Engineering And Construction Contract Specifications [CVE449]

FIDIC CONTRACTS
Dr. Ahmed Elyamany

Objectives
By the end of this lecture, you will: 1. Define FIDIC Contracts 2. CONDITIONS OF CONTRACT 3. FEATURES AND ADVANTAGES 4. TENDERING PROCEDURES

Dr. Ahmed Elyamany

What is FIDIC ?
An international federation of consulting engineers, founded in 1913 with its headquarters located in Lausanne, Switzerland, whose objective is to promote the common interests of the member associations and disseminate information to its members for the development of consulting industry.

Dr. Ahmed Elyamany

What does FIDIC do?

Arrange seminars and conferences and prepare standard documents, in the furtherance of its goals.

Dr. Ahmed Elyamany

FIDIC CONTRACTS
Conditions of Contract for Construction (Red Book) Conditions of Contract for Plant and Design-Build (Yellow Book) Conditions of Contract for EPC/Turnkey Projects(Silver Book) Short Form of Contract ( Green Book) CLIENT/CONSULTANT MODEL SERVICES AGREEMENT

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The New Red Book

For Construction of major building or engineering projects in general Employers Responsibility for Design Unit Price Contract/Remeasurement (monthly payment) Administration of Contract by Engineer Pro-contractor in terms of risk allocation

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The New Yellow Book

For provision of mechanical and electrical plant, and for design and execution of building or engineering projects Contractors Responsibility for Design(design extent?) Lump-sum, with adjustments (stage/milestone or monthly payment) Administration of Contract by Engineer Pro-contractor in terms of risk allocation

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The Silver Book

For provision on a turnkey basis of a process or power plant, etc. Contractors Total Responsibility for Design Normally fixed Lump-sum, with few adjustments (stage/milestone or monthly payment) Administration of Contract by Employers Representative Pro-employer in terms of risk allocation

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The Green Book

For Building or Engineering Works of Small Capital Value or containing mostly simple or repetitive work Contractors or Employers Responsibility for Design Lump-sum, with adjustments (monthly payment) Administration of Contract by Employers Representative Pro-contractor in terms of risk allocation

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CONDITIONS OF CONTRACT

published 1999

Guide published 2001

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WHICH BOOK TO USE?

STRAIGHTFORWARD PROJECT ? yes no CONTRACTOR DESIGN fixed price - lump sum little employer involvement no major unforeseen risks no yes no plant and/or high unforeseen risks yes EMPLOYER DESIGN ? no yes

DISCUSS IN DETAIL Employer s requirements with the Contractor, and negotiate a modified 11 FIDIC contract

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FEATURES AND ADVANTAGES

BALANCED
Fair apportioning of risks, rights and obligations between the parties

WELL TRIED
Long case history for earlier contracts

ACCEPTED
Known and recognized; in wide use for international contracts

SUPPORTED
Recommended or required by development banks,

EFFECTIVE
Clear and complete conditions; time limits; provisions for attribution

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Key points: CONSTRUCTION

Employer designs Engineer, working for the Employer Bill of Quantities Payments based upon measurements Certification of payments by Engineer

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Key points: PLANT & DESIGN-BUILD

Contractor designs Engineer, working for the Employer Lump sum pricing Payments according to progress Certification of payments by Engineer

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Key points: EPC/TURNKEY PROJECTS

Contractor designs and takes full responsibility Employer may appoint a Representative Fixed price, to cover risks taken on by Contractor Payments according to progress

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Key points: SHORT FORM

Simple projects Design by either party Employer may appoint a Representative Valuation as appropriate; to be agreed Payments according to value of Works executed and Materials and Plant delivered to site
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Key points: CLIENT/CONSULTANT

Agreed Scope of Services: Appendix A (the agreed scope of services) Normal, Additional and Exceptional Services Normal Services priced as agreed Additional and Exceptional Services at rates agreed Payment schedule as agreed
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USE OF FIDIC CONTRACTS

Match contract and project Decide the form of contract early Appoint Dispute Arbitration Board early preparation of the contract should be done by professionals Do not touch the General Conditions

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PRINCIPLES OF PROCUREMENT
Effectiveness Economy Efficiency Accountability Transparency / confidentiality Strong competition Publicity, wide participation Fair and equal conditions Standard procedures Standard documentation
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PROCUREMENT CATEGORIES
Goods Works Versus Consultant services

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TENDERING PROCEDURES
Development bank / public procurement procedures Open tendering / International Competitive Bidding Local tendering / National Competitive Bidding Restricted tendering / Limited Bidding Two stage tendering

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SELECTION PROCEDURES/CRITERIA
Criteria defined and published in advance Economically most advantageous offer Quality based selection for intellectual services Quality and cost based selection

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PROCUREMENT STEPS
Preparation Publication Pre-qualification / short-listing Invitation (Submission) Evaluation Award, contracting Supervision, contract administration Lessons learned

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PREPARATION OF PROCUREMENT
Determination of needs and objectives Determination of constraints Identification of parties Planning, budgeting, financing Contract type Selection procedure Requirements / Specifications / Bills of Quantities / Terms of Reference Pre-qualification and evaluation criteria Particular conditions Tender documents Publicity
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CONTRACT ADMINISTRATION
Supervision Implementation of rule Quality and quantity Invoice verification Payments Extensions, variation orders, modifications Termination Disputes and their resolution

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RISKS IN PROCUREMENT
Wrong goods, works, services Bad value for money Fraud Corruption

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Questions?
Contact: Dr. Ahmed Elyamany 0109-4100-824 a2hyamany@yahoo.com http://drahmedelyamany.weebly.com
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