FIDIC

Fdration Internationale des Ingnieurs-Conseils

Presented by:
KHEDDOO Deepak Navind 1118442
RAMALINGUM Sadasiven 1110580
GOLABEEA Reyaz 1115318
MOONESAWMY Vijayen 1117404
UJOODHA Yashveer 1110917
Date: 12 October 2015

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 Introduction
FIDIC - Fdration Internationale Des Ingnieurs-Conseils, meaning
International Federation of Consulting Engineers

FIDIC - Formulates conditions of contract recommended for

construction works

FIDIC: Used in domestic projects with minor modifications.

Create Standard Contracts variety of construction and installation

project

Its formal constitution was led on 22 July 1913 of FIDIC.

The founding principles adopted were Quality, Integrity, and

Sustainability.
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WHICH FIDIC CONTRACT SHOULD BE USE FOR A
PARTICULAR PROJECT ?

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Some common forms of FIDIC Conditions of Contract
1. Red Book Construction for Building and Engineering Works Designed by
the Employer 1st Edition 1999

2. Pink Book MDB (Multi-Lateral Development Bank) Harmonised Edition for

Building and Engineering Works Designed by the Employer June 2010

3. Red Book Subcontract Conditions of Subcontract for Construction for

Building and Engineering Works Designed by the Employer 1st Edition 2011

4. Yellow Book - Plant and Design-Build for Electrical and Mechanical Plant, and
for Building and Engineering Works Designed by Contractor - 1st Edition 1999

5. Silver Book EPC (Engineering, Procurement & Construction) /Turnkey

Project - 1st Edition 1999

6. Gold Book Design and Build and Operate Project - 1st Edition 2008

7. Green Book Short form of Contract - 1st Edition 1999

8. White Book Client/Consultant Model Services Agreement 4th Edition 2006

9. Blue-Green Dredging and Reclamation Works 1st Edition 2006

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RED BOOK

The RED BOOK Construction for Building

and Engineering Works Designed by the
Employer 1st Edition 1999

CONS referred as Construction.

For use on building or engineering works

design by the Employer or his
representative

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Many important aspects regarding the role and responsibilities of
Employer, Engineer , Contractor and Dispute Adjudication Board
(DAB) are established in the FIDIC Documents.

However, for this presentation, we have emphasised on the main

issues that is related to the local context according to the RED
BOOK 1st Edition 1999
The following that will be discussed are as follows:

oPriority of Documents, Clause 1.5

oPerformance Security, Clause 4.2
oCommencement of Work, Clause 8.1
oProgram of Works, Clause 8.3
oExtension of Time, Clause 8.4

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 FIDIC Red Book 1st Edition, 1999
Priority of Documents, Clause 1.5
For purpose of Interpretation, priority of documents shall be in accordance to the
following sequence:

1. Contract Agreement;
2. Letter of Acceptance;
3. Letter of Tender;
4. Particular Conditions;
5. General Conditions;
6. Specification;
7. Drawings;
8. Schedules and any other documents forming part of the Contract.

If an ambiguity or discrepancy found in the documents, Engineer shall issue

clarification or instruction.

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 FIDIC Red Book 1st Edition, 1999
Performance Security, Clause 4.2,
Purpose: Intention behind this security is to have the financial responsibility of
the surety standing behind the Contractors completion obligations.

A:The Obligation of the Employer

CLAUSE OBLIGATIONS TIME FRAME SPECIFIC
CONSEQUENCES OF
NON-COMPLIANCE

4.2 Coorperate with the Contractor to agree the entity, None None
country (or other jurisdiction) for the issue of the
Performance Security.
Not to make a claim under the Performance Security, None
except for amounts to which the Employer is entitled
under the Contract.
Coorperate with the Contractor to agree the form of None
Performance Security if not in the form annexed to the
Particular Conditions.
Return Performance Security to the Contractor. Within 21 days after
receiving a copy of
the Performance
Certificate

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 FIDIC Red Book 1st Edition, 1999
Performance Security, Clause 4.2, continued

B:The Obligation of the Contractor

CLAUSE OBLIGATIONS TIME FRAME SPECIFIC
CONSEQUENCES OF
NON-COMPLIANCE

4.2 Obtain a Performance Security for proper Within 28 days after None
performance and delivery to the Employer + copy to receiving the Letter
the Engineer. of Acceptance
Ensure that the Performance Security is valid and None None
enforceable until the Contractor has executed and
completed the Works and remedied any defects.

Extend the validity of the Performance Security until As required Employer may claim
Works have been completed and any defects have the full amount of the
been remedied. Performance Security

Amount:
Amount: Normally
Normally 10%
10% of
of Contract
Contract Sum
Sum excl.
excl. VAT.,
VAT., as
as stated
stated in
in Appendix
Appendix to
to Tender
Tender (Note:
(Note: If
If
amount is not stated in Appendix to Tender , this Sub Clause shall not apply)
amount is not stated in Appendix to Tender , this Sub Clause shall not apply)

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 FIDIC Red Book 1st Edition, 1999
Performance
The Employer is entitled Security, Clause
to call the Performance Security4.2,
in the event of:
continued

1. Failure by the Contractor to extend the validity of the Performance Security

2. Failure by the Contractor to pay Employer an amount due as either agreed by

Contractor or determined under Sub -Clause 2.5 Employers Claims or Clause 20
Claims, Disputes and Arbitration, within 42 days after this agreement or
determination

3. Failure by the Contractor to remedy a default within 42 days after receiving

Employers notice requiring the default to be remedied

4. Circumstances which entitle the Employer to termination under Sub-

Clause15.2Termination by Employer , irrespective whether notice has been given

Any claim by the Employer under the Performance Security must follow procedures of
Sub- Clause 2.5

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 Commencement of Works, Clause 8.1
The Engineer shall give the contractor not less than 7 days
notice of the Commencement date.

The Commencement Date, unless otherwise stated shall be

within 42 days after the contractor had received the Letter of
Acceptance.

The contractor shall commence his works as soon as

reasonably practicable after the C.Date

The Contractor shall proceed with his works with due expedition
and without delay.

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 Program of works, Clause 8.3
Require contractor to submit a well-thought-out program within 28
days of the commencement date.

A revised program - the previous program is inconsistent with the

actual progress.

A supporting report - a general description of the methods the

contractor intends to adopt in the execution of the work.

Engineer to notify contractor within 21 days if program does not

comply with the Contract.

If the program of works is included in the list of contract documents it

will become binding on the parties. There are benefits and risks
associated with doing that.
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 Extension of Time (EOT), Clause 8.4
For any project where a contractor is involved, he is entitled subject to Sub-

Clause 20.1 (contractors Claims) to an extension of Time for Completion if and

to the extent that completion for the purpose of Sub-Clause 10.1 ( Taking Over
of the Works and Sections) is delayed by any of the following causes:

Notice not later than 28 days to Engineer by Contractor

After 28 days, if contractor fails to notify the Employer, time for completion shall

not be extended.

Within 42 days, fully detailed claim to Engineer by Contractor

Within 42 days, Engineer shall respond with approval or disapproval and

detailed comments.

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 Extension of Time (EOT), Clause 8.4 - continues
Extension of Time With Cost Variation

Extension of Time Without Cost Adverse Climatic

Conditions

A cause of delay giving an entitlement to extension of time

under Sub- Clause of these Conditions

Unforeseeable shortages in the availability of personnel or

goods caused by epidemic or governmental actions

any delay, impediment or prevention or prevention caused

by employer.
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