Fidic Conditions of Contract
Fidic Conditions of Contract
Fidic Conditions of Contract
INTRODUCTION
The Federation Internationale des Ingenierurs-
Conseils (FIDIC) is the international federation of
consulting engineers. FIDIC is best known as the
organisation that publishes standard forms of
contract documents related to the procurement of
engineering works. These standard forms include
those for use by consulting engineers and other
forms that are suitable for the procurement of
building and engineering works. FIDIC’s previous
standard forms of contract documents for
building and engineering works have been known
by the colours of their respective covers
- Conditions of Contract for Works of Civil
Engineering Construction, Fourth Edition
1987, Reprinted 1992, also known as the “Red
Book”;
- Conditions of Contract for Electrical and
Mechanical Works, Third Edition 1987,
Reprinted 1988, also known as the “Yellow
Book”;
- Conditions of Contract for Design-Build
Turnkey, First Edition 1995, also known as the
“Orange Book”.
The New Suite
Although the above standard forms are still used
internationally, FIDIC has replaced them by the following
First Editions, published in September 1999:
-Conditions of Contract for Constructions, which FIDIC
recommends for building or engineering works where
the Employer provides most of the design. However, the
works may include some Contractor-designed civil,
mechanical, electrical and/or construction works.
- Conditions of Contract for Plant and Design-Build,
which FIDIC recommends for the provision of electrical
and/or mechanical plant, and for the design and
execution of buildings or engineering works. The scope
of these Conditions thus embraces both old Yellow and
orange Books, for all types of Contractor-designed
works.
- Conditions of Contract for EPC/Turnkey
Projects, which may be suitable for the provision
on a turnkey basis of a process or power plant, of
a factory or similar facility, or of an infrastructure
project or other type of development, where (i) a
high degree of certainty of final price and
completion time is required, and (ii) the contractor
takes total responsibility for the design and
execution of the project.
CONDITIONS OF CONTRACT FOR
CONSTRUCTION FOR BUILDING AND
ENGINEERING WORKS DESIGNED BY THE
EMPLOYER
The Fourth Edition of the FIDIC Conditions of
Contract for Works of Civil Engineering
Construction, known as the “Red Book”, has
been updated and replaced with a new standard
form. The title of the new 1999 First Edition
construction book – which is red in colour – is
“Conditions of Contract for Construction for
Building and Engineering Works Designed by the
Employer” (“New Red Book”). An abstract of the
New Red Book is presented below.
General Provisions
The general provisions defines the important
constituents of a contract such as the contract, the
parties involved in the contract, payments, contract
agreement, etc.
The Employer
Contractor’s right of access to site is not exclusive and is
subject performance security being provided.
Contractor’s claims are applicable in case of delay by
Employer.
The Engineer
The Engineer has no authority to amend the contract.
The Engineer’s authority & limitations can be defined in
the contract. The Engineer’s approval does not relieve
the contractor from any responsibility, he has under
contract. Engineer shall consult both parties to reach
agreement on claims otherwise proceed to make a fair
determination in accordance with the contract.
Employer can replace the ‘Engineer’ by any other
person against whom contractors does not have any
reasonable objections.
The Contractor
The contractor shall design if required to the extent
specified in the contract. The contractor shall deliver the
performance security to Employer within 28 days of
receipt of the Letter of Acceptance. The Employer shall
return the Performance Security to the contractor within
21 days of Performance certificates issued on
completion of the contract.