FIDIC CONDITIONS OF CONTRACT

INTRODUCTIONThe Federation Internationale des Ingenierurs- Conseils (FIDIC) is the international federation of consulting engineers. FIDIC is best known as the organisation that publishes standard forms of contract documents related to the procurement of engineering works. These standard forms include those for use by consulting engineers and other forms that are suitable for the procurement of building and engineering works. FIDIC’s previous standard forms of contract documents for building and engineering works have been known by the colours of their respective covers

- Conditions of Contract for Works of Civil Engineering Construction, Fourth Edition 1987, Reprinted 1992, also known as the “Red Book”;

- Conditions of Contract for Electrical and Mechanical Works, Third Edition 1987, Reprinted 1988, also known as the “Yellow Book”;

- Conditions of Contract for Design-Build Turnkey, First Edition 1995, also known as the “Orange Book”.

The New SuiteAlthough the above standard forms are still used internationally, FIDIC has replaced them by the following First Editions, published in September 1999:-Conditions of Contract for Constitutions, which FIDIC recommends for building or engineering works where the Employer provides most of the design. However, the works may include some Contractor-designed civil, mechanical, electrical and/or construction works.- Conditions of Contract for Plant and Design-Build, which FIDIC recommends for the provision of electrical and/or mechanical plant, and for the design and execution of buildings or engineering works. The scope of these Conditions thus embraces both old Yellow and orange Books, for all types of Contractor-designed works.

- Conditions of Contract for EPC/Turnkey Projects, which may be suitable for the provision on a turnkey basis of a process or power plant, of a factory or similar facility, or of an infrastructure project or other type of development, where (i) a high degree of certainty of final price and completion time is required, and (ii) the contractor takes total responsibility for the design and execution of the project.

CONDITIONS OF CONTRACT FOR CONSTRUCTION FOR BUILDING AND ENGINEERING WORKS DESIGNED BY THE EMPLOYERThe Fourth Edition of the FIDIC Conditions of Contract for Works of Civil Engineering Construction, known as the “Red Book”, has been updated and replaced with a new standard form. The title of the new 1999 First Edition construction book – which is red in colour – is “Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer” (“New Red Book”). An abstract of the New Red Book is presented below.

General ProvisionsThe general provisions defines the important constituents of a contract such as the contract, the parties involved in the contract, payments, contract agreement, etc.

The EmployerContractor’s right of access to site is not exclusive and is subject performance security being provided. Contractor’s claims are applicable in case of delay by Employer.

Employer has to provide reasonable assistance to contractor to obtain local permits/approvals and to confirm financial arrangement for payment to

Contractor within 28 days of request for information. Also to convey any changes in Employer’s financial arrangement. Employer’s claims ratified by Engineer can be deducted from payment certificates issued to the contractor.

The Engineer The Engineer has no authority to amend the contract. The Engineer’s authority & limitations can be defined in the contract. The Engineer’s approval does not relieve the contractor from any responsibility, he has under contract. Engineer shall consult both parties to reach agreement on claims otherwise proceed to make a fair determination in accordance with the contract.Employer can replace the ‘Engineer’ by any other person against whom contractors does not have any reasonable objections.

The ContractorThe contractor shall design if required to the extent specified in the contract. The contractor shall deliver the performance security to Employer within 28 days of receipt of the Letter of Acceptance. The Employer shall return the Performance Security to the contractor within 21 days of Performance certificates issued on completion of the contract.

The subcontractor can be named in the tender for other sub-contractors proposed during execution, the Engineer’s approval is required. Though Employer shall be responsible for any error any notified items of reference an experienced contractor should discover

the error in time and seek the amendment. Claims due to above errors shall be entertained only if an experienced contractor could not have foreseen these errors. The Employer provided site data to be checked & interpreted by contractor before use.

The contractor shall- comply with applicable safety regulations.- institute a Quality Assurance System to demonstrate compliance.

The contractor shall not- revoke the appointment of contractor’s representative without prior consent of the Engineer.- subcontract the whole of works.

Compliance with Quality assurance system shall not relive the contractor of any of his duties or responsibilities. The contractor to ascertain all necessary information regarding risks & contingencies including, nature of site & Subsurface conditions the laws, procedures, & labour practices of the country. If the contractor encounters adverse physical conditions, which were unforeseeable, the contractor to give notice to the Engineer. The contractor shall bear all costs for special and or temporary rights of way & shall be deemed to have been satisfied as to the suitability and availability of access routes to the site. Contractor’s equipment when brought to site shall be exclusively intended for the execution of the works & shall not be removed without the Engineer’s consent.

Progress reportReport containing charts, photographs & other documents showing progress of the works shall be prepared and sent monthly. The progress report shall cover details of contractor’s personnel & equipment, quality assurance documents, safety statistics and comparison of actual & planned. Also measures adopted to overcome delays are listed.

All articles of antiquity found at the site shall be placed under the care & authority of Employer, if found by contractor, Any delay and extension of time due to delay on this account along with cost can be claimed.

Nominated SubcontractorIn the Contract, “Nominated Subcontractor’’ means a subcontractor:

i. Who is stated in the contract as being a nominated subcontractor, or

ii. Whom the Engineer, instructs the contractor to employ subcontractor

The contractor shall not be under any obiligation to employ a nominated subcontractor, against whom he raises reasonable objection. The employer may pray direct to the nominated subcontractor, if not paid by contractor without justification, and deduct it from Contractor’s money dues.

Staff and Labour

Contractor shall comply with all labour laws including those relating to health, safety, welfare and immigration. No work shall be carried out at suite on locally recognised holidays & days unless specially permitted. The contractor’s personnel shall be qualified & experienced in their trades and provides necessary super intendance to manage the work.

Plant Materials and WorkmanshipIf contractor suffers delay due to delay by Employer’s Engineer, claims can be raised. The contractor shall comply with the remedial instructions within a reasonable time, otherwise Employer shall be entitled to employ & pay other persons to carry out the work. The contractor shall pay all royalties rents and other payments for natural materials obtained from outside the site.

Commencement, Delays & SupervisionsThe Engineer shall give the Contractor not less than 7 days’ notice of the commencement date of work. Contractor should start the work within 42 days from the Letter of Acceptance.

Contractor’s planning schedule is considered approved if not commented by client’s engineer within 21 days. Contractor is entitled to extension of time for variation of scope of work. For exceptionally adverse climatic conditions, extension can be considered.

Any additional mobilisation for catching up with delayed project execution by contractor is at the risk and cost of

the contractor. If contractor fails to comply with time for completion he shall pay delay damages to the Employer for completion he shall delay damages to the Employer for this default as per rate stated in the tender.

Suspension of work by Engineer is permitted. Contractor can claim time extension and cost for complying with the Engineer’s instructions provided suspension is not for reasons on the contractor’s side.

Contractor is entitled to pay the value of undelivered plant and/or Materials if work is suspended for more than 28 days. If work is suspended beyond 84 days, the contractor may give 28 days notice to resume the work, beyond which the work (whole/part) shall be treated as omission or contractor may give notice of termination.

Test on CompletionNotice of 21 days from contractor is necessary for conducting Tests on Completion. The test may be conducted within 14 days thereafter even if client’s engineer is not available. If contractor fails to pass the tests on Completion within 21 days of notice from Engineer to carry out the test, client is free to proceed with tests at the risk and cost of the contractor.

Employer’s Taking OverEmployer is required to take over the work when completed according to the contract within14 days of notice from contractor. The Engineer is required to issue the Taking Over Certificates to the contractor within 28 days of above notice or reject the application giving reasons. If Engineer fails in either to take over or to reject, with 28 days, but the work is substantially complete; the certificates shall be deemed to have been issued on the last day of that period. If contractor is prevented for more than 14 days from carrying out the Test on Completion, the Employer shall be deemed to have taken over, the works or section.

Defects LiabilityAny work by contractor within Defects Notification Period as pointed out by Employer, well within contract requirement is to be carried at the risk and cost of the contractor. The Employer can seek extension of Defects Notification Period if a major item of plant cannot be used for purposes for which they are intended, but not exceeding Two years in extension. If above remedy is not carried out, the Employer can carry out the work himself or by others at contractor’s cost, but the contractor shall have no responsibility for this work. If employ agrees, the defective material can be removed for the site for repairs.

The contractor can be asked by the Engineer to search for the cause of any defect. The cost plus profit shall be paid to the contractor unless the cause noticed is due to defective workmanship of contractor. Contractor’s obligations are not complete until Engineer issued Performance certificates with 28 days of expiry date of Defects Notification Period. Only the performance certificates constitutes acceptance of the work. Both parties are liable for any unperformed obligation & contract remains in force to that extent.

Measurement and Evaluation

Evaluation of work shall be carried out by new rate other than agreed in the BOQ if the quantity is increased by more than 10% and value by more than 0.01% of accepted contract amount provided the rate revision sought by contractor exceed 1% of the cost per unit quantity as per rate schedule.

Variation and AdjustmentVariation of work can be initiated by the Engineer at any time upto Taking over stage. Contract is required to execute each variation unless contractor writes to Engineer about his inability to perform. Contractor may propose improvement or changes if beneficial to Employer due to lower value or better performance. The reduction in cost to contract price due to above change shall be shared between Employer to contract price due to above change shall be shared between Employer & the contract after adjusting for loss if any in quality, life and operational performance. The provisional sum available in the contract price shall be used per Engineer’s instructions, after obtaining quotations, invoices, vouchers and receipts in substantiation.

The contract price is adjusted for any increase or decrease in cost resulting from a change in the Laws of the Country made after the Base Date in the contract. Escalation clause applies only if provided for in the contract. Such clause may or may not be sufficient for compensation due to rise in costs, which have gone up compared to ‘Base Date’ data. If contractor fails to complete works within Time for Completion adjustment of price will be linked to date 49 days prior to Date of Completion or current prices whichever more favourable to Employer under Escalation clause.

Contract Price and PaymentAny quantities as per BOQ are estimated quantities and are not being taken as the actual & correct quantities. The Employer shall make an advance payment as interest free loan for mobilisation, when contractor submits. Advance payment guarantee, when such a provision of advance payment is made in the Appendix to Tender. If contract includes schedule of payment, it shall include an amount for plant & Materials, which have been sent to the site for incorporation in the permanent works. If contract does not includes schedule of payments, contractor to submit non-binding estimate of payment

during each quarterly period starting from 42 days after the commencement date. The Engineer may make any corrections of necessary to any previous payment certificates since payment certificates shall not be deemed to indicate Engineer’s acceptance of work. If contractor does not receive payments within 56 days of submission to Engineer with necessary supporting document, he shall be entitled to receive financing charges compounded monthly on the amount unpaid. Financing charges for delayed payment is 3% above central bank’s discount rate.

Termination by EmployerEmployer can terminate contract on many grounds such as failure to carry out the contract, subcontracting the whole of works or assign the contract without agreement. The bribing for undue favour can be the basis for Termination. Even Employer can terminate the contract with 28 days notice without any reason but not for executing the work himself or to appoint another contractor.

Suspension & Termination by ContractorContractor is allowed to terminate the contract if contractor is not provided

i. Employer’s financial arrangement

ii. Lack of interim payment when due

iii. Prolonged suspension of work by Employer

iv. Bankruptcy or insolvent Employer

v. Substantial failure of Employer to perform his obligation under contract.

Risk & ResponsibilityThe contractor indemnifies and holds harmless the Employer on following issues.a. Injury, Disease or Death due to contractor’s

execution of work (including design if any) or during remedy of defects in works offer completion.

b. Damages or Losses to property arising out of execution of work (including design if any) or attribute to negligence, willful act or breach of the contact by the contractor.

The Employer to indemnify and hold harmless the contractor for similar actions carried out by Employer’s personnel during execution or after completion during remedial work. The contractor takes full responsibility for the care of the works from commencement Date till taking over by client, after which the responsibility passes to the Employer. In case of loss or damage during care of the works from commencement Date will taking over by client, after which the responsibility on contractor continuous even after Hand over to Employer, if some balance work is still being carried.

Employer is required to meet the risks out- War, Hostilities & invasion- Rebellion, Terrorism & civil war- Riot, Commotion or disorder (provided it is not caused

by contractor’s personnel)- Explosives, ionizing radiation or contamination by

radioactivity except for those caused due to use of such material by contractor, for construction purposes.

- Pressure waves caused by aircraft caused by sonic or supersonic speeds.

- Design of any part of works by the Employer.- Forces of Nature, which an experienced contractor

could not have foreseen.

Contractor is expected to make good loss or damage caused by above issue, but will be reimbursed for the same along with time extension for delays. The Employer shall indemnify Contractor from any claim arising out compliance of the contract conditions or works being used for the Employer. Similarly Contractor shall indemnify Employer for any claim arising out design of supply of goods made under the scope of the contract. The total liability of the Contractor under above issue shall not exceed the value of contract except for in case of fraud, misconduct & default.

InsuranceThe Terms of Insurance to be effected by any Insuring Party shall be consistent with any terms agreed by both parties before the date of Letter of Acceptance. This type of agreement shall take precedence over the provisions of this clause. The relevant insuring party shall within the respective periods stated in Tender Submit to other party evidence of insurance being effected along with details of premium. Neither party shall change terms of insurance without approval of other party. Also payment not made by one party despite being due, can be made by other party

and adjusted in contract value or adjusted against payment due. Any insurance claim, uninsured obligation, not received fully from insurance shall be borne by the party, which is responsible for these issue as per contract. Payment by one party to the other party shall be subjected to ‘Employer’s claim’ or ‘contractor’s claim’ as applicable.

Insurance for works & Contractor’s equipment shall be affected by the contractor, as insuring party in the joint name for the full value of cost or replacement. The Payment shall be jointly received & allocated between the parties for the sole purpose if rectifying the loss or damage. Such insurance excludes losses due to defects in design, materials and workmanship. Such insurance cover excludes part of work taken over by the Employer.

If one year after the Base date the insurance cover is not available at commercially reasonable terms. The contractor shall give the notice to the Employer with supporting particulars. The contractor shall also insure against injury to persons & Damage to Employer’s Property arising out of contractor is performance of the contract other than already covered under Insurance of Works & Contractor’s Equipment or personnel As stated earlier, the insurance will be in joint name of both the parties. Similar to Works & Contractor’s equipment, contractor’s personnel shall be insured by contractor for injury, sickness, disease or death. The insurance shall be maintained in full force in effect through out the execution of works. For subcontractor’s employees subcontractor may draw insurance, but contractor shall be responsible for the compliance by the subcontractor.

Force MajeureForce Majeure is an exceptional event or circumstances, which concerned party could not have provided against & even could not have avoided having arisen in the given circumstances. Force Majeure includes, war, hostilities or invasion, rebellion, terrorism or civil war. It also covers riots commotion, disorder or strike & lockout other than those by contractor or subcontractor’s personnel. It includes issue such as explosives, ionishing radiation or contamination by radioactivity except those specially utilised by contractor for construction. It does cover natural catastrophes, such as earthquake, hurricane, typhoon or volcanic activity.

If a party is prevented from performing any of its obligations, a notice shall be given within 14 days of the event constituting Force Majeure. The party shall be excused from performance of its obligation as long as Force Majeure persists except for obligation of the party to make payments if due. If contractor suffers delays & costs due to Force Majeure he shall be compensated by necessary time extension & cost compensation. If force Majeure clauses for subcontractor are broader/wider than contractor’s projections under this clause, then those issue cannot be the excuse of contractor for non-performance or basis for relief under the clause.

If a single Force Majeure event persists for 84 days or cumulatively for 140 days due to multiple occasions, then either party may give notice to the other party a

notice of 7 days for termination of contract. In such situation further process of determining the value of work done shall commence will include.-Value of completed item of work which price is stated in the contract.- Cost of plant & Material delivered or which has left vendors for delivery.- Any other cost/liability reasonably incurred by the contractor for completing the works.- Cost or removal of Temporary Works & Contractor’s Equipment.-Cost of repatriation of the contractor’s staff & labour employed wholly in connection with the work.

Not withstanding above if any event outside the control of parties arises, which makes if impossible or unlawful for either party to fulfill its contract obligations parties are entitled to be released from further performance of the contract. Money payable to the contractor by employer shall be same as stated above.

Claim, Disputes & ArbitrationIf contractor considers himself eligible for any extension of the Time and or additional payment, a notice shall be given within 28 days of the event. Any claims beyond this period will not be effective and the Employer shall be discharged of any liability on that account. Contractor shall maintain all relevant and contemporary record to substantiate his claims to the engineer. Without admitting the Employer’s liability the Engineer may inspect the record and seek necessary details to verify such claims. Within 42 days of becoming aware of claims, contractor shall send to the Engineer a fully detailed claim, which includes full supporting particulars of the basis of the claim. Further details, if any, can be provided within the time agreed between Contractor & Employer.

The parties shall jointly appoint a DAB by the date stated in the Appendix to Tender, Disputes shall be adjudicated by a Dispute Adjudication Board consisting of one or three suitable qualified persons. In case of three member DAB, one member each shall be appointed by the Employer and the contractor & third member shall be appointed by mutual consultation to act as chairman. However, if a list of potential members is included in the contract, the member shall be selected from those on the list. In case of failure to appoint DAB, due to any disagreements, the appointing entity or official named in the particular conditions shall appoint member/ members of DAB.

Appointment of any existing member of the DAB may be terminated by mutual agreement of both the parties.

If a disputes arised between parties under the contract, either party can refer the disputes to DAB for its decisions with copies to other party. Within 84 days of such reference or such other period as may be proposed by the DAB & approved by both parties, DAB shall give the reasoned decision. The decision shall be binding on both parties who shall act on it unless it is revised in an amicable settlement or arbitral award. If either party is dissatisfied with decision, then within 28 days of decision shall give notice to the other party of its dissatisfaction. Also if DAB fails to give decision within above stipulated period, then within 28 days of expiry of the period, notice of dissatisfaction can be issued.

DAB’s decision is final & binding if no notice of dissatisfaction is issued by either party. If notice of

dissatisfaction is issued in time, Parties shall attempt to settle the dispute amicably before the commencement of arbitration. Arbitration shall be carried out as per rules of arbitration of the International Chamber of Commerce. Arbitrators shall give full power to open up, review & revise any decision by DAB or engineer. Neither party shall be limited by the arguments previously put before the DAB. Arbitration may commence prior to or after completion of works. The obligation of all parties shall not be altered by reason of any arbitration being conducted during the progress of works. In case of award of DAB not being implemented without giving notice of dissatisfaction , the failure can be referred to arbitration. In case of any dispute not getting resolved due to absence or expiry of DAB arrangement, the matter may be referred directly to arbitration.

In the preparation of these Conditions of Contract for Construction, it was recognised that, while there are many sub-clauses which must necessarily vary to take account of the circumstances relevant to the particular contract. The sub-clauses which were considered to be applicable to many (but not all) contracts have been included in the General conditions, in order to facilitate their incorporation each contract.

NEW PROVISIONS MADE BY THE NEW RED BOOK FOR CONSTRUCTIONProvisions Related to the Contractori. The employer is required to submit, within 28 days

after receiving any request from the contractor, ‘reasonable evidence that financial arrangements have been made and are being maintained’ which will enable the employer to the contract price in accordance with the contract. If the employer intends to make any material change to his financial arrangements, he is required to give notice to the contractor with detailed particulars (Sub-Clause 2.4 – Employer’s Financial Arrangements).

ii. If the employer considers himself to be entitled to any payment under or in connection with the

contract, and/or any extension of the Defects Notification period (the new name for the Defects Liability Period), the employer or the engineer must give ‘notice and particular’ to the contractor. The particulars must specify the clause or other basis of the claim…and…include substantiation of the amount and/or extension to which the Employer considers himself to be entitled. The notice must be given as soon as practicable after the employer is expressly denied the right to set off against or make any deduction from a certified amount or otherwise claim against the contractor, except in accordance with this provision (Sub-Clause 2.5 – Employer claims).

iii. The employers in expressly entitled to extend the Defects Notification Period for the works or a section

of the works for up to two years if it cannot be used for the purpose for which it was intended by reason of a defect or damage (Sub-Clause 11.3 – Extension of defects Notification period).

iv. The contractor right adjustment of the contract price to take account of any increase or decrease in cost (as defined) resulting from a change in law in the country where the site is located has been extended (beyond ‘changes in legislation’, as in e.g. the orange book) to include changed in the judicial or official government interpretation of laws made after the base date (as defined) which effect the contract in the performance of his obligations (sub-clause 13.7 – adjustment for changes in Legislation.

v. If the contractor is not paid on time, the contractor is entitled to receive financing charges compounded monthly on the amount unpaid during the period of delay. Unless otherwise stated in the Particular Conditions, these financing charges are to be calculated at the annual rate of three percentage points above the discount rate of the central bank in the country of the currency of payment and should be paid in such currency (Sub-Clause 14.8 – delayed payment). The above provision is derived from the Orange Book. While the old Red Book provided that the contractor was entitled to interest on late payments, it did not specify how this was to be calculated.

vi. The contractor is now entitled, after giving notice, to suspend or reduce the rate of work where the engineer fails to certify an interim payment certificates or the employer fails to provide information about the employees financial arrangements for paying the contract price (see point (1) above) (Sub-Clause 16.1 – Contractors Entitlement to Suspend Work). Under the old Red Book (Sub-Clause 69.4 – Contractors Entitlement to Suspend Work), the contractor was only entitled to suspend or reduce the rate or work where the employer was not paying an amount due under any certificate.

vii. Within 42 days after receiving a claim or any further particulars supporting a previous claim of the contractor, the engineer is now expressly required to

respond with approval, or with disapproval and detailed comments’ (Sub-Clause 20.1 – Contractors Claims) under the old Red Book, there was no express requirement that the engineer respond to the merits of the contractors claims at all, except in the case of a dispute (Clause 67 – Settlement of Disputes).

viii. Under the General conditions of the new Books for major works, disputes are now required to be submitted to a DAB for decision. In the case of the new Red and Yellow Books, the DAB must be appointed at the time the contract is signed and remain in place until it is concluded (under the General Conditions of the Silver Book, a DAB is appointed for each

Dispute and ordinarily only remains in office until that dispute is decided) (Clause 20 – Claims, Disputes and Arbitration). Under the old Red and Yellow Books, disputes had to be submitted to the engineer for a decision, as a condition to arbitration. The provision for a DAB to replace the engineer for the settlement of disputes in the General conditions may be the most favorable of the innovations in the new books from the Contractor’s point of view.

Provisions Related to the Employeri. The employer is now entitled, on not less than 42

days notice, to replace the engineer provided that the employer may not do so with a person against whom the contractor raises reasonable objection by notice to the employer (Sub-Clause 3.4 – Replacement of the Engineers)

ii. If the contract specifies the contractor shall design any part of the permanent works (as defined) then such part must, when completed, be fit for such purposes for which the part is intended as are specified in the Contract (Sub-Clause 4.1 (c) – Contractors General obligation). Under the old Red Book, there was no requirement that any works designed by the contractor be fit for purpose.

iii. Where the contractor makes a claim for adverse ‘Physical conditions’ (as defined), the engineer may review whether other physical conditions in similar parts of the Works (if any) were more favorable than could reasonably have been foreseen. If so, the engineer may reduce the amount of any cost (as defied) claimed by the contractor for adverse physical conditions by the amount of the reduction in cost of such more favorable conditions, so long as the net effect does not result in a reduction in the contract price (Sub-Clause 4.12 – Unforeseeable Physical Conditions).

iv. The contractor is required to submit detailed monthly progress reports to the engineer, including charts and detailed descriptions of progress, photograph status

of manufacture and, of progress on the site, details regarding the manufacture of each main item of plant and materials, records of the contractors personnel and equipment as well as other information (sub-Clause 4.21 – Progress Reports). Such progress reports are required to accompany the contractors applications for interim payment certificates), implying that payment may be conditional on the receipt of such reports.

v. The employer has the right after notice to the contractor, to terminate the contractor at any time for the employers convenience provided that the employer may not do so in order to execute the works himself or to arrange for

them to be executed by another contractor. In the case of such termination the contractor is paid for work done but is deprived of the right to profit on the balance of the contract (sub-Clause 15.5 – Employers Entitlement to Termination and 19.6 – optional termination, payment and release).

The contractor is required to give notice to the engineer of any claim for an extension of time or additional payment not later than 28 days after the contractor became aware, or should have become aware, of the event or circumstances’ giving rise to a claim. If he fails to do so, the employer is stated to be discharges from all liability in connection with the claim. In addition, the contractor is required to send to the engineer a fully detailed claim within 42 days after the contractor became aware or should have become aware of the event or circumstances giving rise to the claim (unless the engineer approves a longer period).

If the contractor should fail to comply with this latter requirement, any extension of time and/or additional payment must be adjusted to take account of the extent to which the failure may have prevented or prejudiced proper investigation of the claim (Sub-Clause 20.1 – Contractors Claims.