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FIDIC SILVER BOOK

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Rosalind Ng
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Am currently assessing the FIDIC Silver Book for an EPC contract. Understand that it is more risk onerous to the contractor. I am coming from the position of an EPC contractor. Appreciate your views and comments.

cheers.

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Rosalind Ng
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Andrew,

Cheers. Need lots of that.
Andrew Flowerdew
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Rosalind,

I wish you luck. Please report back as those out there that support the idea that any contractor has equal bargaining power to significantly negotitate different conditions in my opinion live on another planet. You may get some and if a regular customer you may get more, I really hope you prove me wrong but I’d like to know the outcome.
Rosalind Ng
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Hi all,

Thanks for your comments.

Unfortunately I do not have any room to negotiate interms of price. As it stands, I really do need to amend some of the conditions to make it more "palatable" interms of the risk allocation.

cheers
Andrew Flowerdew
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Hi all,

Appears well stacked in employers favour, risk should be aportioned to who is best able to manage or withstand it, but if not, the contractor should value the risk and price it accordingly.

If the employer wishes to put most of the risk onto the contractor, especially that the contractor has no or little control over, then he should realise it will result in a higher price. This may very well be acceptable to the client, especially if predictability of the final cost is important to him, as is often the case.

It will therefore be like any competitive tender, the contractor willing to take the highest risk that will win it.
Shahzad Munawar
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Your observations show that the Employer is bonafide in each case where there were previously some benefits for the Contractor.

Apparently your given Contract Clauses also illustrate that this Silver Book was prepared keeping in view Employer’s benefits more alongwith imposition of restriction on Contractor’s entitlement for additional claims.
Rosalind Ng
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Shah,

Observations as follow:

1)a) Responsibility for errors in information provided by the Employer (Sub-clause 4.10 & 5.1)

1)b) Responsibility for the accuracy of Employer’s Requirements, save with few exceptions, lies with the Contractor.(Sub-clause 5.1)

2) Risk of "Unforseeable Difficulties" is borne by the Contractor. The obvious risk is the underground soil condition.(Sub-clause 2.3,4.7,4.20,4.10,4.12,5.1)

3) Allow nomination of Sub-Contractor. Inconsistent with a turnkey project.(Sub-clause 4.5)

4) Procedural unfairness - EOT/cost claim (Sub-clause 20.1)

5) Employer’s interference under Sub-clause 3.4,3.5,5.2,7.1,7.3,7.5,7.6,13,14.

6) Variation initiation - Employer’s rights are stronger since the variation has to be executed by the Contractor on the mere instruction by the Employer (Sub-clause 13.1.1,13.2.1,13.3.2)

Above are but my humble observations and concerns on the Silver Book. If any who could help to explain or alleviate the concerns raised are most appreciated.

Cheers.
Shahzad Munawar
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Ng

Can u tell us that which clauses in Fidic Silver Book are not in favour of Contractor or more risk onerous to the Contractor so that they will be discussed in light of Fidic Standard Conditions?