Plain-language explanations of key terms — for engineers and project managers, not lawyers.
Contract-specific amendments and additions to the standard General Conditions of a FIDIC (or other standard form) contract. The Particular Conditions allow the parties to tailor the standard provisions to the specific requirements of their project. FIDIC guidance notes advise that the Particular Conditions should be used carefully to avoid creating inconsistency and ambiguity. Heavily amended Particular Conditions are a common source of disputes.
The final certificate issued by the Engineer under a FIDIC contract, certifying that the contractor has completed all its obligations, including remedying defects during the Defects Notification Period. Issue of the Performance Certificate is a condition precedent to the release of the remaining retention money and the return of the Performance Security. It is not a certificate that the works are defect-free; it simply marks the end of the contractor's liability under the contract.
A bond or guarantee provided by the contractor to the employer as security for the contractor's performance of its obligations. Under FIDIC Sub-Clause 4.2, the contractor must provide a performance security (typically 10% of the Contract Price) within 28 days of receiving the Letter of Acceptance. The performance security may be called by the employer in defined circumstances. At the end of the Defects Notification Period, on issue of the Performance Certificate, the performance security must be returned.
Additional time-related costs incurred by the contractor as a result of a delay to the completion date caused by an employer-risk event. Prolongation costs typically include additional head office overheads, extended plant and equipment costs, extended supervision costs, and on-site establishment costs. Prolongation costs are separate from and in addition to an extension of time — the EoT gives the contractor time; the prolongation costs claim gives it money.