What is FIDIC ?? Understanding FIDIC in simple terms

FIDIC stands for the International Federation of Consulting Engineers. It's an international organization that sets standards and guidelines for the consulting engineering and construction industry. FIDIC provides a framework for contracts and agreements used in construction and engineering projects, often referred to as "FIDIC Contracts." These contracts aim to establish fair terms, allocate risks, and ensure the smooth execution of projects between different parties involved in construction projects, such as contractors, clients, and consultants.

FIDIC was founded in 1913 and has since become a globally recognized authority in the field of consulting engineering and construction contracts. Its primary goals include promoting high standards of professionalism, ethics, and quality in the industry, as well as fostering collaboration and knowledge sharing among its members.

FIDIC is known for its suite of standard contract documents, which are widely used in international construction projects. Some of the most commonly used FIDIC contracts include:

1. FIDIC Red Book (Conditions of Contract for Construction): This contract is used for construction projects where the contractor is responsible for executing the works according to the design provided by the client.
2. FIDIC Yellow Book (Conditions of Contract for Plant and Design-Build): This contract is used for projects where the contractor is responsible for both designing and building the works, often involving the installation of complex machinery or equipment.
3. FIDIC Silver Book (Conditions of Contract for EPC/Turnkey Projects): This contract is designed for projects where the contractor undertakes the engineering, procurement, and construction (EPC) of the entire project, often delivering a fully functional facility to the client.
4. FIDIC Green Book (Conditions of Contract for Design, Build and Operate Projects): This contract is used for projects where the contractor not only designs and builds the works but also operates and maintains them for a specified period.

FIDIC contracts provide a standardized framework for various aspects of project management, including risk allocation, payment terms, dispute resolution, and variations to the works. However, these contracts can be adapted to suit the specific needs of individual projects.

The significance of FIDIC lies in its role in promoting consistent and fair practices within the construction and engineering industry. FIDIC Contracts are widely recognized and used globally, particularly in international projects, as they provide a common ground for negotiations and understanding between parties from different countries and legal jurisdictions.