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The FIDIC Red Book 2017: Key Changes and UAE Implications

The Second Edition of the FIDIC Red Book materially rewrites how claims, determinations and disputes are handled. Contractors and Employers who still treat the 2017 form as a minor update to 1999 are exposed to significant procedural risk.

9 min read · Updated 23/04/2026

In this article

1. The Red Book’s role in the FIDIC Suite
2. Principal changes from 1999 to 2017
3. Clause 20: Employer’s and Contractor’s Claims
4. Clause 3.7: Agreement or Determination
5. Clause 21: Disputes and the DAAB
6. Time for Completion and Extension of Time
7. What this means for UAE practice

Key takeaway

The 2017 Red Book treats Employer’s and Contractor’s claims symmetrically under Clause 20, imposes an 84-day deadline for a fully detailed Claim (up from 42 days), requires express neutrality of the Engineer under Sub-Clause 3.7, renames the DAB to the Dispute Avoidance/Adjudication Board (DAAB) as a standing body, and makes DAAB decisions immediately enforceable. These are mechanical changes with substantive consequences for claim preparation and dispute strategy.

1. The Red Book’s role in the FIDIC Suite

The FIDIC Red Book — formally, the Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer — is the most widely used standard form for projects where the Employer produces the design and the Contractor constructs the Works under the supervision of an independent Engineer. The First Edition was published in 1999 as part of the coordinated Rainbow Suite. The Second Edition was published in December 2017 following a Pre-Release Yellow Book in December 2016 and a period of consultation with the international contract user community.

2. Principal changes from 1999 to 2017

The 2017 Red Book is not a minor refresh. The document is substantially longer than the 1999 edition, with more detailed procedural provisions throughout. The most commercially significant changes are:

• Symmetrical claims regime. Employer’s and Contractor’s claims are now dealt with under a single Clause 20 with the same notice and substantiation requirements for both parties.
• Revised time limits for claims. The 28-day Notice of Claim is retained; the period for submitting a fully detailed Claim is extended to 84 days.
• Explicit neutrality of the Engineer. Sub-Clause 3.7 requires the Engineer to act neutrally when making determinations.
• Standing DAAB. The Dispute Adjudication Board is renamed the Dispute Avoidance/Adjudication Board, established at the outset of the Contract and in place throughout.
• Enforceability of DAAB decisions. Non-final DAAB decisions are expressly enforceable by arbitration, and non-compliance is a ground for termination.
• “Exceptional Events” in place of “Force Majeure”. The concept is retained but the language has been recast to reduce perceived overlap with civil law doctrines.

3. Clause 20: Employer’s and Contractor’s Claims

Under the 1999 form, Clause 20 dealt with Contractor’s claims together with disputes and arbitration in a single heading. The 2017 form splits this into Clause 20 (“Employer’s and Contractor’s Claims”) and Clause 21 (“Disputes and Arbitration”). Within Clause 20, both parties are subject to the same procedural requirements.

Sub-Clause 20.2.4 specifies the required content of the fully detailed Claim, including a statement of the contractual and/or other legal basis relied upon. If the claiming party fails to state the contractual or legal basis of its Claim, the Claim may be deemed to have lapsed unless the late submission is justified. Sub-Clause 20.2.5 requires the Engineer’s determination to include a decision on whether the Claim is time-barred where that question is in dispute.

The symmetry of the regime is, in principle, a fairness improvement. In practice, it creates additional exposure for Employers who may not have the internal claim management capability that contractors have built up over years of Clause 20 operation. Employers on one-off projects should make early arrangements for claim handling to avoid forfeiting entitlements by missing the 28-day notice deadline.

4. Clause 3.7: Agreement or Determination

Sub-Clause 3.7 sets out a detailed procedure for the Engineer to deal with claims and other matters requiring determination. The Engineer must first consult the parties and endeavour to reach agreement. If agreement is not reached within the time allowed, the Engineer proceeds to a determination.

The 2017 edition makes two points explicit that were previously implicit. First, the Engineer “shall act neutrally between the Parties” when making determinations and “shall not be deemed to act for the Employer” (Sub-Clause 3.7). Second, the Employer is not entitled to require the Engineer to obtain prior consent before issuing a determination (Sub-Clause 3.2). These provisions are intended to restore the balance that Particular Conditions in earlier editions had often eroded.

If the Engineer fails to issue a determination within the time allowed (typically 42 days), or if either party is dissatisfied with the determination, the dissatisfied party may issue a Notice of Dissatisfaction and refer the matter to the DAAB under Clause 21 (see Sub-Clauses 3.7.3, 3.7.5 and 21.4.1).

5. Clause 21: Disputes and the DAAB

Under the 2017 suite, the Red, Yellow and Silver Books all provide for a standing Dispute Avoidance/Adjudication Board (DAAB), in place from the outset and for the duration of the Contract. This is a change from 1999, where only the Red Book provided for a standing Dispute Adjudication Board, with ad hoc boards under the Yellow and Silver Books.

The renaming to “Dispute Avoidance/Adjudication Board” is deliberate. The DAAB Procedural Rules state that the first objective of the DAAB is to facilitate the avoidance of Disputes. Sub-Clause 21.3 allows the Parties jointly to request the DAAB to provide informal assistance in resolving issues before they crystallise into formal disputes.

Once a dispute is referred, the DAAB issues a decision within the time allowed. The decision is immediately binding on the Parties and must be given effect without delay, regardless of whether a Notice of Dissatisfaction is later served. Where the DAAB decision requires a payment, the DAAB may now require the receiving party to provide appropriate security for repayment pending arbitration (Sub-Clause 21.4.3). Crucially, a DAAB decision that has not become final and binding may nonetheless be enforced by separate arbitration proceedings (Sub-Clause 21.7), and non-compliance with a DAAB decision is a ground for termination or suspension under Clauses 15 and 16.

6. Time for Completion and Extension of Time

The entitlement to an Extension of Time to the Time for Completion is set out in Sub-Clause 8.5 of the 2017 Red Book. The grounds mirror those of the 1999 edition and include, among others, Variations, causes of delay expressly giving entitlement under the Conditions, exceptionally adverse climatic conditions, and any delay caused by the Employer or persons for whom it is responsible.

EOT is a time-only remedy. Entitlement to recover additional Cost arises only where the Conditions expressly so provide (for example, Sub-Clauses 1.9, 2.1, 4.7, 4.12, 7.4, 8.6, 10.3, 16.1, 17.2, 18.4, 19.4 of the 1999 edition, with equivalents in the 2017 form). The procedural gateway for both heads of relief is the Clause 20 notice regime. A Contractor who has a good case on causation and quantum can still lose time and cost if the notices are not served on time. For detailed methodology, see our Delay Analysis Expert service.

7. What this means for UAE practice

UAE projects procured on the 2017 Red Book should, in principle, benefit from a more balanced and procedurally rigorous claims regime. In practice, we see three recurring issues:

• DAAB not actually constituted. Particular Conditions routinely nominate a DAAB but it is often not appointed at the outset. When a dispute arises, the first step is to establish the board — introducing delay and cost exactly when the Contract was designed to avoid them.
• Particular Conditions undermining Engineer neutrality. Amendments requiring Employer consent to determinations, or removing the Engineer from the claims role, are inconsistent with Sub-Clause 3.7 and vulnerable to challenge.
• Article 246 of the UAE Federal Civil Transactions Law. Good-faith obligations under UAE law interact with Clause 20 time-bars in ways that remain unsettled. Parties and their advisers should not assume that a missed 28-day notice is automatically fatal without considering the UAE law overlay.

For construction claims support on 2017 Red Book projects, see our Construction Claims Consultant service. For expert witness work in arbitration, see our FIDIC Expert Witness service.

This article provides general information for UAE construction professionals and does not constitute legal advice. Contract interpretation and dispute strategy on a specific matter should be discussed with a UAE-qualified legal practitioner alongside appropriate technical experts.

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