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FIDIC at a Glance

Project Management Mini Series

FIDIC at a Glance
 FIDIC stands for ‘Fédération
Internationale des Ingénieurs
- Conseils’, which is best
translated from French as
The International
Federation of Consulting
Engineers. FIDIC represents
What does the consulting engineering
FIDIC mean? indus-try both globally and
What do they domestically
do?
FIDIC at a Glance 2
Choice of FIDIC form of contract

FIDIC at a Glance 3
 Employer

Engineer

Contractor

Design/Planning

Dispute
Adjustment Board
Build/Construction

FIDIC at a Glance 4
Choice of FIDIC form of contract

The choice of form depends on the type of project being

contemplated.
In summary:
▪ straight forward, quick or cheap project - Green Book
▪ employer design (traditional project) - Red Book
▪ employer design (Multilateral Development Banks providing
finance) - Pink Book
▪ contractor design (traditional project) - Yellow Book
▪ design, build, operate project - Gold Book
▪ EPC/Turnkey project - Silver Book

FIDIC at a Glance 5
Which FIDIC contract should I use?

FIDIC at a Glance 6
 The Construction Contract (Red Book)
is based on design provided by the
Employer and payment is made on a
re-measurement basis.
The Plant Contract (Yellow Book), the
Design, Build & Operate Contract (Gold
Book) and the EPC/Turnkey Contract
(Silver Book) are based on design by
the Contractor and payment is made
on a lump-sum basis.

Summary
FIDIC at a Glance 7
Yellow/Silver Book: Key differences
Key Issue Yellow Book (Design & Build)
Typical Use Recommended for the
provision of electrical and/or
mechanical plant and for
building and engineering
works if most (or all) of the
works are to be designed by
(or on behalf of ) the
Contractor.
Payment Interim and final payments
are certified by the Engineer.
FIDIC at a Glance
Silver Book (EPCT)
Suitable for a process or power
plant, a factory or similar facility,
or an infrastructure project, or
other type of development, if:
• a higher degree of certainty of
final price and time is
required; and
• the Contractor takes total
responsibility for the design
and execution of the project
(including responsibility for
Employer design).
Interim and final payments are
made without certification;
typically determined by
reference to a Schedule of
Payments.
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Yellow/Silver Book: Key differences
Key Issue Yellow Book (Design & Build)
General risk Risks are allocated on a fair
profile and equitable basis taking
account of such matters as
insurability, and each party’s
ability to foresee, and
mitigate the affect of, the
circumstances relevant to
each risk.
There are a number of key risks
that the Employer retains, for
example errors
in the Setting Out data (Sub-
Clause 4.7) Site data (Sub-Clause
4.10) and “Unforeseeable” Site
risks (Sub-Clause 4.12).
FIDIC at a Glance
Silver Book (EPCT)
A majority of risks is allocated to
the Contractor under the
Contract, including any errors in
the Setting Out Data (SubClause
4.7), Site data (Sub-Clause 4.10)
and unforeseeable difficulties or
costs (Sub-Clause 4.12).
The Contractor is expected to:
• price these risks; and/or
• carry out extensive due diligence to
mitigate risks.
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Yellow/Silver Book: Key differences
Key Issue Yellow Book (Design & Build)
Design The Contractor is not
responsible for any error, fault
or other defect found
in the Employer’s
Requirements to the
extent that “an experienced
contractor exercising due
care” would not have
discovered the error, fault or
defect before submitting its
tender (SubClause 5.1).
FIDIC at a Glance
Silver Book (EPCT)
The Contractor is deemed to
have scrutinized the Employer’s
Requirements and is responsible
for the accuracy of the
Employer’s Requirements
(including design criteria and
calculations), except
for the matters identified in sub-
paragraphs (a) to (d) in Sub-
Clause 5.1
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Yellow/Silver Book: Key differences
Key Issue Yellow Book (Design & Build)
Contractor’s Various rights for the
rights to claim Contractor to claim additional
additional time time/money under
/ money the Contract, including in
respect of those risks borne
by the Employer in respect of
errors in the Setting Out data
(Sub-Clause 4.7), errors in the
Site data (Sub-Clause 4.10)
and unforeseen Site risks
(Sub-Clause 4.12).
FIDIC at a Glance
Silver Book (EPCT)
Limited rights for claim the
Contractor to claim additional
time/money under
the Contract. Sub-Clause 8.4
[Extension of Time for
Completion] does not include
the right to an extension of time
in the event of exceptionally
adverse climatic conditions or
unforeseeable shortages.
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EPC under Silver Book - EPCT

Employer

Contractor

▪ Fixed Price
▪ Time certainty

▪ More Risk
▪ No Engineer
▪ Less Claims

FIDIC at a Glance 12
Typical Sequence of Principal Event

FIDIC at a Glance 13
Typical Sequence of Payment

FIDIC at a Glance 14
Typical Sequence of Dispute Event

FIDIC at a Glance 15
Thank you

FIDIC at a Glance 16