FIDIC Red Book 2017 – Clauses
19, 20 & 21
Insurance, Claims & Disputes and
Arbitration
Clause 19 – 19.1 General
Requirements
• Each Party must maintain insurance required
under the Contract throughout the stated
period.
Clause 19 – 19.2 Insurance for
Works and Equipment
• Contractor must insure Works, Plant, and
Equipment from delivery until Taking Over.
Clause 19 – 19.3 Third-Party
Liability
• Contractor must insure against death, injury,
or property damage to third parties.
Clause 19 – 19.4 Personnel
Insurance
• Contractor must insure their employees for
accidents, illness, or injury on duty.
Clause 19 – 19.5–19.6 Evidence &
Failure to Insure
• Proof must be submitted; if not, Employer
may arrange cover and deduct cost from
payments.
Clause 20 – 20.1 Entitlement to
Claim
• Either Party may submit a claim for EOT,
payment, or other relief under the Contract.
Clause 20 – 20.2 Notice and
Detailed Claim
• Notice within 28 days, followed by detailed
submission within 84 days, with records and
updates.
Clause 20 – 20.2 Engineer’s
Determination
• Engineer must consult and determine claim
within 42 days, following Clause 3.7.
Clause 20 – Time-Bar and Records
• Late notice may bar claims unless justified;
continuous records must be kept and shared.
Clause 21 – 21.1 DAAB
Appointment
• DAAB (Dispute Avoidance/Adjudication Board)
is appointed to resolve disputes during the
Contract.
Clause 21 – 21.2 DAAB Procedure
• Disputes referred to DAAB for decision within
84 days; binding unless challenged.
Clause 21 – 21.3 Amicable
Settlement
• After DAAB decision, Parties must attempt
amicable settlement before arbitration.
Clause 21 – 21.4 Arbitration
• If unresolved, disputes are referred to final
and binding international arbitration.
Clause 21 – Role of DAAB in
Dispute Avoidance
• DAAB may assist in avoiding disputes
proactively, upon joint request of the Parties.