1. What is FIDIC:
FIDIC – stands for “International Federation of Consulting Engineers” means “Federal of International Consulting Engineers”. Its headquarters are in Geneva, Switzerland.
2. Parties to a FIDIC Contract
* Contracting Authority/Employer
* Contractor – Contract between Employer and Contractor under Red/Yellow FIDIC
* 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
A. FIDIC “New Red Book”: The Conditions of the Construction Contract:
“Which are recommended for construction or engineering works designed by the Employer, or by his representative, the Engineer. Under the usual provisions for this type of contract, the Contractor builds the works according to a design provided by the Employer. Without However, the works may include some elements of the Contractor: designed, civil, mechanical, electrical and/or construction works”
b. FIDIC “New Yellow Book”: Conditions of Contract for Plant Design – Construction
“Which are recommended for the provision of electrical and mechanical installations, and for the design and execution of building or engineering works. Under the usual arrangements 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”.
vs. FIDIC “New Silver Book”: Conditions of Contract for EPC (Engineering, Procurement, Construction) / Turnkey Projects
“That 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 higher 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 input from the Employer Under the usual arrangements for turnkey projects, the Contractor performs all engineering, procurement and EPC construction: providing a fully equipped facility, ready to go with 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 works 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 work or of short duration Under the usual provisions for this type of contract, the Contractor builds the works according to a design provided by the Employer or his representative (if any), but this form may also be suitable for a contract that includes, or includes in in its entirety, works designed by the Contractor civil, mechanical, electrical and/or construction works.
my. FIDIC “Pink Book” – Harmonized Conditions of Contract for Construction
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 The Authority of the Engineer can be modified unilaterally by the Employer – Sub-clause 3.1 Modifications regarding the selection and activity of DAB
F. Basic principles and selection of FIDIC documents – New Red Book
Design primarily carried out by the Employer or its agent Works to be re-measured The Employer appoints the Engineer to administer the contract on its behalf The Engineer has power to modify the works, but not to change the 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 FIDIC documents – New Yellow Book
The Employer provides the project requirements as defined in the item “Employer 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 Contractor. 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 expected. The general conditions (clauses 1 to 20), except clauses 5 and 12, are basically the same as those in 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 assign 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 as the Employer’s representative. The Contractor has the right to require the Employer to provide proof of the availability of funds. Dispute Adjudication Board (DAB).