What FIDIC does?

In the Contract for Engineering projects, the function of Conditions

of Contract is of greatest importance providing the rights, obligation
and responsibility for the parties concerned in the Contract
execution.

What FIDIC offers to the Industry?

Be the authority on issues relating to business practices
Promote the development of a global and viable consulting
engineering industry.

What are FIDICs growing Principles?

Promote Quality
Actively promote conformance to a code of ethics & integrity

FIDIC New Red Book

The Conditions of Contract for Construction:
Which are recommended for building or engineering works
designed by the Employer, or by his representative, the Engineer.
Under the usual arrangements for this type of contract, the
Contractor constructs the works in accordance with a design
provided by the Employer. However, the works may include some
elements of Contractor designed, civil, mechanical, electrical
and/or construction works

FIDIC New Yellow Book

The Conditions of Contract for Plant Design Build:
Which are recommended for the provision of electrical and
mechanical plant, and for the design and execution of building or
engineering works. Under the usual arrangements for this type of

contract, the Contractor designs and produces, in accordance with

the Employers Requirements, plant and/or other works; which may
include any combination of civil, mechanical, electrical and/or
construction works.

FIDIC New Silver Book

Conditions

of

Contract

for

EPC

(Engineering,

Procurement,

Construction)/ Turnkey Projects:

Which may be suitable for the provision on a turnkey basis of a
process or power plant or factory or similar facility, or of an
infrastructure project or other type of development, where
A higher degree of certainty of firm price and time is required, and
The Contractor takes total responsibility for the design and
execution of the project, with little involvement of the Employer.
Under the usual arrangements for turnkey projects, the Contractor
carries out all engineering, procurement, and construction EPC:
providing a fully equipped facility, ready for operation at the turn of
a key.

FIDIC New Green Book the Mini-Red

Book
Short Form of Contract:
Which is recommended for building or engineering works of
relatively small capital value. Depending on the type of work and
circumstances, this form may also be suitable for contracts of
greater value, particularly for relatively simple or repetitive work or
work of short duration. Under the usual arrangements for this type
of contract the Contractor constructs the works in accordance with a
design provided by the Employer or his representative (if any), but
this form may also be suitable for a contract which includes, or
wholly comprises, Contractor-designed civil, mechanical, electrical
and/or construction works.

17 Risk & Responsibility

18. Insurance
Wherever the Contactor is the insuring party, each insurance shall
be effected with insurers and in terms approved by the employer.
Wherever the Employer is insuring Party, each insurance shall be
effected with insurers and in terms consistent with the details
annexed to the Particular Conditions.
Any insurance payment made for loss or damage must be utilized in
respect to that loss or damage.

19 Force Majeure
The clause Force Majeure means an exceptional circumstance which
is beyond the control of any party on the project and could probable
be unavoidable

Wars
Riot
Disorder
Natural Catastrophe - earthquake, cyclones, Tsunami
etc
Clause 19.2 - Notice of Force Majeure
The notice shall be given within 14 days after the Party became
aware, or should have become aware, of the relevant circumstance
constituting Force Majeure

Clause 19.4 - Consequences of Force Majeure

The contractor shall be entitled for an extension of time

Clause 19.6 - Optional Termination

The option of terminating the work in case when the works are
prevented for a continuous period of 84 days or for multiple periods
which total more than 140 days, then either party may give to the
other Party a notice of termination of contract. The termination shall
take effect 7 days after the notice is given. Upon such termination,
the engineer shall determine the value of the work done and issue a
Payment Certificate.

20 Claims, Disputes and Arbitration

The contractor is entitled to an extension of time or additional
payment. The notice shall be given as soon as practicable and not
later than 28 days after the contractor became aware of the
circumstance.
Within 42 days, the contractor shall send to the Engineer a fully
detailed claim, which will support the claim.

Dispute Resolutions
3 Major Step
Dispute Adjudication Board
Amicable Settlement
Arbitration
According to the sub clause, if a dispute arises between parties, the matter should be
referred in written to the DAB, with a copy to the other party and engineer.
DAB should give his decision which has been reasoned, to Employer and
Contractor within 84 days after he has received such reference.
Each party shall give effect to every such decision of the DAB, until the same
revised by an amicable settlement or and arbitral award.
There may be situations where the DAB hasnt given his decision within 84days or
parties may dissatisfy with the Engineers decision. In such cases;

 Before the 28th days after the day on which he received the decision or
Before the 28th days after the day on which the said period of 84days expired
Either party can give a notice of dissatisfaction to other.
Second step Amicable settlement
After either party send notice of dissatisfaction within such 28 days, parties can
commence the arbitration
subjected to following conditions.
After an attempt to settle the dispute amicably or/and
56 days after the day on which notice of dissatisfaction was given.
Third step Arbitration
Sub clause 20.6;
Unless settled amicably, any dispute in respect of which the DABs decision (if any)
has not become
final and binding shall be finally settled by international arbitration.
According to the sub clause, any dispute has not final and binding shall be settled by
arbitration under the
rules of Arbitration of the International Chamber of Commerce (ICC).
Also the arbitration may commence before or after the completion of the works. In
FIDIC hasnt given
any time frame to refer a dispute to arbitration. But it should be without undue delay.