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Fidic 7.7 - Ownership Of Plant And Materials

Discuss anything to do with property law - buying, selling property

Fidic 7.7 - Ownership Of Plant And Materials

Postby Rangy » Tue Dec 06, 2016 4:24 am

Hello,

While reviewing FIDIC 99("the red book") for one of our projects, we noticed that according to Sub-Clause 7.7, the Employer becomes the owner of all Plant and Materials delivered to the site. How does that relate to matters of responsibility and risk of the parties, with regard to such plant and materials? What happens if the materials are stolen or damaged after delivered to the site but before incorporated in the permanent works? Who's responsible if there's damage caused by the materials and plant that are now considered to be the Employer's property?

Thank you in advance for your reply.
Rangy
 
Posts: 50
Joined: Mon Jan 06, 2014 11:42 pm

Fidic 7.7 - Ownership Of Plant And Materials

Postby Normand » Tue Dec 06, 2016 6:09 am

Hello,

While reviewing FIDIC 99("the red book") for one of our projects, we noticed that according to Sub-Clause 7.7, the Employer becomes the owner of all Plant and Materials delivered to the site. How does that relate to matters of responsibility and risk of the parties, with regard to such plant and materials? What happens if the materials are stolen or damaged after delivered to the site but before incorporated in the permanent works? Who's responsible if there's damage caused by the materials and plant that are now considered to be the Employer's property?

Thank you in advance for your reply.
Normand
 
Posts: 39
Joined: Thu Mar 13, 2014 2:12 am

Fidic 7.7 - Ownership Of Plant And Materials

Postby Yiska » Thu Dec 08, 2016 4:43 am

Hello,

The spirit of this clause is that once the materials are brought on Site in the purpose of the Works, they cannot be redrawn or took back by the Contractor - some of them can be, even, subject of the clause 14.5[Materials and Materials intended for the Works]. The responsibility for them, as well as for all the Site, is of the Contractor, who shall take care, maintain, keep safe and secured the materials - the clauses 17.2 [Contractor's care of the Works] and 1.1.5.2 [Goods] and 1.1.5.3 [Materials] refers to this.

So, the Contractor is responsible for the care of these materials up to the taking over.

Though, the provisions of the applicable law should be taken into consideration when considering the property/ownership issue - in some jurisdictions, to become the "owner" of some goods or materials involves some legal procedures. The intention of the clause 7.7 and the other ones mentioned above is as described.

Hope it helps.

Best regards,

Alina
Yiska
 
Posts: 34
Joined: Sat Mar 22, 2014 4:12 am


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