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The following note aims at providing a brief introduction to the main features of the Silver Book. The Silver Book deals with turn-key projects ie those projects for which the Contractor takes care and is responsible for the engineering, the procurement and the construction. The Contractor will then deliver to the Employer a plant, a factory or an infrastructure ready to be used by the Employer.
The introductory note of the Silver Book states that the aim of the Book is to give certainty as to the time and costs of the works. The Contractor's obligations are specified under Clause 4. Certainly of the most relevant is that under Sub-Clause 4. The fit-for-purposes obligation is rather burdensome for the Contractor and some disputes may arise in connection with its legal meaning and construction depending on the governing law of the Contract even if the obligation is specified to refer to what is " defined in the Contract ".
That means that particular attention should be given first of all to what it is stated in the Contract and in the technical specifications. Sub-Clause 4. Said Clause must be read in conjunction with Sub-Clause 5. With specific limited exception, the Employer shall not be responsible for any error, inaccuracy or omission contained in the Employer's Requirements as included in the Contract.
Again particular attention should be given to the Employer's Requirements to avoid any liability actually unknown to the Contractor.
The Contractor shall in addition satisfy himself as to the "correctness and sufficiency of the Contract Price" Sub-Clause 4. The administration of the Contract remains in the hands of the Employer unless the latter appoints, under Clause 3. However, the Employer's Representative does not play an independent role.
The Representative is expressly the longa manus of the Employer. The Employer shall act via determinations which shall be " fair " as provided by Clause 3. Sub-Clauses The rationale of the clause stays in that in almost all the construction contracts the need to vary the works may arise during the construction phase and after the contract has already been awarded. Sub-Clause Unless the Contractor gives a notice to the contrary in case of specific and limited cases, the latter will be bound by any variation instructed by the Employer.
Variations initiated by the Contractor are instead governed by Sub-Clause The proposal submitted by the Contractor shall clearly specify any impact that the variation will have on costs and time for completion. If no agreement is reached between the parties in such respect, the Employer shall proceed according to Sub-Clause 3.
Clearly one point to be also considered is that any Variation may have an impact on the liabilities of the Contractor and this should be carefully considered especially in the case the Contractor simply execute an Employer's Instruction. One of the most important issues for any contractor is the entitlement to submit claims.
In general terms however, the most relevant provision of the Silver Book is contained in Sub-Clause It must be stressed that the provision is a time-bar-limit provision and this is expressly stated in the second paragraph of the same Sub-Clause which provides that:.
Whether the time-bar-provision will be enforceable or not will clearly depend on the governing law of the Contract but this will eventually be discussed during the dispute or even at contentious level. The best advice is clearly to comply with the time limit provided by Sub-Clause Clause FIDIC contracts are widely used in international construction projects. Their provisions are mostly self-explanatory and provide the possibility to amend the General Conditions via Special Conditions which will allow adapting the Contract to the specific project and the governing law.
Silver Book aims at providing the Employer certainty in terms of costs and time for completion. It is fair to say that as they are now the provisions of the Silver Book are slightly more favorable to the Employer. The use of the Silver Book but this is true also for the other FIDIC forms requires however a competent contract administration both from the Employer and the Contractor to avoid any pitfall and to ensure that it reaches fully the aim the parties have in mind.
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Learn More Accept. Real Estate and Construction. To print this article, all you need is to be registered or login on Mondaq. Main features. The main features of the Silver Book are that: the Contractor takes full responsibility for the design of the project; the project is on a lump sum basis; the possibility for the Contractor to request and obtain adjustment of the price are limited.
Contractor's obligations. Giuseppe Broccoli. Shepherd and Wedderburn LLP. Many properties are subject to restrictive title conditions that affect what the owner can do with their land.
Other landowners usually neighbours may have the right to enforce compliance with these restrictions The Regulation on Real Estate Trade "Regulation" , establishing significant standards for real estate transactions, has been in force since June 5, Prejudice Without Prejudice?
Fenwick Elliott LLP. Different jurisdictions apply different meanings to the words "without prejudice". In short, the overall dispute concerned a biomass energy plant in North Wales that was never built.
COVID has had an unprecedented impact on all of us in the construction industry as we adapt to the rapidly changing situation and deal with the substantial impact on our businesses. Government guidance issued late on Thursday afternoon says that emergency legislation will be enacted to prevent "aggressive" pursuit of rent arrears by landlords.
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Table of Contents
For the purposes of this article, our comments relate to the use of the Silver Book in that context, rather than applying more generally to all uses of the Silver Book, although a number of our comments will also apply to other geographies and sectors, and where construction is being financed other than by limited recourse debt. The Silver Book represents a turnkey, fixed price, lump sum arrangement, whereby the contractor assumes the majority of key construction risks. It is recognisable to the vast majority of the international contracting community, and has thus gained a foothold as a useful template on which to base an EPC contract. The contractor assumes the majority of risk on key matters such as design, specifications, time, price, site conditions and certain unforeseen risks. This sets it apart from the Red and Yellow Books, where the Employer retains a number of these key risks, in line with the purpose and scope for which the contract is being used. The difference in risk allocation between the FIDIC suite of contracts has been reflected in the market by differential pricing even taking into account the differences in scope for which the different Books were designed , namely, a contractor bidding under a Red Book risk profile is likely to offer a lower price than for a Silver Book risk profile.
Download Fidic Silver Book - Conditions Of Contract For Epc Turnkey Projects (2nd Edition 2017)
This Second Edition of the FIDIC Silver Book maintains the principles of risk sharing established in the edition, while seeking to build on the substantial experience gained from its use over the past 18 years. For example, this edition provides:. Essential items of information which are particular to each individual contract are to be included in the Particular Conditions Part A — Contract Data. In addition it is recognised that many Employers, especially governmental agencies, may require special conditions of contract, or particular procedures, which differ from those included in the General Conditions. These should be included in Part B — Special Provisions.
Fidic Silver Book Epc Turnkey Contract Pdf
EPC/Turnkey Contract 2nd Ed (2017 Silver Book)