Disputes in construction projects can cause cost and time overruns that can be detrimental to the parties involved and to the project. Several measures have been advocated by the industry in an attempt to avoid disputes and their adverse impacts. One of these measures is the introduction of advance warning sub-clauses in construction contracts, where the contracting parties play a proactive and collaborative role in warning each other of potential adverse impacts to the project. Such clauses have been in the NEC suite of standard construction contracts for decades and have recently found their way to the 2017 edition of the FIDIC Red Book. In light of the consistent popularity of the FIDIC contract in the Egyptian construction industry for nearly three decades, this study explores the practical and legal challenges of implementing sub-clause 8.4 [Advance Warning] of the 2017 edition of the FIDIC Red Book in the Egyptian construction market. Through carefully crafted scenarios and interview questions that are derived from an extensive literature review on the topic, interviews are conducted with practitioners in the industry to explore the extent of the market’s willingness to adhere to the obligations set forth in sub-clause 8.4.

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Practicality of Implementing Sub-clause 8.4 [Advance Warning] of the FIDIC 2017 Red Book in Egypt

  • Gehad Ibrahim,
  • Waleed El-Nemr,
  • Ahmed Samer Ezeldin

摘要

Disputes in construction projects can cause cost and time overruns that can be detrimental to the parties involved and to the project. Several measures have been advocated by the industry in an attempt to avoid disputes and their adverse impacts. One of these measures is the introduction of advance warning sub-clauses in construction contracts, where the contracting parties play a proactive and collaborative role in warning each other of potential adverse impacts to the project. Such clauses have been in the NEC suite of standard construction contracts for decades and have recently found their way to the 2017 edition of the FIDIC Red Book. In light of the consistent popularity of the FIDIC contract in the Egyptian construction industry for nearly three decades, this study explores the practical and legal challenges of implementing sub-clause 8.4 [Advance Warning] of the 2017 edition of the FIDIC Red Book in the Egyptian construction market. Through carefully crafted scenarios and interview questions that are derived from an extensive literature review on the topic, interviews are conducted with practitioners in the industry to explore the extent of the market’s willingness to adhere to the obligations set forth in sub-clause 8.4.