FIDIC Clause 20 Explained: Claims, Disputes & Arbitration Process in 1999 vs 2017

Subject: Notice of Claim – [Brief Event Description]

Date: [Date of Letter]

To: [Engineer’s Name / Employer’s Representative]
From: [Contractor’s Authorized Representative]

Dear [Engineer’s Name / Employer’s Representative],

Sub-Clause [20.1 (1999) or 20.2.1 (2017)] – Notice of Claim

We write to give formal notice of a claim under Sub-Clause [20.1 / 20.2.1], arising from the following event or circumstance:

Event/Cause: [Describe event—e.g., Late access to Site Area B; Discovery of unforeseen utilities, etc.]
Date of Occurrence or Discovery: [Date Contractor first became aware or should have become aware]
Immediate Impact: [e.g., Delays to earthworks, Additional manpower costs, etc.]
Preliminary Estimate:
  Time Impact: [X days/weeks]
  Cost Impact: [Provide approximate sum or state "to be detailed later"]

We confirm that contemporary records are being kept as per Sub-Clause [20.1 / 20.2.3]. A fully detailed claim will follow within the time limit stated in Sub-Clause [20.1 (1999) / 20.2.4 (2017)].

Thank you for your attention. If you require more information, kindly advise promptly.

Yours faithfully,

[Signature]
[Name]
[Title / Position]
[Contractor’s Organization]
      

Subject: Fully Detailed Claim – [Event Reference / Claim No.]

Date: [Date of Letter]

To: [Engineer’s Name]
From: [Contractor’s Authorized Representative]

Dear [Engineer’s Name],

Sub-Clause [20.1 (1999) / 20.2.4 (2017)] – Submission of Fully Detailed Claim

Following our initial Notice of Claim dated [date], we now submit our fully detailed claim:

Event Description: [Late site handover, Variation No. X, Unforeseen ground conditions, etc.]
Chronology: [Timeline from trigger date to milestones.]
Cause and Effect: [Link event to delay/cost.]
Records and Evidence:
  Appendix A: Site diaries, daily manpower logs.
  Appendix B: Correspondence logs.
  Appendix C: Cost breakdowns.
Claimed Entitlement:
  Extension of Time: [XX days/weeks]
  Additional Payment: [Currency & amount]

We request the Engineer’s determination under Sub-Clause [3.5 (1999) / 3.7 (2017)] within the contract period.

Please let us know if further clarification is needed.

Yours faithfully,

[Signature]
[Name]
[Title / Position]
[Contractor’s Organization]
      

Subject: Engineer’s Determination – [Claim No. / Reference]

Date: [Date of Letter]

To: [Contractor’s Representative]
Cc: [Employer’s Representative]

Dear [Contractor’s Name / Representative],

Sub-Clause [3.5 (1999) / 3.7 (2017)] – Engineer’s Determination

Having reviewed your claim dated [date], including records and correspondence, I now determine as follows:

Event Description: [Summarize the claim event]
Reviewed Evidence: [Site diaries, cost breakdowns, etc.]
Assessment:
  Extension of Time: [X days/weeks granted or rejected]
  Additional Payment: [Amount granted or rejected]
Conditions: [Further requirements, e.g., mitigation, more records]
Reasons: [Basis for granting/rejecting, with contract clause references]

This determination is binding unless revised by DAB/DAAB decision or amicable settlement/arbitration.

Yours faithfully,

[Signature]
[Name, Title]
[Engineer’s Organization]
      

Subject: Notice of Dissatisfaction – Engineer’s Determination [Ref.]

Date: [Date of Letter]

To: [Engineer’s Name / Other Party]
From: [Party’s Representative]

Dear [Engineer / Employer / Contractor’s Name],

Sub-Clause [20.4 / 3.5–3.7 (1999/2017)] – Notice of Dissatisfaction

We refer to your determination dated [date] regarding [Claim No. / Dispute]. We issue this Notice of Dissatisfaction for these reasons:

Areas of Disagreement: [EOT duration, cost disallowed, etc.]
Supporting Rationale: [Extra evidence, arguments.]

We wish to proceed per Clause 20 (1999) or Clause 21 (2017)—referral to [DAB / DAAB] under [20.4 (1999) / 21.4 (2017)], unless settled amicably.

Yours faithfully,

[Signature]
[Name]
[Title / Position]
[Party’s Organization]
      

Subject: Referral to [DAB / DAAB] – Dispute [Reference]

Date: [Date of Letter]

To: [DAB/DAAB Chair or Member(s)]
Cc: [Other Party, Engineer]

Dear [Chairperson / Member(s) of DAB/DAAB],

Sub-Clause [20.4 (1999) / 21.4 (2017)] – Referral of Dispute

Pursuant to the Contract between [Employer] and [Contractor] dated [date], we refer the following dispute for decision:

Dispute Overview: [Summarize disputed claim, reference numbers/dates]
History: [Attempts at settlement, partial resolutions]
Relevant Documents: [Attach claim, Engineer’s determination, NOD, etc.]
Relief Sought: [EOT, cost, removal of liability, etc.]

We request a decision within the Sub-Clause [20.4 (1999) / 21.4.3 (2017)] timeline.

Thank you for prompt consideration.

Yours faithfully,

[Signature]
[Name]
[Title / Position]
[Organization]
      

Subject: Initiation of Amicable Settlement Discussions

Date: [Date of Letter]

To: [Other Party’s Representative]
Cc: [Engineer, DAAB Chair]

Dear [Name],

Sub-Clause [20.5 (1999) / 21.5 (2017)] – Amicable Settlement

Referencing the [DAB / DAAB decision] dated [date], we are not satisfied with the outcome. We acknowledge the obligation to attempt settlement under Sub-Clause [20.5 / 21.5] for at least [56 days or stated period] before arbitration.

We propose discussions:

Meeting Date: [2–3 options]
Location / Virtual: [Specify]
Agenda: [Exchange viewpoints, seek compromise]
If you prefer a different settlement method (e.g., mediation), please advise. We look forward to constructive dialogue.

Yours sincerely,

[Signature]
[Name]
[Title / Position]
[Party’s Organization]
      

Subject: Commencement of Arbitration Proceedings

Date: [Date of Letter]

To: [Other Party’s Representative]
Cc: [Engineer, DAAB Chair, Arbitrator (if appointed)]

Dear [Name],

Sub-Clause [20.6 (1999) / 21.6 (2017)] – Reference to Arbitration

Despite efforts at amicable settlement after [DAB / DAAB] decision, no settlement was reached. As per Sub-Clause [20.6 (1999) / 21.6 (2017)], we refer the dispute(s) to arbitration:

Dispute Reference: [Describe dispute as in earlier notices]
Previous Steps: [DAB/DAAB date, Notice of Dissatisfaction date, Amicable period end date]
Arbitral Rules: [ICC, UNCITRAL, etc.]
Relief Sought: [Remedy or sum claimed]

We will proceed in compliance with the contract and applicable arbitral rules.

Yours sincerely,

[Signature]
[Name]
[Title / Position]
[Party’s Organization]