1. What is FIDIC:
FIDIC – stands for “International Federation of Consulting Engineers” stands for “Federal of International Consulting Engineers”. Its headquarters are in Geneva, Switzerland.
2. The Parties to a FIDIC Contract
* Contracting Authority/Employer
* Contractor – Contract between Employer and Contractor under FIDIC Red/Yellow
* Engineer – Contract between Employer and Engineer
* Engineer to administer the FIDIC contract on behalf of the employer
3. FIDIC Conditions of Contract-Types of Manuals
on. FIDIC “New Red Book”: The Conditions of the Construction Contract:
“That are recommended for building or engineering works designed by the Contractor, or by his representative, the Engineer. Under the usual provisions for this type of contract, the Contractor constructs the works in accordance with a design provided by the Contractor. However , the works may include some elements of the Contractor: designed, civil, mechanical, electrical and/or construction works”
B. FIDIC “New Yellow Book”: Contract Conditions for Plant Design – Construction
“That are recommended for the provision of electrical and mechanical installations, and for the design and execution of building or engineering works. Under the usual provisions for this type of contract, the Contractor designs and produces, in accordance with the Contractor’s Requirements, installations and/or other works, which may include any combination of civil, mechanical, electrical and/or construction works.
against FIDIC “New Silver Book”: Contract conditions for EPC (Engineering, Procurement, Construction) / Turnkey projects
“Which may be suitable for the turnkey provision of a process or power plant or factory or similar facility, or of an infrastructure project or other type of development, where (i) a greater degree of firm price certainty is required and time required, and (ii) the Contractor assumes full responsibility for the design and execution of the project, with little involvement of the Employer Under normal turnkey project arrangements, the Contractor undertakes all engineering, procurement and EPC construction: providing a fully equipped, ready-to-run facility at the “turn of a key”.
D. FIDIC “New Green Book” – the “Mini-Red Book”:
Short form of contract. “Which is recommended for construction or engineering work of relatively small capital value. Depending on the type of work and the circumstances, this form may also be suitable for higher value contracts, particularly for relatively simple or repetitive or short duration work Under the usual provisions for this type of contract, the Contractor constructs the works in accordance with a design supplied by the Employer or its representative (if any), but this form may also be suitable for a contract that includes, or comprises in in its entirety, works designed by the Contractor civil, mechanical, electrical and/or construction works.
me. FIDIC “Pink Book” – Harmonized Conditions of Contract for Constructions
Issued after several Multilateral Development Banks (MDB) agreed to certain modifications to some Clauses, to better reflect their financing principles. Used for construction and engineering works, designed by the Employer (as in the Red Book) Allows the Bank to suspend payments to the Borrower – Sub-Clauses 2.4, 14.7 and 16.1 Authority of the Engineer may be unilaterally modified by the Employer – Sub-Clause 3.1 Modifications concerning the selection and activity of DAB
F. Basic principles and selection of documents FIDIC – New Red Book
Design primarily by Employer or his agent Works to be re-measured Employer appoints Engineer to administer contract on behalf Engineer has power to modify works, but not change contract Appointed by DAB within 28 days after the start date and has the power to resolve any disputes and change Engineer “determinations”
gram. Basic principles and selection of documents FIDIC – New Yellow Book
The Employer provides the project requirements as defined in the point “Employer’s Requirements” (ER) The “ER” are the basis for the contractor to design and build the project. Errors within the “ER” are the responsibility of the Employer. The contract is for a fixed sum and not remeasured. The contract is administered on behalf of the Employer by the Engineer. Variations by the Engineer are anticipated. The general conditions (clauses 1 to 20), except clauses 5 and 12, are basically the same as those of the red book.
H. Selection of FIDIC Documents – Risk Management
All contracts contain risks for both the Contracting Authorities/Employers and the Contractors – There is no such thing as a risk-free contract FIDIC tries to rationalize and allocate responsibilities for the main risks A key requirement is that the Contracting Parties fully understand the General and Particular Conditions of the FIDIC Contract that exposes its Responsibilities and Risks within a Project All risk given to the other party has its cost, no Party assumes a free risk.
4. Main differences with previous editions of FIDIC
The Engineer is no longer required to act impartially, but is recognized to be the Employer’s representative. The Contractor is entitled to require the Employer to provide proof of the availability of funds. Dispute Adjudication Board (DAB).
