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Applied Management for FIDIC Contracts, Part 2

Segregation of the Contract Parties Involvement

FEATURED PAPER

Dr. Moustafa Abu Dief, CFCC™
Contracts and Claims Consultant, Gesbou Italconsult
Cairo, Egypt

and

Ahmed M. Ismail
Cyprus International University
Cyprus, Turkey

 



Abstract

The FIDIC forms of contracts are widely used within the construction projects where it proved significant attainment in Europe and the Middle East. The contract parties are always trying to get into a contract that satisfies the specific contract requirement; hence they choose a form of the FIDIC forms of contract those suites the project, such as the RED Book for construction, Yellow Book for the Plant and design build, and the Silver Book for turnkey projects. Managing the contract in an expert level shall grant successful contract deliverable, subsequently achieving the project objectives within the project constrains. The contract parties duties, roles, obligations, and responsibilities are defined in the FIDIC forms of contract, where it can be considered an action plan to move through the contract scope of work within predefined route and specific stipulated efforts that save the contract parties rights and constitutes the parties obligations, which were segregated in this paper and reviewed for proper implementation with the relevant recommendation based on lessons learned from previous projects and resolved construction claims.

Keywords:   FIDIC- Contracts- Employer- Contractor- Engineer – Best Practice

  1. Introduction

The FIDIC different form of contract include separate clauses and sub-clauses that demonstrate the contract parties involvement through the entire contract lifecycle, starting from pre contract phase, moving through the contract sign, contract implementation, and post contract period. The contract parties’ roles, duties, and responsibilities imply constitutes a package of performance requirements which are required to ensure smooth and successful contract deliverables. It is worthy if not mandatory to assign competent resources in the contract management domain and it was proved through the historical records that the investment in the cost of the resources provides significant benefits to the project. The benefits include, ensuring achieving the project constraints, avoiding time prolongation, project conflicts, cost overrun, and construction claims. In this paper the involvement of the project parties are reviewed, commented, and recommendation for prudent practical implementation were provided. The paper is providing the analysis of the practical mechanism to manage the FIDIC contract stipulated clauses for the different contract parties, i.e. the Employer, the Contractor, in addition to the Engineer who has a separate service agreement with the Employer considering the Red Book 1999.

  1. FIDIC forms general conditions

The main part of the FIDIC forms of contract is the general conditions that include 20 clauses divided into 163 sub clauses and sub-paragraphs. The first clause includes the general provisions which were discussed in the part 1 of this applied management for FIDIC contracts series. The core topic of this paper is the contract parties’ clauses, no. 2, 3, and clause no. 4 which will be discussed in the following sections.

  1. The Employer

The first party of the construction contract is the Employer, who assigns an Engineer to supervise the contract work and represent him in the project processes. Clause no 2 of the FIDIC general conditions is for the Employer’s role, responsibilities, and obligations as follows:

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To read entire paper, click here

 



About the Authors


Moustafa Abu Dief, PhD, CFCC
TM, MCIOB, ACIArb

Egypt – KSA



Dr. Eng. Moustafa Abu Dief
. Ph.D., FICCP, CFCC™, CCP, PMP®, MCIOB, RMP, ACIArb. Certified Forensic Claims Consultant and he is a project management professional with over 27 years of experience in the field in Egypt and Saudi Arabia, mainly in contract and claims domain. Moustafa is delivering training courses in FIDIC, NEC3 contracts, Forensic cost claims and dispute resolution management. Moustafa, can be contacted at the following:

https://www.linkedin.com/in/moustafa-ismail-a-dief-ficcp-cfcc-ph-d-ccp-pmoc-pmp-93798a16?trk=nav_responsive_tab_profile

mailto:mousrafa.ismail@benaa-pm.comor moustafa1_ismail@yahoo.com

 


Ahmed M. Ismail

Cyprus, Turkey

 

 

 

Civil Engineering Program, Cyprus International University

20161540@student.ciu.edu.tr

https://www.linkedin.com/in/ahmed-moustafa-1b69988b/

http://www.ciu.edu.tr/

m.ismail@italconsult.com