3 (H). ADDITIONAL TIME AND PAYMENT RISK UNDER CL 3

17.3 (h). Additional time and payment

Risk under cl 17.3: no

extension of time or

(but not profit) if the event was

additional payment unless

Unforeseeable (in the above sense)

specifically provided for.

or was one against which an

experienced contractor could not

reasonably have been expected to

have taken adequate precautions.

Yes (cl 4.1)

Yes (cl 4.1)

Design Responsibility: Must the

design, execute and complete

the works in accordance with

the contract so that when

completed the works will be

fit for the purposes for which

they were intended as defined

in the Contract?

Additional time and payment (plus

Errors in Employer’s

No additional time or

reasonable profit) if the error was

payment for unless an

Requirements

exception within cl 5.1

such that an experienced contractor

(a)–(d) applies

exercising due care would have

discovered the error when

scrutinising the ER (cl 1.9).

12

We have included in this table how the two Books deal with a related head of risk,

‘

Operations of the forces of Nature ’. These are defined in clause 17 of the Yellow Book as ‘

any

operation of the forces of nature which is Unforeseeable or against which an experienced contrac-

tor could not reasonably have been expected to have taken adequate preventative precautions ’ .

3 Types of Construction Contract

We have been looking so far at the different ways in which risk is allocated in

traditional and in turnkey projects and contrasting in particular the ‘balanced’

approach to risk in the FIDIC Red and Yellow Books with the ‘one-sided’ risk

profile of the Silver Book. We suggested that these different risk allocations

are a consequence of the very different dynamics applying to turnkey-type

projects, in which the financial pressures involved operate to make achieving

performance on time and to budget paramount.