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Contract Administration, Risk & Claims Management Every change traced from instruction to final account.

We draft, negotiate and run construction contracts: risk placed where it belongs, variations measured from the model, claims notified on time and proven on the programme, and a final account with no open items.

AIM United · In short

What is contract administration?

Contract administration runs a construction contract day to day: notices, variations, claims, payments and the final account. AIM United drafts and administers FIDIC-based contracts, analyses delays on the programme and values each change from BIM model quantities. We act for owners and contractors in Saudi Arabia, the UAE and the GCC.

The problem

Most disputes start with a missed notice. Not with a bad contract.

01 · Drafting

The conditions were copied from the last job.

Risks nobody can control end up with the party least able to carry them.

02 · Notices

The notice period passed on site.

A valid entitlement is lost because nobody wrote the letter in time.

03 · Records

The evidence was never kept.

No diaries, no photos, no updated programme. The claim becomes an opinion.

04 · Close-out

The final account stays open for years.

Dozens of small variations, never agreed, holding up retention and the next project.

Stage 1 · Variations on the model

Four instructed changes, measured from the model.

Office block B02 is a five-storey frame of 459 model elements, each linked to the activity that builds it. Pick a variation and switch between the building as contracted and as varied: the elements that change light up, the quantity change is measured from the elements themselves, and the time effect is run on the accepted programme.

Variation
  • Added by the variation
  • Taken out (outline)
  • To be changed
VO-01

    Time impact · on the accepted programme

    • Activity
    • Completion
    Cost impact · index, not a price

    Shown as a share of the package it changes. The rates are valued under the contract and stay between the parties.

    Instruction

      Instruction

      In the contract
      What we do
      Time
      0 d
      Cost
      0
      Notified or claimedAgreedTime in days · cost as an index of the package

      Clause numbers refer to the FIDIC 2017 Red Book general conditions. Particular conditions and Saudi public-works contracts can change them, so we read yours first.

      Stage 2 · Claims and the notice clock

      The clock starts when you become aware, not when you write.

      Under Sub-Clause 20.2 of FIDIC 2017, notice of a claim is due within 28 days of becoming aware of the event, and the fully detailed claim within 84 days. Pick a delay event and run the clock: the event is placed on the accepted programme, and the critical path shows what it does to completion.

      Delay event
      Day 0Notice due in 28 days
      CL-01
      Day 0
          • Accepted programme
          • Impacted
          • Critical
          • Delay event
          • Contractor's own delay

          Concurrent delay: where an Employer delay and a Contractor delay hit completion at the same time, Sub-Clause 8.5 assesses the extension under the rules in the contract's Special Provisions, or, where there are none, with due regard to all the circumstances. The SCL Delay and Disruption Protocol (2nd edition, 2017) gives the time but keeps prolongation cost to the part that can be separated from the Contractor's own delay.

          Stage 3 · The registers you receive

          Five registers, kept from the first day.

          Every instruction, notice, claim, payment and letter goes into a register on the day it happens, linked to the element or activity it concerns. Tap a row to find it on the model. The same registers download as a workbook, with the columns we use on projects.

          Dates follow the accepted programme of Office block B02. Payment figures are percentages of the Accepted Contract Amount: the registers carry no prices.

          The clauses behind each step

          FIDIC 2017, clause by clause, with the 1999 equivalent.

          The Red Book (Conditions of Contract for Construction) is FIDIC's form for works designed by the employer. These are its general conditions behind the stages above; the particular conditions of your contract come first.

          Clause numbers refer to the FIDIC 2017 Red Book general conditions. Particular conditions and Saudi public-works contracts can change them, so we read yours first. Public-sector projects in Saudi Arabia are let under the Government Tenders and Procurement Law (2019) and its Implementing Regulations, with their own contract conditions.

          What we do

          The whole contract, from the first draft to close-out.

          01

          Drafting and review

          Contracts, subcontracts and particular conditions, reviewed clause by clause before signature.

          02

          Contract conditions

          FIDIC-based forms and Saudi public-works conditions where they apply, adapted to the project.

          03

          Negotiation

          Commercial terms, scope and programme agreed on paper before anyone is on site.

          04

          Risk allocation

          Risk sharing that matches who can control each risk, with a live risk register.

          05

          Variations and claims

          Instructions, notices, valuation and delay analysis, prepared and answered on evidence.

          06

          Compliance and administration

          Correspondence, payment applications, notices and records kept to the contract's rules.

          07

          Dispute avoidance

          Early warnings, negotiated settlements and escalation steps that keep the project out of arbitration.

          08

          Close-out

          Final account, retention release and the documents that close the contract cleanly.

          Notices, delay and valuation

          Claims are won on time limits and records.

          Under the FIDIC 2017 Red Book, a contractor gives notice of a claim within 28 days of becoming aware of the event (Sub-Clause 20.2.1) and sends a fully detailed claim within 84 days (Sub-Clause 20.2.4). The Engineer then agrees or determines it under Sub-Clause 3.7, and a dispute goes to the DAAB under Clause 21. The 1999 edition used a 28-day notice and a 42-day detailed claim under Sub-Clause 20.1. Particular conditions often change these periods, and Saudi public-works contracts follow the Government Tenders and Procurement Law, so we start with the contract in front of us.

          Delay is analysed on the programme, not argued in letters. We choose the method that suits the records and the contract: time impact analysis for events as they happen, and windows analysis or an as-planned versus as-built comparison after the event, with the Society of Construction Law Delay and Disruption Protocol (2nd edition, 2017) as good practice.

          Variations are valued from model quantities. The change is modelled, the quantity difference is measured from the BIM model, and rates follow the order the contract sets, usually contract rates first, then rates derived from them, then new rates. The records a claim rests on (site diaries, the updated programme, photos, and model versions with their ISO 19650 status in the CDE) are kept from the first day. AIM United acts for owners and contractors in Saudi Arabia, the UAE and the GCC, never on both sides of one project.

          Valuing change, proving delay

          The quantity comes from the model. The rate comes from the contract.

          A variation is valued in a fixed order. Under Sub-Clause 12.3 of FIDIC 2017 the Engineer first looks for a rate in the contract for the item; then for a rate derived from the contract rates for similar work; and only where neither fits, a new rate built from reasonable Cost plus profit. The quantity in each line is measured from the varied model, so the argument is about the rate, not about the measure.

          How a variation is valued
          #RateWhen it applies
          1Contract rateThe work is of a similar character and executed under similar conditions to an item in the bill of quantities or schedule.
          2Derived rateNo item fits exactly, but a rate can be built from the contract rates for similar work, adjusted for the difference.
          3New rateNothing in the contract is a fair basis: the rate is built from the reasonable Cost of the work, plus profit.

          Delay is proven on the programme. We pick the method that suits the records and the time it is done, following the Society of Construction Law Delay and Disruption Protocol (2nd edition, 2017). During the works the Protocol favours dealing with extensions of time as close to the event as possible, on the updated programme; after the works, the methods look back at what happened.

          Delay analysis methods
          MethodWhat it does
          Time impact analysisInserts the event, as a fragnet, into the programme updated to just before it, and measures the effect on completion. The method behind Stage 2.Prospective · during the works
          Windows analysisSplits the project into periods and finds the critical delay in each, from the programme updates and the as-built record.Retrospective · needs regular updates
          As-planned vs as-builtCompares the planned and the actual dates of the activities on the critical path, window by window.Retrospective · needs a good as-built record
          Collapsed as-builtRemoves the events from the as-built programme to show when the work would have finished without them.Retrospective · needs a reliable as-built logic
          Records that win claims

          A claim is only as good as the record made on the day.

          Sub-Clause 20.2.3 asks for contemporary records: records prepared at the time of the event, not reconstructed for the claim. We set them up before the first instruction, so every register above has evidence behind each line.

          • Site diariesLabour, plant, weather, deliveries and instructions received, signed daily.
          • The updated programmeProgress at every data date, so a fragnet has a programme to go into.
          • Photos and 360° capturesDated and located on the model, so the state of the work on any day can be shown.
          • Model versions in the CDEEach issue with its ISO 19650 status, so what was shared, published and changed is on record.
          • BCF issues and RFIsQuestions raised on the model, with the date answered and the activity they held.
          • CorrespondenceEvery Notice identified as one, in writing, and logged with its response date.
          Which side we act for

          For the employer or for the contractor. Never both on one project.

          What we do on each side
          SideWhat we do
          EmployerContract strategy and particular conditions, tender review, variation instructions, assessment of claims and extensions of time, interim and final payment checks.You get notices answered inside the time limits and claims assessed on the programme and the model.
          ContractorContract review before signature, notices on time, variation pricing from model quantities, extension-of-time claims, payment applications and the final statement.You get entitlements protected from day one, with the records behind them.

          We know the contractor's side from our own sites, where AIM United is main contractor and design-and-build contractor. That is why the contracts we write for employers hold up when the work changes.

          How we run a contract

          From the first draft to the Discharge, in five steps.

          1. 01

            Read

            The conditions, particular conditions, scope and programme read clause by clause, with the risks and time limits marked.

          2. 02

            Set up

            Registers, notice templates and the records plan in place before the first instruction, with the Notice routes agreed.

          3. 03

            Administer

            Instructions, notices, payment applications and correspondence logged on the day, with every response date tracked.

          4. 04

            Prove

            Variations valued from model quantities, delays analysed on the programme, claims built on the contemporary records.

          5. 05

            Close

            Every variation and claim reconciled into the Final Statement, retention released and the Discharge signed.

          Contracts in Saudi Arabia

          Public law, FIDIC forms, and the contract in front of us.

          The form of contract depends on who the employer is. We start every appointment by reading which rules govern it, because the time limits and remedies change with them.

          • Public-sector projectsLet under the Government Tenders and Procurement Law (2019) and its Implementing Regulations, with the contract conditions they set.
          • Private and giga-projectsCommonly on FIDIC-based forms, in the 2017 or 1999 edition, with particular conditions written by the employer.
          • Delay and disruptionThe SCL Delay and Disruption Protocol (2nd edition, 2017) as good practice for extensions of time and concurrency.
          • Information managementModel versions and records under ISO 19650 in the common data environment, so the evidence carries its status.

          Particular conditions on Saudi projects often amend the FIDIC time limits, the notice routes and the dispute clauses. We mark every change to the general conditions before the contract is signed or, mid-project, before the next notice is due.

          Proof

          Contracts run from the contractor's side.

          On our own projects as main contractor and design-and-build contractor, we run the notices, variations, payment applications and final accounts ourselves, so we know what a missed notice costs.

          Questions buyers ask

          FAQ

          What is the difference between a variation and a claim?

          A variation is a change the employer instructs under the contract. A claim is a request for more time or money, for example for a variation, a delay or an unforeseen condition. Both follow the procedures set in the contract.

          Do you work with FIDIC contracts?

          Yes. We draft, review and administer FIDIC-based contracts, and work with Saudi public-works contract conditions where a project uses them. The particular conditions always come first, so we read them before anything else.

          Can you take over contract administration mid-project?

          Yes. We start with a review of the contract, the correspondence and the open items, then put the notices, registers and records on a proper footing.

          Do you act for employers or contractors?

          Both, though never on both sides of the same project. Knowing each side's view makes the contracts we write and the claims we prepare more realistic.

          What notice periods apply under FIDIC 2017?

          Under the 2017 Red Book general conditions, notice of a claim is due within 28 days of becoming aware of the event, and the fully detailed claim within 84 days. A late notice can lose the entitlement altogether. Particular conditions often change these periods, so always check your own contract.

          What happens if a notice of claim is late?

          Under Sub-Clause 20.2.1 of FIDIC 2017, a claim notified more than 28 days after the Contractor became aware of the event loses the entitlement. The Engineer must say within 14 days that the notice was late (Sub-Clause 20.2.2); if he does not, the notice is treated as valid. The fully detailed claim can then set out why the late notice was justified, and the agreement or determination decides whether it stands.

          Does a variation need a notice of claim?

          Not for its time effect under FIDIC 2017. The Contractor's particulars under Sub-Clause 13.3.1 carry the price and the extension of time proposal, and Sub-Clause 8.5 says no Notice of Claim is needed for an extension caused by a Variation. Particular conditions can change this, so we check.

          What is a DAAB?

          A Dispute Avoidance/Adjudication Board under Clause 21 of the FIDIC 2017 conditions: one or three independent members. Under the Red Book it is a standing board, appointed at the start, that can help the parties avoid a dispute informally and, if one arises, gives a decision the parties must follow unless it is later revised by settlement or arbitration.

          How do BIM quantities help value variations?

          The change is modelled and the difference in quantities is measured from the model, element by element, instead of being argued from drawings. Both sides can check the same numbers, which shortens valuation and narrows what is left to dispute.

          Do you carry out delay analysis?

          Yes. We prepare and review extension of time claims using time impact analysis, windows analysis or as-planned versus as-built comparison, depending on the records and the contract, and we follow the SCL Delay and Disruption Protocol as good practice.

          How is concurrent delay treated?

          Sub-Clause 8.5 of FIDIC 2017 assesses an extension for concurrent Employer and Contractor delay under the rules in the contract's Special Provisions or, where there are none, with due regard to all the circumstances. The SCL Protocol gives the extension of time but limits prolongation cost to what can be separated from the Contractor's own delay.

          Which contract conditions apply on Saudi projects?

          Public-sector projects follow the Government Tenders and Procurement Law (2019) and its Implementing Regulations, with their own contract conditions. Private and giga-projects commonly use FIDIC-based forms with particular conditions written by the employer. We read which rules govern the contract before anything else.

          Which registers do you keep?

          A variation register, a claims register, a notice log, a payment application tracker and a correspondence log, each linked to the model element or programme activity it concerns, updated as events happen and issued as a workbook with the monthly report.