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The New DBO Document
The format of the new document follows the traditional format and layout of previous FIDIC documents, with 20 clauses, and, where appropriate, using the same terminology and definitions which are found in the other documents.
One improvement over the 1999 documents is the fact that the DBO document contains a list of Contents at the beginning so that the reader can easily find his way around the document and know where to look for what.
If you look at the Contents Page, you will see the document is divided into four comprehensive sections:
Introduction
Acknowledgements
Foreword
Notes
Flow Charts
General Conditions
General Conditions of Contract
General Conditions of Dispute Adjudication Agreement
Procedural Rules for DAB Members
Particular Conditions
Part A – Contract Data
Part B – Special Provisions
Sample Forms
Forms of Tender and Agreement
Forms of Security and Guarantee
Also there has been some restructuring of the clauses and clause layout, partly due to the nature and content of the DBO contract, and partly introducing improvements to the structure of the 1999 documents.
Although the new document follows the same traditional approach and overall attempt to provide a fair and balanced form of contract for which FIDIC is recognized by most employers and financial institutions round the World, we have also introduced a number of improvements to the 1999 documents based on feed back from users around the World. So this document does not blindly follow the 1999 documents. It follows the philosophy reflected in those documents, but it includes modern and up-dated thinking appropriate to the needs of today’s market.
One area where we have made a number of improvements is that of handling and resolving disputes. Our aim has been to avoid disputes rather than just resolve them, and we have introduced new provisions dealing with potential conflicts, which we believe will be welcomed by all users of the new document.
The DBO document assumes an organization similar to the Silver Book, with the Employer, the Contractor and the Employer’s Representative as being the principal parties – and there are the same ‘secondary parties’ as we find in the other documents: banks, insurance brokers, dispute boards and so on.
In many areas it is also necessary to differentiate between the different stages of the project:
Design and planning
Build and construction
Operation and maintenance
Having said that, it is equally important to ensure that the three stages are coordinated into one comprehensive single contract with on-going and clear responsibilities and obligations for both Parties, so that we avoid the situation that the Parties look at each other and say - What happens now?
We hope we have provided most of the answers.
We have also introduced a number of improvements based on experience and feedback from users of the 1999 documents.
? As mentioned, we now have a Contents Page
? Definitions are listed alphabetically
? We have some new definitions – “Dispute” and “Notice”.
? Employer’s Claims has been moved from Clause 2.5 into Clause 20 (20.2)
? We no longer use the term “Force Majeure”
? Risk and Insurance provisions have been revised
? Claims and dispute procedures have been tightened up and now include new provisions promoting the “Avoidance of Disputes” where we are aiming at avoiding conflict rather than just solving disputes. We have also addressed the problem of how to deal with a Party which fails to honour a DAB award.
During the Seminar, we will be looking at a number of the key issues and procedures and there will be plenty of opportunity for you to raise any points or questions.
Of course, the proof of the pudding is in the eating, and it will be a little while before we receive feedback from people who have actually used the book.
But when you do use the new document, or if anyone has viewpoints on the content of the document, please let us have your thoughts and comments.
Thank You
September 2008
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