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Construction Law/Schedule of Payment under FIDIC Yellow BOOK


Hello.  I am a Japanese Civil Servant dealing with international Works Contracts applying FIDIC conditions of Contract. I have a question concerning Payment under FIDIC Yellow book (1999).

FIDIC Contract Guide (2000) specifies as following;

“Under P&DD or EPCT, the Schedule of Payments could be in one of the following forms;


-The Schedule could be based on actual progress achieved in executing the Works, i.e., on completion of defined milestones.  This method is considered preferable, but it necessitates careful definition of the payment milestones.  Disagreements may arise when the work required for a payment milestones is nearly achieved but the balance cannot be completed until some month later.”

From the explanation above, may I understand that;

1)a payment milestones aren’t (necessarily) equal to “Sections” which are to be specified in the Appendix to Tender in accordance with GC
2)If 1) is correct, detailed milestones for payment are normally predetermined in a bid stage “by the Employer”, not proposed by bidders (the Contractor).

Hope that you kindly understand the points of my questions and answer as appropriate.  

With best regard

Dear Tom,

 What I understand from the statement is, yes milestones are not (necessarily) equal to Sections shall be defined to milestones that can be completed in a reasonable time period.
Yes Employer shall define the payment milestones and Contractor may request revision.

Hope it helps


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Daniel Kazado


I can answer questions related with FIDIC contracts.


10 years as Contract Manager for FIDIC contracts.

Mechanical Engineer
Contract Management - Basic Principles Certificate. Construction Contracts and Dispute Resolution Certificate. Contract Administration - FIDIC Certificate.

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