The rendering of consultations and a fair determination by the engineer under construction contracts

Abstract

Construction is a thriving industry filled with outstanding projects shaping and redefining our world as we know it. That being the bright side of the story, the industry is also packed with disputes worth millions of dollars. Any chance of reconciling interests as well as bridging the gap between parties would be beneficial for a more peaceful and dispute free work environment. The 1999 FIDIC Red Book manages the Employer-Contractor relationship in construction contracts. The Engineer, an Employer’s personnel under the contract, consults with both parties in an attempt to reach an agreement on Contractor claims under sub-clause 3.5 [Determinations] and makes a fair determination in case an agreement could not be reached. Reaching an agreement is favorable as that prevents the claim from escalating into a dispute. The aim of this thesis is to devise a protocol for carrying out consultations and investigating the constituents of a fair determination to be rendered by the Engineer. This promotes an early window on the FIDIC claim-dispute progression timeline for attempting amicable settlement, preserving healthy relationships between parties and avoiding costly consequences.