fbpx

Construction Agreement Fidic

By 2021-09-15 No Comments

FIDIC contracts are now the most widely used standard form in the world for international construction contracts. Standard FIDIC contracts are often used in large or small construction projects and are suitable for parties of different nationalities who speak different languages and come from different jurisdictions. Essentially, the Silver Book is an EPC-Turnkey lump sum contract. As with the Yellow Book, the design is carried out by the contractor in accordance with the employer`s requirements. The Contractor assumes full responsibility for the engineering, acquisition and construction of the works and assumes an obligation as to the timeliness of the works, including the project. Unlike the Red and Yellow Books, the contract is not managed by an engineer; There are no appointments like this. Instead, decisions are made and other contract management functions are performed by the employer, with or without employer representatives. This form of procurement is typically used in complex technical installations, such as process facilities or power plants, which require a high level of safety in terms of cost, time and performance, often due to “bank capacity” issues in project financing. The concept is to provide the employer with a fully operational organization, capable of working immediately according to guaranteed performance standards, i.e.

to be immediately ready “turnkey”. With the FIDIC 1999 Yellow Book (contractual conditions for installations and design construction) and the FIDIC 1999 Silver Book (the contract terms for EPC/Turnkey projects), the FIDIC 1999 Red Book has been widely used for almost two decades. In particular, it has been recognized for its principles of balanced risk sharing between the employer and the contractor for projects in which the contractor establishes the work according to a project submitted by the employer. However, the works may contain certain elements of civil, mechanical, electrical and/or construction works designed by the contractor. One of the strengths of FIDIC contracts was the consistency of the structure. The red, yellow and silver books of 1999 have the same 20-movement format and the clause numbers correspond as much as possible to their equivalents in each book. However, individual contracts reflect very different approaches to construction procurement, up to and including discrepancies in the detailed provisions. – The quality of the work may suffer. Let`s take the example of the painting above, the faster the contractor finishes the contract, the faster he is paid, which can lead to a lower quality, because he only wants to complete the construction work of an additional square meter of paint as quickly as possible. To avoid this problem, strict quality standards must be applied. In the course of its previous work on updating the Red and Yellow Books, FIDIC has found that some projects are not covered by existing books. As a result, FIDIC not only updated the standard forms, but also expanded the offer and published in September 1999 a series of four new standard contractual forms suitable for the vast majority of construction and installation projects worldwide.

This 1999 sequel includes: the remaining current FIDIC contracts are consulting contracts. They differ from Rainbow Suite contracts and other standard forms (as above) in that they are not construction contracts and do not involve the contractor. The White Paper is by far the most important. First published in 1990, the White Book is probably the most important agreement for professional services in the construction sector in the world. The contract is concluded between the “client” of the services: “client” instead of “the employer” and the “supplier” of the services: “consultant” instead of “contractor”. 3. . . .

fandangofilm

Author fandangofilm

More posts by fandangofilm