INSIGHTS

FIDIC Clause 20 Time Limits: What Contractors Must Watch

The notice and claim deadlines in FIDIC 2017 Clause 20, what happens when they are missed, and a simple routine to stay on the right side of them.

Clear Axis · 3 min read

Clause 20 of the FIDIC 2017 Red Book covers claims by both the Employer and the Contractor. Its time limits are strict, and a late notice can bar a claim that is otherwise strong. Most lost entitlements we see were not lost on the merits. They were lost on a date.

The key dates for a Contractor's claim

• Notice of Claim (20.2.1): as soon as practicable, and no later than 28 days after the Contractor became aware, or should have become aware, of the event.

• Engineer's response (20.2.2): if the notice was late, the Engineer may say so within 14 days.

• Contemporary records (20.2.3): keep the records needed to support the claim from the start.

• Fully detailed claim (20.2.4): within 84 days of awareness, or another period agreed with the Engineer. It must include the contractual or legal basis of the claim.

• Continuing events (20.2.6): interim detailed claims at monthly intervals, and a final claim within 28 days after the effects end.

• Agreement or determination (20.2.5): the Engineer then proceeds under Sub-Clause 3.7, which has its own time limits.

• Notice of Dissatisfaction (3.7.5): a party unhappy with the determination must give notice within 28 days, or the determination becomes final and binding.

"Became aware, or should have become aware"

The 28 days do not start when the contractor's commercial team decides to claim. They start when the event was, or should have been, known on site. A late drawing, a site instruction or an access delay is usually known the day it happens. If the site team knew, the clock is running.

What happens if a notice is late

Under the 2017 Red Book, a Notice of Claim given after 28 days can mean the Contractor is not entitled to extra time or payment for that event. The contract gives a limited route to argue that a late submission was justified (Sub-Clause 20.2.5), but you should never plan on it. The 84-day detailed claim has a similar trap: if the statement of the contractual or legal basis is missing at that point, the notice can be treated as lapsed.

A routine that works

1. One owner. One person owns a notices register for the whole project.

2. Log the same day. Every event, instruction, late information or access problem goes in the register the day it appears.

3. Notice first. Send a short notice that identifies the event and the clause. Detail comes after.

4. Proof of delivery. Keep the transmittal, the email receipt or the signed copy.

5. Diarise the 84-day date. Put it in the calendar with a reminder two weeks before.

6. Monthly updates. For continuing events, set a fixed date each month for the interim claim.

7. Monthly review. Check the register against the site reports and the minutes. Anything discussed but not notified is a risk.

Earlier editions and amended contracts

The 1999 Red Book places claims, disputes and arbitration together in Clause 20: notice within 28 days and a detailed claim within 42 days. Many projects in the region still use it. And in every edition, the Particular Conditions often change the periods, sometimes making them shorter. Read your own contract before you rely on any date in this article.

This article is general information, not legal advice. Always check your contract and take legal advice on entitlement.