Delegation by the Engineer – Understanding Clause 3.2 [FIDIC Yellow Book 1999]

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Purpose of FIDIC Clause 3.4 Delegation by the Engineer

Why does delegation matter?
Clause 3.4 of FIDIC empowers the Engineer to hand over specific duties to trusted assistants, ensuring contract administration stays efficient, decisions get made fast, and both Employer and Contractor benefit from smoother project progress.

FIDIC Clause 3.4 provides the mechanism through which the Engineer can delegate specific duties and responsibilities to assistants. This delegation is crucial because it allows the Engineer to efficiently manage contract administration by spreading workload and enabling focused oversight.

For both the Employer and the Contractor, this delegation ensures streamlined project administration, quicker decision-making on-site, and continuous supervision, particularly for complex, large-scale projects.

Frequently Asked Questions

Who can the Engineer delegate duties to under Clause 3.4?

The Engineer can delegate duties to assistants or representatives, provided they are suitably qualified and the delegation is properly notified to the Contractor.

Does delegation mean the Engineer has no responsibility?

No, the Engineer remains responsible for the overall administration and must ensure that delegated tasks are performed correctly.

What happens if there is a dispute over a delegated instruction?

Disputes over delegated actions are still managed under the contract, and the Engineer must clarify or resolve any confusion. See Clause 3.7 (Determinations) for more on resolving such issues.

Where can I learn about related FIDIC clauses?

Check out these detailed guides:

Breakdown of FIDIC Clause 3.4 (Delegation by the Engineer)
  • Delegation under Clause 3.2: Engineer may assign duties and delegate authority to assistants (e.g., resident engineers, inspectors) via written notice.
  • When does delegation take effect? Only after both parties receive copies of the delegation notice.
  • Requirements for assistants: Must be competent, fluent in contract language, and have clearly defined roles.
  • Limit of authority: Assistants’ authority is strictly limited to the scope of the Engineer’s notice.
  • Key restriction: Engineer cannot delegate the power to make contract determinations (see Clause 3.7).
Note: In the 1999 edition, delegation is detailed in Clause 3.2, not 3.4.
  • Delegation under Clause 3.4: Engineer can delegate tasks/authority by written notice, specifying each assistant’s role.
  • Effectiveness: Delegation becomes valid only after the Engineer issues a notice and both parties receive it.
  • Requirements: Assistants must have suitable qualifications, experience, and contract language proficiency.
  • Authority to issue instructions: Strictly limited by the delegation notice.
  • Dispute escalation: Contractor can challenge instructions; the Engineer must respond within 7 days or the assistant’s instruction stands.
Key Changes in 2017 Edition:
  • Introduced an explicit escalation process for disputing assistant’s instructions.
  • Set a clear 7-day deadline for Engineer’s response to disputes.

These changes clarify the process and protect both parties from decision-making delays.

FAQs on Delegation by the Engineer

Where can I read more about delegation authority?

For details on the 1999 edition, see Clause 3.2 Delegation by the Engineer.

How are disputes resolved?

Disputes over assistant instructions are escalated to the Engineer (2017), who must respond within 7 days, or the instruction is confirmed. See Clause 3.7 for more.

Which roles cannot be delegated?

The Engineer cannot delegate contract determinations or other powers reserved by the contract (see Clause 3.7).

Key Interpretations & Implications

🛠️ Engineer

  • Define authority and scope of each delegate clearly.
  • Remain accountable for all acts of delegates.

🚧 Contractor

  • Follow instructions from delegates within delegated authority.
  • Escalate immediately if an instruction seems outside scope or inappropriate.

🏢 Employer

  • Benefits from efficient contract administration.
  • Should ensure clarity in communication and approvals between Engineer & delegates.
🚦 What Can’t Be Delegated?
  • Contractual determinations:
  • Issuing a formal “Notice to Correct” (Clause 15.1).
Cross-Referencing with Other Clauses

📝 Clause 3.5 (1999) / 3.7 (2017): Determinations

  • Engineer must personally handle major contractual decisions.
  • Delegation does not extend to these crucial determinations.
Explore Clause 3.5 / 3.7

📢 Clause 15.1: Notice to Correct

  • Only the Engineer can issue formal “Notice to Correct.”
  • Delegated assistants cannot perform this critical action.
Learn about Clause 15.1
What If Scenarios? Practical Consequences in Delegation
🚧 Questioned Instruction
  1. An assistant tells the Contractor to change material specs.
  2. The Contractor suspects this exceeds the assistant’s delegated authority.
  3. The Contractor promptly notifies the Engineer.
  4. 2017 Edition: Engineer has 7 days to confirm, reverse, or adjust the instruction.
  5. If no response in 7 days, the instruction automatically stands—potentially risking extra costs or disputes.
Takeaway: Timely escalation and written communication are critical—otherwise, both parties can face costly surprises.
🚨 Unauthorized Delegation
  1. An assistant instructs substantial extra work.
  2. Contractor complies without verifying the assistant’s authority.
  3. Later, it’s revealed the assistant exceeded their delegation scope.
  4. This sparks a dispute—who pays?
Takeaway: Always verify and document delegation scope! Unverified instructions can create costly and lengthy contract disputes.
📄 Verbal vs Written Delegation
  1. An assistant verbally instructs relocation of underground conduits.
  2. No written confirmation is given initially.
  3. With the revised Clause 3.4, the Contractor checks the delegation log.
  4. Contractor confirms in writing, requesting Engineer’s written confirmation.
  5. If Engineer fails to reply but acknowledges receipt, the instruction is deemed valid in 7 days. Documentation protects the Contractor.
Takeaway: Insist on written confirmation and maintain clear records to stay protected under the contract.
Suggestions for Clarity & Practical Improvement
Clause 3.4 is robust, but risks ambiguity if delegation limits aren’t defined, Contractors aren’t updated in real time, or communication standards are lacking. Here’s how to fix it:
1. Define “Assistants” Clearly
The term is broad. Define categories (e.g., resident engineer, quality inspector) in Particular Conditions, with minimum standards for competence.
Example Wording:
“Assistants shall include only professionally qualified persons with at least five (5) years’ relevant experience in works of comparable nature and complexity. The Engineer shall notify the Employer and Contractor of the professional credentials and CVs of all proposed assistants.”
2. Ensure Communication & Language Clarity
If fluency in contract language isn’t possible, require interpreters on site.
Example Addition:
“If any assistant is not fluent in the communication language defined under Sub-Clause 1.4, the Engineer shall provide competent interpreters on Site at all times during working hours.”
3. Protect Contractor Rights on Dubious Instructions
The 7-day “deemed confirmation” rule can be risky. Add explicit duties for Engineer to acknowledge referrals and clarify as needed.
Suggested PC Language:
“The Engineer shall, within two (2) working days of receiving a referral from the Contractor regarding an assistant’s instruction, acknowledge receipt and indicate whether further clarification is required. The Engineer’s silence beyond the 7-day period shall be deemed as a confirmation only if this initial acknowledgment was provided.”
Follows FIDIC Golden Principles: Clear roles, transparent communication, and reasonable time frames help all parties stay compliant and protected.
📊 Practical Contract Management Enhancements &
Golden Principles Compliant Clause 3.4
🗂️ Real-Time Delegation Register
Maintain a live register, accessible to both Parties, listing:
  • Assistant’s name
  • Delegated powers (e.g., materials approval, site inspections)
  • Effective and expiration dates
  • Revocations
Benefit: Drastically reduces disputes and confusion about “who said what, when.”
Tip: Include in the Contract Data section for maximum transparency!
✍️ Suggested Reformulated Clause 3.4 (Golden Principles Compliant):

“The Engineer may from time to time assign duties and delegate authority to assistants by giving a written notice to both Parties. This notice shall:
(a) Identify the assistant by name, qualification, and professional experience (minimum five (5) years in similar works);
(b) Specify the delegated duties and limits of authority;
(c) State the effective and (if applicable) expiration date of the delegation;
(d) Confirm that the assistant is fluent in the language defined in Sub-Clause 1.4 or that suitable translation services will be provided at all times during working hours.

The Contractor shall only act on instructions from such assistants to the extent explicitly stated in the Engineer’s written notice. If the Contractor disputes an instruction or Notice given by an assistant, it shall notify the Engineer within two (2) working days, who shall acknowledge the referral within two (2) additional working days. The Engineer shall respond within seven (7) days thereafter, either confirming, reversing, or varying the instruction.

A current register of all assistant delegations shall be maintained and updated by the Engineer and made accessible to both Parties upon request.”
Why This Works:
  • GP1: Engineer’s role remains central.
  • GP2: Clear, documented, and auditable delegation for all Parties.
  • GP3: No unfair risk shift to Contractor.
  • GP4: Realistic, fair timeframes for instructions and clarifications.
  • GP5: No restriction of dispute referral pathways (DAAB).
🛣️ Detailed Sequence: Clause 3.4 – Delegation by the Engineer
1️⃣
Engineer Decides to Delegate
Engineer determines that certain duties or authority should be delegated for effective project management.
2️⃣
Selection of Assistant(s)
  • Engineer selects assistants with proper technical qualifications.
  • Must have relevant experience and fluency in the contract language.
3️⃣
Issuance of Written Notice
  • Engineer prepares a written notice stating assistant’s name, role, and scope of authority.
  • Specifies limitations—critical duties (Clause 3.7 & 15.1) are excluded from delegation.
4️⃣
Communication to Parties
  • Engineer sends the notice to both the Employer and Contractor.
  • Delegation only takes effect after both receive the notice.
5️⃣
Acknowledgment of Delegation
  • Contractor reviews and adjusts communication accordingly.
  • Recognizes assistants as authorized (within their delegated powers).
⚠️
If Contractor Questions an Instruction:
  1. Contractor objects in writing to Engineer.
  2. Engineer has 7 days to review and respond (confirm, reverse, or adjust the instruction).
  3. If no response in 7 days, assistant’s instruction stands by default.
Remember: Silence from the Engineer after a Contractor’s objection = automatic confirmation of the assistant’s instruction after 7 days!
Flowchart: Delegation by the Engineer (Clause 3.4)
Delegation Flowchart - Clause 3.4
Click to enlarge
Start: Engineer identifies a need for delegation.
1️⃣ Identify tasks suitable for delegation based on project requirements.
2️⃣ Select qualified, competent assistants for the tasks.
3️⃣ Define the scope of each assistant’s delegation in writing.
4️⃣ Issue written delegation to assistants, clearly outlining roles and responsibilities.
5️⃣ Employer and Contractor receive and acknowledge the written delegation.
6️⃣ Assistant begins executing the delegated tasks, strictly within defined scope.
Decision: Is task within delegated scope?
✅ If YES: Assistant executes the task and proceeds.
↩️ If NO: Task referred back to Engineer for direct handling.
🛡️ Engineer retains overall control and oversight throughout.
🔍 Engineer reviews and approves work completed by assistants.
🏁 End: Delegated tasks are completed and approved by the Engineer.
Best Practice: The Engineer should always document the scope, limits, and hand-back protocols of each delegation—ensuring project compliance and reducing future disputes.
Sequence Diagram: Delegation in Action (Clause 3.4)
Delegation Sequence Diagram - Clause 3.4
Click to enlarge
1. Engineer delegates specific tasks to qualified assistants.
2. Assistants acknowledge delegation and confirm understanding.
3. Engineer informs Employer of the delegation for transparency.
4. Employer acknowledges and approves the assistants’ roles.
5. Assistants provide instructions to Contractor as per delegated authority.
6. Contractor reports progress and issues to assistants.
7. Assistants report to Engineer with updates and issues.
8. Engineer makes final decisions and reports to Employer.
9. Employer provides feedback or further instructions to Engineer.
10. Engineer conveys feedback to assistants.
11. Assistants implement feedback with Contractor.
12. Contractor submits final work to Engineer for approval.
13. Engineer confirms project completion to Employer.
📄 Sample Letters for Clause 3.2 (Delegation by the Engineer)
Sample Letter 1: Notification of Delegation by the Engineer to an Assistant
[Your Company’s Letterhead] Date: [Date] To, [Contractor’s Name] [Contractor’s Address] Subject: Notification of Delegation of Duties under Clause 3.2 of the Contract Dear [Contractor’s Representative], I am writing to formally notify you that, in accordance with Clause 3.2 of our existing contract, specific responsibilities have been delegated to [Assistant’s Name]. This individual holds relevant qualifications in the field of [Relevant Field, e.g., environmental compliance] and is proficient in the English language, which is the stipulated language of communication under this contract. Scope of Delegation: – Adherence to [Relevant U.S. Technical Standards or Building Codes] – [Additional Duties, as necessary] The above delegation is effective from [Start Date] and will be in place until further notice. Should you have any questions, concerns, or require clarification regarding instructions or determinations made by the delegated assistant, you are encouraged to refer such matters to me for resolution, in accordance with Clause 3.2. We appreciate your cooperation and look forward to the continued success of our project. Sincerely, [Engineer’s Name] [Engineer’s Position]
Sample Letter 2: Contractor Questioning the Determination of an Assistant
[Your Company’s Letterhead] Date: [Date] To, [Engineer’s Name] [Engineer’s Address] Subject: Request for Review of Assistant’s Determination under Clause 3.2 of the Contract Dear [Engineer’s Name], We wish to bring to your attention a determination recently made by [Assistant’s Name], to whom you have delegated certain responsibilities as outlined in Clause 3.2 of our contract. We find ourselves questioning this determination for the following reasons: [State Reasons]. In light of this, we request your prompt review and issuance of a final determination, in accordance with the provisions set out in Clause 3.2. Your immediate attention to this matter would be greatly appreciated. Sincerely, [Contractor’s Representative] [Contractor’s Position]
✅ Clause 3.2 Delegation Checklists (Engineer, Contractor & Ongoing)
Checklist 1: For the Engineer – Before Delegating Duties
StepActionDetails
1Identify Potential AssistantsEnsure they are suitably qualified and fluent in the language of communication.
2Define Scope of DelegationMake clear what duties and responsibilities are being delegated.
3Draft Delegation LetterCreate a written notice outlining the delegation, as required by Clause 3.2.
4Notify Both PartiesSend copies of the delegation notice to both the Employer and the Contractor.
Checklist 2: For the Contractor – Upon Receiving Delegation Notice
StepActionDetails
1Review Delegation ScopeUnderstand the extent and limitations of the delegated authority.
2Check Assistant’s QualificationsEnsure the assistant is competent in relevant areas, such as U.S. technical standards or environmental laws.
3Update Project TeamInform the relevant team members about the delegation.
4Document ConcernsIf any, prepare to question the determination or instruction of the assistant.
Checklist 3: For Ongoing Monitoring and Compliance
StepActionDetails
1Regular UpdatesBoth parties should keep each other informed about the progress of the delegated tasks.
2Compliance ChecksRegularly review compliance with relevant standards and regulations, e.g., U.S. building codes.
3Record-KeepingMaintain comprehensive records of instructions, approvals, and determinations.
4Review and RevokeThe Engineer may need to review the effectiveness of the delegation and revoke if necessary.

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