Plain-language explanations of key terms — for engineers and project managers, not lawyers.
A defined reference date used in FIDIC contracts (typically 28 days before the deadline for submission of tenders) against which changes in legislation, taxes, and other external circumstances are measured for the purpose of claims for additional payment. If laws change after the Base Date in a way that increases the contractor's cost, the contractor may be entitled to adjustment under FIDIC Sub-Clause 13.7.
The initial, approved project schedule showing the planned sequence and timing of all construction activities. Once agreed, the baseline programme becomes a contractual document against which progress is monitored and delays are assessed. FIDIC and NEC contracts both require the contractor to submit and maintain detailed programmes. A robust baseline is essential for substantiating time-related claims.
A document that lists and quantifies all items of work to be performed under a contract, typically prepared by a quantity surveyor and priced by the contractor during tendering. Under FIDIC Red Book (MDB Harmonised Edition), the BoQ forms part of the contract and the work is remeasured and paid at the contracted rates. Under FIDIC Yellow Book, the employer's requirements govern and the contractor typically prices on a lump sum basis.
Financial instruments provided by the contractor to the employer as security. The most common in construction are: Performance Bond (guaranteeing performance of the whole contract), Advance Payment Guarantee (securing return of the advance), and Retention Bond (as an alternative to cash retention). FIDIC contracts contain standard form guarantees in their annexes. These are typically issued by banks or insurance companies and must be unconditional (on-demand) or conditional depending on the contract.
An optional contractual incentive where the employer agrees to pay the contractor an additional sum for completing the works before the scheduled completion date. Not a standard feature of FIDIC contracts but may be added through Particular Conditions. Distinct from damages, which flow in the opposite direction for delayed completion.