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Understanding FIDIC Contracts Overview

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100% found this document useful (1 vote)
343 views50 pages

Understanding FIDIC Contracts Overview

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Construction

Sites
Engineering &
Management
Program

Contract & Claims


CSM503
(FIDIC Contracts)
Prepared by
Dr. Shady Dokhan/ Dr. Abdelrahman Elmohr
FIDIC CONTRACT
FIDIC CONTRACT

International contracts
FIDIC CONTRACT

A Brief Look Into the Past


 FIDIC was founded in July 1913 as the
result of an invitation by Belgian and
French engineers to attend “le Premier
Congress International des Ingénieurs -
conseils et Ingénieurs-experts.”
FIDIC CONTRACT

A Brief Look Into the Past


FIDIC CONTRACT

What is FIDIC?
 FIDIC stands for the Federation Internationale des Ingenieurs-
Counseils (International Federation of Consulting Engineers)

 The foundation was found in an effort to create a uniform set


of documentation for contractual agreements which are
applicable for use in different types of construction projects,
and also to simplify the bidding processes to become more
„user friendly‟. Keep in mind that most FIDIC forms of
contracts are agreements between the employer and the
contractor.
FIDIC CONTRACT

What is FIDIC?
 Keep in mind that most FIDIC forms of contracts are mainly
agreements between the employer and the contractor.
FIDIC CONTRACT

What is FIDIC?
FIDIC CONTRACT
FIDIC CONTRACT

Why FIDIC ?
FIDIC CONTRACT

FIDIC Suite of Contracts


FIDIC CONTRACT

FIDIC Suite of Contracts


FIDIC CONTRACT

FIDIC Suite of Contracts


FIDIC CONTRACT

FIDIC Suite of Contracts Editions 1999


FIDIC CONTRACT

FIDIC Suite of Contracts


FIDIC CONTRACT

FIDIC Red Book (First Edition 1999)


 Conditions of Contract for Construction for Building and
Engineering Works designed by the Employer
 Sometimes it allows for some elements of the project to be
Contractor designed
FIDIC CONTRACT

(First Edition 1999)

 Payments are normally determined by measurement and


applying the rates and unit prices from the bill of quantities.
 There is an option for payment to be on the basis of a lump
sum.
FIDIC CONTRACT

(First Edition 1999)


 Contents of Contract Book:

1. General Conditions
2. Guidance for the Preparation
of the Particular Conditions
3. Forms of Tender and Contract
Agreement
4. Dispute Adjudication
Agreement

2017
FIDIC CONTRACT

(First Edition 1999)


 The Engineer (employed by the Employer) is responsible for the
administration of the project and supervision of the works as well as
for issuing instructions, certifying payments, determining completion,
and others.
 The engineer is required to settle a claim. He is required to consult
with each of the parties to try and reach an agreement
FIDIC CONTRACT

(First Edition 1999)


 If an engineer’s determination is not agreed by either of the parties,
then the dispute will be referred to a Dispute Adjudication Board
(DAB) ‫مجلس إدارة المنازعات‬for a decision.
 The DAB is formed of one or three people who are jointly appointed
by the parties.
 If the decision of the DAB is not accepted by any of the parties then
the final step will be resolution via an international arbitration.
FIDIC CONTRACT

(First Edition 1999)


 Conditions of Contract for Plant and Design-Build for electrical and
mechanical plant, and for building works, designed by the Contractor
 Engineer’s responsibility such as Red book
FIDIC CONTRACT

(First Edition 1999)


 Contents of Contract Book:

1. General Conditions
2. Guidance for the Preparation
of the Particular Conditions
3. Forms of Tender and Contract
Agreement
4. Dispute Adjudication
Agreement

2017
FIDIC CONTRACT

(First Edition 1999)


 Conditions of Contract for EPC/Turnkey Projects
 EPC means Engineering, Procurement and Construction
 A Contractor takes on full responsibility for the design and execution
of a project.
 It is suitable for use on projects of power stations, airports, and
private-infrastructure projects (communication networks, water
processing,….)
FIDIC CONTRACT

(First Edition 1999)


 Risks for completion to time, cost and quality are transferred to the
Contractor and so the Silver Book is only suitable for use with
experienced Contractors familiar with sophisticated risk
management techniques
 Silver Book requires the Contractor to accept a higher level of risk
than is typical under most other forms of contract.
 Not all risk is passed to the Contractor under the Silver Book and the
Employer still retains risks for war, terrorism and Force Majeure.
 There is no reference to an Engineer. Although the employer can
appoint a representative in order to facilitate communications with
the contractor.
 All claims are submitted to the employer
 It provides conditions relating to “Tests on Completion”
FIDIC CONTRACT

(First Edition 1999)


 Contents of Contract Book:

1. General Conditions
2. Guidance for the Preparation
of the Particular Conditions
3. Forms of Tender and Contract
Agreement
4. Dispute Adjudication
Agreement

2017
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT

2017
1 GENERAL PROVISIONS 11 DEFECTS AFTER TAKING OVER
2 THE EMPLOYER 12 MEASUREMENT AND VALUATION
3 THE ENGINEER 13 VARIATIONS AND ADJUSTMENTS
4 THE CONTRACTOR 14 CONTRACT PRICE AND PAYMENT
5 SUBCONTRACTING 15 TERMINATION BY EMPLOYER
6 STAFF AND LABOUR 16 SUSPENSION AND TERMINATION BY
7 PLANT, MATERIALS AND CONTRACTOR
WORKMANSHIP 17 CARE OF THE WORKS AND
8 COMMENCEMENT, DELAYS AND INDEMNITIES
SUSPENSION 18 EXCEPTIONAL EVENTS
9 TESTS ON COMPLETION 19 INSURANCE
10 EMPLOYER’S TAKING OVER 20 EMPLOYER’S AND CONTRACTOR’S
CLAIMS
21. DISPUTES AND ARBITRATION
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
Typical Sequence of Principal Events During Contracts for Construction
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT
FIDIC CONTRACT

The Notice or other communication shall be in writing and:


FIDIC CONTRACT
FIDIC CONTRACT

If there is any conflict, ambiguity or discrepancy, the priority of the


documents shall be in accordance with the following sequence:
FIDIC CONTRACT

If a Party finds an ambiguity or discrepancy in the documents, that Party shall


promptly give a Notice to the Engineer, describing the ambiguity or
discrepancy. After receiving such Notice, or if the Engineer finds an ambiguity
or discrepancy in the documents, the Engineer shall issue the necessary
clarification or instruction.
FIDIC CONTRACT
‫‪FIDIC Clause Analysis‬‬

‫مطلوب من كل مجموعه عمل تقرير يشمل تحليل لبند من بنود‬


‫‪FIDIC 2017 Red Book‬‬
Material available @
You can safely download this slides, but please consider to read below:

Lecture

Thank You

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