10 Topics on FIDIC 1999 Contract Series – CNC | Công ty Luật TNHH CNC Việt Nam

General Introduction

A 10 Topic Webinar of FIDIC 1999 Contract Series is CNC Vietnam Law Firm Limited Liability Company’s effort to promote the Laws and Contracts in the field of construction to the community of FIDIC Contract users in Vietnam.

These are activities to boost awareness of FIDIC Contract users in Vietnam regarding the FIDIC 1999 Contract series, in particular, as well as other FIDIC Contract Series in general, in which the focus is primarily on:

FIDIC 2017 Contract Series, Second Edition of the FIDIC 1999 Contract Series.

Official Launch of the 2017 FIDIC Suite of Contracts

2017 FIDIC White Book, Fifth Edition of the 2006 FIDIC White Book

FIDIC Contract for Subcontractors 2011, First Edition, in conjunction with the 1999 FIDIC Red Book and the 2010 FIDIC Pink Book.

FIDIC-published Conditions of Subcontracts

FIDIC Contracts for Subcontractors 2019, First Edition, used in conjunction with the 1999 FIDIC Yellow Book

2019 FIDIC Emerald Book for Underground Works designed by the Contractor.

(Topic 1) : Structure of the FIDIC 1999 Contract Series

The FIDIC 1999 Contract Series is revolutionary in comparison to previous Conditions of Contracts published by FIDIC. The uniformity and logic behind the structure are some of the factors that contributed to its widespread and long-standing uses in many countries, and by organizations and individuals around the world.

CNC introduce FIDIC users in Vietnam to the following content:

The arrangement of the clauses in the FIDIC 1999 Contract Series.
Comparison with the 1987 FIDIC Red Book.
Comparison with the 2017 FIDIC Red Book.
Logical arrangement rules and structure of the FIDIC Contract 1999
Order and categorization of Definitions
Question, Exchange and Conclusion

More information pertaining to Topic 1: Structure of the FIDIC 1999 Contract Series, may be found below:

Topic 1: Structure of the FIDIC 1999 Contract Series

(Topic 2): Selection of appropriate FIDIC 1999 Contract Template.

Despite FIDIC having been introduced and used around the world in excess of 20 years, the selection of appropriate FIDIC Contract Template for each Project, Package remains to be a challenge amongst many FIDIC users in Vietnam.

Therefore, central to the Selection of appropriate FIDIC 1999 Contract Template, is information that enables FIDIC users to consider and evaluate the practicality and applicability of the template being introduced, including:

Introduction to the general features of FIDIC 1999 Contract Series
Exclusive characteristics of FIDIC Red Book 1999 Contract
Exclusive characteristics of FIDIC Yellow Book 1999 Contract
Exclusive characteristics of FIDIC Green Book 1999 Contract/FIDIC Short Form
Principles of risk allocation in FIDIC 1999 Contract Series
Criteria for an appropriate FIDIC 1999 Contract Template
Questions, Exchanges and Conclusion

Topic 2: Selection of appropriate FIDIC Contract

(Topic 3): FIDIC 1999 Contracts – Variations and Adjustments

Having been demonstrated through practice that Variations and Adjustments are inevitable in the implementation of construction contracts, FIDIC Contracts are of no exception.

An Employers’ delay in evaluation and approval of variations is a rather common occurrence in Vietnam. Similarly, variations are also only discussed, negotiated, and agreed upon at the conclusion of a Project. This results in potential risks for the Contractor, and threatens the relationship between the parties, while also causing the Contractor to opt for precautionary measures such as increasing the value of Variation and Costs.

To provide FIDIC users in Vietnam with the pertinent information for the suggestion and approval of Variations and Adjustments per FIDIC 1999 Contracts, the following content CNC primarily focuses on:

Definition of Variations and Adjustments according to FIDIC 1999 Contract
Types of Variations and Adjustments according to FIDIC 1999 Contract
Procedures for Variations and Adjustments according to FIDIC 1999 Contract
Evaluations of Variations and Adjustments according to FIDIC 1999 Contract
Decisions of the Consultant and/or Engineer Variations and Adjustments
Questions, Exchanges, and Conclusion

Topic 3: Variations and Adjustments in FIDIC 1999 Contracts

(Topic 4): Extension of Time in FIDIC 1999 Contracts

Time is an important aspect of Construction contracts, and Time spent cannot be taken back, hence the parties are responsible their own delays. However, Parties often neglect such matters, which results in many disagreements and disputes.

For the most part, Contractors in Vietnam struggle with preparation, submission, and clarification of Claims for Extensions of Time for Completion due to their rudimentary approaches and lack of efficient methods.

In the majority of Extensions of Time, the Contractor bears losses due to their inability to provide necessary documents and materials. Therefore, CNC hopes that this topic on Extensions of Time for Completion will provide a better understanding of:

Definition of Time for Completion
Cases in which Contractors are granted Extensions of Time
Purpose of Notification in Extension of Time
Minimum requirements for Claiming Extensions of Time for Completion
Questions, Exchanges, and Conclusion

Topic 4: Extension of Time in FIDIC 1999 Contracts.

(Topic 5): Differences between FIDIC 1999 Contracts and Vietnam Law

The advantages possessed by FIDIC 1999 Contracts over the existing templates for Construction Contract in Vietnam are evident. However, any contract applied in Vietnam MUST adhere to the laws of the host country. In many instances, Parties apply provisions of FIDIC 1999 Contracts mechanically without any adjustments, which results in difficulties in implementation and potential disputes.

As such, the comparison between FIDIC 1999 Contracts and Vietnam Law clarify:

The highlights of the Laws of Vietnam pertaining to construction contracts
Stipulations regarding Performance Bond
Nominated Subcontractors
The Role of the Engineer/ Project Manager
Interim Payment
Taking-Over Certificate

Topic 5: Differences between FIDIC 1999 Contracts and the Law of Vietnam

(Topic 6): FIDIC 1999 Contracts – Subcontractors

Stipulations pertaining to Subcontractors and Nominated Subcontractors are always of great concern for the Parties. This is due to significant legal consequences resulting from the assignment, dismissal, or replacement of Subcontractors and Nominated Subcontractors depending on the position.

This segment on Subcontractors provides FIDIC users in Vietnam with information on:

The role and meaning of the Subcontractor
The false perception of the Subcontractor
Stipulations on the Subcontractor
Correct Understanding of Subcontractor and Assignment of Subcontracts
Nominated Subcontractor
Payment and Safeguard mechanisms for Subcontractor

Topic 6: Subcontractors in FIDIC 1999 Contracts

(Topic 7): FIDIC 1999 Contracts – Taking Over

One of the main differences between FIDIC 1999 Contracts and the Laws of Vietnam is the Taking Over of Works, which stems from the Three-way Contract Management (Employer, Engineer, and Contractor) approach adopted by FIDIC.

Hence, the following Taking Over of Works issues are clarified concerned within the context of FIDIC 1999 Contracts:

Conditions and bases for Taking Over of Works
Procedures for Taking Over of Works
Legal consequences of Taking Over of Works
Attention-worthy issues regarding the Issue of Taking Over Certificate

Topic 7: Taking Over in FIDIC 1999 Contracts

(Topic 8): FIDIC 1999 Contracts – Role of the Engineer

The Consultant and/or Engineer plays an important role in the Three-way contract management approach adopted by FIDIC. Accordingly, the Consultant and/or Engineer will assist parties on:

Actions on behalf of the Employer
Management of the Contract concluded by the Employer and Contractor
Issuance of Decisions, Instructions throughout the implementation of the Contract
Issuance of Certificate(s) throughout the implementation of the Contract

Topic 8: The Role of the Engineer in FIDIC 1999 Contracts

(Topic 9): FIDIC 1999 Contracts – Payment

Payment is detailed in FIDIC 1999 Contracts, with up to 15 Sub-Clauses dedicated to this issue. As such, it is quite challenging for FIDIC users in Vietnam to entirely comprehend the payment procedure.

Moreover, with the main purpose of financing the Contractor throughout the construction process, Interim payment could not be viewed as confirmation of work done. As such, disagreements regarding payment conditions, applications for payment, and schedule of payments are rather common

Therefore, the Topic on “Payment in FIDIC 1999 Contracts” provides information pertaining to:

Dual types of payments in FIDIC 1999 Contracts (Interim Payments and Final Payment)
Advance Payment Procedures
Interim and Final Payment Procedures
Application for Payment per FIDIC Contracts
Common mistakes in the application of provisions on Payment within the context of the Laws of Vietnam

Topic 9: Payment in FIDIC 1999 Contracts

(Topic 10): FIDIC 1999 Contracts – Claims and Dispute Adjudication

Multi-tiered dispute adjudication mechanism (Engineer, Employer, and Contractor, Dispute Adjudication Board, Arbitration) is rather unfamiliar to FIDIC users in Vietnam.

Specifically, dispute adjudication via the Dispute Adjudication Board has yet to be regulated under the Laws of Vietnam. As such, the resolution of most disputes does not adhere to a set procedure.

Subsequently, many aspects of the Topic of “Claims and Dispute Adjudication in FIDIC 1999 Contracts” garnered significant attention, namely:

Employer/Engineer/Contractor’s Claims
Contractor’s Notification Obligation
Attention-worthy issues pertaining to Claims and Disputes regarding EOT
Role and Meaning of the Dispute Adjudication Board in FIDIC 1999 Contract
General Arbitral proceedings at ICC

Topic 10: Claims and Dispute Adjudication in FIDIC 1999 Contracts

Reference materials

The FIDIC 1999 Contracts attached below are provided for reference purposes only.

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CNC Vietnam Law Firm Limited Liability Company

28 Mai Chi Tho, An Phu Ward, Thu Duc City, Ho Chi Minh City, Vietnam

028 6276 9900| 028 6276 9900 | 0916 545 618

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