Another process Flowchart added to the Site for FIDIC Red Book 4th Edition

Another process Flowchart added to the Site for FIDIC Red Book 4th Edition

MALCONLAW as added yet another FREE flowchart to the site. This time in relation to the issuance of and subsequent valuation of Variations instructed under the FIDIC Red Book 4th Edition. The Flowchart maybe downloaded by following the following link. As a courtesy we would request that you register to follow the future articles of Malaysian Construction and Contract Law on the side bar before downloading the flowchart. We thank you in advance and hope that you find the flowchart to be of use……more

2 responses to “Another process Flowchart added to the Site for FIDIC Red Book 4th Edition

  1. MCCL, I found that while trying to print out the flowchart with the laser printer, the graphic does not come out very clear and the reading from the link will require enlargement in order it can be read clearly. From the reading, I found one area that is of interest from the flowchart relating to clause 52.3 on the Engineer to consult the employer and the contractor and to re sum as adjustment to contract price. Your flowchart indicates that if agreement is not reached, the flowchart goes directly to dispute to be resolved. To my knowledge, in this section, there are two parts of agreement – a) the entitlement, b) the quantum. If the entitlement agreement is not reached, then the flowchart will directly goes to dispute to be resolved. However, if the entitlement is reached and the dispute area is in the quantum, in my knowledge, the engineer is still obligated to determine the sum payable to the contractor (this way the contractor will still be paid; not necessarily the amount he claimed) then only the balance on the disputed sum goes for dispute to be resolved. Please enlighten me on this issue.
    FIDIC has revised his red book with a new version of 1999. Would be very interesting to have if the latest can be referred to. TQ.🙂

    • Dear Xulxin, The Document is A3 size. In respect of the two parts of the agreement. The Engineer is obligated to certify what he considers is due regardless of the Contractors objections or otherwise. This applies before and after Taking Over Certificate. In respect of entitlement this will be evident by the adjusted contract amount and there should not be debate as to whether there is entitlement for Engineer to review rates and prices as a result. The area of dispute in 99% of case will be the Engineers adjustment of rates or prices as a result of the variance. (Quantum). If your still having problems we can email you electronic version but you will need to print this A3 due to the size of the flowchart. As for FIDIC Red book 1999 we are currently finalising the flowchart for these together with standard contractors letters which will be up on the site shortly which we hope will be of use