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International Federation of Consulting Engineers FIDIC

FIDIC Contracts and Infrastructure Development Athens, 28 March 2012

Dr William Godwin
Barrister, London

International Federation of Consulting Engineers

Range of the FIDIC Contracts FIDIC contracts are at the heart of infrastructure projects all over the world. This is in part because of the range of FIDIC standard forms available. Red Book (Construction) Employer design Measurement Basis Engineer Even-handed Balance of Risk

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MDB Red Book (Multilateral Development Banks

Harmonised Edition) May 2005, revised March 2006 Standardised form where project MDB financed Yellow Book (Plant and Design-Build) Contractor Design Lump Sum Price Engineer Even-handed Balance of Risk

Gold Book (Design-Build-Operate) Contractor Design/Operation Lump Sum Price Employers Representative Even-handed Balance of Risk Silver Book (EPC/Turnkey) Contractor Design Lump Sum Price No Engineer Contractor Risk

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Which Contract? Single point of responsibility? The design-build forms: Yellow, Gold and Silver Books Operation and Maintenance: the Gold Book Certainty of Time and Cost? The Silver Book EPC : Engineer, Procure, Construct

Unforeseeable difficulties/physical conditions Silver: No extension of time or additional payment for Contractor unless otherwise stated in Contract (cl 4.12). Yellow and Gold: Extension of time and additional payment (but not profit) if conditions were Unforeseeable ( in that no experienced Contractor at the date of tender could be expected to have foreseen them) (cl 4.12).

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Design Responsibility Yellow, Gold and Silver: Contractor to design, execute and complete the works in accordance with the Contract so that when completed the Works will be fit for the purposes for which they were intended as defined in the Contract (cl 4.1) Silver: If error in Employers Requirements no additional time or payment for Contractor unless exception within cl 5.1 (a)- (d) applies

Yellow and Gold: Additional time and payment (plus reasonable profit) if the error was such that an experienced contractor exercising due care would not have discovered the error when scrutinising the ER by the relevant time specified in the contract. Front end engineering design (FEED) Multiple turnkeys