ENGINEER in a FIDIC Contract

Let me share something that I do as the ENGINEER in a few FIDIC Contracts in internationally funded Government Infrastructure Projects

The FIDIC suite of construction contracts is written and published by the International Federation of Consulting Engineers. The FIDIC acronym stands for the French version of the Federation’s name (Federation Internationale des Ingenieurs-Conseil).

The best known of the FIDIC contracts are the Red Book (building and engineering works designed by the Employer) and the Yellow Book (M&E, building and engineering works designed by the Contractor). The original edition of the Red Book dates back to 1957.

The FIDIC suite of contracts now covers a wide range of projects and methods of procurement. It is therefore likely that any international contractor or consultant working outside of the UK will frequently encounter FIDIC conditions of contract. The FIDIC suite of contracts now covers a wide range of projects and methods of procurement. It is therefore likely that any international contractor or consultant working outside of the UK will frequently encounter FIDIC conditions of contract.

Sub-contractors will similarly encounter FIDIC derived conditions of contract where they are operating internationally. Even  ubcontractors that only operate within a particular country will from time to time encounter FIDIC derived conditions where they are operating within a supply chain governed by a FIDIC main contract.

Employers may also use FIDIC conditions where the local standard conditions of contract are not suited to the procurement route and there is a need to avoid the risks and expense of preparing a bespoke contract. The different forms of contract within the FIDIC suite are organised around the extent of design and other responsibilities assumed by the Employer and the Contractor.

The suite is therefore now aligned with common procurement strategies rather than the nature of the construction works.

Where works are predominantly designed by the Employer, then the Red Book is the appropriate form of contract.

Where works are predominantly designed by the Contractor the Yellow Book is appropriate regardless of whether the works were heavy civils or M&E.

The Silver Book is clearly intended for use on Turnkey projects and the Gold Book where the contractor operates the asset in addition to designing and building. Employers may benefit from utilising FIDIC conditions where potential bidders are from different countries.

In such cases the bidders may perceive the use of the familiar FIDIC conditions as increasing the attractiveness of enquiry. This could translate into lower tenders as the contract risks should be better understood by the bidders.