FIDIC Fitness for Purpose Under FIDIC — Heightened Design Obligation A fitness-for-purpose warranty is a strict liability — the contractor warrants not just that it exercises reasonable care, but that the design, as implemented, will achieve the stated functional outcomes. This is a higher standard than reasonable professional care and exposes the contractor to substantial …
Category: FIDIC
Analysis of FIDIC contracts — Red, Yellow, Silver and Gold Books, 1999 and 2017 editions, in UAE practice.
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May 23
Latent Defects Under FIDIC | E-Basel
FIDIC Latent Defects Under FIDIC — Liability Beyond the Defects Liability Period The defects liability period is not the end of the contractor’s warranty obligations. Latent defects — those not discoverable by reasonable inspection during the DLP — remain actionable long after practical completion, limited only by statutory limitation periods. 6 min read · Updated …
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May 23
Termination for Convenience Under FIDIC | E-Basel
FIDIC Termination for Convenience Under FIDIC — Compensation and Quantum Termination for convenience allows the employer to terminate without fault by the contractor — the employer simply decides to stop the project. The contractor is compensated for work done and entitled to fair compensation for the termination itself, but does not recover full loss of …
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May 23
Insolvency and Construction Contracts Under FIDIC | E-Basel
FIDIC Insolvency and Construction Contracts Under FIDIC — Risk and Protection Contractor insolvency is a project-ending event. Insolvency of suppliers and subcontractors creates cascading supply chain risks. FIDIC provides mechanisms to manage these risks, but insolvency protection is never complete — contracts, bonds, and trust arrangements must work in concert. 7 min read · Updated …
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May 23
Wrongful Termination Under FIDIC | E-Basel
FIDIC Wrongful Termination Under FIDIC — Consequences and Damages Termination without proper cause or without following the contractual procedure is a fundamental breach — it may constitute repudiation, entitling the injured party to claim damages for the lost benefits of the contract, including lost profit on unexecuted work. 7 min read · Updated 23/05/2026 By …
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May 23
Contractor Suspension and Termination for Employer Default | E-Basel
FIDIC Contractor’s Right to Suspend or Terminate for Employer Default Under FIDIC If the employer fails to pay, or commits other material breaches, the contractor has a right to suspend work and, if the breach is not cured, to terminate. This is the contractor’s primary defensive remedy, but it must be exercised carefully — improper …
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May 23
Employer Termination for Default Under FIDIC | E-Basel
FIDIC Employer’s Right to Terminate for Contractor Default Under FIDIC Termination for contractor default is a powerful remedy — it allows the employer to remove the contractor from site and complete the works using others. However, the right is conditional: proper notice must be given, the contractor must be in genuine default, and the procedure …
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May 23
Limitation of Liability Under FIDIC | E-Basel
FIDIC Limitation of Liability Under FIDIC — Enforceability and Scope FIDIC contracts typically include caps on liability — limits on the amount either party can recover for breach. These clauses are generally enforceable but are subject to fairness and reasonableness tests, and do not apply to all types of liability. 7 min read · Updated …
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May 23
Consequential Loss from Defects Under FIDIC | E-Basel
FIDIC Consequential Loss from Defective Work Under FIDIC — Scope and Recovery Defects often cause losses beyond the cost of repair: business interruption, lost revenue, damage to third-party property, or project delay costs. Recovery of these consequential losses is limited by the Hadley v Baxendale principle and often expressly excluded by contract. 7 min read …
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May 23
Nominated Subcontractor Defects Under FIDIC | E-Basel
FIDIC Nominated Subcontractor Defects Under FIDIC — Main Contractor Liability The main contractor is responsible for all work on site — including work by nominated subcontractors. Where a subcontractor’s work is defective, the main contractor remains liable to the employer, creating the need for strict back-to-back warranties and defect management procedures. 6 min read · …
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