Clause 2.2 – Permits, Licences or Approvals of FIDIC Yellow Book 1999

Purpose of Clause 2.2

Clause 2.2 of the FIDIC Yellow Book 1999, titled “Permits, Licences or Approvals,” primarily deals with the responsibility of obtaining necessary permits, licenses, or approvals required for the execution of the project. The clause is designed to clearly allocate these responsibilities between the Employer and the Contractor.

Implications of Clause 2.2

The clause has significant implications for both the Employer and the Contractor. The Employer is generally responsible for obtaining the permits, licenses, or approvals which are necessary for the legal execution of the Works and which were in existence at the time of tendering. The Contractor, on the other hand, is responsible for permits, licenses, or approvals that become necessary due to changes in legislation after the base date or those required due to the manner of execution of the Works.

Key Considerations in Clause 2.2

1. Timing: The timing of obtaining these permits, licenses, or approvals is crucial as any delay can impact the project schedule and lead to potential claims.
2. Cost: Any costs associated with obtaining these permits, licenses, or approvals should be considered. The responsibility for bearing these costs should be clearly defined in the contract.
3. Changes in Legislation: The clause also covers the scenario where changes in legislation occur after the base date. In such cases, the Contractor is typically responsible for obtaining any new permits, licenses, or approvals required due to these changes.

Relevant Example

Consider a scenario where a new environmental regulation comes into effect after the base date, requiring additional environmental permits for certain construction activities. According to Clause 2.2, the Contractor would be responsible for obtaining these additional permits.

Flowchart

Here is the flowchart illustrating the process of determining responsibility for obtaining permits, licenses, or approvals as per Clause 2.2:

Sample Letters and Checklists

Here is a sample letter:

[Your Name]

[Your Address]

[City, State, Zip Code]

[Email Address]

[Phone Number]

[Date]

[Recipient’s Name]

[Recipient’s Position]

[Recipient’s Organization]

[Recipient’s Address]

[City, State, Zip Code]

Subject: Request for [Permit/License/Approval]

Dear [Recipient’s Name],

I am writing on behalf of [Your Organization’s Name] in relation to our upcoming project, [Project Name]. As per our understanding of the local regulations and the stipulations of our contract, we are required to obtain a [Permit/License/Approval] to carry out the necessary works.

We kindly request your assistance in facilitating the issuance of the [Permit/License/Approval]. We assure you that all works will be carried out in compliance with the relevant regulations and any conditions attached to the [Permit/License/Approval].

Please let us know of any documents or additional information required for this process. We are committed to cooperating fully to ensure a smooth and timely process.

Thank you for your attention to this matter.

Yours sincerely,

[Your Name]

[Your Position]

And here is a checklist for ensuring all necessary permits, licenses, or approvals have been obtained:

Permit/License/Approval	Responsibility (Employer/Contractor)	Obtained (Yes/No)	Date of Issue	Expiry Date
Example Permit	Employer	Yes	2023-07-18	2024-07-18
Example License	Contractor	No	N/A	N/A
Example Approval	Contractor	Yes	2023-07-01	N/A

Please replace “Example Permit”, “Example License”, and “Example Approval” with the actual permits, licenses, or approvals required for your project. The “Responsibility” column should be filled based on whether the Employer or the Contractor is responsible for obtaining the permit, license, or approval, as per your contract. The “Obtained” column should be updated as and when the permits, licenses, or approvals are obtained. The “Date of Issue” and “Expiry Date” columns should be filled with the respective dates as stated on the permits, licenses, or approvals.