Comprehensive mind map of contractual obligations, risk allocation, and administrative procedures under FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects (Silver Book).

Defines the order of precedence if there is an inconsistency between contract documents.

Clause 1.5 – Priority of Documents

Governs how official notices and communications are exchanged between the Parties.

Clause 1.3 – Notices and Other Communications

Imposes obligations to keep project-related information confidential.

Clause 1.11 – Confidentiality

Establishes the hierarchy and legal standing of contract documents, and the Contractor's duty to scrutinize them.

Contract Documents & Interpretation

Specifies the governing law of the contract and the ruling language for communication and documents.

Clause 1.4 – Law and Language

Assigns responsibility for complying with all applicable laws and obtaining necessary permits.

Clause 1.12 – Compliance with Laws

Contractor's obligation to comply with all technical standards and legal regulations.

Clause 5.4 – Technical Standards and Regulations

Defines the legal jurisdiction, governing regulations, and standards applicable to the project.

Legal & Compliance Framework

The Contractor's right to subcontract and responsibility for subcontractors' performance.

Clause 4.4 – Subcontractors

Restricts the ability of either Party to transfer their contractual rights or obligations to a third party.

Clause 1.7 – Assignment

The Contractor's obligation to co-operate with others on site.

Clause 4.6 – Co-operation

Governs the Contractor's use of subcontractors and the rules for transferring contractual rights to others.

Subcontracting & Assignment

Sets the procedural rules for contract interpretation, communication, legal governance, and subcontracting, forming the administrative backbone of the project.

1. General & Administrative Framework

The Employer's fundamental duty to provide the Contractor with access to the site.

Clause 2.1 – Right of Access to the Site

Defines the role and authority of the Employer's appointed representative.

Clause 3.1 – The Employer’s Representative

Gives the Contractor the right to verify the Employer's ability to pay the Contract Price.

Clause 2.4 – Employer's Financial Arrangements

Outlines the Employer's core responsibilities, including providing access, payments, and appointing a representative.

The Employer

The cornerstone clause establishing the Contractor's turnkey and fitness-for-purpose responsibility.

Clause 4.1 – Contractor’s General Obligations

Assigns the risk of unexpected site conditions or other difficulties almost entirely to the Contractor.

Clause 4.12 – Unforeseeable Difficulties

The appointment and role of the Contractor's lead project manager.

Clause 4.3 – Contractor’s Representative

Focuses on the Contractor's single-point responsibility for designing, executing, and completing the project.

The Contractor

Contractor's obligation to comply with all laws applicable to its personnel.

Clause 6.4 – Labour Laws

The requirement for continuous and competent management presence on site.

Clause 6.8 – Contractor’s Superintendence

The requirements for quality and conduct of the Contractor's workforce, and right of removal.

Clause 6.9 – Contractor’s Personnel

Governs the Contractor's responsibilities for its workforce, including engagement, supervision, and conduct.

Staff & Labour Management

Defines the duties, authority, and obligations of the Employer, the Employer's Representative, and the Contractor, including their respective personnel.

2. Parties’ Roles & Responsibilities

The Contractor's obligation to submit and maintain a detailed time programme.

Clause 8.3 – Programme

A mutual obligation to notify of future events that could impact the project, promoting proactive management.

Clause 8.4 – Advance Warning

The Employer's right to demand acceleration if progress is too slow.

Clause 8.7 – Rate of Progress

Establishes the programme as the primary tool for planning, monitoring, and managing project progress.

Programme & Progress

Sets out the limited grounds upon which the Contractor can claim an extension to the Time for Completion.

Clause 8.5 – Extension of Time for Completion

Specifies the pre-agreed damages the Contractor pays for failing to complete on time.

Clause 8.8 – Delay Damages

Provides relief for Unforeseeable delays from public authorities.

Clause 8.6 – Delays Caused by Authorities

Defines the conditions under which the Contractor is entitled to an EOT and the consequences of culpable delay.

Delays & Extension of Time (EOT)

Entitles the Contractor to time and cost relief for an Employer-instructed suspension.

Clause 8.9 & 8.10 – Employer's Suspension and Consequences

The Contractor's powerful right to suspend work for specified Employer defaults.

Clause 16.1 – Contractor's Entitlement to Suspend Work

Gives the Contractor the right to treat a prolonged suspension as an omission or termination.

Clause 8.12 – Prolonged Suspension

Defines the rights of the Employer to suspend the works and the Contractor to suspend for non-payment.

Suspension

Governs the project schedule, including the programme, progress monitoring, delays, suspension, and entitlement to Extension of Time (EOT).

3. Time Management & Programming

Establishes the contract as a fixed lump-sum price, subject to specific adjustments.

Clause 14.1 – The Contract Price

Defines the content and submission process for the Contractor's payment applications (Statements).

Clause 14.3 – Application for Interim Payment

Governs payment if based on a pre-agreed schedule of instalments rather than measured work.

Clause 14.4 – Schedule of Payments

Details the lump-sum nature of the contract and the step-by-step process for applying for interim payments.

Contract Price & Payment Application

The Employer's obligation to review the application and issue a payment notice.

Clause 14.6 – Interim Payments

The Employer's obligation to pay certified amounts and the timeline for doing so.

Clause 14.7 – Payment

The Contractor's entitlement to financing charges for late payment.

Clause 14.8 – Delayed Payment

Governs the certification of payments, the act of payment itself, and consequences for delays.

Payment Certification & Process

Governs the provision of a financial guarantee for the Contractor's proper performance.

Clause 4.2 – Performance Security

A mechanism for providing the Contractor with early cash flow, secured by a guarantee.

Clause 14.2 – Advance Payment

Governs the staged release of money withheld from interim payments as a form of security.

Clause 14.9 – Release of Retention Money

Governs the financial guarantees required from the Contractor (Performance Security) and provided by the Employer (Advance Payment).

Financial Securities

Covers the Contract Price, financial securities, payment procedures, and mechanisms for financial adjustments.

4. Financial Matters & Payment

Contractor's absolute responsibility for the design, including scrutinizing the Employer's Requirements.

Clause 5.1 – General Design Obligations

The process for preparing, submitting, and reviewing design documents.

Clause 5.2 – Contractor’s Documents

Reinforces the Contractor's liability for any errors found in its design or documents.

Clause 5.8 – Design Error

Allocates responsibility for the design and ensuring the completed Works are fit for their intended purpose.

Design & Fitness for Purpose

Defines who is responsible for loss or damage to the Works during the project.

Clause 17.1 & 17.2 – Responsibility and Liability for Care of the Works

The Contractor's obligation to protect the Employer from claims related to its work.

Clause 17.4 – Indemnities by Contractor

Establishes a financial cap on each Party's total liability to the other.

Clause 1.14 – Limitation of Liability

Governs responsibility for the Works, protection against third-party claims, and intellectual property rights.

Care of Works & Indemnities

Sets the overarching rules for all insurance policies required under the contract.

Clause 19.1 – General Requirements

The Contractor's duty to insure the Works, Plant, Materials, and Goods against loss or damage.

Clause 19.2.1 & 19.2.2 – Insurance for Works and Goods

The requirement for Professional Indemnity (PI) insurance covering design liability.

Clause 19.2.3 – Liability for breach of professional duty

Mandates the types and levels of insurance the Contractor must maintain throughout the project.

Insurance

Defines how key project risks are distributed, including design liability, unforeseen events, indemnities, and liability caps.

5. Risk Allocation & Liabilities

The Employer's power to unilaterally order changes to the Works.

Clause 13.1 – Right to Vary

The step-by-step process for valuing and agreeing to a Variation.

Clause 13.3 – Variation Procedure

A collaborative mechanism for the Contractor to propose changes that benefit the Employer.

Clause 13.2 – Value Engineering

The process by which the Employer can instruct changes to the Works and value them.

Variations

The strict procedural requirements the Contractor must follow to claim additional time or money.

Clause 20.2.1 & 20.2.4 – Contractor's Claim Notices

The procedure for the Employer to claim payment or extension of the DNP from the Contractor.

Clause 20.1 – Employer’s Claims

The process by which the Employer's Representative resolves claims.

Clause 3.5 – Agreement or Determination

The mandatory and time-barred procedure for both Parties to make claims for time or money.

Claims Procedure

The process for appointing the standing Dispute Avoidance/Adjudication Board.

Clause 21.1 – Constitution of the DAAB

The mandatory first step for formal dispute resolution through the DAAB.

Clause 21.4 – Obtaining DAAB’s Decision

The final, legally binding stage for resolving a dispute if the DAAB's decision is not accepted.

Clause 21.6 – Arbitration

The multi-tiered process for resolving disputes, starting with the DAAB and ending in arbitration.

Dispute Resolution

The formal procedures for managing changes, submitting claims for time or money, and resolving disputes.

6. Variations, Claims & Disputes

The Contractor's responsibility to carry out and pass prescribed tests before completion.

Clause 9.1 – Contractor's Obligations (Tests on Completion)

Outlines the Employer's options if the Works repeatedly fail tests.

Clause 9.4 – Failure to Pass Tests on Completion

Performance tests conducted after Taking Over to verify Fitness for Purpose and performance guarantees.

Clause 12 – Tests after Completion

Defines the processes for demonstrating that the Works meet contractual requirements, both before and after completion.

Testing & Commissioning

The issuance of the Taking-Over Certificate (TOC), a critical project milestone.

Clause 10.1 – Taking Over the Works and Sections

The Contractor's duty to correct defects that arise during the Defects Notification Period (DNP).

Clause 11.1 – Completion of Outstanding Work and Remedying Defects

The final certificate that confirms the Contractor has fulfilled all its obligations.

Clause 11.9 – Performance Certificate

The formal handover of the project and the management of defects that appear afterward.

Taking Over & Defects

The Employer's rights if the Contractor fails to correct notified defects.

Clause 11.4 – Failure to Remedy Defects

Confirms that some liabilities continue even after the Performance Certificate is issued.

Clause 11.10 – Unfulfilled Obligations

The Contractor's duty to demobilize and clear the site after completing the work.

Clause 11.11 – Clearance of Site

Defines the specific obligations that extend beyond the initial handover of the project.

Post-Completion Obligations

Procedures for testing the Works, issuing the Taking-Over Certificate, and managing defects during the post-completion period.

7. Completion, Testing & Handover

The Employer's right to terminate the contract if the Contractor commits a fundamental breach.

Clause 15.2 – Termination for Contractor’s Default

The Contractor's right to terminate if the Employer commits a fundamental breach.

Clause 16.2 – Termination by Contractor

The harsh financial settlement process after the Employer terminates for Contractor's default.

Clause 15.3 & 15.4 – Valuation and Payment after Termination for Contractor's Default

The grounds and procedures for premature termination of the contract by either Party due to a breach by the other.

Termination for Default

The Employer's right to terminate at will and the strict procedure to follow.

Clause 15.5 – Termination for Employer’s Convenience

The fair compensation payable to the Contractor after a termination for convenience.

Clause 15.6 & 15.7 – Valuation and Payment after Termination for Convenience

The payment due to the Contractor after terminating for Employer's default.

Clause 16.4 – Payment after Termination by Contractor

The Employer's right to terminate the contract for any reason, and the consequences of doing so.

Termination for Convenience

Defining the strict four-part criteria for an event to qualify as an Exceptional Event.

Clause 18.1 – Exceptional Events

The contractual mechanism for dealing with external, unforeseeable events beyond the Parties' control.

Exceptional Events (Force Majeure)

Procedures for ending the contract due to default, convenience, or unforeseeable, extreme events that make performance impossible.

FIDIC 2017 Silver Book EPC/Turnkey Contract Management Mind Map