Minutes of Meeting
• Do not delay
• Write the
minutes
immediately
after
• Be factual

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Performance Security
• SC 4.2 – Performance Security • Form of Performance Security in
the Bid Documents

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Performance Security
• SC 4.2 – Performance Security • Financial security behind the
Contractor’s obligation for proper
performance
1. Demand Guarantee
Unconditional obligation to pay
when a demand has been made
2. Surety Bond
Requires certain conditions to be
met before payment is made

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Performance Security
• SC 4.2 – Performance Security • Financial security behind the
Contractor’s obligation for proper
performance
1. Demand Guarantee
Unconditional obligation to pay
when a demand has been made
2. Surety Bond
Requires certain conditions to be
met before payment is made

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Example Performance Security

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Example Performance Security

… hereby irrevocably undertake to

pay you any sum or sums not
exceeding in total an amount of
MUR … upon receipt by us of
your first demand in writing …

Check the authenticity online

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Example Performance Security

• Expiry Date

• Null and void after Expiry Date

whether returned to the Bank or
not

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Example Performance Security

This guarantee is subject to the
Uniform Rules for Demand
Guarantees (URDG) 2010 revision, ICC
Publication No. 758 except that the
supporting statement under article
15(a) is hereby excluded.

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Construction

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Insurances required …
• SC 18.2 - Works and Contractor’s
Equipment
• SC 18.3 - Third-party
• SC 18.4 - Contractor’s Personnel

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Insurances
• SC 18.2 - Works and Contractor’s • In the joint names of the
Equipment Employer and Contractor
• SC 18.3 - Third-party
• SC 18.4 - Contractor’s Personnel Key feature of this type of policy:
The insured parties are unable
to claim against one another in
respect of an insured loss, as
they are considered to be one-
and-the-same for the purposes
of the insurance.

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Insurances
• SC 18.2 - Works and Contractor’s
Equipment
• SC 18.3 - Third-party
• SC 18.4 - Contractor’s Personnel • In the Contractor name.
Compensates Contractor’s
employees for bodily injury, wages
and medical expenses.
• Usually yearly

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Insurances
• SC 18.2 - Works and Contractor’s
Equipment
• SC 18.3 - Third-party
• SC 18.4 - Contractor’s Personnel

• Insurance cover for decennial • Decennial liability by law

liability
• Insurance cover required for PDS
and RES

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How to read an insurance policy?

• Can be very confusing • FIDIC Part II & Part I
• Read the entire policy • Specification
• The devil is in the details • Also known as Cover Note
• Endorsement
• Modifies the main coverage
• General Conditions
• Exclusions
• Exceptions to exclusions

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Insurance Covers …

… should not be allowed to lapse.

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Ensure that they do not

SC 11.9 Issue of the
Performance
Certificate

Time for Completion Delay in Completion DNP

Insurance
Cover Notes

14 d
28 d

Insurance
Policies Write to
Contractor Remedying
Original Time for Completion EOT of Defects

SC 18.2 - Works and Contractor’s Equipment

SC 18.3 - Third-party
SC 18.4 - Contractor’s Personnel (Usually yearly)

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Advance Payment Guarantee

• SC 14.2 – Advance Payment • Interest-free loan for
mobilisation
• Usually 10% of the Accepted
Contract Amount

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Example Advance Payment Guarantee

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Example Advance Payment Guarantee

• The maximum amount of this
guarantee shall be progressively
reduced by the amount of the
advance payment repaid by the
Contractor ...

• Expiry Date

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Contract Document
• What to include?
• Contract Agreement
• Performance Security (Copy)
• Letter of Acceptance
• Letter of Bid
• Preamble to Bill of Quantities
• Bill of Quantities
• Specification
• Drawings
• General Conditions of Contract (by reference)
• Particular Conditions of Contract
• Etc.
• Bidder’s Technical
• What not to include? Proposal
• Instructions to Bidders
• Addenda
• Tender Programme
• Minutes of
Negotiation Meeting

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Contract Document
• What to include?
• Contract Agreement
• Performance Security (Copy)
• Letter of Acceptance
• Letter of Bid
• Preamble to Bill of Quantities
• Bill of Quantities
• Specification
• Drawings
• General Conditions of Contract (by reference)
• Particular Conditions of Contract
• Etc.
• Bidder’s Technical
• What not to include? Proposal
• Instructions to Bidders
• Addenda
• Tender Programme
• Minutes of
Negotiation Meeting

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Programme of Works

Called detailed time programme under SC 8.3

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Programme to include …
• SC 8.3: Programme • Order in which the Contractor intends
to carry out the Works
• Work by each nominated
The Contractor shall submit a Subcontractor
detailed time programme to the • Sequence and timing of inspections
Engineer within 28 days after and tests specified in the Contract
receiving notice of the • Supporting report:
Commencement Date. • Methodology
• Resources

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Programme is and is not …

What it is and is not? SC 8.3: Programme
• Not a Contract document • Unless the Engineer, within 21 days
• Document submitted under the Contract after receiving a programme, gives
• Not for approval notice to the Contractor stating the
extent to which it does not comply
• Not for consent with the Contract, the Contractor
• It is the Contractor’s planning tool shall proceed in accordance with the
programme, subject to his other
• It is for the Engineer’s comments obligations under the Contract.

• What to do with the Tender • Is for bid information, not for

Programme? construction

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Programme must haves …

What to look for? Days or edays

• Commencement Date
• Completion date
• Durations (In-built floats)
• Programming logic
• Critical path
• Floats
• Predecessors, successors
• Resources
• Calendar
• Sectional completion (If any)

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Programme of Works
What to look for?
• Commencement Date
• Completion date
• Durations (In-built floats) Cascade
• Programming logic
• Critical path
• Floats
• Predecessors, successors
• Resources
• Calendar
• Sectional completion (If any)

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Programme of Works
What to look for?
• Commencement Date
• Completion date
• Durations (In-built floats)
• Programming logic
• Critical path
• Floats
• Predecessors, successors
• Resources
• Calendar
• Sectional completion (If any)

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Programme of Works
What to look for?
• Commencement Date
• Completion date
• Durations (In-built floats)
• Programming logic
• Critical path
• Floats
• Predecessors, successors
• Resources
• Calendar
• Sectional completion (If any)
No predecessors No successors.
Wrong

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Programme of Works
What to look for?
• Commencement Date
• Completion date
• Durations (In-built floats)
• Programming logic
• Critical path
• Floats
• Predecessors, successors
• Resources
• Calendar
• Sectional completion (If any)

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Programme of Works
What to look for? Calendar: Standard vs customized

• Commencement Date
• Completion date
• Durations (In-built floats)
• Programming logic
• Critical path
• Floats
• Predecessors, successors
• Resources
• Calendar
• Sectional completion (If any)

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The Programme …

… an important management tool for the following reasons:

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Programme and access to Site

SC 2.1: Right of access to the Site
• The Employer shall give the
Contractor right of access to, and
possession of, all parts of the Site
within the time (or times) stated in
the Appendix to Tender.
• If no such time is stated, the Employer
shall give the Contractor right of
access to, and possession of, the Site Common ground for contractual
within such times as may be required claim if the Site is not handed over
to enable the Contractor to proceed on time
in accordance with the programme

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Monitoring Progress
SC 8.3: Programme
• The Contractor shall also submit a • Revision initiated by the Contractor
revised programme whenever the
previous programme is inconsistent
with actual progress or with the
Contractor's obligations.
• If the Engineer gives notice to the • Revision initiated by the Engineer
Contractor that a programme fails to
comply with the Contract or to be
consistent with actual progress …., the
Contractor shall submit a revised
programme …

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Tracking Progress
SC 8.6: Rate of Progress
• If, at any time actual progress is too
slow and/or progress has fallen (or
will fall) behind the current
programme, other than as a result of
a cause listed in Sub-Clause 8.4, then
the Engineer may instruct the • Progress must be tracked by the
Contractor to submit a revised Engineer
programme.

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Tracking Progress
SC 4.21: Progress Reports
(h) comparisons of actual and planned • Tracking progress by the Contractor
progress, with details of any events or
circumstances which may jeopardise
the completion in accordance with the
Contract, and the measures being (or to
be) adopted to overcome delays.

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Modifications to the Programme

SC 13.3: Variation Procedure

• If the Engineer requests a

proposal, prior to instructing a
Variation, the Contractor shall • Common ground for contractual claim
submit:
• a proposal for any necessary
modifications to the programme
according to Sub-Clause 8.3

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Impact Analysis
SC 20.1: Contractor’s Claims
• … the Contractor shall send to the • Impact analysis
Engineer a fully detailed claim which
includes full supporting particulars of
the basis of the claim and of the
extension of time and/or additional
payment claimed.

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Cash Flow
SC 14.4: Schedule of Payments 800
Rs Millions (Inc.VAT)

700

• … the Contractor shall submit 600

non-binding estimates of the 500

payments which he expects to 400

become due during each 300

quarterly period. 200

• The first estimate shall be 100

submitted within 42 days after 0

1-Jul-13

1-Jul-14

1-Jul-15

1-Jul-16

1-Jul-17

the Commencement Date. Payment Due Date

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Cash Flow and Actual Payments

• As work proceeds plot the Cash 800

Rs Millions (Inc.VAT)
Flow and actual payments 700

600

500

400

300 Cash Flow

Actual
200

100

1-Jul-13

1-Jul-14

1-Jul-15

1-Jul-16

1-Jul-17
Payment Due Date

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Site Supervision

The word ‘supervision’ does not appear in the Red Book.

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Organigrams
Engineer Contractor

Quality Administration Quality Administration

Engineers Resident Engineer Specialists Contractor’s Representative

AREs H&S Officer Surveyors General Foreman

Inspectors Surveyors Others Foremen

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Organigrams
Engineer Contractor

Quality Administration Quality Administration

Engineers Resident Engineer Specialists Contractor’s Representative

AREs H&S Officer Surveyors General Foreman

Inspectors Surveyors Others Contractor’s Representative either Foremen

named under the Contract or
submitted for consent in accordance
with SC 4.3

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Organigrams
Engineer
• Your eyes and ears on Site.
Quality Administration • Their role is to supervise the
Contractor’s work.
Engineers Resident Engineer Specialists • They are not the Contractor’s
foremen.
AREs
• The duties of inspectors demand
practical experience, objectivity and
Inspectors Surveyors Others tact.

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Inspection
SC 7.3: Inspection

The Employer's Personnel shall at all • Employer’s Personnel means the

reasonable times: Engineer, his assistants and employees
a) have full access to all parts of the Site of the Employer
and to all places from which natural
Materials are being obtained • Inspections do not relieve the
b) during production, manufacture and Contractor of his obligations or
construction be entitled to examine, responsibility under the Contract
inspect, measure and test the
materials and workmanship …

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Inspection
Sub-Clause 7.3

The Contractor shall give notice to the • Request for Inspection (RFI) or
Engineer whenever any work is ready Request for Approval (RFA)
and before it is covered up, put out of
sight, or packaged for storage or
transport.

The Engineer shall then either carry out

the examination, inspection,
measurement or testing without
unreasonable delay, or …

95

Inspection
Sub-Clause 7.3
Work Item
The Contractor shall give notice to the
Engineer whenever any work is ready
and before it is covered up, put out of Materials
sight, or packaged for storage or
transport.

The Engineer shall then either carry out

the examination, inspection, Comments by Site
Inspectors/ Engineers
measurement or testing without
unreasonable delay, or …

96

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Site Supervision
• Supervision at stages of construction • Approval of materials
before covering up • Trial mixes
• Objective is to ensure that work is • Compliance certificates
being carried out in accordance with • Staged inspections
drawings and specifications
• Inspections during site visits
• Inform Contractor if something is
wrong even when he has not
requested inspections
• Tests
• Always use calibrated equipment
• Do not accept substandard work

97

Site Supervision
• Supervision at stages of construction • Site staff need to be experienced
before covering up • Discuss site issues with Contractor
• Objective is to ensure that work is • H&S to be at the forefront
being carried out in accordance with
drawings and specifications • Safety walkround
• Ensure that site staff are using the
latest Drawings
• Site staff to keep a daily site diary
• Contractor to submit a daily
programme, over and above the
Programme of Works

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Site Supervision
• Supervision at stages of construction • Remember, your site staff are not the
before covering up Contractor’s foremen
• Objective is to ensure that work is • Follow up on tests results, such as
being carried out in accordance with concrete cube test results
drawings and specifications • Etc.

99

Meetings
• Monthly progress meetings
• Technical meetings
• H&S meetings
• Claim consultation meetings
• Ad hoc meetings

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Interim Payment Certificates

Applications for payment shall be submitted monthly.

101

Interim Payment Certificates

SC 14.3 SC 14.6 SC 14.7
Contractor submits Engineer issues Interim Employer makes the
Statement to the Engineer Payment Certificate payment to the Contractor

≤ 56 d
≤ 70 d
≤ 28 d ≤ 28 d
• SC 14.3: Monthly Statement must be submitted
MONTHLY INTERIM ≤ 42 d
together with supporting documents
PAYMENTS Engineer verifies the
statement. Contractor • Check that rates match bid rates
submits information
• Check the preamble to BOQ
• Materials on Site
• Cost Adjustment
• The Contract may require that work has passed
tests before certification
• Do not certify more work than done

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Final Statement
• Value of all work done
• Further sums the Contractor considers due
• Quantities must be fully substantiated
• Based on as-built Drawings
≤ 56 d • If no agreement on the draft final statement
then issue an IPC
≤ 28 d ≤ 28 d • Disagreement to be resolved through dispute
MONTHLY INTERIM resolution procedure
PAYMENTS Engineer verifies the
statement. Contractor
FINAL PAYMENT submits information

≤ 28 d ≤ 56 d

SC 14.11 SC 14.11 SC 14.11 SC 14.13 SC 14.7

Within 56 days after receiving Contractor submits draft final Contractor submits Final Engineer issues Final Payment Employer makes
the Performance Certificate statement to the Engineer Statement and the SC 14.12 Certificate payment
discharge

103

PPO Directive 48
SC 14.3 SC 14.6 SC 14.7
Contractor submits Engineer issues Interim Employer makes the
Statement to the Engineer Payment Certificate payment to the Contractor

≤ 56 d

≤ 28 d ≤ 28 d
MONTHLY INTERIM
PAYMENTS Engineer verifies the
statement. Contractor
FINAL PAYMENT submits information

≤ 28 d ≤ 56 d

SC 14.11 SC 14.11 SC 14.11 SC 14.13 SC 14.7

Within 56 days after receiving Contractor submits draft final Contractor submits Final Engineer issues Final Payment Employer makes
the Performance Certificate statement to the Engineer Statement and the SC 14.12 Certificate payment
discharge

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PPO Directive 48
For Works contracts above Rs
300 M Contractors must be
SC 14.3 SC 14.6 SC 14.7 paid not later than 42 days.
Contractor submits Engineer issues Interim Employer makes the
Statement to the Engineer Payment Certificate payment to the Contractor

≤ 56 d ≤ 42 d Late payment carries financing

charges
≤ 28 d ≤ 21 d ≤ 28 d ≤ 21 d
MONTHLY INTERIM
PAYMENTS Engineer verifies the
statement. Contractor
FINAL PAYMENT submits information

≤ 28 d ≤ 21 d ≤ 56 d ≤ 21 d

SC 14.11 SC 14.11 SC 14.11 SC 14.13 SC 14.7

Within 56 days after receiving Contractor submits draft final Contractor submits Final Engineer issues Final Payment Employer makes
the Performance Certificate statement to the Engineer Statement and the SC 14.12 Certificate payment
discharge

105

Claims

Stay calm, don’t panic

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Claims arise …

… when Contractors consider that they are entitled to additional

payments or to extension of time with/without Costs
or
when Employers consider that they are entitled to any payment
and/or to any extension of the DNP.

107

Under …

… FIDIC forms of contract claims allow for a balanced risk allocation

between the Parties.

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Claim’s Procedure

Event Notice Claim Consultations Assessment

EOT,
Revised
Additional Determination
Programme
Costs

109

Claim’s Procedure

Event Notice Claim Consultations Assessment

Employer’s
Approval

EOT,
Revised
Additional Determination
Programme
Costs

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Claim’s Procedure

Event Notice Claim Consultations Assessment

Employer’s
Approval

Amicable
Arbitration Dispute Determination
Settlement

111

Claim’s Procedure

Event Notice Claim Consultations Assessment

Employer’s
Approval

Amicable
Arbitration Dispute Determination
Settlement

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Claim’s Procedure
Claim in ≤ 42 d or such other
≤ 28 d period approved by Engineer Response on the principles of the claim in ≤ 42 d

Event Notice Claim Consultations Assessment

Employer’s
SC 3.2: Delegation by the Engineer Approval
However, unless otherwise agreed by
both Parties, the Engineer shall not
delegate the authority to determine any
matter in accordance with Sub-Clause EOT,
Revised
3.5 [Determinations]. Additional Determination
Programme
Costs

Engineer’s Approval/disapproval in ≤ 42 d or
such other period approved by Contractor

113

Sub-Clause 20.1: Contractor’s Claims

Let’s go through a few requirements of Sub-Clause 20.1

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Sub-Clause 20.1
• If the Contractor considers himself to
be entitled to any extension of the
Time for Completion and/or any
additional payment, under any Clause
of these Conditions or otherwise in Under the law for example
connection with the Contract, the
Contractor shall give notice to the
Engineer, describing the event or
circumstance giving rise to the claim.

115

Sub-Clause 20.1
• The notice shall be given as soon as
practicable, and not later than 28 days
after the Contractor became aware,
or should have become aware, of the Should the Contractor give notice for
event or circumstance. exceptionally adverse climatic
conditions ?

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Sub-Clause 20.1
• If the Contractor fails to give notice of
a claim within such period of 28 days,
the Time for Completion shall not be
extended, the Contractor shall not be
entitled to additional payment, and A condition-precedent
the Employer shall be discharged
from all liability in connection with
the claim.

117

Sub-Clause 20.1
• Within 42 days after the Contractor
became aware (or should have
become aware) of the event or
circumstance giving rise to the claim,
or within such other period as may If the Contractor requires more time
be proposed by the Contractor and
approved by the Engineer, the
Contractor shall send to the Engineer
a fully detailed claim which includes
full supporting particulars of the basis
of the claim and of the extension of Separate claim for time and Cost not
time and/or additional payment acceptable
claimed.

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Sub-Clause 20.1
• Within 42 days after receiving a claim
or any further particulars supporting a
previous claim, or within such other
period as may be proposed by the
Engineer and approved by the If the Engineer requires more time
Contractor, the Engineer shall
respond with approval, or with
disapproval and detailed comments. Approval/disapproval must be reasoned

119

Sub-Clause 20.1
• He may also request any necessary
further particulars, but shall
nevertheless give his response on the
principles of the claim within such Approval/disapproval and response to
time. be within 42 days

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Sub-Clause 20.1
• Each Payment Certificate shall include
such amounts for any claim as have
been reasonably substantiated as
due under the relevant provision of
the Contract. Unless and until the
particulars supplied are sufficient to
Rarely done while the claim is being
substantiate the whole of the claim,
the Contractor shall only be entitled processed
to payment for such part of the claim
as he has been able to substantiate.

121

Sub-Clause 20.1
• The Engineer shall proceed in
accordance with Sub-Clause 3.5 Determinations cannot be delegated to
[Determinations] to agree or the RE unless agreed by the Employer
determine: and Contractor
(i) the extension (if any) of the Time for
Completion (before or after its expiry) in
accordance with Sub-Clause 8.4 [Extension
of Time for Completion], and/or

(ii) the additional payment (if any) to which

the Contractor is entitled under the
Contract.

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Sub-Clause 20.1
Other Sub-Clauses for Contractor’s Claims
• The requirements of this Sub-Clause Sub-Clause Title
are in addition to those of any other 1.9 Delayed Drawings or Instructions
Sub-Clause which may apply to a 2.1 Right of Access to the Site
claim. 4.7 Setting Out
4.12 Unforeseeable Physical Conditions
7.4 Testing
Five sub-paragraphs 8.4 Extension of Time for Completion
8.9 Consequences of Suspension
10.3 Interference with Tests on Completion
12.4 Omissions
13.7 Adjustments for Changes in Legislation
16.1 Contractor’s Entitlement to Suspend Work

123

Sub-Clause 20.1
Other Sub-Clauses for Contractor’s Claims
• The requirements of this Sub-Clause Sub-Clause Title
are in addition to those of any other 1.9 Delayed Drawings or Instructions
Sub-Clause which may apply to a 2.1 Right of Access to the Site
claim. 4.7 Setting Out
4.12 Unforeseeable Physical Conditions
7.4 Testing

Five sub-paragraphs 8.4 Extension of Time for Completion

8.9 Consequences of Suspension
10.3 Interference with Tests on Completion
12.4 Omissions
13.7 Adjustments for Changes in Legislation
16.1 Contractor’s Entitlement to Suspend Work
20.1 Otherwise, such as under the law

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Sub-Clause 20.1
• If the Contractor fails to comply with • No notice or late notice
this or another Sub-Clause in relation • Notice given within 28 days, but no
to any claim, any extension of time claim
and/or additional payment shall take
account of the extent (if any) to • Notice given within 28 days, claim
which the failure has prevented or submitted but not fully substantiated
prejudiced proper investigation of
the claim, unless the claim is excluded
under the second paragraph of this
Sub-Clause.

125

How about Employer’s claim?

SC 2.5: Employer’s Claims

• If the Employer considers himself to

be entitled to any payment under any • For payment, and/or
Clause of these Conditions or
otherwise in connection with the
Contract, and/or to any extension of • extension of the DNP
the Defects Notification Period, the
Employer or the Engineer shall give
notice and particulars to the • Engineer acting on behalf of the
Contractor. Employer

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Determination by the Engineer

• The Engineer shall then proceed in • If the Engineer gives notice and
accordance with Sub-Clause 3.5 particulars he may have to determine
[Determinations] to agree or his own claim !
determine
(i) the amount (if any) which the Employer
is entitled to be paid by the Contractor,
and/or
(ii) the extension (if any) of the Defects
Notification Period in accordance with Sub-
Clause 11.3 [Extension of Defects
Notification Period].

127

Employer’s claim Sub-Clause Title

4.2 Performance Security
4.19 Electricity, Water and Gas
• Sub-Clauses
4.20 Employer’s Equipment and Free-Issue Materials
7.5 Rejection
7.6 Remedial Works
8.6 Rate of Progress
8.7 Delay Damages
9.4 Failure to Pass Tests on Completion
11.3 Extension of Defects Notification Period
11.4 Failure to Remedy Defects
15.4 Payment after Termination
16.2 Termination by Contractor
18.1 General Requirements for Insurances
18.2 Insurance for Works and Contractor’s Equipment

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Assessment of the claim

SC 3.5: Determinations The Resident Engineer:

• Whenever these Conditions provide

that the Engineer shall proceed in • Consult with each Party
accordance with this Sub-Clause 3.5
to agree or determine any matter, the • Prepares the assessment for the
Engineer shall consult with each Engineer’s review and submssion
Party in an endeavour to reach
agreement.

129

How to assess a Contractor’s claim?

Claim in ≤ 42 d or such other
≤ 28 d period approved by Engineer Response on the principles of the claim in ≤ 42 d

Event Notice Claim Consultations Assessment

1. Acknowledge receipt of the Notice Employer’s

Approval
2. If necessary, monitor Contractor’s
record-keeping and/or instruct
Contractor to keep further records
EOT,
3. Review claim when submitted Revised
Additional Determination
Programme
4. Proceed in accordance with SC 20.1 Costs
and 3.5
Engineer’s Approval/disapproval in ≤ 42 d or
such other period approved by Contractor

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How to assess a Contractor’s claim?

Claim in ≤ 42 d or such other
≤ 28 d period approved by Engineer Response on the principles of the claim in ≤ 42 d

Event Notice Claim Consultations Assessment

5. Seek further particulars Employer’s

Approval
6. Assess claim
7. Respond on the principles of the
claim
EOT,
Revised
Additional Determination
Programme
Costs

Engineer’s Approval/disapproval in ≤ 42 d or
such other period approved by Contractor

131

How to assess a Contractor’s claim?

Claim in ≤ 42 d or such other
≤ 28 d period approved by Engineer Response on the principles of the claim in ≤ 42 d

Event Notice Claim Consultations Assessment

8. If necessary, seek the Employer’s Employer’s

approval Approval
9. If approved, issue determination,
award EOT, additional Costs
10. If not approved, inform the EOT,
Contractor Revised
Additional Determination
Programme
11. If not necessary to obtain the Costs
Employer’s approval, determine and
award Engineer’s Approval/disapproval in ≤ 42 d or
such other period approved by Contractor

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Suggested TOC for a claim’s assessment

Executive Summary
1. Introduction
2. Contract Details
3. Chronology of events
4. Contractual basis of claim
5. Assessment of claim
6. Determination
7. Recommendation
Annexures

133

Engineer’s Authority

The Engineer’s authority to determine is not at all conclusive as it is

subject to review by the DAB and by arbitration.

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Benefits of an EOT …
The benefit of an EOT to the Contractor is to relieve him of liability for
delay damages. It allows for reprogramming of the Works to
completion.

The benefit of an EOT for the Employer is that it establishes a new

contract completion date. It prevents time for completion becoming
‘at large’.

135

Time, Costs, Time and Costs?

Neither Party is liable to
compensate the other
1. Entirely on the Employer for any loss suffered
• Contractor receives extension of • Additional works
time and Costs
• Contractor receives Costs • Legislation for CSG
2. Loss lies where it falls
• Contractor receives extension of • Exceptionally adverse climatic
time but no Costs conditions
3. Entirely on the Contractor
• No extension of time or Costs. • Delays attributable to the
Delay damages deducted Contractor

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When the Works are complete …

Issue the Taking-Over Certificate

137

Taking Over
• SC 10.1: Taking Over of the Works … the Works shall be taken over by the
and Sections Employer when:
“Works” means the Permanent i. the Works have been completed in
Works accordance with the Contract, and
“Section” means a part of the Works ii. a Taking-Over Certificate for the Works has
specified in the Appendix to Tender been issued, or is deemed to have been
issued in accordance with SC 10.1

• SC 10.2: Taking Over of Parts of the

Works
part not defined

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Taking Over
• SC 10.1: Taking Over of the Works
and Sections The Contractor may apply by notice to
“Works” means the Permanent the Engineer for a Taking-Over
Works Certificate not earlier than 14 days
“Section” means a part of the Works before the Works will, in the
specified in the Appendix to Tender Contractor's opinion, be complete and
ready for taking over.

• SC 10.2: Taking Over of Parts of the

Works
part not defined

139

Taking Over
• SC 10.1: Taking Over of the Works
and Sections … issue the Taking-Over Certificate to
“Works” means the Permanent the Contractor, stating the date on
Works which the Works or Section were
“Section” means a part of the Works completed in accordance with the
specified in the Appendix to Tender Contract, except for any minor
outstanding work and defects which will
not substantially affect the use of the
Works or Section for their intended
• SC 10.2: Taking Over of Parts of the purpose …
Works
part not defined

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Taking Over
• SC 10.1: Taking Over of the Works
and Sections
“Works” means the Permanent
Works
“Section” means a part of the Works
specified in the Appendix to Tender
If the Employer use any part of the
Works before the Taking-Over
Certificate is issued the part which is
• SC 10.2: Taking Over of Parts of the used shall be deemed to have been
Works taken over as from the date on which it
part not defined is used …

141

Sample Taking-Over Certificate for the Works

EMPLOYER
• Issued to Contractor, copied to
Employer
CONTRACT ……………………………
• Attach list of outstanding works
TAKING – OVER CERTIFICATE FOR THE
WORKS • Outstanding works should not prevent
the use of the Works for their
We hereby certify that the Works have been intended purpose
completed in accordance with the Contract on date,
except for minor outstanding works and defects
(See annexed list) which do not affect the use of
the Works for their intended purpose.

Signed: ………………………………………
Engineer/Resident Engineer
• Check delegation
Date: ………………………………………

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DEFECTS NOTIFICATION

143

Defects Notification Period

SC 11.9 Issue of the
Usually 1 year Performance
Certificate

DNP

SC 11.3
DNP can be extended by up to 2 years if
the Works/Section cannot be used for
the purposes for which they are intended
by reason of a defect or damage.

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Defects Notification Period

EMPLOYER

SC 11.1: Completion of Outstanding

CONTRACT ……………………………
Work and Remedying Defects
In order that the Works … , shall be in TAKING – OVER CERTIFICATE FOR THE
WORKS
the condition required by the Contract
… by the expiry date of the relevant We hereby certify that the Works have been
DNP or as soon as practicable completed in accordance with the Contract on date,
except for minor outstanding works and defects
thereafter, the Contractor shall: (See annexed list) which do not affect the use of the
Works for their intended purpose.
a) complete any work which is
outstanding on the date stated in a Signed: ………………………………………
Taking-Over Certificate, within such Engineer/Resident Engineer
reasonable time as is instructed by Date: ………………………………………
the Engineer

145

Defects Notification Period

SC 11.1: Completion of Outstanding
Work and Remedying Defects
In order that the Works … , shall be in
the condition required by the Contract
… by the expiry date of the relevant
DNP or as soon as practicable
thereafter, the Contractor shall:
a) complete any work which is
outstanding on the date stated in a • The Contractor does not have the full
Taking-Over Certificate, within such DNP to complete outstanding work
reasonable time as is instructed by • Instruct accordingly
the Engineer

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During the DNP

In order that the Works … , shall be in

the condition required by the Contract
… by the expiry date of the relevant
DNP or as soon as practicable
thereafter, the Contractor shall:
b) execute all work required to remedy
defects or damage, as may be
notified by (or on behalf of) the • Supervision does not end with the
Employer on or before the expiry issue of the Taking-Over Certificate
date of the DNP for the Works or • Look out for defects or damage during
Section the DNP and notify the Contractor

147

Performance Certificate
EMPLOYER

SC 11.9: Performance Certificate CONTRACT ……………………………

Performance of the Contractor's PERFORMANCE CERTIFICATE

obligations shall not be considered to
have been completed until the Engineer In accordance with Sub-Clause 11.9 of the
has issued the Performance Certificate Conditions of Contract, we hereby certify that
Contractor’s Name has completed his obligations
to the Contractor, stating the date on under the Contract, including remedying all defects,
which the Contractor completed his to our satisfaction on date. The Defects Notification
Period expired on date.
obligations under the Contract.
Signature: ……………………………………
Only the Performance Certificate shall Engineer
be deemed to constitute acceptance of Date: ………………………………………
the Works.

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BEYOND

149

Beyond • Unresolved claims

• Disputes
• Amicable settlement
• Final Statement
• Arbitration
• Etc. Year(s)
If you started here

1 Year 2 Years 1 Mo. 1 Year 1 Year

You could be the RE for more than 5 Years

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If it’s not over yet …

SC 11.10: Unfulfilled Obligations

After the Performance Certificate has • Unresolved claims

been issued, each Party shall remain
liable for the fulfilment of any • Disputes
obligation which remains unperformed • Amicable settlement
at that time. For the purposes of
determining the nature and extent of • Final Statement
unperformed obligations, the Contract • Arbitration
shall be deemed to remain in force.
• Etc.

151

Before concluding

There are many more items to review such as …

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… the following:
• Correspondence
• Write with the reader in mind
• Tests
• Results useless without calibration
of testing equipment
• Reports
• Be factual
• Records
• Never too many
• Must be organised

153

You can explore more in the following:

Guidance on claims 100 in previous ed. Basic guide SCL Delay and
Now 200. Answers Disruption Protocol.
all (nearly) your Very useful guide
questions

154

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To conclude …

The Resident Engineer draws his role and responsibilities from the
Engineer. He not only needs sound engineering skills to manage the
project but he also needs excellent soft skills to manage his team and
the relationship with the Contractor’s team.

His objective is to take a project from commencement to successful

completion.

155

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Thank you

157

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