Introduction
Contract administration is an essential part of construction project management. During the execution of a construction project, several events may arise that affect the contractor’s obligations, project cost, completion time or quality of work. These may include delays in handing over the site, changes in design, delayed approvals, unforeseen ground conditions, variations and other contractual issues.
In such circumstances, formal communication between the Employer, Contractor and Engineer becomes extremely important. One of the most important forms of contractual communication under FIDIC is a Notice.
A notice is a formal written communication issued by one party to another to notify an event, circumstance, instruction or matter that requires action under the contract. Certain notices must be issued within specified time limits. Failure to comply with these requirements may affect the contractual rights and entitlements of the parties.
This article explains the meaning of a notice under FIDIC, its importance, different types of notices, applicable clauses, time limits, the difference between a notice and a claim, and a practical sample format.
1. What Is a Notice Under a FIDIC Contract?
A notice under a FIDIC contract is a formal communication issued in accordance with the contract’s requirements to inform another party about a particular event, circumstance or contractual matter.
For example, during the construction of a highway project, the Employer may fail to hand over a portion of the site within the stipulated period. This may prevent the Contractor from carrying out the planned activities and may affect the project completion date.
In such a situation, the Contractor may be required to issue a formal notice to the Engineer, informing the Engineer about the delay and its potential consequences.
Similarly, the Employer may issue a notice to the Contractor regarding a contractual default, failure to comply with an instruction or another matter requiring action.
A notice is therefore an important mechanism for ensuring that contractual matters are communicated formally and within the prescribed time.
2. Why Are Notices Important Under FIDIC?
Notices play an important role in construction contract administration for the following reasons:
1. Protection of contractual rights: A contractor may need to issue a notice to preserve its entitlement to an Extension of Time (EOT), additional payment or other contractual relief.
2. Early communication: Notices inform the other party about events that may affect project execution, allowing timely investigation and corrective action.
3. Creation of contractual records: A notice establishes a formal record of the event, the date of communication and the matter being raised.
4. Prevention of disputes: Timely communication helps the parties address potential problems before they develop into major contractual disputes.
5. Compliance with contractual requirements: FIDIC contains specific provisions requiring notices for certain events and circumstances. Failure to comply may have contractual consequences.
3. Relevant FIDIC Provisions Governing Notices
The requirements relating to notices are primarily addressed in the communication provisions and the specific clauses dealing with claims, instructions, delays and disputes.
A. FIDIC Red Book 1999
The following clauses are particularly relevant:
| FIDIC Clause | Subject | Purpose |
| Sub-Clause 1.3 | Communications | Requirements for communications between the parties |
| Sub-Clause 8.3 | Programme | Includes an advance warning requirement |
| Sub-Clause 20.1 | Contractor’s Claims | Notice of claim by the Contractor |
| Sub-Clause 2.5 | Employer’s Claims | Notice and particulars of Employer’s claims |
| Sub-Clause 20.4 | Obtaining Dispute Adjudication Board’s Decision | Includes the Notice of Dissatisfaction procedure |
B. FIDIC Red Book 2017
The corresponding important provisions include:
| FIDIC Clause | Subject | Purpose |
| Sub-Clause 1.3 | Notices and Other Communications | Requirements for contractual notices and communications |
| Sub-Clause 8.4 | Advance Warning | Early notification of events that may affect the works |
| Sub-Clause 20.2 | Claims for Payment and/or EOT | Procedure for notices and detailed claims |
| Sub-Clause 21.4 | Obtaining DAAB’s Decision | Includes the Notice of Dissatisfaction procedure |
The 2017 edition provides more detailed procedures for notices and claims than the 1999 edition.
4. Different Types of Notices Under FIDIC
Notices are issued for different purposes depending on the circumstances of the project.
A. Notice of Claim
A Notice of Claim is one of the most important notices under a FIDIC contract.
It is issued when the Contractor or Employer considers that an event or circumstance has given rise to an entitlement to additional payment, an extension of time or other contractual relief.
Example:
The Employer fails to provide the required site access to the Contractor. As a result, the Contractor is unable to execute the planned activities, and the project completion may be delayed.
The Contractor may issue a Notice of Claim under the applicable claims provisions.
Relevant provisions:
- FIDIC 1999: Sub-Clause 20.1 for Contractor’s Claims and Sub-Clause 2.5 for Employer’s Claims.
- FIDIC 2017: Sub-Clause 20.2 for Claims for Payment and/or EOT.
B. Advance Warning Notice
An advance warning is intended to bring a potential problem to the attention of the other party at an early stage.
It allows the parties to take preventive action before the event adversely affects the project.
Under FIDIC 1999, the advance warning requirement is included in Sub-Clause 8.3 [Programme].
Under FIDIC 2017, it is separately addressed under Sub-Clause 8.4 [Advance Warning].
Example:
During excavation for a bridge foundation, the Contractor identifies indications of unexpected geological conditions.
The Contractor should promptly bring the matter to the Engineer’s attention so that appropriate investigations and corrective measures can be considered.
An advance warning is not necessarily the same as a Notice of Claim. If the event also gives rise to a claim, the separate claims procedure must be followed.
C. Notice of Dissatisfaction (NOD)
A Notice of Dissatisfaction is issued when a party does not agree with a decision of the Dispute Adjudication Board (DAB) under the 1999 edition or the Dispute Avoidance/Adjudication Board (DAAB) under the 2017 edition.
Relevant provisions:
- FIDIC 1999: Sub-Clause 20.4.
- FIDIC 2017: Sub-Clause 21.4.
The notice is important because it allows the dissatisfied party to preserve its right to refer the dispute to arbitration, subject to the contract’s requirements.
D. Notice Relating to Termination
FIDIC also provides for notices in connection with termination of the contract.
For example, the Employer may issue a notice concerning the Contractor’s failure to comply with contractual obligations, or the Contractor may issue a notice in circumstances where the Employer has failed to fulfil certain obligations.
The applicable provisions depend on the grounds and the party seeking termination.
Under FIDIC 1999, relevant provisions include Clause 15 [Termination by Employer] and Clause 16 [Suspension and Termination by Contractor].
Under FIDIC 2017, the corresponding provisions are also addressed under Clauses 15 and 16, subject to the detailed requirements of the applicable edition.
5. Notice of Claim Under FIDIC: Time Limits and Procedure
A Notice of Claim is particularly important because it may be subject to a contractual time bar.
The time limits differ between the FIDIC 1999 and 2017 editions.
A. FIDIC Red Book 1999 – Sub-Clause 20.1
Under Sub-Clause 20.1, the Contractor is required to give notice to the Engineer describing the event or circumstance giving rise to the claim.
The important requirements are:
- The notice should be given as soon as practicable.
- It must generally be given not later than 28 days after the Contractor became aware, or should have become aware, of the event or circumstance.
- If the notice is not given within 28 days, the Contractor may lose entitlement to additional payment and/or EOT under the standard clause.
- The Contractor must submit a fully detailed claim within 42 days after becoming aware of the event or circumstance, unless another period is agreed.
The 1999 edition contains a strict time-bar mechanism for late Contractor’s notices under the standard wording.
B. FIDIC Red Book 2017 – Sub-Clause 20.2
Under Sub-Clause 20.2, the claims procedure is more detailed.
The general requirements include:
- The claiming party must give a Notice of Claim as soon as practicable.
- The notice must generally be given within 28 days after the claiming party became aware, or should have become aware, of the event or circumstance.
- The notice must describe the event or circumstance giving rise to the claim.
- A fully detailed claim is generally required within 84 days after the claiming party became aware, or should have become aware, of the event or circumstance, subject to the contract.
An important improvement in the 2017 edition is the procedure for dealing with late notices.
If the Engineer considers that a Notice of Claim was not submitted within the prescribed 28-day period, the Engineer is required to give a notice to the claiming party within 14 days after receiving the Notice of Claim, stating that it is late and giving reasons.
If the Engineer does not issue this notice within the prescribed 14-day period, the Notice of Claim is deemed valid under the standard procedure.
The claiming party may also disagree with the Engineer’s assessment and refer the matter for determination in accordance with the contract.
Important: The above time limits relate to the general claims procedure. Particular Conditions may amend them. Also, the notice requirements for an instructed variation under Clause 13 should be examined separately rather than automatically applying the general claims procedure to every variation.
6. Difference Between a Notice and a Claim Under FIDIC
Although the terms Notice and Claim are closely connected, they are not the same.
| Basis | Notice | Claim |
| Meaning | Formal intimation of an event or contractual matter | Request for contractual entitlement or relief |
| Purpose | Inform the other party | Establish entitlement to time, money or other relief |
| Details | Usually brief, but must identify the relevant event or circumstance | Detailed factual, contractual, financial and programme justification |
| Timing | May be subject to a specific notice deadline | Submitted in accordance with the relevant claims procedure |
| Supporting documents | May be limited at the initial stage | Requires detailed supporting records and evidence |
| Example | Notice that the Employer has delayed handing over the site | Detailed claim for EOT and additional costs arising from delayed site handover |
In simple terms:
Notice informs the other party about an event; a claim establishes the contractual entitlement arising from that event.
A Notice of Claim is generally the first procedural step in a claim. Issuing the notice does not automatically establish entitlement to additional payment or an extension of time.
7. What Should a Notice Under FIDIC Contain?
A properly drafted notice should generally include the following information:
| Particular | Details |
| Contract details | Project name and contract reference |
| Notice number | Unique identification number |
| Date | Date of issue |
| Recipient | Engineer, Employer or other designated recipient |
| Subject | Clear description of the matter |
| Contractual provision | Relevant FIDIC clause |
| Event description | Details of the event or circumstance |
| Relevant dates | Date of occurrence or awareness, as applicable |
| Potential consequences | Possible effect on cost, time or performance |
| Reservation of rights | Relevant contractual rights, where appropriate |
| Signature | Authorised representative of the issuing party |
The notice should be clear, factual and unambiguous. It should also comply with the contract’s requirements for delivery, address and form.
8. Common Mistakes While Issuing Notices Under FIDIC
The following mistakes may create difficulties in establishing contractual entitlement:
1. Delay in issuing the notice: Waiting until the full financial impact is known may result in missing the contractual deadline.
2. Incorrect contractual reference: The notice should identify the relevant clause and type of notice.
3. Vague description of the event: The notice should clearly identify the event or circumstance giving rise to the communication.
4. Failure to follow the prescribed procedure: A letter or email is not automatically a valid contractual notice. It must comply with the contract’s requirements.
5. Sending the notice to the wrong recipient: Notices should be delivered to the person or address specified in the contract.
6. Lack of delivery evidence: The issuing party should retain proof of dispatch and receipt.
7. Failure to submit detailed particulars: Issuing an initial notice does not eliminate the obligation to submit the detailed claim within the prescribed period.
9. Importance of Maintaining a Notice Register
For effective contract administration, the Employer, Engineer and Contractor should maintain a notice register.
A notice register helps track all formal communications and monitor compliance with contractual deadlines.
A typical notice register may contain:
| Sl. No. | Notice Reference | Date | Issued By | Issued To | Subject | Relevant Clause | Response Due Date | Status |
| 1 | N-001 | 05.01.2026 | Contractor | Engineer | Delay in site handover | 20.1 | As applicable | Open |
| 2 | N-002 | 12.01.2026 | Engineer | Contractor | Advance warning | 8.3 / 8.4 | As applicable | Closed |
| 3 | N-003 | 20.01.2026 | Contractor | Engineer | Additional work | 13.3 | As applicable | Under review |
The register should be updated regularly and linked to the project’s correspondence management system.
Conclusion
A notice is an essential element of contract administration under FIDIC. It provides a formal mechanism for communicating events, circumstances, instructions and potential claims between the Employer, Contractor and Engineer.
Notices are particularly important in claims management because they help preserve contractual rights and ensure that the other party is informed within the prescribed period.
Construction professionals should understand the relevant FIDIC provisions, comply with notice deadlines, follow the prescribed communication procedure and maintain proper records.
Remember: Under FIDIC, a well-drafted and timely notice can help protect contractual entitlement, while failure to comply with notice requirements may result in serious contractual consequences.
Also read: Clause 18: Exceptional Events Under FIDIC 2017
