fidic and the standard form contracts
TRANSCRIPT
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FIDICMohammed Said Fatha
Consultant Engineer
M C I Arb-London
Member of the Arabic translation Task Groupof FIDIC Contracts
Member of the Arab Center Of Arbitration Cairo.
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1- What is FIDIC?2-Types of standard
forms of contractsIssued by FIDIC &
their main features.
Contents of this presentation.
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FEDERATION INTERNATIONALE DESINGENIEURS-CONSEILS
Initial foundation in 1913 by French,
Belgium& Switzerland consultants
Engineers comities.
Expanded in 1945 to include 40 National
Associations of Consulting Engineers.
Published first Conditions of Contract in1957
In 2012 has 94 National Association
Members .
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International Federation of Consulting Engineers
Founded in
1913 with
headquartersin Geneva
To promote the
business interests of
suppliers of
technology-basedintellectual services for
the built and natural
environmentFdration Internationale des Ingnieurs-Conseils World Trade Center 2
CH-1215 Genve 15 www.FIDIC.org
To be the
recognized
global voice forthe consulting
engineering
industry
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Strategic Objectives
Be the authority on issues relating to business practicePromote the development of a global and viable consulting engineering industry
Represent globally the consulting engineering industry
Enhance the image of consulting engineers
Promote qualityActively promote conformance to a code of ethics and to integrity
Promote commitment to sustainable development
What FIDIC does
What FIDIC offers the industry
What are FIDICs governing principles
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Principles
Quality Services
Value for the clientCost efficiency
Impartiality
Best Practice
Standard contract documents
Policies and guidelines
Fair allocation of risks and responsibilities
SustainabilityLong-term perspective
Respect for the environment
Project-level focus
High Standards
PerformanceKnow how
Integrity
Selection by Ability
Quality of proposals
Skills and experience
Fair remuneration
Capacity BuildingInternational co-operation
Training & transfer of know-ho
Manuals
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Activities
Annual conferences
Provide a meeting place for
clients,contractors and consultants
involved in development
International agenciesKeep the consulting engineering
industrys concerns on the
agenda
Strategic partnerships
LiaisonCommunication between
members,
committees & other
organizations
Publications
Establish best practice proceduresPublish contracts for the
infrastructure industry
Training
Capacity building for the
consulting
industry in both developed and
developing economies
www.FIDIC.org
Distribute updated information
& services to members &
society
B i P i G id B i P i M l
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Business Practice - Guide to Business Practice Manual
- The consulting industry- Organising a consulting firm
- Administration of the firms activities
- Business development
- Human Resources Management
- Financial Management- Client relationships and communications
- Project execution
- Risk Management
- Quality Management
- Business Integrity Management
- Performance Management
Each modulespecifies:
- Content
- Resources
- Case studies
Training Modules
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Works Contracts - Contracts Training Manual
- Professional Services
Agreements
- Practical Use of FIDIC contracts
- Claims and Dispute Resolution
- Dispute Adjudication
- Contract Management
Recommended for
National Adjudicator
Lists
FIDIC
Presidents List
Training Modules
Each module specifies:
- Content
- Resources- Case studies
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History of FIDIC
Conditions of Contract
Prior to 1957, there were no
internationally recognised contract
conditions for construction work.
1957 first edition of Conditions of
Contract for Works of Civil Engineering
Construction known as the Red Bookwas published.
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History of FIDIC Conditions of Contract
Red Book based upon British form ofcontracts, used by Institution of Civil
Engineers and reflects British
traditions, language and legal system.FIDIC maintains committees to
improve documents and to add
further Contract Conditions for othertypes of construction.
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FIDIC is now best known as: the
organisation which publishes standardforms of contract documents related tothe procurement of engineering works.
These standard forms include those foruse by consulting engineers, such as theWhite Book (Client / Consultant ModelServices Agreement) and other forms which
are suitable for the procurement of buildingand engineering works.
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Hereafter aresome Standard
form of contracts
issued By FIDIC.
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The White Book.
The terms of the Client ConsultantModel Services agreement (TheWhite Book) have been prepared byFIDIC and are recommended forgeneral use for the purposes of:
Pre-investment and feasibilitystudies, designs and administrationof construction and projectmanagement.
Where proposals for such servicesare invited on an international basis:
They are equally adaptable fordomestic agreements.
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The White Book Guide.
The purpose of the White BookGuide is twofold, namely :a) To assist those who wish todraft Consultancy Agreementsusing the White Book
(Client-Consultant Agreement)as published or as the mainreference, and
b)To provide some insights intothe rationale for the WhiteBook's provisions and thecontent of the Guide dealingwith completing an Agreementbased on the White Book.
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Consultant SelectionGuidelines.
The purpose of theseguidelines is:
1. To present the commonlyused methods of consultant
selection.2. To explain the respectiveprocedures and to combinethem all in one compact
document.3. As well as to emphasize andexplain FIDIC's policies on thesubject of selection.
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Representative Agreement. The terms of the FIDIC Model Representative
Agreement are intended for Consultants wishing
to enter into a contract with a Representative forthe provision of services in a foreign country.
Following the Agreement, the clauses of generalapplication have been grouped together in thispublication and are referred to as GeneralConditions.
They are intended for incorporation as printed in
the documents comprising the Agreement. The General Conditions are linked with data given
in the Particular Conditions, identified by thecorresponding numbering of the sub-clauses, andAppendices, so that General Conditions andParticular Conditions (with Appendices) togethercomprise the conditions governing the rights and
obligations of the Parties. Given as Appendices to the Particular Conditions
are Scope of Services, Basis for Remuneration,Consultants Code of Conduct and ConsultantsBusiness Integrity Policy Statement.
Guidance Notes assist in the preparation of anAgreement.
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Sub-consultancy Agreement .
The model Sub-Consultancy Agreement
has been developed essentially with a viewto its operation between an internationalfirm and a local firm in a developingcountry, where:
- Either the local firm will be a Sub-Consultant providing certain specificservices and inputs for the internationalfirm;
- Or the international firm will be a Sub-Consultant providing specific specialist orgeneral advisory services to the local firm;
and- The Main Consultancy Agreement willembody FIDICs Client/ Consultant Model
Services Agreement (i.e. The White Book).
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Joint Venture (Consortium)Agreement.
The Joint Venture (Consortium) ModelAgreement was prepared essentially to be
used for the association between two or more
Consultants, when:
- The association is for marketing and/or
performing the Services required for a
specific project, rather than for a more
permanent type of arrangement; and
- One party will be an international firm and
one may well be a local firm in the country of
the Project.
It is recommended, but not essential to thewording of the Joint Venture (Consortium)
Model Agreement, that FIDIC's
Client/Consultant Model Services Agreement
(the White Book) will be the basis of the
Agreement for Professional Services with the
Client .
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Guide to the joint venture andsub-consultancy agreements .
The Joint Venture (Consortium)Model Agreement was preparedessentially to be used for theassociation between two or more
Consultants, when: Services required for a specificproject, rather than theassociation is for marketingand/or performing a more
permanent type of arrangement ;And one party will be aninternational firm and one maywell be a local firm in the countryof the Project.
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Quality Based Selection.
Quality Based Selection for theProcurement and Consulting Services.
(QBS=Quality. Based. Selection).
This brochure sets out to help allthose responsible for the selectionof consultants.
It explains how to assess the abilityof consulting firms and whatmethod to use to select the best firmfor the projects.
The phrase Quality-based selection
has been chosen because it bestrepresents the process of selection ofconsulting firms on the basis ofqualifications, experience, ability andintegrity.
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Business Practice - Consultant Selection
Quality is paramount in the selection of
consultants, and Quality Based Selection is the
recommended method for procurement.
Best practice principles
Quality is Pre-eminent Harmonisation
Informed Purchaser Liability to be limited
Transparency Insurance
Capacity building Life-cycle costs to be considered
Integrity Monitoring outcomes
Fair competition Design for safety
Updated 2009
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Quality Based Selection (QBS)
Guidelines (2011) brochure
This is a guidelines
Brochure for theQuality Based
Selection (QBS).
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Business Integrity ManagementSystem (BIMS) Guidelines .
The Guidelines set out:
1. Why consultants should
apply Business IntegrityManagement in all of theirwork.
2. And provide an introduction
to initiating the businessintegrity managementprocess in their firms.
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FIDIC Guide to PracticeThe business of a professional services firm.
This training manualforms part of the FIDICGuide to PracticeCollection that includesdocuments related tobest practice that are
published by FIDIC .
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Project SustainabilityManagement guidelines.
This guidelines aim to commit to theprinciples of sustainable developmentby building or refurbishing facilities andinfrastructure that make more efficient
use of resources, protect ecologicalsystems and account for communityneeds.PSM enables project owners andconsulting engineers to devise andcustomize indicators to meetstakeholder concerns and issues, whiledemonstrating a rigorous , causal linkto the fundamental concerns and goalsof sustainable development.
G id t Q lit M t i
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Guide to Quality Management inthe consulting engineering
industry.
The FIDIC Quality ManagementGuide has been developed as aliving document, subject toperiodic review and update in
order to provide ConsultingEngineers with a comprehensivedocument on Quality Management.
The document sets out reasonswhy Consulting Engineers must
apply Quality Management in alltheir work, and provides anintroduction to initiating thisQuality Management process in afirm.
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The Red Book.
The terms of the FourthEdition of the Conditionsof Contract for Works ofCivil Engineering
Construction arerecommended for generaluse for the purpose ofconstruction of such workswhere tenders are invitedon an international basis.
The Conditions , subject tominor modifications, arealso suitable for use ondomestic contracts.
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FIDIC RED BOOKSUB-CONTRACTS.
Red Book Subcontract(Condition of subcontract for work ofcivil engineering construction).
For use in conjunction with theConditions of Contract for Works ofCivil Engineering Construction.Part I: General Conditions .Part II: Guidance for the Preparationof the Particular Conditions .Part III: With Forms of Tender, andAgreement.
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The Yellow book.
The Yellow Book,
( condition of
contract forelectrical andmechanical works).
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Design-Build and Turnkey(Orange Book).
Conditions of Contract for Design-Build and Turnkey (1st Edition, 1995).
Part 1: General Conditions;Part 2: Guidance for the Preparation
of Conditions of ParticularApplication. With Forms of Tenderand Agreement.
The terms of the Conditions ofContract for Design - Build andTurnkey have been prepared by(FIDIC) and are recommended forgeneral use for the purpose of thedesign and construction of workswhere tenders are invited on aninternational basis;
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The Orange Book Guide.
Design-Build and
Turnkey(Orange Book) Guide .
f
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Insurance of largecivil engineering projects.
The FIDIC Committee which reported in 1981 thispaper was appointed to discuss dissatisfaction with thegaps in insurance cover for large scale engineeringprojects. Particular attention was focused on the
position of the owner who may not always besufficiently experienced to realise the uninsured losseshe faces.
The position was reviewed in the light of the ContractConditions which were in general use at the time ,i.e.
between owner and contractor-FIDIC Conditions ofContract( International) For Works of civil EngineeringConstruction, and between owners and engineer- FIDICIGRA Agreement for design and supervision ofconstruction of works.
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Insurance of largecivil engineering projects.
The 1997 edition. The 2005 edition.
B i P ti Ri k M t
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Business Practice Guides
Risk Management Manual
Risk Management Primer
Professional Indemnity
Insurance
Professional Liability Insurance
Insurance of Large Projects
Managing Risk
Business Practice Risk Management
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Risk Management Manual
This Manual discusses in detail and atlength the many aspects which shouldbe kept in mind and suggests soundmanagement procedures which shouldbe followed in a professional practice to
minimize risk exposure.Systematic risk management involvesidentification, assessment andmitigation of risk, minimization ofpotential damage and setting up ofrealistic mechanisms to finance theresidual risk on project by project basis.This Manual touches on all theseissues.
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FIDIC Tendering Procedure.
This Tendering Procedure isprimarily addressed procedureswhich FIDIC recommended for:1. the selection of tenderers.
2. and the preparation andevaluation of tenders for civilengineering contracts.
FIDIC recommends that users of
the new contracts (Construction,Plant and EPC/Turnkey) refer tothe FIDIC Contracts Guide foradvice on tendering procedures.
FIDICS R f
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FIDICS Reasons forIntroducing
New Suite of Conditions of
Contract Documents
1. Expansion of types of projects to be
covered that reflects changes withinthe International construction sector.
2. Attempt to standardise format of main
FIDIC contract documents .
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3. Introduction of new clauses and
update of certain clauses to meet
current practice within the
construction industry .4. Update the role of The Engineer
and develop use of Disputes
Adjudication Board- DAB .
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New FIDIC Contract Conditions
first published in September 1999
Conditions of Contract for Construction(New Red Book) .
Conditions of Contract for Plant andDesign-Build (New Yellow Book).
Conditions of Contract for EPC/ TurnkeyProjects (Silver Book) .
Short Form of Contract (Green Book) .
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The New Red Book.
Conditions of Contract for Construction. Which are recommended for building orengineering works designed by theEmployer or by his representative, theEngineer.Under the usual arrangements for thistype of contract, the Contractor constructsthe works in accordance with a design
provided by the Employer.However, the works may include some
elements of Contractor-designed civil,mechanical, electrical and/or constructionworks.
Conditions of Contract for Construction
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Conditions of Contract for Construction(Multilateral Development Bank Harmonised Ed. May 2005).
For Building and Engineering Works designed by the Employer.
The MDB Harmonised Conditions ofContract for Construction, arerecommended for building orengineering works designed by theEmployer or by his representative, theEngineer.
The Conditions are for use underlicence for projects financed by theMultilateral Development Banks.
Under the usual arrangements forthis type of contract, the Contractorconstructs the works in accordance
with a design provided by theEmployer.
However, the works may includesome elements of Contractor-designed civil, mechanical, electricaland/or construction works.
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The New Yellow Book.
Conditions of Contract for Plant andDesign-Build .
which are recommended for theprovision of electrical and/ormechanical plant , and for the designand execution of building orengineering works.
Under the usual arrangements for thistype of contract, the Contractordesigns and provides, in accordancewith the Employers requirements,plant and/or other works; which may
include any combination of civil,mechanical , electrical and/orconstruction works.
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The New Silver Book.
Conditions of Contract for EPCTurnkey Projects.
Which are recommended where oneentity takes total responsibility for thedesign and execution of an
engineering project. Under the usual arrangements for this
type of contract, the entity carries outall the Engineering, Procurement andConstruction: providing a fully-equipped facility, ready for operation
(at the "turn of the key"). This type of contract is usually
negotiated between the parties.
Th N B k
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The New green Book.
These Conditions of Contract arerecommended for engineering andbuilding work of relatively small capitalvalue( 500,000$ -1,000,000$).
However, depending on the type of workand the circumstances, the Conditionsmay be suitable for contracts ofconsiderably greater value.
They are considered most likely to besuitable for fairly simple or repetitivework or work of short duration withoutthe need for specialist sub-contracts.
This form may also be suitable forcontracts which include, or whollycomprise contractor-designed civilengineering, building, mechanicaland/or electrical works.
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The FIDIC Contracts Guide.
Each of the three new FIDIC contracts(Construction, Plant and Design-Build andEPC/Turnkey) is in three parts :
- General Conditions , the part which isintended to be incorporated (by reference)into each contract , and whose Sub-Clausesare often referred to in this Guide without the
use of the word "Sub-Clause" (for example :"CONS 1.1");
Guidance for the Preparation of the ParticularConditions, the part which is referred to inthis Guide as "GPPC", which commences byproposing suitable wording to incorporate theappropriate General Conditions into a
contract , and which concludes with annexedexample forms of securities;
And - Forms of Letter of Tender, ContractAgreement and Dispute AdjudicationAgreement , the part which is referred to inthis Guide as "the Example Form (s)".
DBO C t t
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DBO Contract
FIDIC has chosen to adopt the green-field
Design-Build-Operate scenario, with a 20- yearoperation period, and has opted for a single
contract awarded to a single contracting entity
(which will almost certainly be a consortium or
joint venture) to optimise the coordination of
innovation, quality and performance, rather than
award separate contracts for design-build andfor operation.
The contractor has no responsibility for either
financing the project or for its ultimate
commercial success.
This is the basis upon which this document has
been prepared.
The document, as written, is not suitable for
contracts which are not based on the traditional
Design-Build-Operate sequence, or where the
Operation Period differs significantly from the
20 years adopted.
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FIDIC DBO C t t G id (C t)
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FIDIC DBO Contract Guide (Cont)
These can be briefly identified as
follows:
up-graded visual timelinesshowing key activities;
definitions listed alphabetically;
risk and insurance provisions
restructured and up-dated;
claims procedures up-dated withemphasis on dispute avoidance;
Particular Conditions containing
two Parts;
Part A - Contract Data
Part B - Special Provisions
Additional sample forms provided.
Each of these aspects, and much
more, is covered in this guide
C diti f S b t t f C t ti
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Condition of Subcontract for Construction(1st Edition 2011)
For use in conjunction with the FIDIC
Conditions of Contract for Construction, 1st
Edition 1999.General Conditions
Guidance for the Preparation of the Particular
Conditions
Forms of Letter of Subcontractor's Offer,
Contractor's Letter of Acceptance and
Subcontract Agreement
Foreword The terms of the Conditions ofSubcontract for Construction have been
prepared by the Fdration Internationale des
Ingnieurs-Conseils (FIDIC) and are
recommended for use in conjunction with the
FIDIC Conditions of Contract for Construction
for Building and Engineering Works Designed
by the Employer, 1st Edition 1999, and with
the Multilateral Development Bank
Harmonised Edition of the FIDIC Conditions of
Contract for Construction for Building and
Engineering Works Designed by the Employer
CONDITIONS OF CONTRACT
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CONDITIONS OF CONTRACT
Guide
published
2001
published 1999
CONTRACT CONTINUITY
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CONTRACT CONTINUITY
Employer /consultant
design
Contractor
design
Various
formats
Uniform format and
contents
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C f D d i d R l i W k
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Contract for Dredging and Reclamation Works.
Form of Contract for Dredging and Reclamation Works .
It contain:
1. Agreement.2. General Conditions.
3. Rules for Adjudication .
4. and Notes for Guidance.
It has been issued With collaboration of TheInternationalAssociation of Dredging Companies(IADC), and for dredging and reclamation work.
The aim has been to produce a straightforwarddocument which includes all essential commercialprovisions, and which may be used for all types ofdredging and reclamation work and ancillaryconstruction with a variety of administrativearrangements.
Under the usual arrangements for this type of contract,the Contractor constructs the Works in accordance withdesign provided by the Employer or by his Engineer.
However, this form may also be suitable for contractsthat include, or wholly comprise, contractor-designedworks. In addition, the Employer has a choice ofvaluation methods,
Operation maintenance and
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Operation, maintenance andtraining.
Operation, Maintenance and
Training (OMT) guidelines for the
provision of OMT services.
This guidelines set out proper
planning to ensure:1. Successful project commissioning.
2. Planning for training for operation
and maintenance .
3. The training of personnel must be
accomplished prior to project
start-up and testing.
Q lit f C t ti
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Quality of Construction.
A best-practice approach tohelp solve a worldwide lackof Quality of Construction.
Contents:
1. Introduction
2. FIDIC Quality of ConstructionSurvey
3. Policy and strategy
4. Approach to Quality
5. Recommended actions
6. Appendices
Work in Progress
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Work in Progress
Contracts & Agreements
- Construction and Plant Sub-contracts (new)
- Client - Architect (new)
- Joint venture (update)
- Sub-consultant (update)
- Project Procurement (replaces Tendering Procedure)
Business Practice
- Quality Based Selection guide (update)
- Risk Management guide (update)
- Definitions of Scope guidelines (new)- Design for Safety guidelines (new)
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FIDIC Contracts
Contractor Employer
Engineer
Powers of Engineer
Contractual Relations
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FIDIC Contracts
Common Law v. Civil Law FIDIC Conditions of Contracts have
their roots in the common law.
Lots of concepts are not understandwithout rfrence to common law.
Most of the notions are issued from
the anglo-saxon legal vocabularies .
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FIDIC Contracts
Common Law v. Civil Law (mots cl)
Taking over certificatev. rception
Defects Notification Periodv. responsabilit pournon conformit et garantie de parfait achvement
Delay Damagesv. Pnalits
Time for Completionv. Dlai dachvement
Engineerv. Matre doeuvre
Claimv. Avenant
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FIDIC Contracts
Understanding FIDIC
64
Legal background
Implied Definitions
Context
Common lawSubstantial completion
v. acceptation
Liquidated damages
v. penalties
Reasonable/Shall
Definitions
To give notice
Defects Notification
Period
Wayof
working Identify
term
Check
definitions
Check
Legal
background
Check
context
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Instruction
FIDIC Contracts
White Book
Contract Administration
Contract
authorises
Consultant/Engineer
to act
Contract
administration
Determination
Certification
Valuation
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FIDIC Contracts and Dispute Resolution
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FIDIC Contracts and Dispute Resolution
Claims Claim Management
69
Risk Assesment Management
Input
Legal Advice
Application forStatement
Calculation
Advice
Supervision
EngineeringRepresentative
Action
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Start A new event becomes apparent
Which kindof event?
Actual progress is too slow to completewithin the Time for Completion (Cl. 8.6)or a Variation seems to be appropriate
(Cl. 13)
A claim has been notified by theContractor or the Employer
The Contractor gives notice of the dateafter which the Contractor will be ready
to carry out Tests on Completion (Cl. 9.1)
A defect appears or a damage occurs(Cl. 11.1) or work is not in accordancewith the Contract (Cl. 7.6) etc.
Contractor gives notice that work is ready
List of events, Cl. 8.6,8.3, 1.5, 9.1 etc. to beestablished
List of actions to
be established
Determination of a claim
To approve, certify
Instruction
To examine, to inspect, totest, to measure
Request of proposal
Action of the Engineer
Finish
Chart 2: Actions of the Engineer (FIDIC Red Book)
Application for Payment (Cl. 14)
Contractor submits a proposal
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FIDIC Contracts and Dispute
Resolution
Actions of the
Engineer
ApprovalCheckCertificateConsentDeterminationDisapprovalExaminationInspectionInstructionNoticeProposalRequestSuspensionTestValuation
List of actions tobe established
Contract Interpretation
Payment Certification
Taking-Over
Variations
Cost Management
Time Management
Claim Determination
Quality of Works andWorkmanship
Cl. 1.5 with
consequence ofvariation
Cl. 7.4, 7.6, 9.4,11.1, 11.3, 11.4
Cl. 14
Cl. 10
Cl. 13
White Book
Cl. 13.2
Cl. 8.3, 8.6, 8.1
Cl. 2.5, 3.5
72
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FIDIC Contracts and Dispute Resolution
All the claims should be setteled by Binding agreement or by disipute
resolution decision.
Every solved Claim should be included in the contractual price
Ajustement or deduction
73
ClaimNotice ClaimProcedure Amount due
Amount dueClaim
Notice
Claim
Procedure
Contractor
Employer
Balance
Balance
Payment
CertificatePayment
Retention of
uncertified
amounts
excluded2.5
Balance
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FIDIC Contracts and Dispute Resolution
Commencement Date
Letter of
Acceptance
or
Contract
Agreement
Commencement
Date
21 days
7 days
Programme
Engineer Contractor
Performance
Security
28 days
14 daysAccess to the site
74
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FIDIC CONTRACTS
CONSTRUCTION
PLANT AND DESIGN-BUILD
EPC/TURNKEY PROJECTS
SHORT FORM OF CONTRACT
CLIENT/CONSULTANT MODEL SERVICES AGREEMENT
FEATURES AND ADVANTAGES
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FEATURES AND ADVANTAGES
fair apportioning of risks, rights and obligations between the parties
BALANCED
WELL
TRIED
long case history for earlier contracts
ACCEPTED
known and recognised; in wide use for international contracts
SUPPORTED
recommended or required by development banks, ISPA, etc.
EFFECTIVE
clear and complete conditions; time limits; provisions for adjudication
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Key points: PLANT & DESIGN-BUILD
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Key points: PLANT & DESIGN BUILD
Contractor designs.
Engineer, working for the Employer.
Lump sum pricing.
Payments according to progress.
Certification of payments by Engineer.
Key points: EPC/TURNKEY PROJECTS
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Key points: EPC/TURNKEY PROJECTS
Contractor designs and takes full
responsibility.
Employer mayappoint a Representative.
Fixed price, to cover risks taken on by
Contractor.
Payments according to progress.
No certification of payments.
Key points: SHORT FORM
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Key points: SHORT FORM
Simple projects.
Design by either party.
Employer mayappoint a Representative.
Valuation as appropriate; to be agreed.
Payments according to value of Works executedand Materials and Plant delivered to site.
No certification of payments.
Key points: CLIENT/CONSULTANT
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ey po ts C /CO SU
Agreed Scope of Services: Appendix A.
Normal, Additional and Exceptional
Services.
Normal Services priced as agreed.
Additional and Exceptional Services atrates agreed.
Payment schedule as agreed.
FIDIC GUIDES
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The FIDIC Contracts Guide.
The White Book Guide.
Guide for the preparation of particular conditions
(in the major contracts).
Notes for Guidance (in the Short Form of Contract).
Tendering Procedure and Pre-qualification forms.
Quality Based Selection.
USE OF FIDIC CONTRACTS
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Match contract and project.
Decide early.
Appoint DAB early.
Draft by professionals.
Do not touch the General Conditions.
Buy originals.
PRINCIPLES OF PROCUREMENT
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Effectiveness.
Economy.
Efficiency.
Accountability.
Transparency / confidentiality.
Strong competition.
Publicity, wide participation.
Fair and equal conditions.
Standard procedures.
Standard documentation.
PROCUREMENT CATEGORIES
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Goods.
Works.
Consultant services.
Other services.
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SELECTION PROCEDURES/CRITERIA
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Criteria defined and published inadvance.
Economically most advantageousoffer.
Quality based selection.
Quality and cost based selection.
PROCUREMENT STEPS.
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Preparation.
Publication.
Pre-qualification / short-listing.
Invitation.
(Submission).
Evaluation.
Award, contracting.
Supervision, contract administration.
Lessons learned.
PREPARATION OF PROCUREMENT
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Determination of needs and objectives.
Determination of constraints.
Identification of parties.
Planning, budgeting, financing.
Contract type.
Selection procedure.
Requirements / Specifications / Bills of Quantities
/ Terms of Reference.
Pre-qualification and evaluation criteria. Particular conditions.
Publicity.
Tender documents.
CONTRACT ADMINISTRATION
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Supervision.
Enforcement.
Quality and quantity.
Invoice verification.
Payments.
Extensions, variation orders, amendments.
Termination.
Disputes and their resolution.
RISKS IN PROCUREMENT
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Wrong goods, works, services.
Bad value for money.
Not available, productive, reliable, maintainable.
Not used (!)
Fraud.
Corruption.
Construction General Conditions Contents.
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1 - General Provisions .2 - The Employer .3 - The Engineer .4 - The Contractor .5 - Nominated Subcontractors ..6 - Staff and Labour .7 - Plant, Materials and Workmanship .8 - Commencement, Delays and Suspension . . 9 - Tests on Completion .
10 - Employer's Taking Over .11 - Defects Liability .12 - Measurement and Evaluation .13 - Variations and Adjustments .14 - Contract Price and Payment .15 - Termination by Employer .16 - Suspension and Termination by Contractor .17 - Risk and Responsibility .18 - Insurance .19 - Force Majeure .20 - Claims, Disputes and Arbitration .
Major steps under FIDIC Explaining the timeline
Construction Contract 1999 Red Book
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Construction Contract 1999 Red Book
Tender Stage
Floating
the Tender
Tender
Submission
Tender Period
Base Date
Tender Evaluation28d
Clause 13.7Adjustment forChanges in Legislation
Clause 13.8Adjustment for
Changes in Cost
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Project Starting
Issuance of
LOA
28d
Performance
Security 4.2
Project Execution
Time for Completion42d Max.
Payments will not be certified 14.6
Contract Termination 15.2
Employer may withhold the site access
2.1
Commencement
Date 8.1
Extra
Cost
Insurance
Typical Sequence of PaymentEvents Envisaged in Clause 14
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Events Envisaged in Clause 14
Major steps under FIDIC Explaining the timeline
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Payment
Application
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Major steps under FIDIC Explaining the timeline
E l t
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PC
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Claim Procedure
Event
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Project Closure
TOC
DNP
Performance
Certificate
Remedying of defects
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Dispute
DAB Procedure
Decision
Arbitration
Amicable Settlement
Clause 20.4
Clause 20.2, 20.4
Clause 20.4
Clause 20.5
Clausel 20.6, 20.7
Stages of disiputes resolution
101
DAB :How This procedure work?
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Reference of the
dispute in writing to DAB
Submission of
additional information
DAB organise the
procedure
Access to
the site, etc.
Hearing
DAB gives ist decision
See Procedural
Rules
Experts
84days
See Procedural
Rules
Cl. 20.4
Notice of intention to
refer a dispute to DAB Appointment of DAB
28
days
112
days
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Typical Sequence of Dispute
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Events Envisaged in Clause 20
Major steps under FIDIC Explaining the timeline
Event
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DisputeEvent
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procedure of Arbitration (Clause 20.6).
The ICC is not a permanent tribunal,butit is an organisation:
Who rcommends rules of procedures.
Who nominates Arbitrators.
Who is charged of quality control.
106
Unless otherweise agree
the dispute shall be settled
under the Rules of Arbitration of the ICC
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Thanks