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Under the FIDIC 2017 Red, Yellow and Silver Books, a late Notice can end an entitlement. Both the Contractor and the Employer have claim obligations, and the clock starts when you become aware of the event.
Under clause 8.4, FIDIC 2017 requires advance warning of known or probable future events that could affect the works, increase the Contract Price or delay execution.
Under FIDIC 2017 clause 20.2.1, a Notice of Claim is due within 28 days of becoming aware, or when you should have become aware, of the event. Miss it and the claim can be time-barred.
Clause 20.2.4 requires a fully detailed claim within 84 days, supported by contemporaneous records. Without the records, the claim is hard to prove.
FIDIC forms are used worldwide and are often required on projects funded by development banks. The Red Book covers employer-designed works, the Yellow Book design and build, and the Silver Book turnkey EPC projects.
FIDIC is the International Federation of Consulting Engineers, which publishes standard construction contracts used around the world. The best known are the Red, Yellow and Silver Books, most recently updated in 2017.
The Red Book is for works designed by the Employer and administered by the Engineer. The Yellow Book is for works the Contractor designs, often plant and design and build. The Silver Book is for turnkey EPC projects, where the Contractor carries more risk and there is no Engineer.
Under FIDIC 2017 clause 20.2.1, a party must give a Notice of Claim within 28 days of becoming aware, or when it should have become aware, of the event. If it does not, it can lose its entitlement and the other party is released from liability for that claim.
The Engineer is appointed by the Employer to administer the contract. The Engineer issues instructions, certifies payment and agrees or determines claims, and under FIDIC 2017 must act neutrally when doing so.
Within 84 days of becoming aware, or when you should have become aware, of the event, or another period agreed with the Engineer. It should set out the contractual or legal basis of the claim and be supported by contemporaneous records.
Under FIDIC 2017, the Engineer has 42 days after receiving a fully detailed claim to reach agreement or make a determination, unless another period is agreed.
Contract terms vary by edition and are frequently amended. Always check the contract and any project-specific amendments that apply. This guide is general information, not legal advice.
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