FIDIC has long been renowned for its standard forms of contract for use between employers and contractors on international construction projects, in particular:. Accordingly FIDIC has not only updated the standard forms but has expanded the range, and has - in September - published a suite of four new Standard Forms of Contract which are suitable for the great majority of construction and plant installation projects around the world. Relatively small value, short construction time or involving simple or repetitive work. Larger or more complex projects 1.
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FIDIC has long been renowned for its standard forms of contract for use between employers and contractors on international construction projects, in particular:. Accordingly FIDIC has not only updated the standard forms but has expanded the range, and has - in September - published a suite of four new Standard Forms of Contract which are suitable for the great majority of construction and plant installation projects around the world.
Relatively small value, short construction time or involving simple or repetitive work. Larger or more complex projects 1. Is the Employer or the Engineer going to do most of the design? As in traditional projects, e. The Red Book ,. If this is what is wanted - choose the Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer The Construction Contract , which effectively updates and supercedes the existing Red Book from Is the Contractor going to do most of the design?
Is it an Infrastructure Project e. Then the Employer wishes the Contractor to take total responsibility for the design and construction of the infrastructure facility,. Is it a Building Project where the Employer wishes to have his building s constructed on a Fixed-Price Turnkey Basis generally complete with all furniture, fittings and equipment?
A brief introduction to FIDIC contracts
In our case the project was sponsored by the KFW Germany. The FIDIC Contract states under 2,3: "The Employer shall, at the request and cost of the contractor, assist him in applying for permits, licences or approvals, which are required for any part of the works, for delivery including clearance through customs of plant materials and contractor's equipment and for the completion of the works. Such requests may also include requests for the employees assistance in applying for any necessary government consent to the export of contractors equipment when it is removed from site. Contractor are of the opinion, that Contractor is neither the owner of the future project nor of the construction site which has been taken from the former owner by law enforcement and belongs now to the Employer. This we see as our obligation. Contractor is however of the opinion: - that the owner Employer has to obtain the Construction Permit to erect the project as far as technical information is required, the Contractor will assist the Employer ; - that the same applies for the Discharge Permit as far as technical information are required, the Contractor will assist the Employer. The feeling of the drafting committee was that the Employer was best placed to help the Contractor in obtaining the various permits and approvals etc.
FIDIC Orange Book
The FIDIC Conditions of Contract are divided into separate parts, each serving the purpose of collecting together clauses applicable to most forms of construction, to allow the Employer to define any special arrangements or conditions which he requires to control effectively his function in the Enterprise, and also to identify clearly whether he or the Contractor is to accept specified constructional or financial risks. Part I contains standardised clauses in respect of responsibilities, authorities, liabilities, each to the other, and in general terms gives a clear explanation of the nature and standards of the construction required but, more particularly, to the Contractor, provides specific definitions of the timing and the basis of the payment he is to receive. Part II identifies again the selected conditions already contained in Part I, for particular application. These clauses gives positive identification to the name of the Employer and the Engineer and also the specific involvement of the Employer and a number of clarifications in respect of inter alia insurance, liquidated damages, nominated sub-contractors, certificates and payments. The remaining parts of the document are the Form of Tender and Form of Agreement, and these need not be limited to the terms as listed therein because further terms could be added as necessary should circumstances are the wishes of the Employer or the Contractor make his desirable, but the content of any such conditions once accepted cannot be modified other than by mutual agreement of the two parties involved in contact. The Employer can himself provide one or both of these functions, or he can allocate them to one or more third parties.
Contracts: advanced questions Orange Book
Design-Build and Turnkey (1995 Orange Book) Guide (1st Ed 1996)
The terms of the Conditions of Contract for Design - Build and Turnkey have been prepared by the Federation Internationale des Ingenieurs Conseils FIDIC and are recommended for general use for the purpose of the design and construction of works where tenders are invited on an international basis; with minor modifications, the Conditions are also suitable for use on domestic contracts. Under the usual arrangements for a design-build contract, the Contractor is responsible for the design and provision, in accordance with the Employer's requirements, of works which may include any combination of engineering including civil, mechanical, electrical, etc and building works; and interim payments are made as construction proceeds. In Part 1, Clause 13 sets out the payment arrangements. The Conditions are also intended for use on turnkey contracts, under which the Employer's requirements usually include provision of a fully-equipped facility, ready for operation at the turn of the "key" ; such contracts are often contractor-financed. Turnkey contracts typically include design, construction, fixtures, fittings and equipment, the scope of which would be defined in other contract documents. In addition, the contract may impose a requirement for the Contractor to operate the Works, either for a few months' commissioning period, or for some years' operation on a build-operate-transfer contract. Advice on turnkey arrangements is included in Part II, together with sample wording for contractor-finance.