Has the project scope changed, has execution been delayed, or have additional costs arisen? The problem does not start when the claim is submitted, but when the contract has not been read in a way that protects your position.
FIDIC contracts in Saudi Arabia help regulate the relationship in construction and engineering projects by defining the responsibilities of the employer, contractor, and engineer, as well as the mechanisms for dealing with variations, delays, and claims. However, using a FIDIC model does not mean that all contracts are identical, as the edition and amendments may affect the application of certain clauses.
What Are FIDIC Contracts in Saudi Arabia?
FIDIC provides internationally recognized contractual models for construction and engineering projects. FIDIC contracts in Saudi Arabia are used as a contractual framework that can be adapted to the nature of each project while taking into account the Saudi laws governing the contractual relationship.
FIDIC models include General Conditions and guidance for preparing Particular Conditions according to the project. These contracts regulate the scope of work, duration, payments, variations, claims, handover, and dispute resolution.
The Saudi Civil Transactions Law also regulates construction contracts and the obligations of their parties. Therefore, a FIDIC contract should not be read separately from the applicable law and the signed contract.
What Are the Most Important FIDIC Contract Conditions?
FIDIC contract conditions define the rights of the parties and the procedures for managing the project. Therefore, they should be understood clearly before execution or before submitting any claim.
The most important conditions include:
- Time and delay: Regulating the execution period and extensions of time.
- Variations: Defining the mechanism for changing the scope of work.
- Payments: Regulating entitlements and payment dates.
- Notices: Defining the method and deadlines for notifying the parties.
- Claims: Explaining the procedures for claiming additional time or cost.
- Dispute resolution: Determining the process to be followed when a dispute arises.
The importance of FIDIC contract conditions increases when the standard form has been amended. Therefore, the signed version of the contract should always be reviewed rather than relying only on the standard conditions.
What Is the Difference Between the General and Particular Conditions for Construction Contracts?
The general and particular conditions for construction contracts should be read together. The General Conditions provide the standard contractual framework, while the Particular Conditions include project-specific information and agreed amendments.
| General Conditions | Particular Conditions |
| Represent the basic standard rules | Customize the contract according to the project |
| Regulate standard obligations and procedures | May add or amend certain clauses |
FIDIC editions include General Conditions together with guidance for preparing Particular Conditions. The general and particular conditions for construction contracts may affect risk allocation, claims procedures, or notice periods. Therefore, relying on the standard wording alone may not be sufficient.
What Are the Main FIDIC Provisions During Project Execution?
FIDIC provisions become particularly important during project management, especially when variations, delays, or claims arise.
The main provisions include:
- Engineer’s instructions: And their implementation within the limits of the contract.
- Extension of time: When events affect the project completion period.
- Event records: To document circumstances affecting execution.
- Notices: To preserve positions and claims within the required deadlines.
- Payments: Regulating entitlements and payment procedures.
- Variations: Determining their effect on time and cost.
FIDIC provisions vary depending on the edition and contractual amendments. Therefore, the signed version should be reviewed before relying on any specific clause or deadline.
How Is a FIDIC Contractor Claim Prepared?
A FIDIC contractor claim arises when the contractor believes that an event gives rise to a contractual entitlement to additional time or cost. A well-prepared claim connects the event, the relevant contractual clause, and the resulting impact.
Common situations include changes to the scope of work, delayed access to the site or information, and instructions that affect the project schedule or cost.
To prepare the claim clearly, the contractor should rely on notices, correspondence, the project schedule, instructions, project records, and documents showing the resulting cost or delay.
To better understand how contractual rights can be protected from the outset, you can review the Contracts and Agreements Service offered by Saad Fahad Al-Duraihem Law Firm and Legal Consultations.
Is There a Deadline for Giving Notice of a Claim?
Yes, but the applicable edition and the actual signed contract must be reviewed. Published FIDIC materials refer to a 28-day notice period in certain forms, and failure to comply with the required period may affect entitlement.
However, the Particular Conditions may amend the procedure. Therefore, the 28-day period should not automatically be applied to every FIDIC contract.
For this reason, a FIDIC contractor claim should begin with reviewing the contractual procedure as soon as the relevant event occurs, rather than waiting until the project is completed.
How Do FIDIC Contracts Deal With Delay and Extension of Time?
Delay is one of the most common issues giving rise to claims under FIDIC contracts in Saudi Arabia. The key question is not simply: Was the project delayed? Instead, what caused the delay, who was responsible for it, and did it affect the completion date?
When assessing a delay, the following should be identified:
- Its cause.
- The date on which it occurred.
- Its effect on the project schedule.
- The documents supporting that effect.
These factors may result in a FIDIC contractor claim for an extension of time or additional cost where the contractual requirements for entitlement are met.
How Are Disputes Resolved Under FIDIC Contracts?
Dispute resolution begins with reviewing the contract, identifying the cause of the disagreement, and determining the agreed contractual process, as FIDIC provisions vary according to the form, edition, and amendments.
The main dispute resolution methods may include:
- Negotiation: To attempt to resolve the dispute directly between the parties.
- Dispute Avoidance or Adjudication Board: Where provided for under the relevant contract and edition.
- Amicable settlement: Before moving to a more formal stage.
- Arbitration: Where the previous mechanisms do not resolve the dispute.
- Review of the governing law: Particularly in FIDIC contracts in Saudi Arabia, to determine the effect of Saudi law on the dispute.
Before escalating the matter, the technical, time-related, and financial records should be collected, and the disputed claim should be clearly identified.
Why Should a FIDIC Contract Be Reviewed Before Signing?
One of the main risks in FIDIC contracts in Saudi Arabia is signing an amended version without understanding the effect of those amendments. Therefore, the general and particular conditions for construction contracts should be compared carefully to identify clauses that may transfer additional risks to one party.
Before signing, review the FIDIC contract conditions relating to:
- Delay and extension of time.
- Variations.
- Notices.
- Risk allocation.
- Payments.
- Dispute resolution.
Early review of the FIDIC contract conditions also helps determine what documents and records should be maintained during project execution.
If you have an existing contract or a claim related to a project, you can contact Saad Fahad Al-Duraihem Law Firm and Legal Consultations to review the contract, assess the claim, and determine the appropriate legal options based on the facts of the project.
Frequently Asked Questions About FIDIC Contracts in Saudi Arabia?
Do All FIDIC Contracts Apply the Same Conditions?
No. The forms and editions differ, and clauses may also be amended through the general and particular conditions for construction contracts contained in the signed agreement.
What Is the Most Important Element of a Contractor’s Claim?
The most important factors supporting a FIDIC contractor claim are compliance with the contractual procedure and proper documentation of the event and its effect on time or cost. Early contract review, notices, and project records also play an important role in protecting the claim.
Does the 28-Day Notice Period Apply to All FIDIC Contracts?
No. This period appears in claim procedures under certain editions, but the relevant FIDIC contract conditions, edition, and amendments must be reviewed before determining the applicable deadline.
Do FIDIC Provisions Override Saudi Law?
No. FIDIC provisions are contractual terms and are not a substitute for the applicable law. They must be read together with the signed contract and the relevant Saudi la