FIDIC form of contract:

FIDIC is abbreviated as “Fédération Internationale des Ingenious-Conseils” which means

International Federation of Consulting Engineers established in 1913, which is established
by the three countries namely France, Belgium and Switzerland (Udom, 2014). Switzerland
is the headquarters of the FIDIC, now the FIDIC has over 100 member countries (FIDIC ,
2017).
FIDIC publishes different standard contracts to infrastructure projects, Construction works,
large-scale machinery supplies, consultancy services etc.
The contract is separate for the different works and each work is identified and suited for the
current needs and situation which is identified by different colors of book cover, which are as
follows

 The Green Book

Green Book was released in the year 1999, which is special set of short form contract for the
small capital value projects whose value is not greater than USD 500000, but however
depending on the circumstances it can be applied for projects which is slightly higher value
(Turner and Townsend, 2017). The Green Book consists of the following documents:
1. Agreement (Turner and Townsend, 2017)
2. General Conditions (Turner and Townsend, 2017)
3. Rules for Adjudication (Turner and Townsend, 2017)
4. Notes for Guidance (Turner and Townsend, 2017)

 The Red Book

Red Book gives the conditions of contracts for the construction for building and engineering
works designed by the employers, the first edition was released in the year 1999 (Turner and
Townsend, 2017), which includes the following documents:
1. General Conditions (Turner and Townsend, 2017)
2. Guidance for the Preparation of the Particular Conditions (Turner and Townsend,
2017)
3. Forms of Tender and Contract Agreement (Turner and Townsend, 2017)
4. Dispute Adjudication Agreement (Turner and Townsend, 2017)

 The Yellow Book

Yellow Book was first released in the year 1999 which gives the conditions for plant and
design and build specially for the electrical and mechanical plant, building works which is
designed by the contractor (Turner and Townsend, 2017). The Yellow Book contains the
following documents:
1. General Conditions (Turner and Townsend, 2017)
2. Guidance for the Preparation of the Particular Conditions (Turner and Townsend,
2017)
3. Forms of Tender and Contract Agreement (Turner and Townsend, 2017)
4. Dispute Adjudication Agreement (Turner and Townsend, 2017)
 The Orange Book
Orange Book was published to provide conditions of contract for the Design-Build and
Turnkey Projects in the year 1995, the rights and obligations of the parties are governed in
the Part 1 and Part 2 of the Orange Book (Turner and Townsend, 2017). The Orange Book
contains the following documents:
1. General Conditions (Turner and Townsend, 2017)
2. Guidance for the Preparation of the Particular Conditions (Turner and Townsend,
2017)
3. Forms of Tender and Agreement (Turner and Townsend, 2017)

 The Silver Book

Silver Book is suitable the infrastructure and power project established in the year 1999
which gives the conditions of contracts for EPC or the Turnkey Projects where the contractor
is solely responsible for the design and execution of a project (Turner and Townsend, 2017).
The Silver Book contains the following documents:
1. General Conditions (Turner and Townsend, 2017)
2. Guidance for the Preparation of the Particular Conditions (Turner and Townsend,
2017)
3. Forms of Tender and Contract Agreement (Turner and Townsend, 2017)
4. Dispute Adjudication Agreement (Turner and Townsend, 2017)

 The Pink Book

The Pink Book was first released in the year 2005, it is part of a Red Book which created to
fit for the purpose of the Multilateral Development Banks (Udom, 2014).

 The Gold Book

Gold Book is published in the year 2005 for the first time which gives the conditions of the
contract for the Design Build and Operate projects, under this the e contractor is not
responsible for either financing the project or gaining the commercial success of the project
(Turner and Townsend, 2017). The Gold Book consists of the following documents:
1. General Conditions (Turner and Townsend, 2017)
2. Particular Conditions (Turner and Townsend, 2017)
3. Sample Forms (Turner and Townsend, 2017)
Red Book:
Red Book was first published in the year 1957, the fourth edition was published in the year
1987 and there was also another edition published in the year 1996 with the supplement
added. The initial first publication provided the guidelines for the Construction sector
whereas there was another publication which is published in the year 1999 which was
suitable when the design is done by the client (Udom, 2014).
The Red Book is more focused on the procurement route rather than the nature of the work,
so the Red Book can be applicable for the civil engineering works where the design is done
by the client, however the contractor can also design some parts of the project but most of
the designed should be done by the client only (Turner and Townsend, 2017).
Client will be held responsible for the administration and supervision of the project therefore
the engineer is appointed by the client, who is responsible of the certification of completion
and payment (Turner and Townsend, 2017).
Payment is determined by the quantity surveying than the rates for the each and activity is
assigned by the BOQ at the same time lump sum type of compensation model can also be
applied for the payment (Turner and Townsend, 2017).

Implementation of Red Book on different Procurement Routes and compensation model

Design Bid Build is the procurement route which is adopted in the Red Book as the Red
Book is applicable where the client is completely responsible for the design works, In this
procurement route the client first hires the designer and the finalized design is floated as
tender and after the bidding process the client selects the contractor and building execution
work is done by the contractor.
As the design is entirely done by the client, the changes in the scope of work is very minimal
so the Lumpsum compensation model and if there are any changes than they can follow Re-
measurable or Unit Price type of compensation model.
Yellow Book
Yellow Book was first published in the year 1967 and later on the third edition was published
in the year 1987, which gave the guidelines for the contracts of the electrical and mechanical
sector, later in the year 1999 the was updated edition of yellow book was published which
was suitable for the projects where the contractor has major responsibility of design (Udom,
2014).
The Yellow Book is more focused on the procurement route than he nature of the work,
therefore the yellow book is applicable for the electrical and mechanical plants design and
execution. In this type of contract, the contractor designs and the work are provided
according to the requirement of the client where it includes the combination of the civil,
electrical, mechanical and construction works (Turner and Townsend, 2017).
The client holds the responsibility of the supervision and administration of the project, the
client appoints the engineer to monitor the payments and completion of the project, the
payments can be done on the lumpsum compensation model on the completion of the work
on the instalment basis. As the contractor holds the responsibility of both design and
execution the general conditions of contracts which is drafted should be agreed by both the
client the contractor such as payment method and period and many such (Turner and
Townsend, 2017).
Implementation of Yellow Book on different Procurement Routes and compensation model
Design and Build is the procurement route followed by the yellow book, The client has the
brief scope and design of the project, the contractor gives the detailed design for the project
and same contractor who designed the project will be held responsible for the execution of
the project.
Since the detailed design is done by the contractor there may minor changes in the detail of
the project therefore the conventional lumpsum compensation model may not be applicable
but lumpsum on the basis of the work done can be adopted along with this unit price, cost
reimbursement and hybrid model can be adopted. As the complete design is not available in
the initial stage unit price compensation model can be adopted and later once the complete
drawing is available lumpsum compensation model can be adopted.