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ECC VS FIDIC

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20 views4 pages

ECC VS FIDIC

Uploaded by

Moataz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Egyptian construction law

V.S
FIDIC

CMAD 010 CIVIL LAW

islam yousef Shawky


ID 700205176
As FIDIC form of contract is based on Common Law Principles on the contrary Egyptian legal system is
based on Civil Law system. Therefore, it is not surprising to find conflicts and compatibilities between
them.so it is an importance to be considered at contract to avoid contract terminate and disputes.

If we take a look in Egyptian construction law and look at the versus clause at FIDIC we find the
followings:

-Article 646: Construction Contract Definition. FIDIC Clause 1.1.1

The two legal are the same contract agreement, letter of acceptance as well as in the Egyptian Law the
contract should be with price.

-Article 647: Scope of work.

Scope of work for contractor may be supply and install or install only, no contradiction with FIDIC as it
isn’t mentioned the scope of work so the offer will define the specified scope.

-Article 648: Warranty against quality. FIDIC Clause 11.2&11.3

Warranty period not determined for material supplied by Contractor, the difference at FIDIC a defects
notification Period shall not be extended by more than two years.

-Article 649: Contractor liability for material supplied by Employer. FIDIC Clause 4.20

No contradiction with FIDIC


We can describe the process at FIDIC as following:
a-the Contractor shall visually inspect material, and notice Engineer of any shortage, defect or default.
b-The Employer shall immediately rectify the notified shortage, defect or default.
c-After visual inspection the material shall come under the care, custody and control of the Contractor.

-Article 650: Failure to remedy defect FIDIC Clause 11.4


Egyptian law and FIDIC similar

If the Contractor fails to remedy any defect within a reasonable time fixed by Employer, remedial work
was to be executed at the cost of the Contractor and if the defect or damage deprives the Employer of
substantially the whole benefit of the works or any major part of the works, terminate the Contract as
a whole.

-Article 651,652,653 & 654: Ten years compulsory insurance covers latent defects. Not at FIDIC
It is necessary to clarify the extent and limits to cover, as well as the responsibilities of the parties
involved, also article 653 terminate any provisions relief designer or contractor from Ten years
compulsory insurance responsibilities.

-Article 655: Taking Over Certificate FIDIC Clause 10


Comply with FIDIC 10.2 (a) the part which is used shall be deemed to have been taken over as from the
date on which it is used.

-Article 656: Payment for the contractor is due for approved works. FIDIC Clause 14.7
-FIDIC determine the time as within 56 days after the Engineer receives the Statement and supporting
documents.
-Article 657: Remeasure Contract. FIDIC based on a Remeasure Contract.
1-Change in quantities. fixed price without limit for quantities
FIDIC Clause 12.3
A new rate or price shall be appropriate for an item of work if
- item quantities are changed by more than 10%.
- this item exceeds 0.01 % of the Accepted Contract Amount
-this change in quantity directly changes the Cost per unit quantity of this item by more than 1 %, and this
item is not specified in the Contract as a "fixed rate item".
B- Variations and adjustments for new items.

-Major change in BOQ the employer can terminate the contract without slowdown and to pay for the
Contractor all finished works without any charges for the expected profit which the contractor will get if
complete the works.
FIDIC Clause 2.4 but didn’t mention the employer right to terminate the contract.
Reasonable evidence that financial arrangements have been made and are being maintained which will
enable the Employer to pay the Contract Price.

-Article 658: Lumpsum Contract. FIDIC based on a Remeasure Contract but hint for lumpsum items at
FIDIC Clause 14.1 b) To submit breakdown for each item to use at payment.
- Change or addition should be written and may be verbal if the contract is verbal Item Rate should
approve from contractor before execute.
FIDIC Clause 13.3 Change should written and shouldn’t delay for cost.
- If the Engineer requests a proposal, prior to instructing a Variation, the Contractor shall
respond in writing as soon as practicable, The Contractor shall not delay any work whilst awaiting a
response each instruction to execute a Variation, with any requirements for the recording of Costs.

-Article 659: Cost-Plus Contract Not at FIDIC may be used the concept of cost-plus at Clause 12.3 for
new rate as Cost of executing the work, together with reasonable profit, taking account of any other
relevant matters.to use as provisional rate at Interim Payment Certificate till agree the new price.

-Article 660: Engineering Payment Not at FIDIC.

-Article 661: Contractor can subcontract the whole of the works. At FIDIC Clause15.2 d) The Employer
shall be entitled to terminate the Contract if the Contractor subcontracts the whole of the Works or
assigns the Contract without the required agreement.

-Article 662: Labours and subcontractors of the contractor can claim the Employer by the amounts due
from the contractor. only ably for Nominated Sub-Contractor FIDIC Clause 5.4 the Contractor to supply
reasonable evidence that the nominated Subcontractor has received all amounts due in accordance with
previous Payment Certificates.

-Article 663: Employer can terminate the contract at any time and to pay for the Contractor all expenses,
all finished works and the expected profit which the contractor will get if complete the works however the
court can reduce the compensation.at FIDIC the Compensation at Clause 15.5 Not clear .

-Article 664: Force Majeure FIDIC Clause 19.6 After total more than 140 days due to the same notified
Force Majeure, the termination shall take effect 7 days after the notice is given.
-Article 665: : Payment and Release Force Majeure any works or material not hand over to Employer
The Contractor will paid. At FIDIC Clause 19.6 the Employer will pay all the following :

The Engineer shall determine the value of the work done and issue a Payment Certificate which shall
include:
(a) the amounts payable for any work carried out for which a price is stated in the Contract.
(b) the Cost of Plant and Materials ordered for the Works which have been delivered to the Contractor, or
of which the Contractor is liable to accept delivery: this Plant and Materials shall become the property of
(and be at the risk of) the Employer when paid for by the Employer, and the Contractor shall place the
same at the Employer's disposal; any other Cost or liability which in the circumstances was reasonably
incurred by the Contractor in the expectation of completing the Works;
(d) the Cost of removal of Temporary Works and Contractor's Equipment from the Site and the return of
these items to the Contractor's works in his country (or to any other destination at no greater cost); and
(e) the Cost of repatriation of the Contractor's staff and labour employed wholly in connection with the
Works at the date of termination.

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