ISLAMIC UNIVERSITY OF GAZA FACULTY OF ENGINEERING CIVIL ENGINEERING DEPARTMENT 20. Claim, Disputes and Arbitration [Construction Contract Administration]

ISLAMIC UNIVERSITY OF GAZAISLAMIC UNIVERSITY OF GAZAFACULTY OF ENGINEERINGFACULTY OF ENGINEERING

CIVIL ENGINEERING DEPARTMENTCIVIL ENGINEERING DEPARTMENT

20. Claim, Disputes and Arbitration20. Claim, Disputes and Arbitration

[Construction Contract Administration][Construction Contract Administration]

Fidic 99Fidic 99

20.1 Contractor’s Claims20.1 Contractor’s Claims

If the contractor considers himself to be entitled to If the contractor considers himself to be entitled to any extension of the time for completion and/or any extension of the time for completion and/or any additional payment, any additional payment,

The contractor shall give notice to the engineer, The contractor shall give notice to the engineer, describing the event giving rise to the claimdescribing the event giving rise to the claim

The notice shall be given as soon as practicable, The notice shall be given as soon as practicable, and not later than 28 days after the contractor and not later than 28 days after the contractor became aware became aware


If the contractor fails to give notice of a claim If the contractor fails to give notice of a claim within 28 days, within 28 days,

The time for completion shall not be extended, The time for completion shall not be extended, The contractor shall not be entitled to additional The contractor shall not be entitled to additional

paymentpayment The employer shall be discharged from all liability in The employer shall be discharged from all liability in

connection with the claim connection with the claim


Otherwise, the following provisions shall applyOtherwise, the following provisions shall apply

The contractor shall also submit any other notices The contractor shall also submit any other notices required by the contract, and supporting particulars for required by the contract, and supporting particulars for the claimthe claim

The contractor shall keep such contemporary records as The contractor shall keep such contemporary records as may be necessary to any claimmay be necessary to any claim


The engineer may, after receivng any notice, monitor The engineer may, after receivng any notice, monitor the recored-keeping and instruct the contractor to keep the recored-keeping and instruct the contractor to keep further recordsfurther records

The contractor shall permit the engineer to inspect all The contractor shall permit the engineer to inspect all these records and shall submit copies to the engineerthese records and shall submit copies to the engineer


Within 42 days after the contractor became aware Within 42 days after the contractor became aware of the event giving rise to the claim, the contractor of the event giving rise to the claim, the contractor shall send to the engineer a fully detailed claim shall send to the engineer a fully detailed claim including full supporting particulars of the basis of including full supporting particulars of the basis of the claim and of the extension of time and/or the claim and of the extension of time and/or additional payment claimed additional payment claimed


If the event giving rise to the claim has a continuous effect:If the event giving rise to the claim has a continuous effect:

This fully detailed claim shall be considered as interimThis fully detailed claim shall be considered as interim The contractor shall send further interim claims at The contractor shall send further interim claims at

monthly intervals, giving the accumulated delay and monthly intervals, giving the accumulated delay and amount claimedamount claimed

The contractor shall send a final claim within 28 days The contractor shall send a final claim within 28 days after the end of the effects resulting from the event or after the end of the effects resulting from the event or within other period proposed by the contractor and within other period proposed by the contractor and approved by the engineer approved by the engineer


Within 42 days after receiving a claim, the engineer Within 42 days after receiving a claim, the engineer shall respond with approval or with disapproval shall respond with approval or with disapproval and detailed commentsand detailed comments

He may also request any necessary further He may also request any necessary further particularsparticulars


Each payment certificate shall include such amounts for Each payment certificate shall include such amounts for any claim as have been reasonably substantiated as due any claim as have been reasonably substantiated as due under the relevant provision of the contractunder the relevant provision of the contract

The contractor shall only be entitled to payment for The contractor shall only be entitled to payment for such part of the claim as he has been able to substantiate such part of the claim as he has been able to substantiate


The engineer shall proceed to agree or determineThe engineer shall proceed to agree or determine

The extension of time for completionThe extension of time for completion And/or the additional payment to which the contractor And/or the additional payment to which the contractor

is entitled under the contract is entitled under the contract


The requirement of this sub clause are in addition to The requirement of this sub clause are in addition to those of any other sub clause which may apply to a those of any other sub clause which may apply to a claimclaim

20.2 Appointment of the Dispute 20.2 Appointment of the Dispute Adjudication BoardAdjudication Board

Dispute shall be adjudicated by a DAB. The parties shall Dispute shall be adjudicated by a DAB. The parties shall jointly appoint a DAB by the date stated in the appendix jointly appoint a DAB by the date stated in the appendix to Tenderto Tender


The DAB shall comprise, as stated in the Appendix to The DAB shall comprise, as stated in the Appendix to tender, either one or three suitably qualified personstender, either one or three suitably qualified persons

If the number is not so stated, the DAB shall comprise If the number is not so stated, the DAB shall comprise three personsthree persons


If the DAB is to comprise three persons, each party shall If the DAB is to comprise three persons, each party shall nominate one member for the approval of the other partynominate one member for the approval of the other party

The parties shall consult both these members and shall The parties shall consult both these members and shall agree upon the third member who shall be appointed to act agree upon the third member who shall be appointed to act as chairmanas chairman


However, if a list of potential members is included However, if a list of potential members is included in the contract, the members shall be selected from in the contract, the members shall be selected from those on the listthose on the list


The agreement between the parties and either the sole The agreement between the parties and either the sole member or each of the three members, shall incorporate member or each of the three members, shall incorporate the general conditions to adjudicate dispute contained the general conditions to adjudicate dispute contained in the appendix of these general conditions in the appendix of these general conditions


The terms of the remuneration of either the sole member or The terms of the remuneration of either the sole member or each of the three members including the remuneration of each of the three members including the remuneration of any expert whom the DAB consults, shall be agreed upon any expert whom the DAB consults, shall be agreed upon by the parties by the parties

Each party shall be responsible for paying one half of this Each party shall be responsible for paying one half of this remunerationremuneration


If any time the parties so agree, they may jointly refer a matter to the If any time the parties so agree, they may jointly refer a matter to the DAB for it to give its opinion DAB for it to give its opinion

Neither party shall consult the DAB on any matter without the Neither party shall consult the DAB on any matter without the agreement of the other partyagreement of the other party


If at any time the parties so agree, they may appoint a If at any time the parties so agree, they may appoint a suitably qualified person or persons to replace any one suitably qualified person or persons to replace any one or more members of the DABor more members of the DAB


The appointment of any member may be terminated by The appointment of any member may be terminated by mutual agreement of both parties, but not by the mutual agreement of both parties, but not by the employer or the contractor acting alone.employer or the contractor acting alone.

20.3 Failure to Agree Dispute 20.3 Failure to Agree Dispute Adjudication BoardAdjudication Board

If any of the following conditions apply:If any of the following conditions apply:

The parties fail to agree upon the appointment of the sole The parties fail to agree upon the appointment of the sole member of the DAB by the date stated in the appendix to member of the DAB by the date stated in the appendix to tendertender

Either party fails to nominate a member for approval by Either party fails to nominate a member for approval by the other party of a DAB by such datethe other party of a DAB by such date


The parties fail to agree upon the appointment of the third The parties fail to agree upon the appointment of the third member ( to act as chairman)member ( to act as chairman)

The parties fail to agree upon the appointment of a The parties fail to agree upon the appointment of a replacement person within 42 days after the date on which replacement person within 42 days after the date on which the sole member is unable to act … .the sole member is unable to act … .


Then the appointing entity or official named in the Then the appointing entity or official named in the particular conditions shall, upon the request of particular conditions shall, upon the request of either or both of the parties, appoint this member either or both of the parties, appoint this member of the DABof the DAB

This appointment shall be final and conclusive This appointment shall be final and conclusive

20.4 Obtaining Dispute Adjudication 20.4 Obtaining Dispute Adjudication Board’s DecisionBoard’s Decision

If a dispute arises between the parties in If a dispute arises between the parties in connection with the contract or the execution of connection with the contract or the execution of the works, either party may refer the dispute in the works, either party may refer the dispute in writing to the DAB for its decision, with copies to writing to the DAB for its decision, with copies to the other party and the engineer the other party and the engineer


For a DAB of three persons, the DAB shall be For a DAB of three persons, the DAB shall be deemed to have received such reference on the deemed to have received such reference on the date when it is received by the chairman of the date when it is received by the chairman of the DABDAB


Both parties shall promptly make available to Both parties shall promptly make available to the DAB all such additional information, further the DAB all such additional information, further access to the site, and appropriate facilities … . access to the site, and appropriate facilities … .


Within 48 days after receiving such reference, the DAB Within 48 days after receiving such reference, the DAB shall give its decision, which shall be reasoned shall give its decision, which shall be reasoned

The decision shall be binding on both parties, who shall The decision shall be binding on both parties, who shall promptly give effect to it unless and until it shall be promptly give effect to it unless and until it shall be revised in an amicable settlement or an arbitral award revised in an amicable settlement or an arbitral award


If either party is dissatisfied with the DAB’s If either party is dissatisfied with the DAB’s decision, then either party may within 28 days after decision, then either party may within 28 days after receiving the decision, give notice to the other party receiving the decision, give notice to the other party of its dissatisfaction of its dissatisfaction

If the DAB fails to give its decision within the If the DAB fails to give its decision within the period of 84 days, then either party may within 28 period of 84 days, then either party may within 28 days after this period has expired, give notice to the days after this period has expired, give notice to the other party of its dissatisfaction other party of its dissatisfaction


In either event, this notice of dissatisfaction shall In either event, this notice of dissatisfaction shall state that it is given under this sub clause, and shall state that it is given under this sub clause, and shall set out the matter in dispute and the reasons for set out the matter in dispute and the reasons for dissatisfactiondissatisfaction


If the DAB has given its decision as to a matter in If the DAB has given its decision as to a matter in dispute to both parties, and no notice of dispute to both parties, and no notice of dissatisfaction has been given by either party within dissatisfaction has been given by either party within 28 days after it received the decision, then the 28 days after it received the decision, then the decision shall become final and binding upon both decision shall become final and binding upon both partiesparties

العالمينالعالمين ربرب للهلله الحمدالحمدThankThank YouYou

العالمينالعالمين ربرب للهلله الحمدالحمدThankThank YouYou

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ISLAMIC UNIVERSITY OF GAZA FACULTY OF ENGINEERING CIVIL ENGINEERING DEPARTMENT 20. Claim, Disputes and Arbitration [Construction Contract Administration]