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Courses and Seminars on Fidic's New Suite of Contract Conditions
 
The New Documents
FIDIC's new suite of standard Conditions of Contract for international construction projects, for the contract between the Employer (Owner) and the Contractor, comprise:
  • The Conditions of Contract for Construction
  • The Conditions of Contract for Plant and Design-Build
  • The Conditions of Contract for EPC/Turnkey Projects
  • The Short Form of Contract.
They are all marked 'First Edition 1999', and FIDIC believes that one or other of the Books will be suitable for virtually any type of construction contract. However, care must be taken in the selection of which Book to use, which will depend upon the chosen method of procurement and the division of responsibilities between the parties. Flexibility has been incorporated in each Book to allow for easy adaptation to the particular requirements of the contract in question. Such adaptation, however, also requires care as well as knowledge and experience.

Generally speaking, it can be said that the Conditions of Contract for Construction (popularly called the 'New Red Book') updates and replaces the well-known 'Red Book', which has been the cornerstone of traditional construction contracts for more than 40 years. The Conditions of Contract for Plant and Design-Build (the 'New Yellow Book') now covers traditional works where the design is carried out by the Contractor - not only electrical and mechanical works, but also civil engineering and building works. It therefore updates and replaces both the well-known 'Yellow Book' for electrical and mechanical works, and the more recent (1995) 'Orange Book' for design-build and turnkey projects.

The old Books did not cover all types of construction contracts, and FIDIC has found it suitable to introduce two new Books to complete the suite. The Conditions of Contract for EPC/Turrikey Projects (the Silver Book) and the Short Form of Contract (the Green Book) are completely new. The first is aimed at those contracts where the Employer or Developer requires that the Contractor takes a greater share of risks, than in the traditional type contract, so that there is greater certainty of the final cost and time for construction. As the Contractor will be taking greater risks, the contract price will be higher. The Short Form is a welcome addition covering, in a very simplified way, contracts of relatively low construction cost or short time duration, or contracts for relatively simple repetitive work.

Adoption of FIDIC's Complete Suite by Organisations
FIDIC is aware that a number of large governmental bodies and other organisations are considering the adoption of FIDIC's complete suite of standard contract conditions. Such bodies include, for example, national power companies responsible for all aspects of power production and distribution within their country. The construction contracts they award cover the whole range from the procurement internationally of all types and sizes of power generating plants right down to contracts for local electricity distribution at village level. They cover projects designed and supervised by the Employer or his Engineer to turnkey or BOT type projects with minimum Employer input.

Similarly road authorities, responsible for roads and bridges within their region, or national or regional water and sewerage authorities, or other bodies who award construction projects of various types and sizes to international (or even national) contractors, could benefit greatly by the adoption of FIDIC's uniform set of contract conditions.

The adoption of FIDIC's suite of Contract Conditions by such an organisation has a number of worthwhile benefits:

  • The Conditions are known and accepted internationally
  • FIDIC's Conditions are the most widespread of all standard forms
  • They can be regarded as manuals of good engineering practice
  • The 3 major Books have standard definitions, the same layout and clause numbering, and the same wording except where different wording is required - clauses are interchangeable
  • There is one Book suitable for each type and size of project
  • The organisation adopting the suite can produce its own standard clauses (usually very few) for inclusion in the Particular Conditions for projects
  • There will be standardisation of all contract conditions within the organisation
  • When updates are necessary (historically about once a decade) FIDIC will produce the update.
This means that preparation of tender and contract documents for each project will be much simplified and standardised, requiring less legal and drafting input. By use of FIDIC's Books, prepared and scrutinised by experienced engineers and based on well-tried principles, omissions and faulty drafting in the conditions for each project will be avoided. This will lead to less claims and disputes between the parties.

Courses and Seminars by FIDIC Experts
For public and private companies and organisations, whether they be from the Employer (Owner) side or from the Contractor side, or whether they be from Financiers, Consultants or any other interested parties, FIDIC is prepared to recommend experts, including members of the drafting committee, who may be available to lead courses or seminars, or merely to give advice, on the New FIDIC Books. A typical seminar to present a thorough introduction to the 4 Books to procurement managers and drafting staff would take 2 days. Such an introductory seminar could be followed up at a later date with a more detailed practical course. As FIDIC is a non-profit making organisation, arrangements for the recommended experts would be on an individual commercial basis.

The New Books are available from FIDIC Bookshop.
International Federation of Consulting Engineers
FIDIC Bookshop- Box 311 - CH-1215 Geneva 15 - Switzerland
Tl +41-22-799 49 00 - Fx +41-22-799 49 01 - fidic.pub@fidic.org - FIDIC Bookshop