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(CDR-4098) The Engineer/Initial Decision Maker's Role in Adjudicating Claims under FIDIC 2017 and AIA232-2019 Contracts

Level: Basic
TCM Section(s):
7.6. Risk Management
6.4. Forensic Performance Assessment
Venue: 2023 AACE International Conference & Expo

Abstract: Over the years, the International Federation of Consulting Engineers (FIDIC) published standardized construction contract forms for use in the international arena.The role of the engineer evolved throughout the FIDIC contract editions from being impartial (the 1987 edition) to being an owner’s agent who fairly determines disputes (1999 and 2017 editions). In the 2017 FIDIC edition, a new role of the engineer is introduced when determining disputes, namely being “neutral”. In other words, the engineer is not deemed to be acting on behalf of the owner in this regard. On the other hand, prior to 2007, the architect in the American Institute of Architects (AIA) contract was the entity assigned to decide on disputes. However, the architect was later replaced with the “initial decision maker” to render initial decisions concerning claims (A201-2007 edition). The purpose of endorsing the initial decision maker approach is to eliminate the architect's potential for bias as being selected and paid by the owner. Hence, AIA232-2019 edition obligates the initial decision maker not to show partiality to either party. This paper delves into a comparison between the role of an engineer and an initial decision maker in determining disputes under FIDIC 2017 and A232-2019 respectively, arriving to distinct similarities and contrasts in this regard between the two contract forms.