Use of FIDIC contracts

1. The use of FIDIC Contracts and
Agreements in the Nordic market
Kaj Möller (SWE), FIDIC Exec. Committee member 2011 – 2014.
Liaison with the FIDIC Contracts Committee.
International Federation of Consulting Engineers

2. Professional Services Agreements
FIDIC publishes model
agreements for professionals
services:
- Client/Consultant
- Joint Venture
- Sub-Consultant
- Representative

3. Works Contracts – Rainbow Collection
FIDIC publishes internationally recognized forms of contract for infrastructure works as
well as for industry investments. Hard Copies, soft copies, e-book……
More than 40,000 copies supplied each year

4. Works Contracts – Red book spin-offs
Originating from the
Construction-only (Red
Book):
• The 2010 Multi-Lateral
Bank (MDB) Harmonized
Red Book (Pink Book);
• The 2011 Subcontract for
Construction-only contract
form.

5. Works Contracts – Silver book spin-offs
Originating from the 1999
EPC/Turnkey (Silver book)
• The 2008 Design, Build
and Operate form (The
Gold book).

6. FIDIC Contracts - Advantages
Essential clauses.
Detailed definitions.
Consistent structure.
Risk allocated to party best placed to
control it, bear it, and deal with it.
Drafted by consulting engineers who
design and manage projects.
Range covers most needs.
Readily adaptable to fit requirements.
Positive FIDIC image.
World-wide acceptance
Tested for more than 50 years.
CLEAR, COHERENT
FAIR, EQUITABLE
THIRD PARTY
COMPLETE, FLEXIBLE
RECOGNISED

7. Procurement & Business Practice – Work in Progress
Contracts & Agreements in progress
• Design, Build and Operate 1st edition 2008 (Gold Book) form, additional updates, Retention
Guarantees and ICC ref.;
• Client / Consultant 4th edition 2006 update;
• Joint Venture 1st edition 1992 update;
• Sub-Consultant 1st edition 1992 update;
• Short form (Green Book), Construction (Red Book), Plant and Design-Build (Yellow Book),
EPC/Turnkey (Silver Book), 1st edition 1999 (Rainbow Suite) update;
• Dredging and Reclamations, 1st edition 2006 update;
• Sub-Contracts forms for Yellow and Silver Books, first release;
• Tunnelling Contract form, first release;
• Operate, Design and Build (ODB) Contract form, first release.

8. The use of FIDIC Contracts and
Agreements in the Nordic market
Kaj Möller (SWE), FIDIC Exec. Committee member 2011 – 2014.
Liaison with the FIDIC Contracts Committee.
International Federation of Consulting Engineers

9. National forms in the Nordic market
All Nordic countries have their own Conditions of Contract for works and services,
e.g:
• Swedish General Conditions of Contract for
Consulting Agreements for Architectural and
Engineering Assignments (ABK 09);
• Danish General Conditions for Consulting
Services (ABR 89);
• Finish General Conditions for Engineering
Consulting Services (KSE 1995);
• Swedish General Conditions of Contract for
Building and Civil Engineering Works and Building
Service (AB 04);
• Swedish General Conditions of Contract for
Design and Construct Contracts for Building, Civil
Engineering and utilities (ABT 06);

10. The Nordic construction and eng. market
Globalization has finally reached the Nordics in full force. Global players use
global suppliers. In the home market as well as overseas!

11. International Federation of Consulting Engineers

12. The Nordic construction and eng. market
From a protected national
monopoly to full international
competition.
Even the public funded Clients
are looking around for
alternative supplier!
Developed national markets for
international suppliers have
now reached the Engineering
Consulting industry.

13. The Nordic construction and eng. market
So, are the competitors (contractors) coming?
“North ring road Stockholm” – one
main contractor Bilfinger (GER).
“Copenhagen Cityring” – main civil
contractor Salini Construttori (ITA).
Olkiluoto 3 Nuclear power plant”,
Helsinki. EPC contractor Areva (FRA)
/ Siemens (GER).

14. The Nordic construction and eng. market
So, are the competitors (consultants) coming?
“Bypass Stockholm”
A 22 km long section of the freeway ring-
road around Stockholm, with some 18 km in
tunnels.
Employer, Swedish National Transport
Authorities.
Total Project budget app 3 BEUR.
Main engineering design agreement (25
MEUR) awarded at app. 40 EUR / h to a
supplier with bulk engineering provided
from Poland.

15. The Nordic construction and eng. market
So, are the competitors coming (consultants)?
Copenhagen “Cityringen”
A15.5 km long new subway line with 17
new sub-surface stations
Client, Metroselskabet I/S through
Municipality of Copenhagen, Danish State
and the Municipality of Frederiksberg.
Main Civil (EPC) Contract won by Italian
Contractor Salini Construttori.
Salini procured Detailed Design services at
app 55 EUR / h from Italian Engineering
Consultant Technimont.

16. The Nordic construction and eng. market
Thanks to the global exposure, global
Clients also invest in the Nordic
countries!
Facebook Data Server Centre, Luleå (A),
Sweden
• Facebook´s first Data Server Centre
outside the US;
• Location deciding factors;
 Access to highly developed internet fiber
network;
 Cold climate in rural area and thus reduced
need for, but yet access to, inexpensive
cooling capacity without restrictions;
 Access to renewable energy, wind and
hydro-electrical power;
 Easy to achieve required security level in
this remote area;
 Access to nearby international full-scale
cargo airport.

17. FIDIC forms in the Nordic market
What does all this mean in the context of the use of FIDIC Contract and
Agreement forms in the Nordic countries 1 (2)?
• Private funded Nordic Clients: Well familiar and
open to using FIDIC forms both in home market
and overseas market, if not having established
own corporate contract standard, which is a very
rare case;
• Private funded global Clients; Prefer globally
recognized forms such as FIDIC. Feel
uncomfortable with national forms;
• Public funded Nordic Clients: Slowly moving
towards internationally recognized forms. All
Nordic countries has their own National forms.
However, no regulatory obstacles to apply FIDIC
forms for public works and services;
• As for Red, Yellow and Silver book, public funded
Nordic Clients need to get used to main principles
as “The Engineer”, Variation & Claim resolutions
and “DAB´s”;

18. FIDIC forms in the Nordic market
What does all this mean in the context of the use of FIDIC Contract and
Agreement forms in the Nordic countries 2 (2)?
• English is the Nordic people´s “first” language
which reduces the doubt and hindrance of using
FIDIC forms;
• There is an unfortunate development towards
“commoditizing” Procurement Departments. FIDIC
Agreement forms not necessary popular as they
focus on QBS rather than CBS. However, the
trend seems temporary as project tend to fail
when being procured on this principle;
• Public funded Clients move towards EPC or
Design-Build delivery methods. With more
international Contractors in the market, this will
generate an increased use of FIDIC Services
Agreements for sub-suppliers.

19. FIDIC World Consulting Engineering Conference
Quality of Life – Our Responsibility

20. International Federation of Consulting Engineers
President Geoff French, UK
President Elect Pablo Bueno, Spain
Secretariat FIDIC
World Trade Center 2
Geneva Airport
Box 311
CH-1215 Geneva 15
Switzerland
Tel: +41 22 799 49 00
Fax: +41 22 799 49 01
fidic@fidic.org
www.fidic.org
Managing Director Enrico Vink
Nordic Liaison Kaj Möller
kaj.moller@sweco.se
+46 734 12 65 03