FIDIC Forms of Contract and Their Application's

FIDIC is one of the most popular form of contract in construction use as a guideline book in internationally for administrator work in construction contract.

In 1999, FIDIC published four new editions of forms of contracts
1. Conditions of contract for construction
2. Conditions of contract for plant and design-build
3. Conditions of contract for EPC and Turnkey projects
4. Short form of Contract

fidic forms of contract and their application

1. Conditions of Contract for Construction

The Contract for construction includes a set of conditions recommended for building or engineering works where the owner provides most of the design. However, the contract work may also include some contractor-designed civil, mechanical or electrical works.
These days many contractors design a significant portion of the work on their own, so the conditions of contract for construction includes more provisions which are applicable under such cases.

2. Conditions of Contract for Plant and Design-Build

These contracts include a set of conditions suitable for the provisions of electrical and/or mechanical plant and for design and construction of buildings or engineering works. Under this contract, the contractor designs and provides the plants and other works which may include any combination of civil, mechanical, electrical and/or construction works, as per the requirement of the employer.
This type of FIDIC contract is also suitable for design and construction of building and engineering works. This contract requires the appointment of an engineer to administer the contract.

3. Conditions of Contract for EPC or Turnkey Projects

EPC stands for engineering, procurement and construction. This contract is suitable for turnkey projects such as power plants, process factory, infrastructure projects or any developmental works. The projects under this type of contract have a higher degree of certainty on project cost and time of completion.

The contractor has the responsibility of design and execution of the project including the guarantees of the performance. The contractor carries out the engineering, procurement and construction providing a fully equipped facility ready for operation.

In this contract, the contractor has greater freedom to satisfy the requirements of the end-user as specified in the conditions of the contract. This type of contract seems more profitable to the contractor than the traditional form of contracts, and thus, they are ready to accept the greater degree of risks.

4. Short Form of Contract

Short form of contract is suitable for small construction works (i.e. small capital value projects) of short duration or of relatively simple and repetitive works. This contract is suitable for any type of engineering and construction projects irrespective of who provides the engineering. Depending on the type of work and circumstances, this type of contract may also be suitable for contracts of higher values.

The contractor has to carry out the construction works as per the design provided by the owner. This contract may also include contractor designed civil, mechanical, electrical and/or construction works.

FIDIC Book's

The (old) Red Book

First published in 1957, the fourth and final edition was published in 1987, with a supplement added in 1996.
These contracts were aimed at the civil engineering sector, as differentiated from the mechanical/electrical engineering sector.

The (old) Yellow Book

First published in 1967 with the third and last edition in 1987. These contracts were aimed at the mechanical/electrical engineering sector.

The Orange Book

The first and only edition of this contract was released in 1995. This was the first design and build contract released by FIDIC.

The (new) Red Book

Released in 1999. The Red Book is suitable for contracts that the majority of design rests with the Employer.

The (new) Yellow Book

Released in 1999. The Yellow Book is suitable for contracts that the contractor has the majority of the design responsibility.

The Silver Book

Released in 1999. The Silver Book is for turnkey projects. This contract places significant risks on the contractor. The contractor is also responsible for the majority of the design.

The Pink Book

First published 2005 – an amended version was published 2006, with a further edition in June 2010.
This is an adaptation of The Red Book created to fit the purposes of Multilateral Development Banks.

The Gold Book

Released in 2008. This is FIDIC’s first Design-build and operate contract.

Other contracts in the FIDIC family include the FIDIC sub-contract, The Blue Book, which is concerned with dredging and reclamation works, and The White Book, which is for the engagement of consultants by Employers.

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Friday, October 18, 2019