Course Details

Understanding the FIDIC Red Book (Construction Contract) Training Course

INTRODUCTION

This essential training course provides comprehensive knowledge and practical skills for in-depth understanding and effective application of the FIDIC Red Book (Conditions of Contract for Construction). Widely adopted for building and engineering works designed by the Employer or their Engineer, the Red Book is a cornerstone of international construction projects. This program equips participants with a systematic understanding of its clauses, the allocation of risks, and the procedures for contract administration, payment, and dispute resolution. Participants will gain deep insights into the roles and responsibilities of the Employer, Engineer, and Contractor, ensuring they can navigate the complexities of typical construction projects with confidence and competence.

This course is specifically designed for professionals actively involved in, or preparing to be involved in, traditional construction projects under FIDIC Red Book terms. It empowers participants to interpret contractual obligations, manage project risks proactively, handle variations and claims efficiently, and lay the groundwork for successful project completion and dispute avoidance.

DURATION

10 days

TARGET AUDIENCE

This course is specifically designed for professionals involved in traditional construction projects where the Employer or Engineer designs the works, particularly those operating under the FIDIC Red Book, including:

• Project Managers and Directors.
• Contract Managers and Administrators.
• Quantity Surveyors and Commercial Managers.
• Site Engineers and Construction Managers.
• Employer's Representatives and Consulting Engineers.

OBJECTIVES

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

• Understand the structure and philosophy of the FIDIC Red Book.
• Clearly define the roles, responsibilities, and obligations of all parties.
• Effectively manage contract administration, payments, and progress.
• Identify and administer variations and claims according to Red Book procedures.
• Navigate the dispute resolution mechanisms specific to the Red Book.

Detailed Modules:

Module 1: The FIDIC Red Book: Structure and Philosophy

• Understand the specific application and characteristics of the FIDIC Red Book (1999 and 2017 editions, noting key differences).
• Explore the fundamental principles of risk allocation in the Red Book (Employer-designed).
• Discuss the concept of the "Engineer" as the Employer's representative and quasi-arbiter.
• Examine the overall structure and interrelation of the Red Book Clauses.
• Learn about the importance of general conditions and particular conditions.

Module 2: Roles and Responsibilities of the Parties

• Understand the detailed obligations and duties of the Employer (Clauses 2 & 4).
• Discuss the comprehensive duties and authority of the Engineer (Clause 3).
• Explore the Contractor's General Obligations and responsibilities (Clause 4).
• Examine the roles related to Employer's Personnel, Contractor's Personnel, and Subcontractors.
• Learn about the critical importance of cooperation and communication between parties.

Module 3: Contract Administration and Management

• Understand the procedures for Contract Agreement, Commencement, and Programme (Clauses 1 & 8).
• Discuss the process of taking over the works and the taking-over certificate (Clause 10).
• Explore the management of Defects Liability Period and performance certificates (Clause 11).
• Examine the significance of proper correspondence, notices, and record-keeping.
• Learn about the Engineer's instructions and determinations.

Module 4: Measurement, Valuation, and Payments

• Understand the principles of measurement of work done under the Red Book (Clause 12).
• Discuss the valuation of variations and other adjustments (Clause 13).
• Explore the Contractor's entitlement to payment and the Engineer's payment certification process (Clause 14).
• Examine the provisions for advance payment, retention money, and interim payments.
• Learn about the Final Payment Certificate and discharge from liability.

Module 5: Time, Delays, and Suspension

• Understand the Contractor's entitlement to Extension of Time (EOT) (Clause 8).
• Discuss the specific grounds for EOT (e.g., Employer's delays, unforeseeable conditions).
• Explore the procedures for notification of delays and claims for EOT.
• Examine the Engineer's role in assessing delays and granting EOTs.
• Learn about the Employer's and Engineer's powers to suspend work and their implications (Clause 8).

Module 6: Variations and Adjustments

• Define a "Variation" under the Red Book and the Engineer's power to instruct them (Clause 13).
• Discuss the different methods for valuing variations (e.g., contract rates, new rates, cost-plus).
• Explore the Contractor's right to object to a variation and its implications.
• Examine the procedures for provisional sums and daywork.
• Learn about adjustments for changes in legislation or cost (Clause 13).

Module 7: Claims and Disputes

• Understand the nature of claims by both the Contractor and the Employer (Clauses 20.1 & 2.5).
• Discuss the critical notification requirements and timelines for claims.
• Explore the Engineer's role in the initial assessment and determination of claims.
• Examine the structure and role of the Dispute Adjudication Board (DAB) or DAAB (Clause 21).
• Learn about the process for referral to arbitration under the Red Book.

Module 8: Risk Allocation, Force Majeure, and Termination

• Understand the core risk allocation framework of the Red Book.
• Discuss provisions for Force Majeure and its consequences (Clause 19).
• Explore the Employer's and Contractor's rights to terminate the contract (Clauses 15 & 16).
• Examine the process and implications of termination by either party.
• Learn about the various indemnities and insurance requirements (Clauses 17 & 18).

• 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