The document outlines FIDIC's principles and practices for contract management, detailing the roles, steps, and procedures involved in managing construction contracts. It includes information on various FIDIC contract types, timelines for submissions and payments, and the processes for handling claims and disputes. FIDIC forms are widely used globally, emphasizing the importance of proper documentation and communication throughout the contract lifecycle.

1. Contracts Management
Principles & Practices
According to FIDIC
By : Essam Mohamed Lotfi, PMP, CCP

2. • Having a brief of FIDIC
• Understand the steps and stages of Contract Management
Using FIDIC.
• Understand the Role of PM during construction project to
protect the organization Business case.

3. • Founded in 1913
• Expanded in 1945 to include 40 national associations
• Published first Conditions of Contract in 1957
• In 2004 has 64 member associations
• Headquarters in Switzerland
• Web Site : www.fidic.org

4. • Conditions of Contract for Construction (Red
Book)
• Conditions of Contract for Plant & Design
Build (Yellow Book)
• Conditions of Contract for EPC Turnkey
Projects (Silver Book)
• Short Form of Contracts (Green Book)

8. 14.3 Contractor
submits
Statement to the
Employer
14.6 Employer
gives Contractor
notice of amount
considered due
14.7 Employer
makes the
payment to the
Contractor
<56d
<28d
Employer verifies the draft final statement, Contractor
submits information
14.11 Contractor submits
draft final statement to the
Employer
14.11 Contractor
submits Final Statement
and the 14.12 discharge
14.7 employer
makes payment
<42d
Each of the
monthly (or
otherwise)
interim
payments
The final
payment

9. DAB: the persons so named in the contract or other persons appointed
under sub-clause (appointment of the dispute adjudication board)

10. • The several documents forming the Contract are to be taken as
mutually explanatory of one another, but in case of ambiguities or
discrepancies the same shall be explained and adjusted by the
Engineer who shall thereupon issue to the Contractor instructions
thereon and in such event, unless otherwise provided in the Contract,
the priority of the documents forming the Contract shall be as follows:
(1) The Contract Agreement (if completed);
(2) The Letter of Acceptance;
(3) The Tender;
(4) Part II of these Conditions;
(5) Part I of these Conditions; and
(6) Any other document forming part of the Contract.

11. • Cl.1.9 Drawings
• Cl.2.1 Site
• Cl.4.7 Setting Out
• Cl.4.12 Unforeseeable
• Cl.4.24 Fossils
• Cl.7.4 Testing
• Cl.8.4 EoT
• Cl.8.4 Adverse Climatic
Conditions
• Cl.13.7 Legislation
• Cl.13.8 Changes in Cost
• Cl.14.8 Delayed
payments
• Cl.19.4 Force Majeure

12. • Cl.13.1 Right to vary
– Prior to issue of TO
certificate
• Cl.13.2 Value Engineering
– Development risk with
Contractor
– Savings 50/50

13. CLAIMS & CONTRACTUAL
PROCEDURES

14.  Majority of construction projects worldwide are
administered by the FIDIC forms of contract.
 FIDIC recognises delay and related costs and has
provisions related thereto. For example;
 Sub-Clauses 8.4 & 20.1 (FIDIC 1999 Edition)
 Clauses 44 & 53 (FIDIC 1987 Edition)

15.  Unforeseeable ground conditions
 Delayed drawings
 Delayed payment
 Lack of possession of site
 Consequence of risk
 Suspension
 Force Majeure

16.  Clause 20.1
o Sets out Contractor procedure
o Condition Precedent
o Not later than 28 days
o Sets out Engineer procedure

17.  Contractor gives notice
 Within 28 days
 Contractor keeps contemporary records
o Engineer may monitor
o Engineer may instruct further records
 Fully detailed claim
o Supporting documents
 Within 42 days of event

18.  Crucial for determination of claim
 Records for any future dispute
 Contractor obliged to keep records
 Procedure for this work
 Employer & Engineer to agree Engineer’s
actions

19.  Cl.20.1 continuing procedure
 After 42 days:
o Claim submission is considered interim
o Further monthly claims
 Final claim with 28 days of end of effects