(Under the FIDIC Yellow Book (edition 1999), any delay caused by Authorities will be considered...

Under FIDIC Yellow Book 1999, Sub-Clause 8.5 [Delays Caused by Authorities] addresses situations where delays arise due to actions or inactions of public authorities. Sub-paragraph (b) specifically provides that delays caused by authorities may entitle the Contractor to an extension of time, provided certain conditions are satisfied.

A critical condition clearly stated in this clause is that the Contractor must have “diligently followed the procedures laid down by the relevant legally constituted public authorities in the Country.” This requirement reflects an important FIDIC contract management principle: entitlement to relief is conditional upon proper Contractor performance. If the Contractor fails to comply with statutory procedures, permit processes, or administrative requirements, then delays cannot be attributed to the authorities for the purpose of claiming time extension.

From a practical perspective, this clause ensures a balanced allocation of risk. While the Employer bears the risk of delays caused by external authorities, the Contractor retains responsibility for proper compliance with all legal and procedural obligations. The Engineer will typically assess whether the Contractor acted diligently before granting any extension of time under Clause 8.4 in conjunction with Sub-Clause 8.5.

Therefore, the statement is correct, as diligence in following authority procedures is a prerequisite for claiming delay under this provision.