Construction Comparision Between
FIDIC AND NEC4
Standards Assignment Sample
Introduction
An international standards organisation for consulting in building and engineering, known as FIDIC, is the International Federation of Consulting Engineers. In contrast to NEC, FIDIC is widely employed in international contracts. A comparison between FIDIC and NEC’s payment conditions, project programming criteria, and dispute resolution techniques is the focus of this article.
Conditions that guide payment
Regular payments are essential for all contractors in order to fund construction operations within the terms of the contract. FIDIC 2017 mandates that a contractor submit a statement page and a single-copy set online every month in order to receive payments. The contractor must present the IPC to the specific employer within 28 days, as well as produce payment for the amount specified, within 56 days. In most cases, the 56 days are counted from the date that the engineer received the payment application. There are three different ways the contractor can be compensated if the payment isn’t received by the due date. On the other hand, project managers in NEC4 are responsible for helping to calculate the payment amount. Prior to the assessment date, the contractor must be informed of his or her need to submit a payment request to the project manager (Salmon, 2017). In the event that the contractor fails to submit, the amount payable will be less than the project manager’s assessment, and the employer must pay the certified amount within three weeks. NEC4 payment dates are typically linked to the assessment time, rather than the certified date, and in the event of a delay, the contractor is given two more scenarios to choose from. A basic type of FIDIC includes clauses referred to as “General Conditions,” making FIDIC an old-fashioned approach to contracting. The parties to a contract must clearly specify their respective roles and duties in each FIDIC Book for all of the conditions indicated in the contract. It is also possible to add “Specific Conditions” to the contract to tailor it to a particular project. In comparison to NEC4 ECC contracts and FIDIC, the payment system has a major difference. When it comes to NEC4 ECC, contractors must be well-versed in the contract and construction act laws and regulations, as well as provide all required documentation. The contractor is in charge of supplying the complete sum due to the client. If the contractor wants his payment request to be recognised as a “default payment notification” under the Construction Act, he must provide all essential information, including information about the services for which money is being requested.
Conditions that guide project programming
FIDIC specifies that the contractor must submit any progress that is not in accordance with the defined schedule or that is requested by the engineer (Solicitors, 2018). There are other standards for submitting the programme electronically, as well as a list of what to include such as the start and end dates for all activities, important documents or float for each action. When it comes to assessing the impact of compensation operations, NEC implements a complete Accepted Program. It is up to the project manager to choose the length of the extension if there is no one programme that has been given approval. FIDIC RB mandates that contractors submit a Program to the Engineer within 28 days of receiving notice of the start date (Clause 8.3). It takes the Engineer/CA a maximum of 21 days to examine the original software and a maximum of 14 days to update it. It is the responsibility of the contractor to alter the Program if it is no longer in accordance with progress or their promises. Unless the Engineer/Employer tells them to change their plans because they don’t match the contract requirements, contractors can proceed as planned.
Dispute-resolution Procedures
Two clauses are included in FIDIC’s dispute avoidance approach, and the first is when the engineer consults two parties to ensure agreement in the allegation. Normally, an engineer is allowed 42 days to persuade a client to agree to a project. If the engineer is unable to resolve the issue, a formal decision will be made, which will be upsetting to the engineer. DAABs are another option FIDIC makes available for the purpose of emphasising prevention in dispute avoidance. As a result, the dispute resolution panels at FIDIC 2017 are placing an emphasis on conflict avoidance (McCrea & Elliott, 2018). The other method of resolving the disagreement is based on provisional, and NEC4 often considers it a parallel phase. The third part of NEC4 dispute resolution is avoidance, which is nearly identical to FIDIC DAAB. A conflict avoidance board in NEC must be used before any official progress can be made. While in FIDIC, engineers are typically in charge of conducting research into possible solutions to the requests they get. As a result, the parties concerned have the option of proposing a different solution to the problem.
Conclusion
The International Federation of Consulting Engineers (FIDIC) is an international standards organisation for consulting in the fields of construction and engineering. In contrast to the NEC, FIDIC is commonly used in international contracts and has a long history of success. This article examines the payment requirements, project programming conditions, and dispute resolution processes of the FIDIC and NEC4 standards. Based on the comparison, it is determined that some FIDIC standards adjustments, particularly in the area of project scheduling, must be implemented by NEC4.
References
FIDIC 2017. Conditions of Contract for Construction. 2nd Edition. ISBN 978-2-88432-084-9
McCrea, R., & Elliott, F. (2018). The 2017 FIDIC dispute resolution procedure: Part 1 – the new dispute resolution mechanism. Fenwick Elliott. https://www.fenwickelliott.com/research-insight/articles-papers/contract-issues/2017-fidic-dispute-resolution-procedure-part-1
Rowlinson, M. 2019. A Practical Guide to the NEC4 Engineering and Construction Contract. 1st Edition, Wiley Blackwell, ISBN 9781119522522
Salmon, B. (2017). NEC4 ECC payment mechanism: Contractors and project managers beware. Lexology. https://www.lexology.com/library/detail.aspx?g=1a4c4cee-6132-4c61-8808-af7f770c5a0e
Solicitors, F. (2018). How the 2017 FIDIC contract deals with time. Lexology. https://www.lexology.com/commentary/projects-construction-infrastructure/united-kingdom/fenwick-elliott-solicitors/how-the-2017-fidic-contract-deals-with-time
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