# FIDIC 2017 Suite — Sub-Clause Map for Refining/Petrochem EPC

## The Three Rainbow Books (2017 Edition)
| Book | Color | Use Case | Risk Allocation | Pakistan Use |
|---|---|---|---|---|
| **Red Book** (Construction) | Red | Employer-designed, contractor-built (BoQ measurement) | Employer takes design risk | OGRA pipelines, downstream incremental works |
| **Yellow Book** (Plant & Design-Build) | Yellow | Contractor designs to Employer's Requirements | Contractor takes design + execution risk | Refinery upgrades, process plant additions |
| **Silver Book** (EPC/Turnkey) | Silver | Single-point lump sum turnkey | Contractor takes virtually all risk | Greenfield refinery/petrochem, hydrogen, off-site/utilities packages |

## Critical Sub-Clauses (2017 Numbering)

### Notice Discipline — The 28-Day Clock
| Sub-Clause | Topic | Time Bar | Consequence of Missing |
|---|---|---|---|
| **20.2.1** | Notice of Claim (Contractor) | 28 days after event known | **Time-barred** — claim invalid |
| **20.2.2** | Fully detailed claim | 84 days after notice | Claim limited to material in submission |
| **20.2.4** | DAAB decision | 84 days after referral | Notice of Dissatisfaction within 28 days else final |
| **20.2.5** | Amicable settlement | 56 days post-NoD | Then arbitration |
| **3.7** | Engineer's determination | Reasonable time | Subject to DAAB if disputed |
| **8.4** | EOT submission | 28 days from event | Same time-bar logic |

### Variation Procedure
| Sub-Clause | Mechanism |
|---|---|
| **13.1** | Employer's right to vary scope |
| **13.2** | Value engineering proposals by Contractor (50/50 share of savings typical) |
| **13.3.1** | Variation by Instruction (Employer initiates) |
| **13.3.2** | Variation by Request for Proposal (Contractor priced) |
| **13.5** | Provisional Sums |
| **13.8** | Adjustments for changes in cost (price escalation formula) |

### Force Majeure / Exceptional Events (2017 nomenclature)
| Sub-Clause | Topic |
|---|---|
| **18.1** | Definition of Exceptional Event |
| **18.2** | Notice of Exceptional Event (14 days) |
| **18.3** | Duty to minimize delay |
| **18.4** | Consequences (relief on time, sometimes cost) |
| **18.5** | Optional termination after 84 days continuous |
| **18.6** | Release from performance |

### Termination Clauses
| Sub-Clause | Initiator | Trigger |
|---|---|---|
| **15.1** | Employer | Notice to correct breach |
| **15.2** | Employer | Termination for default (Contractor) |
| **15.5** | Employer | Termination for convenience |
| **16.1** | Contractor | Suspension for non-payment |
| **16.2** | Contractor | Termination for Employer default |
| **18.5** | Either | Prolonged exceptional event |
| **19.2** | Insurance & risk allocation (re-numbered in 2017) |

### Dispute Avoidance / Adjudication Board (DAAB) — NEW in 2017
- **Mandatory standing board** of 1 or 3 members (vs ad-hoc DAB in 1999)
- Constituted within 28 days of contract effectiveness
- Members visit site quarterly for "Dispute Avoidance" meetings
- Decisions binding pending final arbitration; "Notice of Dissatisfaction" required within 28 days to preserve arbitration right

### Insurance Allocation (Silver Book typical)
| Cover | Who Procures | Coverage |
|---|---|---|
| CAR (Construction All Risks) | Contractor | Material damage during construction |
| MAS (Marine Cargo) | Contractor or Employer | Imported plant in transit |
| EAR (Erection All Risks) | Contractor | Erection phase of plant |
| TPL (Third Party Liability) | Contractor | Off-site claims |
| Employer's Liability | Contractor | Workers' injury |
| Professional Indemnity | Contractor + Designer | Design errors |
| Delay in Start-Up (DSU) | Employer | Loss of revenue from late COD — Yellow/Silver Book Annex |

## Silver Book vs Yellow Book — Risk Decision Matrix
**Silver Book preferred when:**
- Lender financeability demands turnkey delivery
- Owner has limited technical staff for ongoing oversight
- Site conditions are well-characterized
- Process licensor terms permit single-package delivery

**Yellow Book preferred when:**
- Process license terms require Employer mediation
- Site conditions uncertain (subsurface, brownfield interfaces)
- Multiple contracts will interface (utilities, offsites, process)
- Employer wants design review milestones

**Critical Silver Book risk premium**: 8-15% on contract price for risk transfer; **don't accept Silver if total value <USD 200-300M** — diseconomy of scale.

## Pakistan-Specific Modifications (Common)
- Sub-Clause 1.13 (Compliance with Laws) — expanded list: NEQS, OGRA SOPs, IEPS, Sindh-EPA NOCs, SPS rules
- Sub-Clause 6.4 (Labor Laws) — Sindh/Punjab Industrial Relations Acts, Workers' Children Welfare Cess, ECC pensions
- Sub-Clause 13.7 (Tax adjustments) — Pakistan Federal/Provincial sales tax, customs duty changes, deemed duty allocation under BRP-21
- Sub-Clause 14.15 (Currency) — Critical to fix invoice currency and CBR/repatriation provisions (SBP foreign exchange manual)