The new FIDIC Yellow Book means:
- New formal procedures with an increased burden on the parties to follow specific requirements for notifications.
- An increased likelihood that a party that fails to strictly follow the formal procedures will lose the right to make a claim (both with respect to extension of time and cost compensation), also if the claim as such is justified.
- That the Employer’s claims will be subject to the same formal procedures as the Contractor’s claims.
- A substantially increased risk exposure for the Contractor in connection with the requirement that the design shall be fit for the purpose.
- That it is uncertain how some of the carve-outs from the limitations of liabilities shall be interpreted.
It can be highly recommended that all project managers, both on the Employer and the Contractor side, receive training in the new formal procedures before leading projects based on the new FIDIC Yellow Book. Read the memorandum here.