INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS.

FIDIC

MEASUREMENT AND EVALUATION

CHAPTER 20SECTIONS 20.5 TO 20.8

20.5 AMICABLE SETTLEMET

Where notice of dissatisfaction have been given the parties shall :-

Settle the dispute amicably before commencement of arbitration.

Otherwise; arbitration may be commenced or after the 56th day after issuing the notice of dissatisfaction.

20.6 ARBITRAION

When dispute has not been:o Amicably settled.o No final and binding decision from DAB.Dispute shall be settled by international

arbitration (unless otherwise agreed by both parties) :-

a. Rules of arbitration of the International Chamber of Commerce.

b. Three arbitrators appointed in accordance with these rules.

c. Language for communications defined in sub clause 1.4 (The language of communications shall be stated in the appendix to tender, if no language is stated there, the language of communications shall be the language in which the contract -or most of it- is written.

The arbitrator (s) shall have full power to open up, review and revise any certificate, determination, instruction, opinion or valuation of the Engineer and any decision of the DAB relevant to the dispute.

Engineer could be called as a witness and giving evidence or any matter whatsoever relevant to the dispute.

Neither parties shall be limited in the proceeding to the evidence or argument previously put by the DAB to obtain the decision or to the reasons for dissatisfaction given in the notice of dissatisfaction.Any decision of the DAB shall be admissible in evidence in the arbitration.

Arbitration may be commenced prior or after completion of the works. The obligations of the parties, the Engineer and the DAB shall not be altered by reason of any arbitration being conducted during the progress of the work.

20.7 FAILURE TO COMPLY WITH DABs’ DECISIONS.

In the event that:a) Neither parties has given notice of

dissatisfaction within period stated in sub-clause 20.4.

b) The DABs’ related decision (if any) has come final and binding and;

c) A party fails to comply with this decision. Then:

The other party may –within prejudice to any other right it may have- refer the failure to arbitration under sub-clause 20.6.

Sub-clause 20.4 and 20.5 shall not apply to this reference.

20.8 EXPIRY OF DOBs’ APPOINTEMENT

If a dispute arises between the parties in connection with, or arising out of, the contract or the execution of works and there is no DABs, appointment or otherwise;

a) Sub-clauses 20.4 and 20.5 shall not apply and,

b) The dispute may be referred directly to arbitration under sub-clause 20.6.