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FIDIC CONTRACT
CONDITIONS

An
Overview

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FIDIC
THE FEDERATION INTERNATIONALE DES INGENIEURS CONSEIL
(THE INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS)
ORIGINALLY ESTABLISEHD IN 1913 - SWITZERLAND
WELL KNOWN ORGANISATION PUBLISHED STANDARD FORM OF
CONSTRUCTION CONTRACTS FOR INTERNATIONAL USE
NORMS ARE FAIRLY BALANCED AND EQUITABLE SO FAR AS THE
RIGHTS AND OBLIGATION OF BOTH THE PARTIES ARE CONCRNED
CONTRACT CONDITIONS WIDELY USED IN LARGE NO. OF
COUNTRIES EITHER DIRECTLY OR ACCEPTED AS REFERENCE POINT
FOR

DRAFTING OTHER STANDARD FORM OF INTL. CONST. CONTRACT

INDIVIDUALLY DRAFTED CONSTRUCTION CONTRACT

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IN INDIA- FIDIC CONDITIONS ARE USED FOR

ALL PROJECTS AIDED BY INTERNATIONAL FINANCIAL INSTITUTES
LIKE, WORLD BANK, ADB , EBRC ETC.
REFERENCE POINT FOR MODIFYING THE OTHER CONTRACT FORMS
FOR OTHER MEGA PROJECTS, LIKE NHAI, IRRIGATION PROJETCS
(DAMS, CANALS) OR PROJECT WHERE GLOBAL BIDS ARE INVITED
CONSULTING ENGINEERS ASSOCIATION OF INDIA (CEAI) IS THE
CENTRAL BODY , REPRESENTS INDIA IN FIDIC
THE USE OF FIDIC CONDITIONS OF CONTARCTS IN INDIA HAS
INCREASED VIEW GROWTH OF INFRASTRUCTURE DEVELOPMENT
AND ENTRY OF

FDI

IN THIS SECTOR

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STANDARD FORMS OF CONTRACTS

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CONDITIONS FOR CONTRACT FOR CONSTRUCTION

(RED BOOK)
Building or Engineering works designed by the Employer
or his representative , the Engineer. Contractor construct
the work in accordance the design provided by the
Employer.
CONDITIONS FOR CONTRACT PLANT & DESIGN BUILT
(YELLOW BOOK)
Provision of Electrical & Mechanical plant and for the
design and execution of building or Engineering work.
Contractor designs and provides- plant / works in
accordance with the employers requirement .

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CONDITION OF CONTRACT EPC/ TURNKEY PROJECTS

(WHITE BOOK)
Provision on a turnkey basis of a power plant, a factory, an
infrastructure project or other type of development with
Higher degree of certainty of final price / time. CTR takes
full responsibility for design and execution of the project ,
little involvement of the Employer.CTR carries out all EPC
providing a fully equipped facility , ready for operations
(at the TURN of the KEY)
SHORT FORM OF CONTRACT
Building and Engineering works of relatively small capital
value . Suitable for repetitive/ work of short duration.

ENGLISH IS THE ONLY OFFICIAL &

AUTHENTIC TEXT

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CONDITIONS OF CONTRACT GOVERN THE RIGHTS AND

OBLIGATION OF EACH PARTIES
GENERAL CONDITIONS OF CONTRACT (GCC) (Known PART-I)
The sub-clauses which were considered to be applicable to many (but not
all) contracts have been included in the GC to facilitate incorporation into
each contract)
PARTICULAR CONDITIONS OF CONTRACT (PCC) (Known-PART-II)
Sub clauses which must necessarily vary to take account of the
circumstances relevant to the particular contract and locality of work.

THE GERENRAL CONDITIONS(PART-I) LINKED WITH PCC (PART-II),

BY A CORRESPONDING NUMBERING OF THE CLAUSES

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FIDIC CONTRACT INVOLVE THREE PARTIES

EMPLOYER (E) AGENCY/ ORG OR INDIVIDUAL WANTS WORK TO BE
EXECUTED

ENGINEER(ER) PRIMARILY

AGENT OF EMPLOYER BUT SUPPOSE TO

BE NEUTRAL

CONTRACTOR(CTR)

FIRM / AGENCY EXECUTING WORK

CONDITIONS OF CONTRACT HAS CLEAR DEMARCATION

OF DUTIES, RESPONSIBILITIES AND AUTHORITIES OF
ALL THREE PARTIES

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PRIORITY OF DOCUMENTS
Documents forming parts of contracts are mutually explanatory of one
another . For interpretation priority , in case of any ambiguity / confusion of
the documents , is as follows THE CONTRACT AGREEMENT
THE LOA
THE LETTER OF TENDER
THE PARTICULAR CONDITIONS
THE GENERL CONDITIONS
THE SPECIFICATION
THE DRAWINGS
THE SCHEDULE ANY OTHER DOCUMENT FORMING PART OF THE
CONTRACT.

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CLAUSES UNDER FIDIC CONDITION

TOTAL 20 CLAUSES- These clause and sub-clauses
numbers are universal
CLAUSE-1 - GENERAL PROVISISON
Definition of various terms used / applicable , priority of documents,
communication, confidential details, care / supply of documents etc.
CLAUSE- 2 THE EMPLOYER
Employer's obligations like- right of access of site , permits,
licenses/Approval, Employers personnel, Employers Financial
arrangement etc.
CLAUSE-3 - THE ENGINEER
Engineers duty & Authority , Delegation by the Engineer, Instructions
of Engineer, replacement of Engineer, Determinations

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CLAUSE-4 - THE CONTRACTOR

General obligations, Performance Security, Sub Contractors , Safety
Procedure, Rights of Way and facilities ,Progress reports, Electricity,
water, gas, Protection of environment etc.
CLAUSE- 5 NOMINATED SUBCONTRACTOR
Definition, Objection to Nomination,
subcontractors. Evidence of payments.

Payment

to

nominated

CLAUSE-6 - STAFF AND LABOUR

Engagement of staff & labour, Rates of wages and Conditions of
labour, labour law, working hours, health and safety, record of CTRs
equipment and personnel
CLAUSE-7 - PLANT MATERIAL & WORKMANSHIP
Manner of execution, samples, inspection, testing, rejection, Ownership of
Plant & material

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CLAUSE- 8 - COMMENCEMENT DELAY & SUSPENSION

Commencement of work, Time of Completion, Programme, EoT, Delays
caused by authorities, Rates of Progress, Delay damages, Suspension of
work, Consequence of suspension, Resumption of work.
CLAUSE-9 TESTS ON COMPLETION
Contractors Obligations, Delayed Tests, Retesting, Failure to pass tests
on completion.
CLAUSE-10 - EPMLOYERS TAKING OVER
Taking over of works and sections, parts of the work, Interference with
tests on completion
CLAUSE-11 - DEFECT LIABILITY
Completion of Outstanding works and remedying Defects, Cost of
remedying defects, Extension of DNP, Performance certificate etc.

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CLAUSE-12 - MEASURMENT & EVALUATION

Work to be measured , Method of Measurement, Evaluation, Omissions
CLAUSE- 13 VARIATION AND ADJUSTMENTS
Right to Vary, value Engineering, Variation procedure, Adjustment for
change in legislation, Provisional sums, Day rates.
CLAUSE-14 - CONTRACT PRICE AND PAYMENT
Contract price, Advance payment, Schedule of payment ,issue of IPC,
Delayed payment, Payment of retention money, Statement of completion,
Final payment , Currencies of payment
CLAUSE-15 - TERMINATION BY EMPLOYER
Notice to correct, Termination by employer, Valuation at date of
termination, Employers, Entitlement to termination.

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CLAUSE- 16 SUSPENSION & TERMINATION BY CTR

CTRs Entitlement to suspend work, Termination, Cessation of work
and Removal of CTRs Equipment, Payment on termination.
CLAUSE- 17 RISK AND RESPONSIBILITY
Indemnities, Contractors care to work, Employers
Consequence of employers Limitation of liability risk

risk,

CLAUSE-18 - INSURANCE
General requirement of Insurance, Insurance of work and CTRs
Equipment, Insurance against injury to persons, and damage to
property , insurance of contractors personal
CLAUSE-19 - FORCE MAJURE
Definition, Notice, Consequences, Optional termination , Payment &
release

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CLAUSE-20 CLAIMS DISPUTES AND ARBITRATION

Contractors claim , Appointment of Dispute Adjudication Board,
Failure to agree to DAB, Obtaining DAB Decision Amicable
settlement, Failure to comply with DAB Decision.

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SEQUENCE OF KEY EVENTS DURING

CONTRACTS FOR CONSTRUCTION

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SEQUENCE OF PAYMENT EVENT CLAUSE- 14

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SEQUENCE OF DISPUTE EVENTS CLAUSE-20

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CONCLUSION
ALTHOUGH THE FIDIC CONDITIONS APPEARS TO BE
COMPREHENSIVE BUT STILL IT HAS FLAWS.
INSTANCES HAS OCCURRED WHEN ENGINEER WAS NOT
IMPARTIAL.
PATICULRALY - DETERMINATION OF EoT , CLAIMS ETC.
MANAGEMENT AND ADMINISTRATION OF CONTARCTS
BASED ON FIDIC CONDITIONS IS REQUIRED

WAY

SMART

WHERE PROACTIVE AND TIMELY DECISION

ALONG WITH DOMAIN KNOWLEDGE PLAYS CRUCIAL
ROLE.

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