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Corporate insolvency: extortionate credit transactions (s.244 Insolvency Act 1986) — court criteria and relief flowchart

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This flowchart sets out the process under the FIDIC Red, Yellow and Silver Books, 2017 editions, for defects under:

  • clause 7.5, when any Plant, Materials, design or workmanship is defective or otherwise not in accordance with the Contract, the Employer rejects the affected item and the Engineer (or, under the Silver Book, the Employer) instructs remedial works
  • clause 7.6, where the Employer directs the Contractor to remove and replace non-compliant Plant or Materials, remove and re-execute other non-conforming work, or undertake urgent tasks required for the safety of the Works
  • clause 11.1, under which the Contractor must carry out all work needed to rectify defects or damage, as notified by the Employer on or before the expiry of the Defects Notification Period
  • clause 12.3, if a Test after Completion is not passed, with clause 11.1(b) on remedying defects applying (Yellow and Silver Books only)

For more information, see Practice Note: FIDIC Contracts 2017—defects...

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Web page updated on 22/05/2026

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