www.eic-federation.

eu

THE 2016 GUIDE TO

EUROPEAN
European International Contractors e.V.
Kurfuerstenstrasse 129
D-10785 Berlin

INTERNATIONAL
Phone: +49-30-21286-244
Fax: +49-30-21286-285
E-Mail: [email protected]

www.eic-federation.eu CONTRACTORS
EIC MISSION A MESSAGE FROM THE PRESIDENT

LADIES AND GENTLEMEN,

EIC is the only industry association DEAR COLLEAGUES,
representing the interests of internationally I am pleased to present to you the first edition of the European International
active European contractors towards the Contractors (EIC) Guide. It is designed to provide our Member Federations,

EU, international organisations, financing member companies as well as our partners and all interested stakeholders with a
quick overview about the membership, structure and activities of our federation.
institutions and society at large.
European international contractors started working abroad in the early years of the
last century and are today capable to design, build and operate the most complex Philippe Dessoy
EIC advocates fair international competition and balanced contract EIC President
pieces of civil engineering, marine and building works in all locations across the
conditions, quality-based procurement and value-for-money, globe. According to our most recent statistics, European contractors generated in
BESIX
innovative project delivery schemes and sustainable construction the year 2014 a total international construction turnover of more than 165 billion at
methods. the international level.

And there is plenty of future international work. It is estimated that US$ 57 trillion in
EIC aims to create new business opportunities for European
infrastructure investment will be required until 2030 simply to keep up with projected
contractors by promoting a closer collaboration between global GDP growth. The worlds growing population asks for better access to
development and commercial financiers and by promoting Public- all kinds of infrastructure services and expects ingenious construction solutions
Private Partnerships internationally. to mitigate the risks of global warming. Responding to these needs is our core
business as European international contractors.
EIC provides a unique forum for networking and sharing
Yet finding the necessary finance to bridge the infrastructure gap remains a huge
experiences regarding all matters relating to the international challenge. EIC therefore appreciates the renewed determination of the global
construction business. development community affirmed last year in the 2030 Agenda for Sustainable
Development and in the Addis Ababa Action Agenda to enhance investments
in resilient and sustainable infrastructure and to address the constraints for private
investment in infrastructure.

As representative of one of Europes largest industries, EIC is keen to share its

expertise and experience with other stakeholders to identify, understand and
address the infrastructure challenges and opportunities presented by an ever-
globalising world.

02 03
CONTENT EIC HISTORY

EIC History 5
1970 1998 2005 2013
EIC Profile and Key Achievements 6
EIC precursor EIC moves its legal EIC launches the Since 2013 EIC
EIC Member Federations 8 International seat from Wiesbaden Working Group accepts Associated
EIC Structure 10 Contractors Group to Berlin to the Africa und sub Membership of
is established as premises of its German sequently organises construction-related
EIC Board 12 part of the FIEC Member Federation two Roundtables companies that are
Associated Company Members 14 predecessor HDB. with the European not represented by
Fdration Commission on any of the Member
EIC Conferences 16 Internationale des Infrastructure in Federations.
EIC Presence in International Markets 18 Entrepreneurs
Europens de
2000 ACP Countries.

EIC International Contracts Statistics 20

Btiment et de Travaux The first EIC 2015
EIC Statistics on the Global PPP Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
EIC Priorities in 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Publics with an office
in London.
Contractors Guide
to the FIDIC suite 2011 EIC and the Con
of contract forms is federation of
EIC speaks at the
1977
Fair Contract Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 published as of 2016 International Con
fourth OECD High- tractors Associations
five respective EIC
Unfair Particular Contract Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Level Forum on Aid
Guides are available. (CICA) organise a
The International Effectiveness in joint mission to the
EU Design-Build and Operate Schemes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Contractors Group is Busan, South Korea. African Development
2003
Blending 2.0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 renamed as European Bank.
World Bank Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 International
Contractors (EIC). EIC launches its 2012
Abnormally Low Tenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Working Group 2016
Ethics & Corporate Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
EIC Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
1984 Finance. An EIC representative
joins the International EIC launches its
EIC acquires its own Advisory Group Working Group
EIC Secretariat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 legal status as on Procurement Corporate
an autonomous (IAGP) advising Responsibility.
association under the World Bank on
German law. Its the elaboration of its
Photo Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 founding members New Procurement
are 14 construction Framework.
Imprint. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 federations from 12 EIC becomes a
European countries. supporter of the
Construction Sector
Transparency
Initiative CoST.

04 05
 EIC PROFILE AND KEY ACHIEVEMENTS

Our members are construction federations from The EIC Secretariat, in collaboration with the Board The following key achievements can be linked with
15 European countries and their internationally and the Member Federations, concentrates its lobby- EICs lobbying activities:
active member firms. Since 2013, we also admit ing on key priorities. In 2016 these are:
Associated Company Members from construc- - Wide-spread industry use of the EIC Contractors
tion-related sectors. EIC promotes the views and - EIC speaks out for quality-based procurement that Guides to five FIDIC standard forms of contract
positions of the European construction industry takes into account additional evaluation and award (the so-called Red, Yellow, Silver, Gold and Pink
at EU and global level with respect to the politi- criteria other than merely the lowest evaluated Books);
cal and legal framework conditions affecting the price; - Despite strong demands for a transition to
international activities of European contractors. - EIC is recognised as an advocate for fair and Country Procurement Systems, the World Bank
balanced contract conditions, including quick and maintains for International Competitive Bidding its
EIC maintains close relations with all European and efficient dispute settlement mechanisms; Standard Bidding Documents also under the New
international policy-makers, development finance - EIC provides the industrys feedback to the World Procurement Framework as default mechanism for
institutions and other important organisations with Bank on the implementation of its New Procurement Bank operations;
policies relevant for the international construction Framework and to the Multilateral Development - Multilateral Development Banks have agreed to
business. These include the European Commission, Banks (MDB) on the review of their policies on the introduce a new provision dealing with Abnormally
the European Investment Bank, the European Bank handling of Abnormally Low Tenders; Low Tenders into their Procurement Rules;
for Reconstruction and Development, the OECD, the - EIC promotes innovative project delivery schemes, - The European Commission intends to expand its
World Bank as well as other relevant non-governmen- such as Design-Build (and Operate) schemes, procurement methods in ACP countries to Design-
tal organisations, such as FIDIC or the Construction Early Contractor Involvement and Partnering, as Build (and Operate) schemes and has proposed
Sector Transparency initiative (CoST). well as innovative financing schemes, such as PPP to amend the EUs regulatory framework to allow
and Project Finance and Blending of development for respective works contracts to be awarded on
and commercial finance; the basis of the most economically advantageous
- EIC calls for the opening-up of national construction tender as an alternative to the lowest price for
and public procurement markets world-wide in line construction approach;
with existing GPA commitments and for alignment - Whereas in the past leveraged financing raised
of the OECD policy standards with those of key by the EU Blending Facilities has been provided
trading partners in order to create a level playing- first and foremost by public sources, the European
field for European international contractors in the Commission now aims at catalysing additional
global competition. private finance. EIC has elaborated an innovative
Blending 2.0 concept under which EU grants
could soften concessional loans of European
Development Finance Institutions which in turn
could be syndicated amongst commercial banks
to the extent that insurance cover from participating
Export Credit Agencies is available;
- The EU has introduced a reference to fair and
balanced contract conditions in the context of the
Connecting Europe Facility Regulation.

06 07
 EIC MEMBER FEDERATIONS

EIC Members are construction industry federations from 15

European countries that are directly or indirectly affiliated
to the European Construction Industry Federation (FIEC).
Membership can be acquired through an application for
membership, admission is decided by the EIC Board.

Those companies that are members of the EIC Member Federations

are also part of the EIC network and invited to take part in the Working AUSTRIA BELGIUM BULGARIA DENMARK
Vereinigung Industrieller Confdration Bulgarian Construction Dansk Byggeri (Danish
Groups, General Assemblies and Workshops. Bauunternehmungen Construction Chamber Construction Association)
sterreichs (VIB)

FRANCE
FINLAND Syndicat des GERMANY GREECE ITALY
Rakennusteollisuus RT ry Entrepreneurs de Travaux Hauptverband der Association Panhellnique Associazione Nazionale
Publics Deutschen Bauindustrie des Ingnieurs Diploms Costruttori Edili (ANCE)
Entrepreneurs Franais Entrepreneurs de Travaux
Internationaux (SEFI) Publics

NETHERLANDS PORTUGAL SPAIN SWEDEN

Netherlands Association of Federao Portuguesa da Asociacin de Empresas Sveriges Byggindustrier
International Contractors Indstria da Construo e Constructoras y Concesio
(NABU) Obras Pblicas narias de Infraestructuras
SEOPAN

SWITZERLAND TURKEY
Schweizerischer Turkish Contractors
Baumeisterverband Association (TCA)

EIC partners with the European Construction Industry

Federation (FIEC) and with the Confederation of Inter-
national Contractors' Associations (CICA) on all matters
of common interest and concern.

08 09
EIC STRUCTURE

Member Federations General Assembly EIC Board Working Groups

Each Member Federation delegates two

contractors to the General Assembly as voting The board is comprised of internationally experienced con- - WG Africa
representatives together with one non-voting tractors representing their respective member federation. - WG Contract
permanent federation official. Additional The EIC Board nominates the heads of the Working Groups. Conditions
contractors may participate without voting - WG Corporate
privileges. Responsibility (CR)
Vice - WG Export Credits
The General Assembly is called twice per year. Its President President Treasurer
- WG World Bank
main tasks are: Procurement
- the acceptance/rejection of members, - with FIEC: WG Poland
- the passing of resolutions regarding
termination of membership, Currently dormant:
- the election of President, Vice President, - WG Finance / PPP
Treasurer and auditors, additional members
- the nomination of the remaining members of (10 as of 2016)
the Board,
- the appointment of the Director,
- the passing of subscription regulations,
- the approval of budgets and annual reports
and the determination of subscriptions,
- the formal discharge of the Board and the
Director, EIC Secretariat
- the passing of resolutions regarding changes
of articles in the EIC Statutes.
The EIC Secretariat is led by the Director who is proposed
by the Board and appointed by the General Assembly.

10 11
 EIC BOARD Jesper Arkil
Managing Director
Duccio Astaldi
Chairman of the
Arkil Holding Management Board
Societ Italiana per
Condotte dAcqua
Each Member Federation is entitled to nominate
an internationally experienced contrac tor as
Member of the EIC Board. The Board determines
the policy of EIC within the scope of the principal
resolutions adopted by the General Assembly.
Each Board Member is elected by the General
Assembly for an initial term of two years which may
Selim Bora George Demetriou
then be extended.
President and Advisor to the Board
Chairman of the Executive Director (Ret)
Management Board J&P Avax
SUMMA Group

Juha Kostiainen Pedro Maristany

Senior Vice President, International Business
Urban Development & Development Deputy
Corporate Relations Director
YIT Corporation Dragados

EIC Vice President EIC President EIC Treasurer

Wouter Remmelts Philippe Dessoy Per Nielsen Antnio Mota Christophe Plissi
Managing Director General Manager Senior Advisor Chairman of the Board du Rausas
BAM International Business Development NCC of Directors Executive Vice-
BESIX Mota-Engil President VINCI
Concessions
VINCI

Karl-Heinz Strauss Jrg Wellmeyer

CEO Managing Director
PORR Strabag International

12 13
 ASSOCIATED COMPANY MEMBERS

Associated Company Members

participate in the debates shap-
ing the future of the international
business. As part of the EIC net-
work they contribute to the private
sectors response to all crucial
matters. Representatives of as-
sociated member companies are
invited to learn about the latest EY, The Netherlands, Aecom, UK, Cybarco, Cyprus, Rambll, Denmark,
market trends in the EIC Busi- joined June 2013 joined July 2013 joined July 2013 joined November 2013
ness Workshops and to meet key
decision-makers from European
and International Institutions as
well as senior executives from
Europes leading international
contractors in the context of the
EIC Conferences.

Quantum Global
Thales Italia, Italy, Langan International, Pinsent Masons, UK Sweco, Sweden, Solutions, Qatar,
joined November 2013 USA, joined March 2014 joined July 2014 joined January 2016 joined March 2016

Nordic Guarantee, SECO, Belgium, Fenwick Elliott, UK,

Sweden, joined May 2016 joined July 2016 joined July 2016

14 15
 EIC CONFERENCES

Twice a year, in spring and autumn, representatives of Member

Federations and member companies are invited to gather for the
EIC General Assemblies which are followed by a Workshop.

These customised Workshops are topic-related and highlight either

operational challenges for the international construction business, for
instance risk management tools, supply chain responsibilities or new
construction technologies, or they examine business opportunities for
specific contracting models, such as PPP or Early Contractor Involvement,
or individual geographical markets or regions.

At these occasions, additional expertise is brought into the discussion

amongst the EIC membership by engaging high-level speakers
representing business partners, companies from construction-related
sectors and political as well as development finance institutions.

2015
nference
Spring Co , 16-17 April
Florence

ce
Conferenon
Informati

6
201
nce pril
fere A
g Con , 21-22 Autumn Confere
nce 2015
in n
Spr Ber
li Rotterdam, 8-9
nce
October
fere n
Con rmatio Conference
Info Information
Workshop
Connecting Partners Supply Chain 12.25 Long-term Relations between Joint Venture
09 Responsibility in International Construction Partners from the Perspective of a Supplier
Oct Projects Gebhard Lehmann, Vice Chairman of the
Board of Management, Herrenknecht
10.30 Workshop Introduction
Philippe Dessoy, EIC President 12.50 Financing and Investing in Sustainable
Ad Buisman, Workshop Moderator, Partner and Infrastructure Projects
Global Construction Leader at EY Patrick Kanters, Managing Director Global
Real Estate & Infrastructure, APG Asset
10.40 Sustainable Coalitions Management
Professor Jan Peter Balkenende, Chairman
Dutch Sustainable Growth Coalition, Partner EY 13.15 Lunch
and Former Prime Minister of The Netherlands
14.15 From Liability to Responsibility? Supply
11.05 OECD Due Diligence Guidance for Chain Responsibility from a Legal Angle
Responsible Supply Chains in the Mark Job, Partner, Pinsent Masons
Construction Sector
Professor Roel Nieuwenkamp, Chair of the 14.40 Sustainable Sourcing
OECD Working Party on Responsible Business Joost E. Rijnsdorp, Manager Procurement &
Conduct Logistics Royal Boskalis Westminster

11.30 Coffee Break 15.05 Case Study - Building Sustainable

Stadiums in the Middle East
12.00 The Partnership Advantage - Reducing Steven Wilbrenninck, Product Manager
Risk through Supply Chain Partnerships in Stadiums, BAM International
International Mega Projects
Rutger Theunissen, Director Procurement 15.30 Discussion & Closing Remarks
Europe, Middle East, Asia Australia (Oil & Gas),
CB&I 16.00 End of Workshop

16 17
EIC PRESENCE
IN INTERNATIONAL MARKETS
The European construction industry remains a The analysis of the latest Top 250 International ahead of US international contractors that generated
major power in the international construction Contractors list, which is annually comprised a market share of 11%.
business. Whilst competitors from Asia, in par- by the US construction magazine Engineering
ticular from China and Korea, have gained signi News-Record (ENR), suggests that more than A long-term comparison based on the ENR data
ficant market shares over the past two decades, 50% of international revenues world-wide are indicates that the international activities of the Euro-
European international contractors, as a group, generated by European companies, including pean construction industry peaked in the mid-2000s.
still account for more than 50% of the revenues their Turkish colleagues. In the second place are Despite growing competition from both regional and
of the worlds leading international contractors. the internationally active Chinese construction local competitors, European contractors have suc-
enterprises, mostly state-owned, which accounted ceeded adapting themselves to an ever-changing
for 17% of international revenues worldwide in 2014, business environment.

International Market Share

100% China

90%
Korea
80%
other
70%
USA
60%
Japan
50%
Europe

40%

30%

20%

10%
Source: Engineering News-Record (ENR)

1995 2000 2005 2010 2015

18 19
EIC INTERNATIONAL
CONTRACTS STATISTICS
EIC publishes an annual International Contracts tional contractors. Instead, the ENR list also refers to
Statistics in collaboration with its Member Feder- electrical contractors, steel builders, oil and gas com-
ations. The EIC Statistics, which lists internation- panies etc. and collects total group turnover, including
al turnover and new contracts, gives an in-depth revenues from energy, industrial and other services.
view of how the international construction market
is developing for European contractors. In the year 2014, some 44% of the international turnover
of European international contractors came from intra-
The EIC Statistics are to be seen as complementary European business activities, a quarter was contract-
to the ENR data which is neither concerned about ed by the affiliated companies in North America and
double-counting nor does it exclusively analyse the Australia, and one third was generated in the emerging
construction business of the worlds leading interna- and developing markets outside the OECD area.

Austria Belgium Denmark Finland France Germany UK2)3) Italy NL Portugal Spain Sweden Turkey Total
Companies reporting 4 4 6 8 13 14 2 36 8 20 13 3 42 173

International Total (in million ) 14.112 5.736 539 1.972 34.946 26.726 5.465 10.469 13.204 5.640 15.526 15.329 15.974 165.638
without Europe 935 4.009 50 3 15.596 23.601 4.017 7.483 4.431 5.154 9.870 5.331 13.025 93.505
without Europe and 834 4.002 50 3 10.909 14.367 3.912 6.939 3.589 5.154 6.540 0 12.886 69.185
North America
without Europe, North 818 2.874 50 3 9.973 1.856 3.6274) 6.782 2.588 5.154 6.265 0 12.873 52.863
America and Australia

Regional Total (in million ))

Europe 13.177 1.727 489 1.969 19.350 3.125 1.448 2.986 8.773 486 5.656 9.998 2.949 72.133
North America 101 7 0 0 4.687 9.234 105 544 842 0 3.330 5.331 139 24.320
(USA and Canada)
America 154 545 0 0 1.234 495 322 3.122 644 1.579 4.121 0 26 12.242
Central and South)
Oceania/Australia 16 1.128 0 0 936 12.511 569 157 1.001 0 275 0 13 26.145
Asia 92 399 16 3 3.109 270 302 758 0 355 0 4.234
(Without Middle East)
Africa 158 781 20 0 4.277 607 543 2.173 516 3.570 778 0 3.242 16.665
(Without Middle East)
Middle East1) 414 1.149 14 0 1.353 484 2.478 1.185 670 5 1.011 0 5.371 14.134

1) Afghanistan, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi-Arabia, Syria, United Arab Emirates and Yemen (North and South)
2) Source: ENR; The Top 225 International Contractors 2014; published on August 24, 2015. - Currency rate: 1 = 1,33 US$; Official rate for 2014 of the European Central Bank
3) EIC's own research
4) As figures for the U.K. cannot be split between Australia and Asia, the figure is an approximate value.
5) Bulgarian Construction Companiesturnover is not included but amounted to about 50 Million

20 21
 EIC STATISTICS
ON THE GLOBAL PPP MARKET
EIC constantly reviews the latest developments in the global markets for
Public-Private Partnerships (PPP) and Project Finance and publishes its
own statistics on the share of EIC member companies in the global PPP
market.

The latest update of the EIC Statistics suggests a total global PPP project
volume of more than US$ 1 trillion in the year 2014, of which more than
70% are located within the OECD area.

With a share of 51%, roads are the leading PPP segment, followed by rail
(21%), ports and airports (15%) and water (13%). EIC member companies
currently operate some 22% of the global PPP project volume, mainly in
the road sector.

PPP PROJECTS WORLDWIDE

value in million US$

Non OECD OECD Africa Asia Central/South Europe Middle East North America Oceania/ Grand Total
America Australia
EIC EIC EIC EIC EIC EIC EIC EIC EIC EIC share
share share share share share share share share share
Airports 30.651 26% 78.036 25% 1.542 65% 39.127 3% 10.672 24% 41.294 52% 2.625 31% 6.266 11% 7.162 0% 108.687 25%
Ports 19.425 14% 27.999 27% 500 22% 16.408 8% 6.621 23% 11.892 61% 1.100 0% 2.946 0% 7.956 0% 47.424 21%

Rails 57.805 10% 158.490 44% 5.568 66% 58.989 3% 16.054 9% 105.401 63% 1.100 14% 21.463 4% 7.720 7% 216.295 35%
Roads 114.880 19% 408.432 52% 4.998 19% 69.839 3% 91.430 22% 238.735 75% 2.235 0% 92.903 29% 23.171 17% 523.312 45%
Water 75.595 45% 63.388 50% 10.683 55% 30.526 42% 16.285 30% 31.898 61% 20.640 52% 17.908 28% 11.043 63% 138.983 47%

Total 298.356 24% 736.345 46% 23.291 50% 214.890 9% 141.062 22% 429.221 68% 27.700 42% 141.485 23% 57.051 20% 1.034.701 40%

Source: Public Works Financing (PWF), EIC

22 23
 EIC PRIORITIES

24 25
 FAIR STANDARD FORMS
OF CONTRACT FOR CONSTRUCTION

Fair and balanced contract conditions are beneficial POLICY CONTEXT STATUS QUO
for both contractors and clients. They are essential for On large construction projects, it is expedient and
common for international clients and their financiers
EIC has started its friendly review of the update
of the FIDIC 1999 Yellow Book in October 2015
a timely and high-quality project delivery as well as for to base their tenders on a standard form of contract knowing that FIDIC have announced that the updated
ensuring effective dispute settlement. indicating industry best practice. Besides EICs
own standard form of turnkey contract, published in
Yellow Book will not be published separately but
together with the other two other major Conditions of
1994, relevant examples are the FIDIC 1999 suite of Contracts, namely the Red and Silver Books. As a
contracts, the NEC3 family of contracts, the ENAA matter of principle, EIC calls upon FIDIC to abstain
Duccio Astaldi, Model Form of International Contract for Process Plant from realigning the risk profile, which was increased
Societ Italiana per Condotte dAcqua Construction or the ICC Model Contracts. In relation already with the FIDIC 1999 suite of contracts and
to all EU external actions the European Commission subsequent forms, further to the detriment of the
EIC Board Member and Past President has elaborated specific General Contract Conditions contractor.
for Works Contracts financed by the European
Development Fund (EDF) or the European Union. EIC further calls upon FIDIC to continue with its
time-honoured tradition that the FIDIC standard
EIC POSITION forms of contract take the form of a manual of good
EIC has no preference for any particular standard engineering practice prepared by engineers for
form of construction contract but rather insists on practical use. Given that the FIDIC 1999 Yellow Book
the use of fair and balanced contract conditions as is widely accepted in the market, EIC recommends
they are in the best interest of the parties involved that FIDIC concentrates its drafting work on closing
and of the project itself. The use of a reputable and existing loopholes and amending those passages
equitable standard form of construction contract is that require improvement or correction in line with
a prerequisite for serious contractors to offer their FIDIC users experience rather than embarking upon
lowest tender price, given that they can eliminate an extensive rewrite of the current edition. It would
large contingency cost to calculate for potential be a disservice to the industry if well-established
risks, and it allows for proper teamwork during the procedures and tried and tested conditions were
execution phase. substantially amended to such an extent that will be
new to future contracting parties.
To date, the FIDIC-based contracts are the
most commonly used standard forms for Concerning the planned new FIDIC/ITA standard form
international construction projects which is why of contract for Underground Works, EIC agrees with
the EIC Working Group Contract Conditions the current conceptual approach that the employer
traditionally reviews the new and updated FIDIC be obliged to provide a preliminary design that is
forms. Compared with the FIDIC standard forms detailed enough to allow the contractor to prepare a
of the last century, the FIDIC 1999 Rainbow tender design and to calculate a tender price.
suite of contracts comprises a rather demanding
risk profile for contractors. Therefore EIC, EIC requests that the employer be asked to describe
starting with a commentary on the unbalanced the scope of the works by means of measures that
Silver Book in the year 2000, has meanwhile the contractor shall undertake to perform the works
published five EIC Contractors Guides to and that in case that additional measures become
FIDIC contract forms. necessary, the contract provides for a mechanism
to agree on additional cost and time. EIC further
recommends that the employer be under an
obligation to disclose all available geological and
geo-technical information and to make use of a
contractually binding geo-technical baseline report.

26 27
 UNFAIR PARTICULAR
CONTRACT CONDITIONS

Particular Conditions POLICY CONTEXT They may not be misused to modify the risk al-
are intended as a Whilst any standard form of contract may be modified
in consideration of the actual project circumstances,
location of the standard forms of contract.
EIC constantly reminds public employers
means to include experience shows that the project implementation will around the world and specifically in the CEE
specified data suffer if, as a consequence of unfair modifications to
the originally contemplated risk distribution, the risks
region to abstain from inserting unfair Particu-
lar Contract Conditions which undermine the
and contractual allocated to the contractor become excessively high. risk-sharing philosophy of the FIDIC standard
requirements Negative knock-on effects such as non-participation
of conscientious contractors in tenders, poor cons-
forms and supports in principle the idea to de-
velop so-called Golden Clauses which cannot
linked to the special truction quality, delays during execution, frequent be amended by the client if it wishes to advertise
circumstances of the disputes between the parties and, in extreme cases,
eventual termination of the contract are but a few un-
that a project is based on an FIDIC form.

project. They should welcome consequences. STATUS QUO

not be used to unfairly Whilst the insertion of unfair Particular Contract
In February 2015, EIC submitted constructive sug-
gestions to FIDIC and to the Romanian construction
allocate the majority Conditions is a worldwide phenomenon, this bad federation as to how the standardised draft Particu-
of risks to one party habit of employers is particularly irritating in some
Central and Eastern European (CEE) countries in the
lar Contract Conditions in relation of the FIDIC 1999
Red and Yellow Books, as proposed by the Roma-
or to change the light of the fact that most infrastructure projects in nian Government, should be amended. In November
general risk-sharing the region are funded by European or international
financiers. The FIDIC Red and Yellow Books were
2015, EIC presented its critical position on unfair mo-
difications of the FIDIC contracts forms in a national
philosophy of the used correctly in connection with projects funded construction law conference organised by the Cham-
standard contract. by the World Bank, the EBRD, the EIB and or the
ISPA and PHARE programmes until the accession
ber of Commerce and Industry of Slovenia.

of the CEE countries to the European Union. But In March 2016, EIC prepared a position on the use
thereafter the EU Commission and the EIB were no of (un)fair contract conditions for projects financed
Mathias Fabich, longer authorised to scrutinise the tender documents by the Connecting Europe Facility (CEF), which in-
PORR of projects for which they were providing finance. cludes a synopsis of unfair contract conditions found
From this date on, employers in most CEE countries in a specific road construction tender in Poland, and
Member of the EIC Working started to modify the FIDIC standard forms to the which was submitted jointly with FIEC to the Cabinet
Group Contract Conditions disadvantage of contractors. of the EU Transport Commissioner.

EIC POSITION EIC is confident that the evidence presented could

EIC is highly concerned about the widespread create a precedent for an intervention of the EU Com-
bad habit of public employers, and their advi- mission in a Polish road construction tender bearing
sors, to modify the balanced risk profile of the in mind that the CEF Regulation stipulates in Recital
FIDIC standard forms by means of unfair Par- 65 that the contract conditions for CEF-financed
ticular Contract Conditions. EIC maintains that projects should be drafted in such a way as to fair-
the sole purpose of Particular Conditions is to ly allocate the risks associated with the contract, in
complement the standard forms with specified order to maximise cost-effectiveness and enable the
data and contractual requirements linked to the contract to be performed with the optimum efficiency.
special circumstances of the country, the em- This principle should apply irrespective of whether a
ployer, the engineer, the sector, and the project. national or international contract model is used.

28 29
 EU DESIGN-BUILD AND OPERATE SCHEMES

Maintaining infrastructure in Africa is a huge challenge POLICY CONTEXT STATUS QUO

for clients, governments and financiers. EIC fully sup- The traditional method of implementing infrastructure
projects financed by the European Commission under
A study commissioned by the European Commissions
Directorate-General for International cooperation
ports the European Commissions strategy to incorporate the external action rules is for a Contracting Authority and Development (DG DEVCO) has established
innovative project delivery methods into the contracting to appoint a consultant for carrying out the detailed
design of the project and preparing the bidding
significant advantages of Design-Build and Operate
contracts, when compared to conventional design-
procedures applying to EU external actions. We belie- documents and to subsequently launch a works bid-build approach, for instance concerning the
ve this will lead to a more efficient project management, tender. The Practical Guide to contract procedures
for European Union external action (PRAG) stipulates
delivery of more sustainable long-term assets, the
enhancement of quality and efficiency of end-user
greater sustainability and better value-for money for all that the tenders must be placed in a single sealed services, technology transfer to the developing
parties involved in infrastructure delivery. envelope and that the contract shall be awarded to
the tenderer submitting the lowest price classified
country, better risk control and best value-for-money
procurement.
as technically compliant during the technical
evaluation. The European Commission is currently EICs Working Group Africa submitted its comments
Herv Ronot studying the option to expand the procurement at various stages of the EU study and the EU
Sogea Satom options under the PRAG to Design-Build and Operate Commission concurs with EICs call for a balanced
(DBO) schemes in order to maximise the impact and risk allocation also under Design-Build and Operate
Chairman of the Working Group Africa value added of EC funds earmarked for EU external schemes. In particular, the Commission has
actions. assured EIC that it does not intend to deviate from
the conventional risk allocation as laid down in the
EIC POSITION present version of the General Conditions for Works
EIC highlighted already with the publication of Contracts financed by the EDF. The European
its EIC Blue Book on Sustainable Procurement Commission is presently preparing two pilot projects
in November 2004 that the traditional design- in Africa to be tendered with bespoke amendments
bid-build method may be a reliable form of the existing General Conditions for re-measurable
of procurement but it does not provide an works contracts.
opportunity to integrate the know-how of
contractors in the design stage although early In addition, the Commission has submitted a
involvement of such expertise can significantly legislative proposal to the European Parliament
contribute to the efficiency of the process. Neither and the Council for an amendment of the Financial
provides the traditional method a mechanism Regulation and its Rules of Application to allow for
to draw on the private sectors capabilities to EU-financed external action works contracts to
maintain and operate infrastructure facilities. identify the most economically advantageous tender
also on the basis of the best price-quality ratio. This
Accordingly, EIC supports a paradigm shift to- amendment would allow the European Commission
wards DBO schemes, which could lead to more to apply two different options for awarding Design-
efficient project management and deliver more Build and Operate contracts: either an award based
value-for-money for the EU itself, its partner on the lowest evaluated price for construction, taking
countries and the companies involved in infra- into consideration the potential operational cost for
structure delivery. EIC recommends to award a certain period of time, or a multi-criteria approach
the project on the basis of the economically under which other aspects than price, e.g. quality,
most advantageous tender to be established by transfer of technology, social and environmental
using a two-envelope system which guaran- sustainability, etc. would also be assessed.
tees that the technical proposals are evaluated
first with the effect that the technical solutions
that are most attractive to the Contracting Au-
thority can be selected without any bias from the
knowledge of the price of that solution.

30 31
BLENDING 2.0

POLICY CONTEXT STATUS QUO

In the Agenda for Change of EU Development Policy On EICs initiative the European Commissions DG
the European Commission announced its plan to DEVCO hosted a Roundtable in July 2014 in order
develop new ways of engaging with the private sector to assess the options and obstacles with regard to
in order to deliver public goods. The EU expressed engaging ECAs more strongly in the EUs Blending
its readiness to explore up-front grant funding and activities with the European Development Finance
risk-sharing mechanisms to catalyse public-private Institutions (DFIs). This event was the first time
partnerships (PPP) and private investment. various units of the European Commission, of the
EIB and the EBRD, as well as representatives from
At the same time, the EU announced to only invest in several ECAs, from the European Banking Federation
infrastructure where the private sector is unable to do and from EIC came together for an expert discussion
so on commercial terms. By end-2014 over 2 billion on a high technical level.
of EU grants leveraged almost 20 billion of loans by
finance institutions and regional development banks DG DEVCO considers EICs concept to be generally
and lead to investments in EU partner countries compatible with the Blending Framework, but refrains
of more than 44 billion. In view of the so-called from promoting any particular blending variant. DFIs,
Post-2015 Sustainable Development Goals the by contrast, are currently sceptical towards Blending
EU announced to invest up to 8 billion as a key 2.0 as they have a vested interest to continue with
contribution, with the aim of generating more than current blending practices, given that they are the
40 billion from public finance institutions which should main beneficiaries of EU grants. In October 2015, EIC
help mobilise over 100 billion overall by 2020. presented its proposal for a Blending 2.0 concept
at a meeting of the Technical Group on Private Sector
EIC POSITION Participation of the EU Platform for Blending in
EIC welcomes the EU development policy External Cooperation (EUBEC) in Brussels.
which aims at leveraging private sector capital
and expertise for infrastructure investments in The EIC proposition was supported by the European
developing countries. In Africa, however, the export credit agencies from Belgium (Delcredere/
potential to develop PPP and private investments Ducroire) and from Denmark (EKF) who emphasised
in the infrastructure sector is presently limited. that a closer collaboration between DFIs and ECAs
Therefore, EIC has elaborated an innovative could lead to additional capital from ECAs and
proposal that expands the conventional EU commercial banks, longer tenors and improved
Blending option. pricing of premiums. The European Banking
Federation (EBF) added that the EIC concept would
EIC has developed a concept to enable European
EICs concept Blending 2.0 suggests that improve the competitive situation for European Development Finance Institutions to syndicate concessional
eligible development finance institutions
syndicate a certain tranche of the loan amongst
exporters, in particular in Africa, where their non-
OECD competitors had easier access to subsidised
infrastructure loans amongst commercial banks to the
commercial banks to the extent that such funds financing. extent that such tranches are guaranteed by insurance cover
can be guaranteed by comprehensive insurance
cover from export credit agencies (ECAs). This EUBEC members referred to the Lake Turkana
from export credit agencies. Blending 2.0 substantially
model could catalyse additional private sector Wind Power Project as a recent example for a leverages additional private funds for strategically
finance for typical public sector infrastructure
projects that do not generate sufficient direct
close collaboration between DFIs and ECAs and
encouraged European international contractors to pro-
important public sector infrastructure projects in Africa and
project income but are critical for the social and actively approach the European development finance other developing regions worldwide.
economic development of the country. institutions with their project ideas at an early stage.

Robert Poelhekke,
NABU Managing Director
Member of the Working Group Africa
32 33
 BLENDING 2.0

EICs innovative Blending 2.0 concept consists of EU grants to subsidise interest rates for concessional
development loans arranged by Lead Financiers which are syndicated amongst commercial banks to
the extent that commercial bank finance can be guaranteed by comprehensive insurance cover from
participating Export Credit Agencies (ECA). Thus, Blending 2.0 would catalyse additional private
sector finance for typical so-called commercially non-viable public sector infrastructure projects that
do not generate sufficient direct project income, but are critical for social and economic development
of the country (e.g. transport, roads, bridges, railways, drinking water & sanitation, ports, regional
airports, health and education).

Example: EU BLENDING 1.0 EIC BLENDING 2.0 CONCEPT

Rehabilation of
Great Eastern Road,
Zambia
Export
Credit
B-Loan Cover OECD-ECA
Participant

Loan Agreement Loan Agreement Loan Agreement

80 million 60 million 20 million
EU grant leverages
Interest Rate only public funds Interest Rate
Subsidy Subsidy EU grant leverages
25 million 25 million additional
private funds for
developmental
purposes

EU Official Development Aid

(ODA) is provided as an interest
rate subsidy (IRS) to European
Gouvernment of Zambia Gouvernment of Zambia Development Finance Institutions
(EDFI). EDFI syndicates loans to
participating banks and distributes
IRS. The participating Export Credit
Agencies (ECA) provide insurance
cover.

34 35
 WORLD BANK PROCUREMENT

The World Banks new POLICY CONTEXT

The World Bank Group committed almost US$ 60
STATUS QUO
The World Banks Board of Executive Directors
Procurement Frame- billion in loans, grants, equity investments, and approved the proposed New Procurement Policy in
work will influence guarantees to its members and to private businesses
in 2015. Commitments from the International Bank for
July 2015. In the view of the Bank, the new system
will better respond to borrowers needs and project
procurement practices Reconstruction and Development (IBRD) to middle realities because it provides more options to best
across the globe for the income countries totalled US$ 23.5 billion, while
IDA, the World Banks fund for the poorest, made
achieve value for money and fit-for-purpose solutions
as agreed with the Bank.
coming decades. EIC is commitments of US$ 19 billion. Since 2012 the World
an active stakeholder Bank is undergoing the first comprehensive review of its
procurement system. As part of the process, the World
In March 2016, EIC co-hosted with the World Bank a
Procurement Seminar in Berlin to familiarise European
in this reform process Bank received input from over 5,000 stakeholders from contractors, suppliers and consultants with the
and voices its views and more than 90 countries, representing governments,
the private sector, academia, and civil society. In July
details of its New Procurement Policy Framework.
When comparing the final policy package with the
concerns at all stages of 2015, the World Banks Board of Executive Directors initial EIC Position, it can be concluded that the
the consultations. EIC approved a new policy governing procurement
in projects financed by the Bank which shall be
following EIC recommendations have been taken into
consideration by the Bank: International Competitive
insists that the World implemented in 2016. Procurement (ICB) is expressly mentioned as the
Bank ensures and over- EIC POSITION
preferred approach for complex, high-risk and/or
high-value activities, for which the Banks Standard
views that a fair and EIC participated actively in the various rounds of Procurement Documents will remain in place. The
balanced international consultations and called upon the Bank to ensure
that International Competitive Bidding (ICB)
Banks procurement resources will target in the future
the most significant contracts for review and will closely
standard form of cont- remains a mandatory procurement arrangement monitor performance, time and out-turn cost.
ract is used for projects for high-value investments, with appropriate Bank
oversight. For large and complex infrastructure The new framework introduces the possibility for the
it finances. We will be projects, EIC advocated the maintenance of borrower to apply on a voluntary basis elements of
an active stakeholder the Banks golden standard of procurement
documents and practices.
Sustainable Procurement and to reject abnormally low
tenders subsequent to a thorough validation procedure.
in the upcoming imple- Award decisions can be based in future on value-for-
mentation phase. Regarding so-called Alternative Procurement
Arrangements, EIC expressed its concern
money criteria beyond the lowest evaluated bidder
approach which means that the Most Economically
that the new policy no longer calls for the Advantageous Tender can also be selected in the
Uwe Krenz equivalence of clients arrangements with the context of works contracts. Alternative Procurement
Banks own procurement procedures but that Arrangements are admissible on a case-by-case
EIC World Bank Liaison Officer the required standard has been watered down to basis only after a rigid evaluation process. The Bank
Chairman of the Working Group acceptable procurement practices. Irrespective further plans to enhance its complaint management,
of the procurement approach, EIC calls for the including contract-related correspondence.
World Bank Procurement mandatory use of a fair and balanced international
standard form of contract and highlighted the The implementation of the procurement policies is
need to integrate sustainable procurement scheduled to move forward in 2016. Once in place,
criteria in Bank-financed projects. the new World Bank Procurement Framework will
become a benchmark for all Multilateral Development
Banks. EIC will continue to monitor the implementation
of the new system and will advertise towards the
Banks clients the more frequent use of the option for
Sustainable Procurement.

36 37
 ABNORMALLY LOW TENDERS

Abnormally Low POLICY CONTEXT STATUS QUO

Tenders are a daily Over the past years, the issue of Abnormally Low
Tender (ALT) prices under works contracts has become
Subsequent to the setting-up of the MDB Working
Group, the EBRD invited EICs feedback on possible
concern for European a major concern for the Multilateral Development practices to define and reject ALT. Due to the fact
International Banks (MDB) and their borrowers under public sector
projects. Whereas in many of the MDBs countries of
that there is currently no commonly accepted
definition of what constitutes an ALT or a framework
Contractors in all operation, the national procurement procedures and to detect such tenders in practice, EIC summarised
regions of the world legislation contain provisions that permit the rejection
of ALTs under a range of conditions, currently, neither
its perspective in a Position Paper in February 2015
which was largely endorsed by CICA and, with minor
because they often lead the MDB standard tender documentation nor their qualifications, also by FIDIC.
to ultimately higher respective procurement policies and rules covering
public sector transactions permit clients to reject In order to eliminate any subjective assessment
costs, a low quality of ALTs under bank-financed contracts. with respect to ALT, the MDB Working Group later
of works and in many MDBs have come under increasing pressure
proposed an objective mathematical approach to
identify tenders with a high risk of ALT. Based on
cases a number of from clients to permit the rejection of ALTs under the assumption that a normal distribution of tender
disputes. EIC welcomes procurement exercises which are subject to its
procurement policies/rules. In an attempt to address
prices, the so-called standard deviation, can be
derived from the fact that any price offer for a works
that Multilateral this issue, the MDBs have agreed that a special MDB contract is a function of the materials, machinery and
Development Banks Working Group, co-ordinated by the European Bank
for Reconstruction and Development (EBRD), be
labour used, as well as the overheads and profit,
MDB and Borrowers expect that, with a given quality
are addressing tasked with the identification of potential solutions to of the permanent works, the cost of materials have
this unwelcome this issue. minimal divergence between the tenderers. This
should be especially the case in re-measurement
phenomenon in the new EIC POSITION contracts where profit margins tend to vary little
Procurement Policies. EIC welcomes the MDB initiative to address the
problem of abnormally low tenders bearing in
between different tenderers.

mind that European international contractors Whilst EIC gave its general consent to this approach,
are exposed to ALTs in all world regions where we believe that an arithmetic formula should only be
Wouter Remmelts Multilateral Development Banks are providing used to establish a presumption to initiate a deeper
BAM International finance to infrastructure projects. EIC therefore investigation. In case that a prudent contracting
supports the approach that, if the lowest tender authority has concerns that any bid is abnormally
EIC Vice President price transpires to be substantially below low, it should fully investigate whether that bid is
the second price-ranked tender, the MDB sustainable. EIC strongly recommends that, in case
procurement rules should oblige its borrowers of doubt, the contracting authority should request
to investigate such a low bid and reject it, in the bidder in question to submit a breakdown of the
case it is proven to be an ALT. prices making up the tender.

Whereas EIC agrees with the MDB assumption The World Banks New Procurement Framework
that all tenders below a defined threshold need meanwhile introduces for the first time the possibility
to be checked in regard to their ALT risk when to reject ALT subject to the observation of necessary
they are considered for a contract award, we call safeguards. The new rules ask Borrowers, which
upon the MDBs to abandon the current option for determine to make use of such possibility, to disclose
Borrowers to increase the Performance Security the respective procedure in the bidding documents
in case of a suspected ALT, once a reliable and and to give a bidder having submitted a potential ALT
practical mechanism to deal with an ALT is in the opportunity during bid evaluation to justify its ALT
place. for the Borrowers analysis.

38 39
ETHICS AND CORPORATE RESPONSIBILITY

POLICY CONTEXT
Corporate Responsibility (CR) has become one
STATUS QUO
EIC organised a Workshop on Connecting Partners
EIC strongly opposes
of the standard business practices of our time. - Supply Chain Responsibility in International corruption in its diverse
For more than a decade now a momentum of
international convergence and coherence on what
Construction Projects in connection with its autumn
2015 conference in Rotterdam with the objective
forms as an unacceptable
constitutes responsible business conduct has to identify strategies for European international phenomenon in national
emerged from the launch of the UN Global Compact
to the endorsement by the UN Human Rights Council
contractors to respond to the challenges arising from
CSR requirements. As a result of this Workshop, the
and international business
of the Guiding Principles on Business and Human EIC Board decided to launch a new Working Group transactions because it
Rights and the latest update of the OECD Guidelines
for Multinational Enterprises. This convergence is
on Corporate Responsibility in order to highlight the
performance of European companies in applying
distorts international
echoed in various international standards, including CR standards in their international operations. competition, adversely
the ISO 26000 Guidance on Social Responsibility,
the IFC Performance Standards, and the OECD
Bearing in mind the Sustainable Procurement option
incorporated in the World Banks New Procurement
affects the quality of the
Common Approaches for Officially Supported Framework, the Working Group willl also prepare works and damages the
Export Credits and Environmental and Social Due
Diligence. Presently, the World Bank is in the process
technical advice to clients seeking to incorporate
sustainable procurement criteria into their tenders.
image and reputation of
of updating and strengthening its environmental and the whole construction
social policies with ten new Environmental and Social
Standards.
Additionally, EIC is participating in the strategic review
process of the Construction Sector Transparency
industry. EIC endorses
Initiative (CoST) which explores how the CoST initiative holistic business models
EIC POSITON
As a federation, EIC fully supports the efforts
can increase its impact to support communities
worldwide. In April 2016, EIC joined a CoST mission
which encourage all
of International Organisations and Financing to the European Investment Bank (EIB) to explain to stakeholders of the
Institutions to agree on a robust set of
environmental, ethical and social standards
EIB staff the contribution of CoST to good governance
in developing infrastructure worldwide.
construction process to
which would be instrumental in satisfying the EIC has also embraced together with FIEC the engage in sustainable
expectations of all stakeholders in international
construction projects and in creating a level
initiative of the International Organization for
Standardization (ISO) to launch a new standard for
practices.
playing field for all internationally active anti-bribery management systems.
contractors. Per Nielsen
The proposed new ISO 37001 Standard is designed
EIC published together with FIEC as early to help companies and organisations implement NCC
as 2009 its own Statement on Corruption an effective anti-bribery management system by EIC Board Member
Prevention in the Construction Industry in which specifying a series of measures in order to prevent,
we strongly oppose corruption in its diverse detect and address bribery and by providing Chairman of the FIEC/EIC
forms as an unacceptable phenomenon in guidance on how to implement these. EIC and FIEC Working Group Ethics
national and international business transactions. participated as an observer in the drafting process
At the same time, we call on the public sector which shall be concluded with the launch of the new
to complement the various private sector ISO 37001 Standard in the course of 2016.
initiatives and individual company Codes of
Conduct to fight corruption by closing loopholes
that encourage unethical behaviour on the
demand side. Since 2011, EIC has officially
endorsed the Construction Sector Transparency
Initiative (CoST) which aims at increasing the
transparency and accountability for publicly
financed infrastructure worldwide.

40 41
 EIC PUBLICATIONS

All publications can be obtained from the EIC EIC Contractors Guide
Secretariat.
to the
EIC Contractors Guide to the MDB Harmonised FIDIC Gold Book
Construction Contract
EIC Publications
(April 2011)

EIC Turnkey Contract (1994)
EIC Synopsis on Contract Bonds (1999)
EIC Contractors Guide to the FIDIC Silver Book (March 2000)
EIC Contractors Guide to the FIDIC New Red Book (March 2002)
EIC Contractors Guide to the FIDIC New Yellow Book (March 2003)
EIC White Book on BOT (April 2003)


EIC Blue Book on Sustainable Procurement (November 2004) EIC Contractors Guide
EIC Contractors Guide to the FIDIC Gold Book
EIC Memorandum on Frequently Asked Questions on PPP (September 2006)
to the
Secretariat: FIDIC Conditions of Contract
(Published: May 2009)

Frank Kehlenbach (Director) for
Design, Build and Operate Projects
Nadja Teoharova (Assistant Director)
Vera Stark (Secretary)

Address:

Kurfrstenstrasse 129

EIC Memorandum on Frequently Asked Questions on

D-10785 Berlin
TEL +49 30 2 12 86-244
FAX +49 30 2 12 86-285

Public-Private Partnerships
[email protected]
www.eicontractors.de

(September 2006)
Issued May 2009 ISBN 3-9808257-8-7 THE GOLD BOOK GUIDE

EIC Blue Book on Sustainable Procurement

(November 2004) EIC Blue Book EIC Contractors Guide EIC White Book

on to the on
EIC Contractors Guide to the FIDIC Silver Book, Sustainable Procurement FIDIC Silver Book BOT / PPP
second edition
(August 2003)
EIC Publications EI C Pu b l i c a t i o n s
EIC Publications
EIC Turnkey Contract (1994) EICTurnkey Contract (1994)
EIC Synopsis on Contract Bonds (1999) EIC Synopsis on Contract Bonds (1999) EIC Turnkey Contract (1994)


EIC Contractors Guide to the FIDIC Silver Book (March 2000)
EIC Contractors Guide to the FIDIC New Red Book (March 2002)
EIC Blue Book

EIC Contractors Guide to the FIDIC New Red Book (March 2002)
EIC Contractors Guide to the FIDIC New Yellow Book (March 2003)
EIC Cont ract ors

Guide
EIC Synopsis on Contract Bonds (1999)
EIC Contractors Guide to the FIDIC Silver Book (March 2000)

EIC White Book on BOT / PPP
EIC Contractors Guide to the FIDIC New Red Book (March 2002)


EIC Contractors Guide to the FIDIC New Yellow Book (March 2003)
EIC White Book on BOT (April 2003)
on

EICWhite Book on BOT (April 2003)
EIC Contractors Guide to the FIDIC Silver Book , 2nd edition (August 2003) to the EIC Contractors Guide to the FIDIC New Yellow Book (March 2003)
EIC Blue Book on Sustainable Procurement (Novemver 2004)
Sustainable Procurement

FIDIC Conditions of Contract
EIC White Book on BOT (April 2003)
EIC White Book on BOT / PPP
(April 2003) Secretariat:
Se c r e t a r i a t :

for Secretariat:

EPC Turnkey Projects

Frank Kehlenbach (Director)
Frank Kehlenbach (Director) Hasso von Pogrell (Assistant Director) Frank Kehlenbach (Director)
Hasso von Pogrell (Assistant Director) Vera Stark (Secretary) Hasso von Pogrell (Assistant Director)
Vera Stark (Secretary) Vera Stark (Secretary)

A d d r e ss:
Address: Address:

EIC Contractors Guide to the FIDIC New Yellow Book

Kurfrstenstrasse 129
D-10785 Berlin



Kurfrstenstrasse 129
D-10785 Berlin
TEL +49 30 2 12 86-244


Kurfrstenstrasse 129
D-10785 Berlin

(March 2003)


TEL +49 30 2 12 86-244
FAX +49 30 2 12 86-285
[email protected]



FAX +49 30 2 12 86-285
[email protected]
www.eicontractors.de



TEL +49 30 2 12 86-244
FAX +49 30 2 12 86-285
[email protected]
www.eicontractors.de www.eicontractors.de

Issued November 2004 ISBN 3-9808257-6-0 THE EIC BLUE BOOK Issued August 2003 (2nd edition) ISBN 3-9808257-5-2 THE EIC SILVER BOOK GUIDE
Issued April 2003 ISBN 3-980825-4-4 THE EIC WHITE BOOK
EIC Contracors Guide to the FIDIC New Red Book
(March 2002, reprinted March 2003 with editorial
amendments) EIC Contractors Guide EIC Contracors Guide

to the to the
EIC Turnkey Contract FIDIC New Yellow Book FIDIC New Red Book
(1994)

EIC Publications EIC Publications

EIC Turnkey Contract (1994) EIC Turnkey Contract (1994)

EIC Synopsis on Contract Bonds (1999) EIC Synopsis on Contract Bonds (1999)
EIC Contractors Guide to the FIDIC Silver Book (March 2000) EIC Contractors Guide to the FIDIC Silver Book (March 2000)


EIC Contractors Guide to the FIDIC New Red Book (March 2002)
EIC Contractors Guide to the FIDIC New Yellow Book (March 2003)
EIC Contractors Guide EIC Contractors Guide to the FIDIC New Red Book (March 2002)
EIC Contractors Guide to the FIDIC New Yellow Book (March 2003) EIC Contractors Guide
EIC White Book on BOT (April 2003) to the EIC White Book on BOT (April 2003)
to the
Secretariat:
FIDIC Conditions of Contract
Secretariat: FIDIC Conditions of Contract
for Frank Kehlenbach (Director)
for
Frank Kehlenbach (Director)
Hasso von Pogrell (Assistant Director) Plant and Design-Build

Hasso von Pogrell (Assistant Director)
Vera Stark (Secretary)
Construction
Vera Stark (Secretary)

Address:
Address:
Kurfrstenstrasse 129
Kurfrstenstrasse 129
D-10785 Berlin
D-10785 Berlin
TEL +49 30 2 12 86-244
TEL +49 30 2 12 86-244
FAX +49 30 2 12 86-285
FAX +49 30 2 12 86-285
[email protected]
[email protected]
www.eicontractors.de
www.eicontractors.de

Reprint November 2008 with editorial amendments ISBN 3-9808257-2-8 THE NEW EIC RED BOOK GUIDE
Issued March 2003 ISBN 3-9808257-3-6 THE NEW E IC YELLOW BOOK GUIDE

42 43
EIC SECRETARIAT EIC BOARD

Frank Kehlenbach
EIC Director

frank.kehlenbach@
bauindustrie.de

Laurent Flix
EIC Policy Officer

[email protected]

The EIC Team is based in Berlin, Judith Csaba

at the premises of the German Member Federation Hauptverband der Deutschen Bauindustrie. EIC Communication Officer

European International Contractors e.V. [email protected]

Kurfrstenstr. 129
D-10785 Berlin

Phone: +49 30 212 86 244

Fax: +49 30 212 86 285
Mail: [email protected]
Vera Stark
Assistant

[email protected]

44 45
 PHOTO CREDITS IMPRINT

Page 1/48 Art Kowalsky / Alamy Content: EIC

Page 4-5 Financial District Riyadh / Saudi Arabia /
Kerem Yucel / Eser Design: Berliner Botschaft, Berlin
Printed by: Druckteam
Page 6-7 Burj Khalifa / Dubai / Besix
Page 14-15 Ground Zero Foundation, New York / USA/ European International Contractors e.V.
Trevi Kurfrstenstr. 129
Page 16-17 Reichstag Berlin / Germany / EIC D 10785 Berlin
Page 18-19 Metro Doha / Qatar / PORR Phone: + 49 30 212 86 244
Fax: + 49 30 212 86 285
Page 20-21 Motorway Agrigento-Caltanissetta / Italy /
Mail: [email protected]
CMC
www.eic-federation.eu
Page 22-23 Suez Canal / Egypt / van Oord
Page 24-25 Maldonado Water Drainage Buenos Aires/ EIC is a registered association under German law
Argentina / Ghella listed under the number VR 18 482 B in the register of
Page 26-27 Sondem / Fotolia associations (Amtsgericht Berlin-Charlottenburg,
14057 Berlin).
Page 28-29 Metro Warsaw / Poland / Gulermak
Page 30-31 London Heathrow Airport / UK / Ferrovial
Page 32-33 forcdan, Fotolia
Page 36-37 Ayla / Jordan / Societ Italiana per
Condotte dAcqua
Page 38-39 Zhu Difeng / Fotolia
Page 40 Sogea Satom

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