Clause 3.7 – FIDIC Yellow Book 1999 vs 2017 Explained

Subject: Notice of Agreement Between the Parties – Clause 3.7.1  
Date: [Insert Date]  
Project: [Insert Project Name and Contract Number]  
To: [Employer Name] / [Contractor Name]

Dear [Party Name],

Pursuant to Sub-Clause 3.7.1 of the Contract, I confirm that the Parties have reached agreement on the matter referenced below:

Matter: [e.g., EOT for Event XYZ / Evaluation of Variation under Clause 13.3.1]  
Agreed Outcome: [Summarize agreement terms, e.g., 12-day extension, or USD 45,000 payment]  
Date of Agreement: [Insert Date]

This agreement is now binding in accordance with the provisions of the Contract. Please sign below to acknowledge receipt and acceptance.

Yours sincerely,  
[Engineer’s Name]  
[Engineer’s Title]

Acknowledged by Contractor: _____________________  
Acknowledged by Employer: _____________________

Subject: Notice of the Engineer’s Determination – Clause 3.7.2  
Date: [Insert Date]  
Project: [Insert Project Name and Contract Number]  
To: [Employer and Contractor]

Dear Sirs,

In accordance with Sub-Clause 3.7.2 of the Contract, and following the consultation period under Sub-Clause 3.7.1, I hereby issue my determination regarding the following matter:

Reference: [e.g., Contractor’s Claim dated DD/MM/YYYY]  
Background: [Summarize facts and reference clauses invoked]  
Determination:

Entitlement: [Yes/No]  
Extension of Time: [e.g., 10 calendar days granted]  
Payment: [e.g., USD 20,000 payable under Clause 14.6]  
Reasoning:  
[Provide brief explanation of how determination was made — contractual basis, supporting documentation, etc.]

Please note that under Sub-Clause 3.7.5, either Party may issue a Notice of Dissatisfaction within 28 days of receipt of this Notice should they wish to challenge this determination.

Yours faithfully,  
[Engineer’s Name]  
[Engineer’s Firm]

Subject: Notice of Dissatisfaction with the Engineer’s Determination – Clause 3.7.5  
Date: [Insert Date]  
To: [Employer Name], cc: [Engineer Name]

Dear Sirs,

This is a Notice of Dissatisfaction with the Engineer’s Determination, issued in accordance with Sub-Clause 3.7.5 of the Contract.

Reference: Engineer’s Determination dated [Insert Date]  
Matter: [e.g., Claim for Extension of Time related to XYZ Event]

Grounds for Dissatisfaction:

The Engineer has failed to account for delays attributable to [Event].  
The monetary entitlement assessed does not reflect actual incurred costs supported by submitted records.  
This notice is issued within the 28-day time limit. We consider this matter a Dispute and intend to proceed under Sub-Clause 21.4.

Yours sincerely,  
[Party Representative Name]  
[Position / Company Name]

Subject: Notification of Deemed Rejection under Sub-Clause 3.7.3  
Date: [Insert Date]  
To: [Engineer Name], cc: [Employer Name]

Dear [Engineer],

We refer to our fully detailed Claim dated [Insert Date], submitted in accordance with Sub-Clause 20.2.4. As of today, we note that the Engineer has not issued a determination within the time limit set out under Sub-Clause 3.7.3.

In accordance with the Contract, the Claim is therefore deemed rejected, and the matter shall now be treated as a Dispute under Sub-Clause 21.4.

We reserve our right to refer the matter to the Dispute Avoidance/Adjudication Board without further notice.

Yours sincerely,  
[Party Representative Name]  
[Title / Company]