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Applied Management for FIDIC Contracts

Part One: Segregation of General Provisions

FEATURED PAPER

Dr. Eng. Moustafa I. Abu Dief

Contracts and Claims Manager
Benaa-PM

Kingdom of Saudi Arabia

 



Abstract

The International Federation of Consultant Engineers “FIDIC” is an organization which publishes standard forms of contract documents related to the procurement of engineering works. The FDIC forms of contracts are a group of forms of contracts presented by the Federation Institute of Consultant Engineers, with the first publication on 1957 of the first edition of ”Conditions of Contract for Works of Civil Engineering Construction” known as the ‘Red Book’. The group includes different forms of contracts which are widely used over the globe and became preferable in the world and specifically in the Middle East where it almost always the first choice of the contract parties in the construction projects. In the course of the implementation FIDIC based contracts, different management processes and provisions are required to safeguard optimized benefit of the use of such prominent forms of contracts. This paper is a part of a comprehensive guide for appropriate implementation of the construction contracts based on FIDIC forms of contracts, in this part, the author will start by the introduction through the general provision clause.

Keywords:   FIDIC- Contracts- Applied Management – Best Practice

  1. Introduction

The FIDIC standard forms group includes different forms of contracts where each form is used for a specific type of projects, such as the published forms on 1999, including, Conditions of Contract for Construction which are recommended for building or engineering works designed by the Employer or by his representative, the Engineer and it is referred to as Red Book, in this type of contract, the Contractor builds the works in based on the design provided by the Employer. Another form of FIDIC contracts is the Conditions of Contract for Plant and Design-Build, which is referred to as the Yellow book and is which are suggested for the provision of electrical and/or mechanical work/plant, normally, in this form of contract the Contractor prepares the design and provides, as per the Employer’s requirements, the work; that can compromise different civil and electromechanical tasks. The case of turnkey project where a party takes the entire responsibility to design/engineering, procures and constructs the project entirely which is called EPC contract, Silver Book. This type of contracts is recommended for those projects of specific characteristics such as a process or power plant, also the EPC form contracts are frequently used in the Middle East for different types of projects which are let by the governments to international contracting companies to deliver the projects as an Engineering, Procurement and construction, “EPC” with an entirely equipped facility. Other different FIDIC forms of contracts are presented by the FIDIC and recommended for a specific type of work, such as the Blue Book for Dredging and reclamation, the Green Book short form for small projects which is budgeted less than 500,000.00 $, and etc. The FIDIC form includes the contract general condition, some guides to prepare the particular conditions and any required appendixes, and the forms of tender and contract agreement. It is recommended to maintain the general condition as per the standard form and insert any modifications or customization in the particular conditions. This paper will present the analysis of the FIDIC contract management approach to be implemented in the physical contract lifecycle considering the order of the general conditions of the FIDIC forms for the first three mentioned forms of contracts, Red, Yellow, and Silver Books.

  1. FIDIC forms general conditions

The construction contract is signed between the Employer and the Contractor, where the Employer assigns a consultant to represent him in the project, the Engineer with a separate service client/consultant model service agreement, the relationship in the project course is shown below in figure 1.

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About the Author


Moustafa Ismail Abu Dief, PhD, CFCC
TM, MCIOB, RMP®

Kingdom of Saudi Arabia


 

Dr. Eng. Moustafa Ismail Abu Dief. Ph.D., FICCP, CFCC™, CCP, PMOC, PMP®, MCIOB, RMP, Certified Forensic Claims Consultant and he is a project management professional with over 25 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 and claims management. Dr. Moustafa Ismail 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:[email protected]or [email protected]

http://www.benaa-pm.com/

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