Key Changes Introduced in the FIDC 2017 Red Book

Part-2

Clause 1.2 – Interpretation

The 2017 Edition extends the list of interpreted terms (d) to (j), with items (e), (f), (g), (h), (i), and (j) added in this edition. The extensions to the list are as follows:

(e) “may” means that the Party or person referred to has the choice of whether to act or not in the matter referred to;

(f) “shall” means that the Party or person referred to has an obligation under the Contract to perform the duty referred to;

(g) “consent” means that the Employer, the Contractor or the Engineer (as the case may be) agrees to or gives permission for, the requested matter; (h) “including”, “include” and “includes” shall be interpreted as not being limited to, or qualified by, the stated items that follow;

?(i) words indicating persons or parties shall be interpreted as referring to natural and legal persons (including corporations and other legal entities); and

?(j) “execute the Works” or “execution of the Works” means the construction and completion of the Works and the remedying of any defects (and shall be deemed to include design to the extent, if any, specified in the Contract)

Apart from the additional items, item (a) is expanded and following paragraph is added:

“In any list in these Conditions, where the second-last item of the list is followed by “and” or “or” or “and/or” then all of the list items going before this item shall also be read as if they are followed by “and” or “or” or “and/or” (as the case may be)”

These additions and modifications to the interpreted terms are intended to provide the parties to the contract with a clearer understanding, thereby avoiding ambiguities, reducing disputes, and expediting the dispute resolution process.

However, the compilers of contract documents should be vigilant in using the interpreted terms to ensure that these terms are only used in the correct places and not replaced with different words, maintaining consistency throughout the documents.