An Overview of Contract, Price and Payment under the FIDIC Red Book

Having considered Variations and valuation in our last module, we now move to how payments are actually made. 

The Red Book contains detailed provisions setting out how and when payments are made, what triggers the process and what should be included within applications and certificates. These provisions should be carefully complied with in order to avoid any issues. 

It should also be borne in mind that some, but not all, projects in the UK will fall within the ambit of the Housing Grants Construction and Regeneration Act 1996. This can create issues if the terms of the Red Book are amended without proper consideration.

After completing this course, you should be able to explain:

1. The valuation process
2. When and how applications are made
3. When the Engineer issues Payment Certificates
4. How the Final Statement process works and its effects