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FIDIC Contracts Dec 2021

This document provides an overview of FIDIC contracts and membership benefits. It discusses the various FIDIC contracts including the Red, Yellow, Green, Pink, Silver, Orange, Gold, and White Books. It describes the purpose and use of each book. The document also outlines the benefits of FIDIC membership, including advocacy, conferences, industry knowledge, contract training, and adjudication services. It highlights several online certified training courses provided by FIDIC. Finally, it briefly introduces the Dispute Adjudication Board process under FIDIC contracts.

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98 views

FIDIC Contracts Dec 2021

This document provides an overview of FIDIC contracts and membership benefits. It discusses the various FIDIC contracts including the Red, Yellow, Green, Pink, Silver, Orange, Gold, and White Books. It describes the purpose and use of each book. The document also outlines the benefits of FIDIC membership, including advocacy, conferences, industry knowledge, contract training, and adjudication services. It highlights several online certified training courses provided by FIDIC. Finally, it briefly introduces the Dispute Adjudication Board process under FIDIC contracts.

Uploaded by

Kunduwera Methode
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Construction Contracts, and Liability [CCE3261]

FIDIC Contracts

Sem II, Dec 2021


Outline:
1. Introduction
2. The red book
3. The yellow book
4. The green book
5. The pink book
6. The silver book
7. The orange book
8. The gold book
9. The white book
10. FIDIC Membership
11. Benefits of membership
12. Certified trainings
13. DAB
Introduction
• FIDIC contracts represent agreements in the construction and installation
field, used as standards in the international arena.
• These contracts have been drafted by the International Federation of
Consulting Engineers (FIDIC, Fédération Internationale Des Ingénieurs-
Conseils) founded in 1915 by three European states (Belgium, France and
Switzerland).
• The main purpose of FIDIC was to create standard contracts that may be
used for a variety of construction and installation projects, to have
contracts of similar principles around the world.
• These standard agreements cumulate an experience of decades in
construction and installation projects that take into account, in a
balanced manner, the interests of both parties involved.
3
Introduction …

• Since 1999, FIDIC has issued a series of standard construction and


installation agreements that may be used based upon the specificities
of the project had into account.

• FIDIC forms of contracts sometimes called books are identified by


colors and cover a wide range of projects and methods of
procurement.

• It is therefore likely that any international contractor or consultant will


frequently encounter FIDIC conditions of contracts.
4
The Red Book

• Conditions of Contract for Construction for


Building and Engineering Works designed by
the Employer.
• First edition has been drafted in 1956 is used for
works in which the design is made by the
employer.
• The risks undertaken by the parties are
balanced, and the payment of the works is
made based upon the monthly bill of quantities
or based on the lump sums for items of works.
• Red book contracts represent the most widely
used standard agreement for construction and
installation projects. 5
The Yellow Book

• Plant and Design-Build


• This type of agreement is used in
construction works in which the design is
ensured by the contractor, such undertaking,
at the same time, an increased level of risks.
• This represents a lump sum contract in which
the payments are made based upon the
certification by the engineer
• Like the “red” FIDIC, the engineer
administers the contract.
6
The Green Book

• FIDIC Green Book Short Form of Contract is


recommended for engineering and building
works of relatively small capital value
($500,000).
• They are considered most likely to be suitable
for fairly simple or repetitive work or work of
short duration without the need for specialist
sub-contracts.
• However, depending on circumstances, they
may be suitable for contracts of greater value.

7
The Pink Book
• The Pink Book is used on construction projects funded
by multilateral development banks (MDBs).
• MDBs are international financial institutions, such as
the World Bank and the African Development Bank
etc… that provide financial support and professional
advice for economic and social development activities
in developing countries.
• The Pink Book is based on the Red Book and
incorporates amendments that were commonly made
by MDBs.
• The first edition of the Pink Book was published in
2005 when FIDIC licensed it for use by MDBs on
projects they were funding. Red Book (MDB edition)
8
The Silver Book
• EPC/Turnkey Projects
• The Silver Book represents a turnkey, fixed price,
lump sum arrangement, whereby the contractor
assumes the majority of key construction risks.
• It is recognisable to the vast majority of the
international contracting community, and has
thus gained a foothold as a useful template on
which to base an EPC contract.
• The contractor assumes the majority of risk on
key matters such as design, specifications, time,
price, site conditions and certain unforeseen
risks.
9
The Orange Book

• Conditions of Contract for Design - Build and


Turnkey
• The Contractor is responsible for the design
and provision, in accordance with the
Employer's requirements include
engineering and building works.
• The Conditions are intended for use on
turnkey contracts.
• Turnkey contracts typically include provision
of a fully-equipped facility, ready for
operation (at the turn of the "key"). 10
The Gold Book
• DBO Contract - Conditions for Design, Build and
Operate Projects
• It is standard form of Contract which extends the single
responsibility of the Contractor to the operation service.
Published in 2008.
• The concept is to require the Contractor to take in
consideration in its design the requirements for
operation which include maintenance and replacements.
• However the Contract does not address financing and
funding issues. The Contractor will not be involved in
financing the Project nor will he have the benefit of the
operation output.
• He merely provides the service to design, build and
operate the Works. 11
The White Book

• FIDIC White Book (2006) for professional


services contract (consulting services)

• The White Book is an important part of the


FIDIC suite and is one of the most widely
used forms of professional services contract
internationally.

• The new FIDIC White Book is for


Consultancy Services.
12
FIDIC Membership

• Membership is comprised of Member Associations of consulting


engineering organisations from 102 countries.
• Member Associations represent consulting engineering firms in their
countries.
• There are three categories of FIDIC membership as follows
1) Member Association
2) Associate Member
3) Affiliate Member

13
1) Member Association
• Composed of a national association which is the largest association of firms
providing engineering related consulting services in a country.

2) Associate Member
• Any organisation, association, firm or groups of firms which is based in a
country not having a Member Association and which has a major part of its
activity in the engineering consulting industry. For firms intending to
become a FIDIC national member association.
3) Affiliate Member
• Any individual or association/firm or groups of firms based in a country
with/without a Member Association and supports the objectives of the
Federation. Aimed at associations with commercial interests with FIDIC.
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Benefits of FIDIC members

• Advocacy and stakeholder engagement


• Attending FIDIC’s world leading conferences
• Industry intelligence / Knowledge
• Access to a suite of FIDIC contracts and services
• FIDIC contract trainings
• Access to FIDIC adjudication service
• Engage with FIDIC committees
• Young professionals programme
• Access to the FIDIC team.
15
Key FIDIC online certified training courses

• Practical Use of the FIDIC Contracts


• Claims and Disputes Resolution
• Dispute Adjudication Boards
• FIDIC Contracts Management and Administration
• FIDIC Conditions of Contracts for EPC/Turnkey Projects
• Future Leaders Management Certificate.

16
The FIDIC - Dispute Adjudication Board

• FIDIC contracts provide that if an Engineer’s determination is


disputed, that dispute may be referred to a Dispute Adjudication
Board (DAB) who will adjudicate upon it and issue a reasoned
Decision.

• A dispute adjudication board (DAB) intends to stop disputes over


FIDIC contracts ending up in commercial arbitration.

• DAB Decisions are binding unless challenged in Arbitration.

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