Fidic Conditions Of Contract Claim Legal Research

In FIDIC Contract, claim is during the course of execution of contract, when suffering losses, one party makes a request of benefit compensation and (or) extension of work period toward the other party according to laws, contract documents and conventions because of the other's default or some causes beyond one's burden of risks. In traditional international project claims' practice, claim often is defined as the request that the contractor make toward the employer, while the claim that the employer puts forward is called as counter-claim. In fact, counter-claim is an action that retorts claim. Claim and counter-claim are two ingredients that constitute a whole claim management. FIDIC Contract stipulates both contractor's claims and employer's claims. The contractor and employer have both the right of claim. Claim is compensatory, and it will obtain all indemnity in principle. It must be lodged on the base of actual loss and has a rigorous time bar. Claim can be divided into three classes: a claim caused by alteration of contract, a claim caused by breach of agreement of the opposing party and a claim caused by risk according to the legal feature of those reasons why create claims. A series of contract documents are the major basis for claim. Indemnity of breach contracts adopts strict liability as the principle of imputation. But where FIDIC Contract differs from traditional contract theories is that force majeure doesn't pass for an excuse free from responsibility. The employer should answer for contractor's loss which force majeure causes. In order to increase efficiency of dispute settlement, the Dispute Adjudication Board is introduced to settle claim disputes. At first, the dispute will be submitted to the engineer to confirm, and be decided by the Dispute Adjudication Board. If unsuccessful or without friendly resolution, it will be engaged in arbitrage.