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FIDIC 2017 Books – Clause 15 – Termination by Employer

The main changes in Clause 15 are the new grounds for termination: Non-compliance with a final and binding Engineer’s Determination (Sub-Clause 15.2.1(a)(ii)) and a binding or final and binding DAAB decision (Sub-Clause 15.2.1(a)(iii)) to the extent that such failure constitutes a “material breach” of the Employer’s obligations under the Contract. Maxing out the Delay Damages (Sub-Clause 15.2.1(c)). There is no requirement for the Delay Damages to have been actually deducted.  It is not clear what the position would be if the Contractor claims an EOT and it is granted by the DAAB or arbitrator after termination so that the Delay Damages are reduced below the cap.  Would the termination then be unlawful? 

By |January 27th, 2018|Dispute Boards, Knowledge Hub|Comments Off on FIDIC 2017 Books – Clause 15 – Termination by Employer

Sub-Clause 1.15: Limitation of Liability

The substance of this provision was already in Sub-Clause 17.6 in the 1999 edition and has now been separated from other provisions dealing with Risk and Responsibility. As before it generally exempts parties from liability to the other for “loss of use of any Works, loss of profit, loss of any contract or any indirect or consequential loss” except in respect of a list of identified Sub-Clauses. The list has been extended and several of the changes are very significant. It also limits liability to certain levels in some circumstances. Finally, it excludes parties from cover by the exemption and limits in certain circumstances. All three elements have changed.

By |January 27th, 2018|English Law, Knowledge Hub|Comments Off on Sub-Clause 1.15: Limitation of Liability
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