This tutorial explains Technical Queries in relation to sub-clause 5.1 design in the FIDIC Silver Book engineering, procurement & construction (EPC) contract.
For FIDIC Contract Training & Contract Management Services visit: Aratis at aratis.nl/en/
For FIDIC Contract Management System visit: Aryo Systems at aryosystems.com/cms/
For FIDIC Standard Contracts - General Conditions visit: FIDIC International Federation of Consulting Engineers fidic.org
In this video we will explain how to prepare and process Technical Queries in a Silver Book EPC Contract.
The Silver Book contract is used for turnkey and engineering, procurement and construction contracts which can be priced on a fixed lump sum basis or can be a combination of fixed prices and unit prices.
In this session we are going to talk about the use of technical queries in relation to sub-clause 5.1 regarding the design obligations of the contractor.
Normally technical queries are issue by the Contractor in relation to the technical documents included Employer Requirements. Pay special attention to technical deviation requests.
Both parties shall comply with the agreement and design provisions because unresolved issues can lead to delays, disputes and possible arbitration.
Every contract should have Administration Requirements which include the forms to be used, reports to be made and work flowcharts which explain the process steps to take.
In the first step the contractor shall prepare and issue Technical Query Part A including the related documentation.
The Employer Representative shall review the technical query and obtain the answer from the relevant discipline engineer. The answer shall be stated on PART B and sent to the Contractor within the time limits.
If the TQ answer requires further clarification, then the Contractor shall resubmit the TQ with an updated higher revision number.
If the Contractor believes that the TQ answer constitutes a Variation, then the Contractor shall prepare and submit a Variation Proposal. If the Employer does not agree then the Contractor can decide to prepare and submit a Notice of Claim.
The Employer Representative shall review and process any Variation Proposal and/or Notice of Claim in accordance with the relevant contractual provisions.
It is recommended to use standard forms for the technical query provisions because this ensures that all required data and information is included. Ensure that forms are fully completed and are signed by a dully authorised personnel.
The technical query form PART A shall be prepared by the Contractor Representative.
The technical query form PART B shall be prepared by the relevant discipline engineer and shall be signed by the Employer Representative.
It is important to understand that Notices can be send by means of a form or a letter. In all cases the word “notice” shall be clearly stated on the form or letter as well as reference to the relevant sub-clause or clauses of the general conditions and/or particular conditions. Furthermore, notices shall be signed by duly authorised personnel which have been given delegated authority in accordance with the contract.
The administration requirements shall specify what the reporting requirements and frequency of reporting are. Normally a Technical Query register is prepared which shall clearly show the status of the technical queries. The report can be submitted in various formats or can be generated by the applicable Contract Management System.
The administration requirements shall also specify technical meetings which shall be held on a regular basis between the parties in order to discuss, clarify, negotiate and agree the technical issues. If no resolution can be achieved, then the dispute resolution provisions of the contract shall be followed.
Thank you for watching, please like and subscribe. Also check the video description for available free downloads.