Course Details

Contractual Remedies and Termination in FIDIC Contracts Training Course

INTRODUCTION

This essential training course provides comprehensive knowledge and practical skills for mastering Contractual Remedies and Termination in FIDIC Contracts. Recognizing that despite best efforts, projects can encounter fundamental breaches or insurmountable obstacles, leading to the need for contractual redress or even project cessation, this program equips participants with a systematic understanding of the rights and obligations of both parties in such critical circumstances. Participants will gain deep insights into identifying breaches, invoking contractual remedies, understanding the various grounds for termination, following the correct procedures, and assessing the financial and legal consequences of contract dissolution, all crucial for protecting interests and minimizing losses in adverse project scenarios.

This course is designed for experienced project owners, contractors, legal professionals, and contract managers who need to understand the serious implications and intricate procedures surrounding contractual remedies and termination under FIDIC. Contractual Remedies and Termination in FIDIC Contracts Training Course empowers participants to navigate these complex and often high-stakes situations with confidence, ensuring strict compliance with contractual provisions and mitigating potential legal and financial exposure.

DURATION

10 days

TARGET AUDIENCE

This course is specifically designed for senior professionals who may be involved in identifying breaches, invoking remedies, or contemplating/managing contract termination under FIDIC, including:

• Senior Contract Managers and Commercial Managers.
• Legal Counsel and Claims Specialists.
• Project Directors and Senior Management.
• Financial Officers overseeing large projects.
• Arbitrators and Dispute Resolution Practitioners.

OBJECTIVES

Upon completion of this course, participants will be able to:

• Understand the range of contractual remedies available under FIDIC for breaches.
• Identify the grounds and procedures for termination by both the Employer and Contractor.
• Analyze the financial and legal consequences of different types of termination.
• Master the strict notification and compliance requirements for invoking remedies and termination.
• Develop strategies for mitigating risks and managing the aftermath of serious breaches or termination.

MODULES

Module 1: Foundations of Contractual Remedies in FIDIC

• Define "Contractual Remedies" and their purpose in construction contracts.
• Understand the concept of "Breach of Contract" under FIDIC.
• Explore the distinction between direct remedies (e.g., specific performance, rectification) and monetary remedies (e.g., damages).
• Discuss the principles of mitigation of loss by the aggrieved party.
• Examine the role of contractual clauses in defining available remedies.

Module 2: Remedies for Employer's Breaches

• Understand the Contractor's rights and remedies when the Employer breaches the contract.
• Discuss remedies for Employer's failure to make timely payments (e.g., interest, suspension of work, termination).
• Explore remedies for Employer's interference or failure to provide access/information.
• Examine the Contractor's claims for damages and additional costs arising from Employer's breaches.
• Learn about the process for Contractor's notices for Employer's defaults.

Module 3: Remedies for Contractor's Breaches

• Understand the Employer's rights and remedies when the Contractor breaches the contract.
• Discuss remedies for Contractor's failure to proceed diligently, meet quality standards, or complete on time.
• Explore the Employer's right to claim Liquidated Damages for delay (Clause 8.7).
• Examine the Employer's power to rectify defects at Contractor's cost (Clause 11.4).
• Learn about the Employer's process for notifying Contractor's defaults and demanding rectification.

Module 4: Suspension of Work by Contractor (Clause 16.1)

• Understand the Contractor's right to suspend work due to Employer's default (e.g., non-payment).
• Discuss the conditions and notification requirements for suspension.
• Explore the Employer's and Engineer's options during a suspension.
• Examine the Contractor's entitlement to costs and Extension of Time arising from suspension.
• Learn about the implications of prolonged suspension for both parties.

Module 5: Termination by Employer (Clause 15)

• Understand the grounds for Employer's termination (e.g., Contractor's default, insolvency, abandonment).
• Discuss the strict notification procedures and cure periods required before termination.
• Explore the immediate implications of Employer's termination on site and works.
• Examine the process for valuation of works after termination and payment to Contractor.
• Learn about the Employer's right to claim additional costs and damages from Contractor after termination.

Module 6: Termination by Contractor (Clause 16)

• Understand the grounds for Contractor's termination (e.g., Employer's prolonged default, prolonged suspension).
• Discuss the strict notification procedures required from the Contractor.
• Explore the implications of Contractor's termination on site and works.
• Examine the Contractor's entitlement to payment for work done, demobilization costs, and loss of profit.
• Learn about the Employer's residual obligations after Contractor's termination.

Module 7: Termination Due to Force Majeure/Exceptional Events (Clause 19)

• Understand the concept of Force Majeure (1999) / Exceptional Events (2017) and their impact on contracts.
• Discuss the conditions and notification requirements for invoking these clauses.
• Explore the consequences of prolonged Force Majeure / Exceptional Event leading to termination.
• Examine the financial implications of such termination (e.g., costs incurred, no loss of profit).
• Learn about the distinction between termination for default and termination for neutral events.

Module 8: Financial and Legal Consequences of Termination and Risk Mitigation

• Understand the financial reconciliation process following termination (e.g., valuation, set-off, final accounts).
• Discuss the legal implications of termination, including potential for disputes and arbitration.
• Explore strategies for mitigating losses for both parties before and after termination.
• Examine the importance of clear termination notices and accurate record-keeping.
• Learn about the role of performance bonds and guarantees in securing remedies post-termination.
• CERTIFICATION
• Upon successful completion of this training, participants will be issued with a Macskills Training and Development Institute Certificate
• TRAINING VENUE
• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
• AIRPORT PICK UP AND ACCOMMODATION
• Airport pick up and accommodation is arranged upon request
• TERMS OF PAYMENT
• Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com