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Fidiclettersbycontractorpdf


What are FIDIC Letters by Contractor and How to Use Them?




If you are involved in a civil engineering project, you may have heard of FIDIC letters by contractor. But what are they and how can they help you manage your contract effectively?




fidiclettersbycontractorpdf



FIDIC letters by contractor are standard letters and notices that can be used by the contractor under the FIDIC Conditions of Contract for Works of Civil Engineering Construction, 4th Edition, 1987 (Red Book, 4th Edition). FIDIC stands for Federation Internationale des Ingenieurs-Conseil, which is the International Federation of Consulting Engineers.


FIDIC letters by contractor cover various aspects of the contract, such as:


  • Assignment by the Employer



  • Delegation by the Engineer



  • Subcontracting



  • Clarification of ambiguity or discrepancy in the Documentation



  • Notice of delay or additional cost



  • Submission of design work or program for approval



  • Performance Security



  • Notice of unforeseeable physical conditions or fossils on site



  • Evidence and terms of insurance



  • Request for reimbursement of costs associated with patent rights or exploratory works



  • Examination of work before covering up



  • Disagreement with engineer instruction to remove improper work



  • Notice of suspension of work or omission from contract



  • Application for extension of time



The purpose of these letters and notices is to communicate clearly and formally with the Employer and the Engineer, to protect the contractor's rights and interests under the contract, and to avoid or resolve any disputes that may arise during the execution of the works.


How to Use FIDIC Letters by Contractor?




To use FIDIC letters by contractor effectively, you should follow these steps:


  • Identify the relevant clause or clauses of the contract that apply to your situation.



  • Use the standard letter or notice template provided by FIDIC or create your own based on the template.



  • Fill in the details of your letter or notice, such as date, reference number, subject, contract clause, description of the issue, request or claim, supporting documents, etc.



  • Send your letter or notice to the Employer and/or the Engineer as required by the contract, within the specified time limit.



  • Keep a copy of your letter or notice and any response you receive for your records.



  • Follow up on your letter or notice if you do not receive a response or if you are not satisfied with the response.



FIDIC letters by contractor are a useful tool for managing your civil engineering contract. They can help you communicate effectively with the Employer and the Engineer, protect your rights and interests, and avoid or resolve disputes. However, you should always read and understand your contract carefully before using any letter or notice, and seek professional advice if necessary.


Examples of FIDIC Letters by Contractor




To give you a better idea of how FIDIC letters by contractor look like, here are some examples of the most common ones:


Notice of Delay and Additional Cost




This letter is used to notify the Employer and the Engineer of any delay or additional cost that may arise due to various reasons, such as changes in legislation, unforeseeable physical conditions, suspension of work, etc. The letter should state the cause and effect of the delay or additional cost, the relevant contract clause, and the request for an extension of time and/or reimbursement of costs.


Here is an example of a notice of delay and additional cost due to unforeseeable physical conditions:


Date: 1 June 2020


Ref: NDC/01/2020


Subject: Notice of Delay and Additional Cost due to Unforeseeable Physical Conditions


Contract Clause: 12.2/44


To: The Employer


Cc: The Engineer


Dear Sir/Madam,


We hereby give you notice that we have encountered unforeseeable physical obstructions or conditions on site, which have caused or are likely to cause delay and additional cost to the execution of the works.


The details of the unforeseeable physical obstructions or conditions are as follows:


- Location: Excavation area for foundation of bridge pier no. 5


- Description: Hard rock layer at a depth of 10 m below ground level


- Date of discovery: 25 May 2020


- Effect on the works: The excavation works have been delayed by 15 days and require additional equipment and labor to break and remove the hard rock layer


We estimate that this unforeseeable physical obstruction or condition will result in an extension of time of 20 days and an additional cost of USD 100,000.


We request that you grant us an extension of time and reimburse us for the additional cost in accordance with Clause 12.2/44 of the contract.


We attach herewith the following documents as evidence of the unforeseeable physical obstruction or condition:


- Site photos showing the hard rock layer


- Site diary entries recording the discovery and progress of the excavation works


- Revised program showing the impact of the delay on the critical path


- Breakdown of the additional cost incurred or to be incurred


We trust that you will consider our notice and request favorably and respond within 28 days as required by Clause 12.2/44 of the contract.


Yours faithfully,


The Contractor


Request for Consent to Sublet




This letter is used to request the consent of the Employer and the Engineer to sublet any part of the works to a subcontractor. The letter should state the name and qualifications of the subcontractor, the scope and value of the sublet works, and the reason for subletting. The letter should also confirm that the contractor remains responsible for the sublet works and that the subcontractor will comply with all applicable laws and regulations.


Here is an example of a request for consent to sublet:


Date: 1 July 2020


Ref: RCS/01/2020


Subject: Request for Consent to Sublet


Contract Clause: 4


To: The Employer


Cc: The Engineer


Dear Sir/Madam,


We hereby request your consent to sublet a part of the works to ABC Company Limited (the Subcontractor) in accordance with Clause 4 of the contract.


The details of the Subcontractor and the sublet works are as follows:


- Name and qualifications of the Subcontractor: ABC Company Limited is a reputable company with over 10 years of experience in electrical installation works for civil engineering projects. The Subcontractor has successfully completed similar projects in this region and has all necessary licenses and certifications.


- Scope and value of the sublet works: The sublet works comprise the supply, installation, testing and commissioning of all electrical equipment and systems for bridge pier no. 5. The value of the sublet works is USD 50,000.


- Reason for subletting: We have decided to sublet this part of the works to ensure timely completion and high quality standards, as we do not have sufficient resources or expertise in electrical installation works.


We confirm that we remain responsible for all acts or defaults by the Subcontractor as if they were our own, and that we will ensure that the Subcontractor complies with all applicable laws and regulations.


We request that you grant us your consent to sublet within 14 days as required by Clause 4 of


Disagreement with Engineer Instruction to Remove Improper Work




This letter is used to express disagreement with an instruction by the Engineer or the Engineer's Representative to remove and replace any work that is considered improper or defective. The letter should state the reasons for disagreeing with the instruction, the relevant contract clause, and the request for a review by the Engineer.


Here is an example of a disagreement with engineer instruction to remove improper work:


Date: 1 August 2020


Ref: DRI/01/2020


Subject: Disagreement with Engineer Instruction to Remove Improper Work


Contract Clause: 39.1


To: The Engineer


Cc: The Employer


Dear Sir/Madam,


We hereby express our disagreement with your instruction dated 25 July 2020 to remove and replace the concrete pavement of bridge pier no. 5, which you have deemed to be improper or defective.


The reasons for our disagreement are as follows:


- The concrete pavement was constructed in accordance with the specifications and drawings provided by you.


- The concrete pavement was tested and approved by your representative on site before covering up.


- The concrete pavement has not been damaged or affected by any subsequent works or events.


We therefore consider that the concrete pavement is proper and satisfactory, and that your instruction to remove and replace it is unjustified and unreasonable.


We request that you review your instruction in accordance with Clause 39.1 of the contract, and confirm that the concrete pavement is acceptable or provide us with detailed reasons for rejecting it.


We reserve our rights to claim for any delay or additional cost that may arise from complying with your instruction, if it is not withdrawn or revised.


We trust that you will reconsider your instruction and respond within 7 days as required by Clause 39.1 of


Yours faithfully,


The Contractor


Conclusion




FIDIC letters by contractor are a useful tool for managing your civil engineering contract. They can help you communicate effectively with the Employer and the Engineer, protect your rights and interests, and avoid or resolve disputes. However, you should always read and understand your contract carefully before using any letter or notice, and seek professional advice if necessary.


If you need more information or assistance on FIDIC letters by contractor, you can visit fidic.org/books/standard-letters or contact us at info@fidic.org. 6c859133af


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