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This sequence assumes a Contractor or Employer is making a Claim or there’s a matter requiring resolution under the Contract.
| Step | Clause | Action | Deadline |
|---|---|---|---|
| 1 | 20.2.1 | Notice of Claim | 28 days |
| 2 | 20.2.2 | Engineer Response | 14 days |
| 3 | 20.2.4 | Detailed Claim | 84 days |
| 4 | 3.7.1 | Engineer’s Consultation | 42 days |
| 5 | 3.7.2 | Engineer’s Determination | 42 days |
| 6 | 3.7.5 | NOD against Determination | 28 days |
| 7 | 21.4 | Refer to DAAB | Anytime after valid NOD |
| 8 | 21.6 | Arbitration | After DAAB Decision/NOD |
A Claim is triggered under Clause 20.1 [Claims]: – Could be a Contractor’s or Employer’s Claim. – A “Claim” includes entitlement to time, money, extension, or any other form of relief.
The claiming party must give a Notice of Claim within 28 days of becoming aware of the event.
Within 14 days, the Engineer must respond: either acknowledging or rejecting the claim notice as non-compliant.
The claiming party submits a fully detailed claim with all particulars within 84 days of the event.
The Engineer consults both parties and attempts to facilitate agreement. This step has a 42-day time limit.
If no agreement is reached, the Engineer issues a fair and reasoned determination within another 42 days.
If a party disagrees with the determination, they must submit a Notice of Dissatisfaction (NOD) within 28 days.
The dispute is referred to the Dispute Avoidance/Adjudication Board (DAAB) for a binding decision.
If a party is still dissatisfied, the dispute can proceed to amicable settlement and then arbitration.
🛠️ Scene 1: A Claim or Matter Arises
Everything kicks off when something goes off-script in the contract.
Maybe the Contractor hits an unexpected delay. Or the Employer wants to deduct money for rework. Or there’s a disagreement about whether extra cost is justified.
➡️ This triggers the need for action under Clause 3.7.
It could be:
- A matter that needs agreement/determination (e.g. Extension of Time, valuation of Variation, etc.), or
- A formal Claim under Clause 20.2.
👷♀️ Scene 2: The Engineer Steps In and Starts a Consultation – Sub-Clause 3.7.1
The Engineer is now in the hot seat.
Per Sub-Clause 3.7.1, the Engineer must promptly consult both Parties—Employer and Contractor—either jointly or separately. This is basically a “Let’s talk it out” phase.
🧠 The goal? Reach agreement.
The Engineer might say, “Look, can you both live with this middle-ground solution?” or “Let’s align based on Sub-Clause 13.3.1 before this goes to formal determination.”
🕒 The clock is ticking: The consultation must happen within the 42-day “agreement window” unless a longer time is agreed by both Parties.
If they do agree, 🎉 we have a win! The Engineer issues a Notice of the Parties’ Agreement, which becomes binding.
If not… enter Scene 3.
⚖️ Scene 3: No Agreement Reached? Time for Determination – Sub-Clause 3.7.2
If:
- Agreement isn’t reached within the 42-day window, or
- Either Party says, “Nope, we won’t reach agreement”…
👉 the Engineer must immediately proceed to make a determination.
Under Sub-Clause 3.7.2, the Engineer must:
- Make a fair determination, following the Contract.
- Consider all relevant documents, facts, and context.
- Issue a “Notice of the Engineer’s Determination” that explains the decision in full, with detailed supporting reasons.
Again, there’s a strict timeline…
⏱️ Scene 4: Time Limits Matter – Sub-Clause 3.7.3
Everything here runs on deadlines. No more open-ended waiting like in the 📘1999 version!
There are two critical timeframes:
🗓️ Time Limit for Agreement:
The Engineer must complete the consultation and achieve agreement within 42 days from:
- The date a claim notice is received (for claims), or
- The date specified in the Sub-Clause referring to 3.7 (for matters).
🗓️ Time Limit for Determination:
If no agreement happens, the Engineer must issue the determination within 42 days after the agreement phase ends.
🔁 What if they miss the deadline?
- For a Claim: It’s deemed rejected.
- For a Matter: It becomes a Dispute that can go directly to the DAAB—no Notice of Dissatisfaction (NOD) needed!
In short: 💥 Delay triggers escalation.
📌 Scene 5: Determination Issued – What Happens Next? – Sub-Clause 3.7.4
Once the Engineer’s determination lands, it’s binding… but not necessarily final.
Each Party must:
- Comply with the determination immediately.
- Apply it to the next Statement or Payment Certificate (if it’s monetary).
But here’s the twist…
🧮 Correction of Clerical Errors
If someone notices a typo, calculation mistake, or something similar:
- You’ve got 14 days to notify the Engineer.
- The Engineer then has 7 days to issue a corrected determination.
Nice and tidy!
⚔️ Scene 6: “I Disagree!” Enter the Notice of Dissatisfaction (NOD) – Sub-Clause 3.7.5
If either Party is unhappy with the Engineer’s determination, they must:
- Issue a Notice of Dissatisfaction (NOD) within 28 days.
- Clearly state which parts they’re challenging and why.
- Send a copy to the Engineer.
⚠️ Important: If no NOD is issued within 28 days, the determination becomes final and binding.
And if you’re only unhappy with part of the decision? No problem—just state which parts you disagree with. The rest becomes locked in and enforceable.
🚀 Scene 7: Escalation to the DAAB (Clause 21) or Arbitration
Once a valid NOD is issued, the dissatisfied Party may:
- Refer the dispute to the DAAB under Sub-Clause 21.4, or
- Eventually take it to arbitration if the DAAB decision is also challenged.
And thus, the Clause 3.7 cycle ends, and the formal dispute resolution track begins. 🎬
📘 What about FIDIC 1999?
Well, the steps are similar in spirit, but very different in structure.
In 📘1999:
- There’s no time limit for consultation or determination.
- The Engineer’s determination is binding but not final, unless revised by DAB or arbitration.
- There’s no “deemed rejection” if the Engineer delays.
- No formal process for correcting errors or partial dissatisfaction.
In short: 1999 leaves more gaps—and parties often had to jump straight to dispute mode.
| Phase | 📁 Matters (Non-Claims) | 📑 Claims (Clause 20.2) |
|---|---|---|
| Trigger | Sub-Clause reference to 3.7 | Notice of Claim within 28 days from awareness (20.2.1) |
| Engineer’s response to Notice | Not applicable | 14 days to respond — either agree or disapprove (20.2.2) |
| Claim substantiation | Not applicable | Fully detailed Claim to be submitted within 84 days after the Notice (20.2.4) |
| Consultation window | Up to 42 days | Included in 42-day period after full Claim (3.7.1) |
| Determination deadline | Immediately after consultation (if no agreement) | By Day 42 from full Claim submission (3.7.2) |
| Outcome if delayed | Becomes a Dispute (Clause 21) | Deemed Rejected → Claimant may refer directly to DAAB |
| Managed under | Various Clauses (e.g. 13.3.1, 14.9, 11.3) | Clause 20.2 + Clause 3.7 |