FIDIC CONTRACTS

The Role of the Engineer under FIDIC
Contracts
The Role of the Engineer

under FIDIC Contracts
The Engineer plays a central role in FIDIC contracts, acting

as an intermediary between the Employer and the
Contractor while ensuring that contractual obligations are
executed fairly and efficiently. FIDIC's Standard Forms of
Contract, such as the Red Book (Construction), Yellow
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Contracts
Book (Design-Build), and Silver Book (EPC), define the

duties and authority of the Engineer with precision. This
article explores the multifaceted role of the Engineer in
FIDIC contracts under 10 key subheadings.
1. Appointment and Authority of the Engineer
• The Engineer is appointed by the Employer as per

Sub-Clause 3.1 of the FIDIC Red and Yellow Books.
• The Engineer’s authority, including delegation to
assistants, is outlined clearly within the contract.
• They act as an agent for the Employer but are
expected to operate impartially when performing
certain tasks.
• The Engineer's decisions, particularly regarding
payments and claims, require adherence to contract
conditions.
• Any delegation of duties must be communicated to the
Contractor in writing.
Contracts
• The Employer must ensure that the Engineer has

sufficient expertise and independence.
• In Design-Build contracts, the Engineer may evaluate
both design and construction.
• The Engineer's authority may be limited under EPC
contracts, where the Employer takes on a direct
supervisory role.
• Clear terms of reference are critical to avoiding
disputes over the Engineer’s powers.
• If the Engineer exceeds their authority, their decisions
could be deemed unenforceable.
2. Role in Design Review and Approval
• Under FIDIC's Yellow Book, the Engineer reviews the

Contractor’s design submissions as per Sub-Clause
5.2.
Contracts
• Design submissions must meet the requirements

outlined in the Employer’s Requirements.
• The Engineer can either approve, reject, or request
modifications within the specified period.
• Timely responses from the Engineer are essential to
avoid project delays.
• The Engineer must maintain clear records of all
approvals and correspondence.
• Approval of a design does not absolve the Contractor
of liability for any defects.
• Disputes can arise if the Engineer unreasonably
delays or rejects submissions.
• The Engineer ensures that the design complies with
safety and performance standards.
• They also monitor that the designs align with
applicable codes and regulations.
• Collaborative engagement between the Contractor
and the Engineer fosters efficiency in design reviews.
Contracts
3. Supervision of Works on Site
• The Engineer ensures that the work complies with the

contract specifications, drawings, and Employer's
Requirements.
• Site inspections and progress monitoring are key
aspects of this supervisory role.
• They instruct the Contractor to rectify non-conforming
or defective work.
• Sub-Clause 4.6 permits the Engineer to approve or
inspect temporary works.
• The Engineer issues site instructions, clarifying
ambiguities or omissions in the contract documents.
• They act as a point of communication for site-related
challenges between the Contractor and Employer.
• Health, safety, and environmental compliance are
monitored by the Engineer.
Contracts
• Detailed site records are maintained, which are

critical for dispute resolution.
• The Engineer ensures that work schedules are
adhered to, avoiding critical path delays.
• Regular site meetings with all stakeholders are
conducted to resolve technical challenges.
4. Measurement and Certification of Works
• The Engineer is responsible for measuring the work

completed as per Sub-Clause 14.1.
• Measurement may involve detailed verification of
quantities in the Bill of Quantities (BoQ).
• The Engineer issues Interim Payment Certificates
(IPCs) based on the verified work.
• They must ensure that measurements and valuations
are accurate and fair.
Contracts
• Mismeasurement could lead to claims, disputes, and

payment delays.
• Under the Red Book, the Engineer also certifies
variations that affect payment.
• They must act impartially when determining payment
amounts to the Contractor.
• Proper documentation, such as daily reports, ensures
transparency in measurement.
• Sub-Clause 14.6 specifies the timeframe for issuing
payment certificates.
• Timely certification is crucial to maintaining the
Contractor’s cash flow and project momentum.
5. Evaluation and Management of Variations
• Variations are addressed under Clause 13, and the

Engineer plays a pivotal role in their administration.
Contracts
• The Engineer issues instructions for variations,

ensuring clarity and alignment with the contract.
• They evaluate the impact of variations on cost, time,
and quality.
• Approval from the Employer may be required for
significant variations.
• Variations must be formally documented, preventing
ambiguities during dispute resolution.
• The Engineer ensures that variation claims are
submitted with sufficient supporting details.
• They assess the necessity of variations arising due to
unforeseen conditions or design changes.
• Failure to address variations promptly can lead to
project delays or cost overruns.
• The Engineer must act fairly when evaluating variation
costs under Sub-Clause 12.3.
• Proper coordination with both the Employer and
Contractor mitigates conflicts.
Contracts
6. Determining Contractor’s Claims
• Clause 20 of FIDIC outlines the Contractor’s

entitlement to claims for time and cost.
• The Engineer reviews claims submitted under Sub-
Clause 20.1, ensuring proper documentation.
• Claims may arise due to variations, delays, unforeseen
events, or adverse conditions.
• The Engineer must respond to claims within the
timeframe specified in the contract.
• Fair and impartial assessment of claims is critical for
maintaining trust.
• The Engineer requests additional details if the claim
lacks sufficient evidence.
• A failure to evaluate claims on time can escalate
disputes to the Dispute Adjudication Board (DAB).
• Proper record-keeping and contemporaneous
evidence are key in claim determinations.
Contracts
• Engineers must provide reasoned determinations

when accepting or rejecting claims.
• Acting impartially under this role ensures contractual
fairness and project continuity.
7. Role in Dispute Prevention and Resolution
• Engineers play a key role in preventing disputes by

proactively addressing ambiguities.
• Early identification of potential disputes through
regular site meetings and communication is crucial.
• Sub-Clause 3.5 allows the Engineer to issue
determinations when disagreements arise.
• If a dispute escalates, the Engineer’s decisions serve
as critical records for the DAB or arbitration.
• Maintaining impartiality reduces the risk of claims
being disputed further.
Contracts
• Engineers must ensure that their instructions and

decisions are well-documented.
• Effective communication with both parties fosters
trust and collaboration.
• Engineers should recommend amicable solutions to
avoid prolonged disputes.
• Engineers assist in assessing EOT and delay claims to
minimize disagreements.
• Proper training in dispute avoidance strategies
enhances the Engineer’s role.
8. Monitoring Project Timelines and Delays
• Engineers ensure that project timelines are adhered

to as per the approved program.
• Delays are analyzed to identify whether they are
excusable, compensable, or Contractor-caused.
Contracts
• Sub-Clause 8.3 requires Contractors to submit an

updated program for the Engineer’s review.
• Engineers assess the impacts of delays on critical
path activities and project completion.
• Timely responses to EOT claims prevent further
delays.
• Engineers recommend mitigation measures, such as
acceleration or resequencing of activities.
• Monitoring project milestones ensures proactive
management of potential overruns.
• Engineers record contemporaneous evidence to
resolve delay disputes.
• They must determine the Contractor’s entitlement to
extensions of time under Sub-Clause 8.4.
• Accurate delay analysis supports transparency and
fairness during EOT assessments.
Contracts
9. Role in Testing, Commissioning, and Defects Liability
• Engineers supervise testing and commissioning

processes to ensure performance compliance.
• Sub-Clause 9.1 outlines the testing requirements, with
the Engineer approving procedures and results.
• The Engineer ensures that commissioning activities
align with contract specifications.
• During the Defects Notification Period (DNP), the
Engineer identifies and instructs corrections.
• Engineers issue the Taking Over Certificate (TOC) upon
satisfactory completion of works.
• They assess the rectification of defects, ensuring
quality standards are met.
• Proper record-keeping ensures no defects are
overlooked before final handover.
• Engineers assist the Employer in identifying latent
defects and ensuring contractor compliance.
Contracts
• Delays in defect rectification can affect the release of

retention money.
• Timely resolution of defects safeguards project
completion and warranty periods.
10. Role of the Engineer in Acting Impartially
• Engineers are required to act fairly and impartially

when performing roles like issuing determinations.
• Impartiality fosters trust and reduces the risk of
disputes between the parties.
• Sub-Clause 3.5 explicitly highlights the Engineer’s
duty to act neutrally when resolving disagreements.
• Engineers must differentiate between their Employer-
agent role and decision-making neutrality.
• Bias or favoring one party can lead to prolonged
claims or arbitration.
Contracts
• Engineers should maintain independence while

reviewing claims, delays, and variations.
• Detailed records of impartial decisions strengthen
their enforceability.
• Engineers must communicate clearly and
transparently to avoid misunderstandings.
• Acting impartially enhances project efficiency and
promotes good faith among stakeholders.
• Training and experience are essential for Engineers to
balance conflicting project interests.
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The Role of the Engineer under FIDIC

The Role of the Engineer

The Engineer plays a central role in FIDIC contracts, acting

Book (Design-Build), and Silver Book (EPC), define the

1. Appointment and Authority of the Engineer

• The Engineer is appointed by the Employer as per

• The Employer must ensure that the Engineer has

2. Role in Design Review and Approval

• Under FIDIC's Yellow Book, the Engineer reviews the

• Design submissions must meet the requirements

3. Supervision of Works on Site

• The Engineer ensures that the work complies with the

• Detailed site records are maintained, which are

4. Measurement and Certification of Works

• The Engineer is responsible for measuring the work

• Mismeasurement could lead to claims, disputes, and

5. Evaluation and Management of Variations

• Variations are addressed under Clause 13, and the

• The Engineer issues instructions for variations,

6. Determining Contractor’s Claims

• Clause 20 of FIDIC outlines the Contractor’s

• Engineers must provide reasoned determinations

7. Role in Dispute Prevention and Resolution

• Engineers play a key role in preventing disputes by

• Engineers must ensure that their instructions and

8. Monitoring Project Timelines and Delays

• Engineers ensure that project timelines are adhered

• Sub-Clause 8.3 requires Contractors to submit an

9. Role in Testing, Commissioning, and Defects Liability

• Engineers supervise testing and commissioning

• Delays in defect rectification can affect the release of

10. Role of the Engineer in Acting Impartially

• Engineers are required to act fairly and impartially

• Engineers should maintain independence while

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