The Fidic Forms Of Contract

In September 1999, FIDIC introduced its new Suite of Contracts, which included a “new” Red, Yellow, Silver and Green forms of contract. The “new” Red Book was intended to replace the 1992 fourth edition of the Red Book, with the ambition that its use would cease with time. This ambition has not materialised and is unlikely to do so in the future. Despite the importance of the 1999 Forms, there has been very little published on the new concepts adopted in them and how they interact with the previous forms. This important work considers these aspects together with the many developments affecting the fourth edition of the Red Book that have taken place since 1997, when the second edition of this book was published, and relates them to key contracting issues. It is written by a chartered engineer, conciliator and international arbitrator with wide experience in the use of the FIDIC Forms and in the various dispute resolution mechanisms specified in them. Important features of this book include: · background and concepts of the various forms of contract; · a detailed comparison of the wording of the1999 three main forms, which although similar in nature; it nevertheless significantly differs in certain areas where the three forms diverge due to their intended purpose; · analysis of the rights and obligations of the parties involved in the contract and the allocation of risks concerned; · a range of ‘decision tree’ charts, analysing the main features of the 1992 Red Book, including risks, indemnities and insurances, claims and counterclaims, variations, procedure for claims, programme and delay, suspension, payments and certificates, dispute resolution mechanisms, and dispute boards; · a much enlarged discussion of the meaning of “claim” and “dispute” and the types of claim with a discussion of the Notice provision in the 1999 forms of contract for the submittal of claims by a contractor and by an employer; · the FIDIC scheme of indemnities and insurance requirements; and the methods of dispute resolution provided by the various forms of contract; and · five new chapters in this third edition, the first four chapters deal with each of the 1999 forms and the fifth chapter is confined to the topic of Dispute Boards.

Provides a clear and comprehensive guide to the 2017 FIDIC contracts—written by a member of the FIDIC Updates Task Group FIDIC contracts are the most widely used engineering standard form contracts internationally but until 2017 the three main forms (the Red, Yellow and Silver Books) had not been amended or updated for nearly two decades, since the first editions were published in 1999. Written by a specialist lawyer who was member of the FIDIC Updates Task Group responsible for writing the new contracts, this book examines in detail the many substantial changes they have introduced. After providing an overview the contracts are examined clause by clause with the aim of showing how each compares and contrasts with the others and how the second editions compare and contrast with the first. The first chapter describes how the Red, Yellow and Silver Books evolved from earlier contract forms and the distinctive characteristics of each, before providing an overview of the updates, including new potential risks for both Employer and Contractor, and then examining, in the second chapter, key general provisions such as the new rules on notices and limitation of liability. Chapter 3 examines the enhanced role of the Engineer in the Red and Yellow Books/Employer’s Representative’s function in the Silver including the new procedure for determinations as well as the Employer’s obligations and contract administration. The Contractor’s obligations are considered in chapter 4 while chapter 5 examines his responsibility for design in the Yellow and Silver Books. Chapters 6 to 14 deal respectively with plant, materials and workmanship and staff and labour; time-related provisions in the three contracts including extensions of time, and the Employer’s right to suspend the works; testing on and after completion and the Employer’s taking over of the works; defects after taking over, acceptance of the works and unfulfilled obligations; measurement (in the Red Book), the Contract Price and payment; the new variations regime and adjustments to the Price; termination and suspension; care of the works and indemnities and Exceptional Events (previously, Force Majeure). An important feature of the new contracts is their increased emphasis on clarity in the claims process and on dispute avoidance. These topics are examined in the final two chapters, 15 and 16, which deal respectively with the new claims and dispute resolution provisions of the 2017 forms. FIDIC contracts are the most widely used standard forms of contract for international engineering and construction projects Provides a clear and comprehensive guide to the 2017 FIDIC Red, Yellow and Silver Books Written by a senior specialist lawyer and member of the FIDIC 2017 Updates Task Group responsible for writing the new contracts Accessible to those with little or no familiarity with FIDIC contracts The 2017 FIDIC Contracts is an important guide for anyone engaged in international projects, including employers, contractors, engineers, lawyers, suppliers and project financiers/sponsors.

The terms of the Conditions of Contract for Design - Build and Turnkey have been prepared by the Federation Internationale des Ingenieurs Conseils (FIDIC) and are recommended for general use for the purpose of the design and construction of works where tenders are invited on an international basis; with minor modifications, the Conditions are also suitable for use on domestic contracts.

The Conditions of Contract prepared by FIDIC are used extensively as the standard contract of choice in international construction and civil engineering projects. Engineers working on these projects need to be aware of these contracts, but as the forms are complex it can be difficult to draw together all the sub-clauses relating to a particular issue. The FIDIC Plant and Design-Build Forms of Contract Illustrated crystallizes the requirements of the FIDIC P&DB contract into a range of simple to follow flow charts, providing a clear and concise way to rapidly assimilate the requirements of each clause. The relationship between the various clauses in the contract, the concepts, process methods and actors involved in each sub-clause are all easily seen, and key issues around each topic (such as periods allowed, notices, etc) are all documented. In addition, related sub-clauses and/or important additional documents are linked so that the reader has a full understanding of the wider implications of each clause.

This guide will help the contractor’s staff overcome some of the difficulties encountered on a typical international contract using FIDIC forms. The majority of FIDIC-based contracts use the Red Book (Conditions of Contract for Construction), so this book concentrates on the use of those particular forms. Supplementary comments are included in Appendix C for the Yellow Book (Plant & Design-Build) recommended for use where the contractor has a design responsibility. The Contractor is represented on site by the Contractor’s Representative who carries the overall responsibility for all the Contractor’s on-site activities. In order to provide guidance to the Contractor’s Representative and his staff, this book is divided into five sections: A summarized general review of the Red Book from the Contractor’s perspective. A review of the activities and duties of the Contractor’s Representative in the same clause sequencing as they appear in the Red Book. A summary of these activities and duties but arranged in order of their likely time sequence on site. This has the added intention of providing the Contractor’s Representative with a means of ensuring that documents are not only properly provided to the Employer and Engineer, but most importantly that they are provided within the time limits specified in the Contract. A selection of model letters is provided which make reference to the various clauses of the contract requiring the Contractor to make submissions to the Employer or Engineer. Various appendices. The guide is not intended to be a review of the legal aspects of FIDIC- based contracts; legal advice should be obtained as and when necessary, particularly if the Contractor has little or no knowledge of the local law. Armed on site with a copy of The Contractor and the FIDIC Contract, the Contractor’s Representative will be more able to avoid contractual problems rather than spend considerable time and energy resolving those problems once they have arisen.

‘It is clear thatthere is less chance of failure to observe contract complianceusing [this] book, than reliance on reading though the appropriateclauses in the contract… A big plus is that those using thebook will find answers to queries relating to contractual issuesarising from the FIDIC contracts conditions in a fraction of thetime it would take if it were necessary to study the fulltext… For those using the FIDIC forms for the first time, orinfrequently, this book is a must, whilst experienced users willfind it a valuable memory jogger. Whichever category the readerfalls into, using this book should improve performance…Thebook is ideal for engineers, quantity surveyors, contract managersand any person whose job it is to understand the workings of aFIDICcontract.‘ From the book’s Foreword by Roger Knowles The most important part of any contract is the obligations ofthe parties, the time frames in which the parties must performthese obligations, and the consequences of failing to meet them.Failure to carry out obligations correctly is a serious risk andcommon source of contention or claims. This practical ready-reference on the contractual obligations ofthe various parties for a FIDIC construction contract promotesefficient administration of construction projects, preventscontention and aids an easier understanding of their obligations.The FIDIC Contracts:obligations of the parties is presented in an easily-referencedformat, with the obligations set out in tabular form and clearsummaries for each type of contract given in separate sections forthe Employer, the Contractor and the Engineer. This guide’s ready–reference style will enable theproject manager, quantity surveyor or contract manager to quicklycheck that his company is performing the required obligationscorrectly - and also to ensure the other parties are doing thesame.

FIDIC Contracts: Law and Practice is sure to become the leading industry standard guide to using the FIDIC forms, and is the only book to date which deals with the whole suites of contracts, including the new gold book for Design, Build and Operate projects. The White & Case work is outstanding in its detailed consideration and treatment of the legal aspects of the interpretation and application of the Conditions, touching on many points that most people would not have encountered. Humphrey LLoyd, International Construction Law Review [2010] ICLR 386