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The FIDIC Suite of Contracts PDF
The FIDIC Suite of Contracts PDF
In recent years FIDIC has published many The different forms of contract within the
new contracts to complement the suite. The FIDIC suite are organised around the extent
first of the new contracts was the Orange of design and other responsibilities assumed
Book for design, build and turnkey works by the Employer and the Contractor. The suite
published in 1995. is therefore now aligned with common
procurement strategies rather than the nature
In 1999 FIDIC published a revised suite of of the construction works.
contracts with updated versions of the Red
and Yellow books together with a Green Book Where works are predominantly designed by
as the short form of contract and a Silver the Employer, then the Red Book is the
Book for turnkey contracts. appropriate form of contract. Where works
are predominantly designed by the Contractor
More recently in 2005 FIDIC published an the Yellow Book is appropriate regardless of
amended version of the Red Book for use by whether the works were heavy civils or M&E.
Multilateral Development Banks and in 2007 The Silver Book is clearly intended for use on
published a seminar edition of the Gold Book Turnkey projects and the Gold Book where
for Design, Build and Operate contracts.
the contractor operates the asset in addition taken to ensure that no ambiguity is created,
to designing and building. either with the General Conditions or between
the clauses in the Particular Conditions. It is
Employers may benefit from utilising FIDIC essential that all these drafting tasks, and the
conditions where potential bidders are from entire preparation of the contract documents,
different countries. In such cases the bidders are entrusted to personnel with the relevant
may perceive the use of the familiar FIDIC experience of the contractual, technical and
conditions as increasing the attractiveness of procurement aspects of the project.
enquiry. This could translate into lower
tenders as the contract risks should be better The suite does not currently include a
understood by the bidders. standard form of subcontract although in
2004 FIDIC stated that a Subcontract form
The FIDIC forms can therefore be applied to a would be a desirable addition to suite. It is
wide range of differing engineering and expected that if a subcontract form is
construction projects; from traditional civil published that a version for use with the Red
engineering to hi-tech windmills and heavy Book main contract will be first.
duty oil and gas process plants.
The main forms of contract are described
FIDIC has reduced the number of clauses in further in some detail below
all of the recent contracts. The Orange Book
contained 20 clauses, as now do the Red,
Yellow and Silver Books. Previously, the Red
Book had 72 clauses.
The Red Book is intended for use on projects This Red Book concludes with example forms
where the employer carries out the design but for the Letter of Tender, the Appendix to
it also allows for some elements of the project Tender (providing a check-list of the sub-
to be Contractor designed. The Red Book is clauses which refer to it), the Contract
not suitable for use where most of the works Agreement, and a Dispute Adjudication
are to be designed by the Contractor and for Agreement.
Red Book (MDB edition) Nevertheless, most projects will have special
Conditions of Contract for Construction requirements which will necessitate some
For Building and Engineering works specific changes. The contract therefore
designed by the Employer retains provision for Particular Conditions as is
common with other FIDIC contracts.
MDB Edition 2005
As with the main Red Book this MDB edition
Contents of Contract Book also includes sample forms for Contract Data,
Securities, Bonds, Guarantees and Dispute
General Conditions Board agreements.
Guidance for the Preparation of the
Particular Conditions In most cases, the amendments which have
Forms of Tender and Contract Agreement been made to produce the MDB edition are
Dispute Adjudication Agreement those arising from the requirements of the
MDBs, except for some minor changes of an
As part of their standard bidding documents editorial nature.
the Multilateral Development Banks (MDBs)
have for a number of years required their However, in the case of the dispute provisions
borrowers or aid recipients to adopt the FIDIC contained in Clauses 20.2 to 20.8 and in the
Conditions of Contract. associated Appendix, the opportunity has
been taken to make other amendments which
The FIDIC MDB edition of the Red Book FIDIC considered an improvement on the
simplifies the use of the FIDIC contract for the earlier wording as contained in the Red Book
MDBs, their borrowers and others involved 1999 edition.
with project procurement, such as consulting
engineers, contractors and contract lawyers.
The Silver Book is suitable for use on process, There is no reference to an Engineer in the
power and private-infrastructure projects Silver Book. This is because the Employer’s
where a Contractor is to take on full reduced influence on the engineering
responsibility for the design and execution of generally. Checking of engineering is more
a project. Risks for completion to time, cost concentrated on validating the end-
and quality are transferred to the Contractor performance and validating the potential ease
and so the Silver Book is only suitable for use of operation, maintenance and spares.
with experienced Contractors familiar with
sophisticated risk management techniques. The Silver Book provides conditions relating to
‘Tests on Completion’ and Taking Over only
For many large projects construction is only takes place after successful completion of the
one part of a wider complicated commercial tests. Such provisions are important for
venture and financial or other failure of the EPC/Turnkey projects where the purpose of
construction project will jeopardize the whole the contract is to provide the Employer with a
venture. The Silver Book approach may suit working facility.
such projects as it will provide a greater level
of cost certainty than can be achieved under Guidance is provided for the preparation of
the more traditional forms of the FIDIC suite. Particular Conditions should it be necessary to
modify the General Conditions.
To obtain this increased cost certainty the
Silver Book requires the Contractor to accept As with the other FIDIC contracts the Silver
a higher level of risk than is typical under Book contains various forms of security and
most other forms of contract. The Silver Book concludes with example forms for the Letter
transfers the risk of ground conditions to the of Tender, the Contract Agreement, and a
Contractor. Similarly the Contractor also Dispute Adjudication Agreement.