FIDIC Letters by Contractor: Best Practices and Common Mistakes to Avoid

What are FIDIC Letters by Contractor?

If you are a contractor working on a civil engineering project, you may have heard of FIDIC letters by contractor. But what are they exactly and why are they important?

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FIDIC stands for Federation Internationale des Ingenieurs-Conseils, which is French for International Federation of Consulting Engineers. FIDIC is an organization that publishes standard forms of contracts for various types of engineering and construction projects. One of these contracts is the Conditions of Contract for Works of Civil Engineering Construction, also known as the Red Book, which was first published in 1957 and revised in 1987.

FIDIC letters by contractor are written communications that the contractor sends to the employer or the engineer under the Red Book contract. These letters serve different purposes depending on their type and content. They can be used to request information, clarification, approval, consent, extension of time, reimbursement of costs, or notification of events or circumstances that affect the contract. They can also be used to express dissatisfaction, disagreement, or objection to any instruction, decision, or action taken by the employer or the engineer.

The main purpose of FIDIC letters by contractor is to ensure that all parties are aware of their rights and obligations under the contract and that any issues or disputes are resolved amicably and promptly. By using FIDIC letters by contractor, the contractor can protect its interests, avoid misunderstandings, document its performance, and facilitate communication with the employer and the engineer.

Types of FIDIC Letters by Contractor

There are many types of FIDIC letters by contractor that can be used for different situations and purposes. The following table summarizes some of the main types of letters and their corresponding contract clauses.

Type

Subject

Contract Clause

Agreement or objection to assignment by the employer

The contractor agrees or objects to the employer's intention to assign its rights and obligations under the contract to a third party.

1.1 (a)

Request for written notification of the delegated powers of the engineer

The contractor requests the employer to provide a written notification of the powers and authority that the engineer has delegated to its representative.

2.2

Dissatisfaction with an instruction of the engineer's representative

The contractor expresses its dissatisfaction with an instruction given by the engineer's representative and requests the engineer to confirm, vary, or cancel it.

2.3 (b)

Request for consent to sublet

The contractor requests the employer's consent to sublet any part of the works to a subcontractor.

4

Request for clarification of ambiguity or discrepancy in the documentation and possible additional cost

The contractor requests the engineer to clarify any ambiguity or discrepancy in the contract documents and notifies the engineer of any additional cost that may arise from such clarification.

5.2

Request for additional information, disruption of progress

The contractor requests the engineer to provide any additional information that is necessary for the execution of the works and notifies the engineer of any disruption of progress that may result from the delay in providing such information.

6.3

Notice of delay in the issue of any drawing or instruction

The contractor notifies the engineer of any delay in the issue of any drawing or instruction that is required for the execution of the works and claims an extension of time and/or additional cost that may result from such delay.

6.4

Submission of design work for approval

The contractor submits any design work that it is required to carry out under the contract to the engineer for approval.

7.2

Performance security

The contractor provides a performance security to the employer as a guarantee for the due performance of its obligations under the contract.

10.1

... (more rows)

For each type of letter, there is a standard format and content that should be followed. The FIDIC organization provides a guide on how to write FIDIC letters by contractor, which can be found here. The guide also provides examples of each type of letter with comments and explanations.

How to Write FIDIC Letters by Contractor

Writing FIDIC letters by contractor is not a difficult task, but it requires some attention and care. Here are some general guidelines on how to write FIDIC letters by contractor effectively and professionally.

Format

The format and structure of FIDIC letters by contractor should be consistent and clear. The following elements should be included in every letter:

• A letterhead with the contractor's name, address, and contact details.

• A reference number and a date.

• A subject line that summarizes the purpose and content of the letter.

• A salutation that addresses the recipient by name or title.

• An introduction that states the reason for writing and provides some background information.

• A body that contains the main message and information of the letter, organized into paragraphs with headings and subheadings if necessary.

• A conclusion that summarizes the main points and requests or suggests a response or action from the recipient.

• A complimentary close that ends the letter politely and respectfully.

• A signature with the name and position of the sender.

• An enclosure or attachment if any document is attached to the letter.

• A copy or carbon copy if any other party is copied on the letter.

An example of a FIDIC letter by contractor with this format is shown below:

Contractor's Letterhead Ref: CL/001/2021 Date: 1 January 2021 Subject: Request for consent to sublet Dear Mr. Smith, We are writing to request your consent to sublet a part of the works under Contract No. 1234 for the Construction of ABC Bridge.

the main span of the bridge. The scope and terms of the subletting are detailed in the attached Subcontract Agreement. We believe that subletting this part of the works to XYZ Ltd. will not affect our overall responsibility and liability for the works under the contract. We will ensure that XYZ Ltd. complies with all the relevant specifications, standards, and regulations applicable to the works. We will also supervise and coordinate the work of XYZ Ltd. and provide you with regular progress reports. We kindly request you to review the attached Subcontract Agreement and provide us with your written consent to sublet this part of the works to XYZ Ltd. as soon as possible. If you have any questions or concerns, please do not hesitate to contact us. We look forward to hearing from you soon. Yours sincerely, John Doe Project Manager Enclosure: Subcontract Agreement CC: Engineer

Benefits of Using FIDIC Letters by Contractor

Using FIDIC letters by contractor can bring many benefits to both the contractor and the employer. Some of these benefits are:

• They provide a clear and formal record of the communication between the parties and help avoid any ambiguity or misunderstanding.

• They document the performance and progress of the contractor and help monitor and evaluate the quality and quantity of the works.

• They protect the rights and interests of the contractor and help claim any extension of time or additional cost that may be due to unforeseen events or circumstances.

• They facilitate the resolution of any issues or disputes that may arise during the execution of the works and help prevent escalation or litigation.

• They enhance the relationship and cooperation between the parties and help achieve mutual satisfaction and trust.

the engineer's representative, the contractor can request the engineer to confirm, vary, or cancel it and avoid any conflict or disagreement.

Challenges and Risks of Using FIDIC Letters by Contractor

Using FIDIC letters by contractor can also pose some challenges and risks to both the contractor and the employer. Some of these challenges and risks are:

• They require a lot of time and effort to write and review and may cause delays or interruptions in the execution of the works.

• They may contain errors or omissions that may affect the validity or enforceability of the letters or the contract.

• They may be misinterpreted or misunderstood by the recipient and may cause confusion or disputes.

• They may be ignored or rejected by the recipient and may lead to frustration or dissatisfaction.

• They may be used as evidence against the sender in case of litigation or arbitration and may harm its reputation or credibility.

the employer, the contractor may be misunderstood or misinterpreted by the employer and may create a conflict or breach of contract.

Best Practices for Using FIDIC Letters by Contractor

To avoid or minimize the challenges and risks of using FIDIC letters by contractor, the contractor should follow some best practices when writing and sending these letters. Some of these best practices are:

• Use the standard format and content provided by the FIDIC organization and follow the contract clauses and conditions.

• Write clearly and concisely and use simple and precise language.

• Provide accurate and complete information and evidence to support the message and claims.

• Use a professional and respectful tone and avoid any offensive or aggressive words or expressions.

• Send the letters in a timely manner and keep a copy for future reference.

• Follow up on the letters and seek confirmation or feedback from the recipient.

and keeping a copy for future reference, the contractor can document its performance and progress and protect its interests. By following up on the letters and seeking confirmation or feedback, the contractor can ensure that its letters are received and acknowledged and that any issues or disputes are resolved promptly.

Conclusion

FIDIC letters by contractor are written communications that the contractor sends to the employer or the engineer under the FIDIC Conditions of Contract for Works of Civil Engineering Construction (Red Book, 4th Ed). These letters serve different purposes depending on their type and content. They can be used to request information, clarification, approval, consent, extension of time, reimbursement of costs, or notification of events or circumstances that affect the contract. They can also be used to express dissatisfaction, disagreement, or objection to any instruction, decision, or action taken by the employer or the engineer.

Using FIDIC letters by contractor can bring many benefits to both the contractor and the employer. They can help avoid misunderstandings, document performance, protect rights, resolve issues, and facilitate communication. However, using FIDIC letters by contractor can also pose some challenges and risks to both the contractor and the employer. They can cause delays, errors, disputes, frustration, or litigation. Therefore, the contractor should follow some best practices when writing and sending these letters. They should use the standard format and content provided by the FIDIC organization, write clearly and concisely, provide accurate and complete information and evidence, use a professional and respectful tone, send the letters in a timely manner and keep a copy for future reference, and follow up on the letters and seek confirmation or feedback.

If you want to learn more about FIDIC letters by contractor and how to write them effectively and professionally, you can check out the guide provided by the FIDIC organization here. You can also find some examples of FIDIC letters by contractor with comments and explanations here.

FAQs

Here are some frequently asked questions about FIDIC letters by contractor:

• What is FIDIC?

FIDIC stands for Federation Internationale des Ingenieurs-Conseils, which is French for International Federation of Consulting Engineers. FIDIC is an organization that publishes standard forms of contracts for various types of engineering and construction projects.

• What is FIDIC Red Book?

FIDIC Red Book is one of the standard forms of contracts published by FIDIC. It is also known as the Conditions of Contract for Works of Civil Engineering Construction. It was first published in 1957 and revised in 1987. It is suitable for projects where the design is carried out by or on behalf of the employer.

• What are FIDIC letters by contractor?

clarification, approval, consent, extension of time, reimbursement of costs, or notification of events or circumstances that affect the contract. They can also be used to express dissatisfaction, disagreement, or objection to any instruction, decision, or action taken by the employer or the engineer.

• Why are FIDIC letters by contractor important?

FIDIC letters by contractor are important because they ensure that all parties are aware of their rights and obligations under the contract and that any issues or disputes are resolved amicably and promptly. By using FIDIC letters by contractor, the contractor can protect its interests, avoid misunderstandings, document its performance, and facilitate communication with the employer and the engineer.

• How to write FIDIC letters by contractor?

To write FIDIC letters by contractor effectively and professionally, the contractor should follow some general guidelines. They should use the standard format and content provided by the FIDIC organization and follow the contract clauses and conditions. They should write clearly and concisely and use simple and precise language. They should provide accurate and complete information and evidence to support the message and claims. They should use a professional and respectful tone and avoid any offensive or aggressive words or expressions. They should send the letters in a timely manner and keep a copy for future reference. They should follow up on the letters and seek confirmation or feedback from the recipient. 71b2f0854b