Michael Gallucci Comments on New FIDIC Yellow Book
A leading expert has warned that the use of effective programmes could become more and more significant for contractors looking to protect their interests. This warning has come from Michael Gallucci, the Managing Director for MGPQS ahead of the publication of the new FIDIC Yellow Book. It has been predicted by Michael that new conditions in ever increasing volumes could mean that implementing programmes and cost controls could be even more important.
Mr. Gallucci works to advise a range of construction companies as well as speaking around the world about construction project contract law. The use of programmes are vital when submitting claims for delays or combating counter-claims. These programmes then become yardsticks to use to measure the effects of delays. Mr. Gallucci’s company, MGPQS delivers financial and contractual services in the property sector. From this perspective it is thought that contractors need to consider whether or not they have the right amount of the right personnel in their admin teams in order to ensure that they can produce, revise and update programmes in order to remain up to date with accurate cost records.
FIDIC requires that the contractor follow a baseline programme. The new edition also introduces new clauses in a range of critical areas which includes early warning, the ramp up to the requirement for accurate monitoring and record-keeping.
The new Yellow Book is expected to increase the administrative burden which is placed on contractors. The report is also set to reset the balance of responsibilities that takes place between employers and contractors. This means that employers may no longer have an open-ended claims window as the Federation looks to introduce new deadlines for both parties.
It is vital that, for the development of the FIDIC books, parties are encouraged to work together in order to encourage parties to work together in order to resolve matters before claims. The additional conditions that have been introduced with the FIDIC Yellow Book could lead to fewer disputes being escalated, a benefit to all relevant parties.