APPEX CORPORATION

By Group 3Abhishek SharmaGaurav KumarManish ThakwaniSarvesh Kumar VSupriya SrivastavaVipul Garg

FIDICIntroductionTheInternational Federation of Consulting Engineers(commonly known asFIDIC, acronym for its French nameFdration Internationale Des Ingnieurs-Conseils) is an internationalstandards organizationfor theconstructionindustry, best known for the FIDIC family ofcontracttemplates. It is an international agency that formulates conditions of contract recommended for construction works where tenders are invited on an international basis. FIDIC conditions of contract are also widely used in domestic projects with minor modifications. Introduction (Contd.)Different forms of FIDIC conditions of contract are commonly known as the Red Book, Silver Book, Yellow Book, Pink Book, Green Book, Blue Book, White Book, Gold Book etc.The founding member countries of the FIDIC were Belgium, France and Switzerland. The FIDIC forms are the most widely used forms of contract internationally, including by World Bank for its projects.

Red Book: Conditions of Contract for Works of Civil Engineering ConstructionThe 1999 Red Book is the most commonly used standard form of contract for construction and engineering works where most (or all) of the works are to be designed by the EmployerRed Book has 163 ClausesThe employer takes on risks such as unforeseeable ground conditions, unforeseeable operations of the forces of nature, force majeure planning and environmental permits, changes in the law.The party who has prepared the design takes on the responsibility for defects in that designRed BookThe Red Book is administered by the engineer (a third party) rather than the contractor or the employer

The engineer will also be responsible for monitoring the construction work (but still keeping the employer fully informed so that he may make variations) and certifying payments.Red Book (Contd.)Orange BookDesign, Build and Turnkey worksThe first and only edition of this contract was released in 1995.This was the first design and build contract released by FIDIC.Contents of Contract Book:General ConditionsGuidance for the Preparation of the Particular ConditionsForms of Tender, and AgreementModel Terms of an Appointment for a Dispute Adjudication Board

Contract for Plant and Design-BuildFirst Edition in 1999.Used on projects where the contractor carries out the majority of the design as per the performance specifications provided by employer. The Yellow Book is therefore traditionally used for the provision of plant and for building or engineering works on a design/build basis.Provides a basis for lump sum price contract .Payments made according to achieved milestones on the basis of certification by the engineer (like the Red Book, the engineer administers the contract). The contractor is also subject to a fitness-for-purpose obligation in respect of the completed project.Yellow BookReleased in 1999Contract for EPC(Engineer, Procure, Construct)/Turnkey ProjectsPlaces significant risks on the contractor as it places the overall responsibility for the design and construction of the project on the contractor.Certainty of price and completion date is importantAlso be used for privately financed BOT (Build, Operate, Transfer) projects. In BOT Projects, Employer takes total responsibility for the design, construction, maintenance and operation of a project and wishes to pass the responsibility in respect of construction to the contractor.No engineer under the Silver Book as his responsibilities are assumed by the employer. The contractor is also subject to a fitness-for-purpose obligation in respect of the completed project.

Silver BookProvides Model Short form of ContractUsed on engineering and building works of relatively small capital value (less than US$500,000) or where the construction time is short (less than 6 months)It is fairly flexible in the mode and requirements of managementThere is no engineer involved and payments are made in monthly intervals

Green BookPink is an adaptation of the Red Book created to fit the purposes of Multilateral Development Banks (MDB).Drafted for use on projects that are funded by certain (MDBs)The Pink Book incorporated the amendments that were commonly inserted by the MDBs.First published in 2005, an amended version was published in 2006, with a further edition in June 2010. Where the project is funded by an MDB but the employer is not responsible for the design, the parties should not use the Pink Book, but use and amend one of the other FIDIC forms of contract.

Pink BookGold BookDesign Build Operate (DBO Contract)First Edition in 2008Modern approach to risk and insuranceAssumes ~20 year operation period (Greenfield Projects)Contents of Contract Book:General ConditionsParticular ConditionsSample Forms

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