Friday, September 6, 2019

FID in Exceptionally Adverse Climatic Conditions


As per Fidic Red Book, Contractor is entitled for an extension of time if he proves that the climatic conditions are "exceptionally adverse" with respect to the Works. One may think that using these two words to define climatic conditions is a very subjective judgement as there is no boundary to define the term "exceptionally adverse". In contrast, New Engineering Contract (NEC) provides two guidelines to define the boundaries of the notion as follows:

"weather over a calendar month has occurred on average less frequently than once in ten years"

The above parameters trigger one issue. A short period of adverse weather may not lead to an extension of time entitlement under NEC type of contracts. This is a very stringent stipulation. In simple terms any adverse weather condition spanning over a short period of time such a  heavy rain occurred just for one or two days will not empower the contractor for an extension of time. 

The method adopted by Fidic is slightly different. Therefore the contract administrators have to define their own parameters in deciding whether or not the case refers to an "exceptionally adverse"

As it is FIDIC, let us take the first three letter of FIDIC namely , F for frequency, I for intensity and D for duration. For instance, think abut a sand storm which normally occurs in the Middle East where a Site is located. if the sand storms occurs more frequently than that of normal, or the sandstorm is more severe than that in the past or if the sand storm preavails than that of normal duration, then you can decide this situation as exceptionally adverse. But then again "to which extent" ? Here is the guideline to decide this.

The Employer is obliged to furnish Climate Data under Sub- Cause 2.5 (Site Data and Items of  Reference) of Fidic 2017 version. This is a new stipulation which was not there within the earlier versions of Fidic Red Book. As per Clause 8.5 (c)

"exceptionally adverse climatic conditions, which for the purpose of these Conditions shall mean adverse climatic conditions at the Site which are Unforeseeable having regard to climatic data made available by the Employer under Sub-Clause 2.5 [Site Data and Items of Reference] and/or climatic data published in the Country for the geographical location of the Site;"

Accordingly, Fidic Red Book 2017 does provide a comprehensive guideline to decide exceptionally adverse climatic conditions.




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