2. CONTENTS
• Introduction
• FIDIC Establishment
• Principle of FIDIC
• FIDIC Contract
• Form Of FIDIC Contract
• FIDIC Event
• Association Of Consulting Engineers Pakistan
3. INTRODUCTION
• FIDIC is a Fédération Internationale Des Ingénieurs-Conseils,
which means the international federation of consulting engineers.
• It was started in 1913 by the trio of France, Belgium and Switzerland. The
United Kingdom joined the Federation in 1949. FIDIC is headquartered in
Switzerland and now boasts of membership from over 60 different
countries.
• Over the years, FIDIC has become famous for its secondary activity of
producing standard form contracts for the construction and engineering
industry.
4. INTRODUCTION
• FIDIC published its first contract , titled The Form of contract for works of Civil
Engineering construction, in 1957.
• This first contract was aimed at the Civil Engineering sector, and it soon
became known for the color of its cover, and thus, The Red Book.
• It has become the tradition that FIDIC contracts are known in popular parlance
by the color of their cover.
• Now FIDIC condition of contract has been applied worldwide, especially in the
projects invested by World Bank, Asia Development Bank, Africa Development
Bank etc.
• Today, FIDIC membership covers over 100 countries of the world.
5. INTRODUCTION
• FIDIC is the global representative body for national associations of
consulting engineers and represents over one million engineering
professionals and 40,000 firms in more than 100 countries worldwide.
• FIDIC priorities:
1. Leading the consultancy and engineering industry visibly and effectively
2. Strengthen FIDIC’s position in the overall construction industry
3. Connect and support our members more effectively
4. Adapt and improve the governance of the federation
5. Innovate the way the secretariat operates to be more effective and
efficient
6. FIDIC ESTABLISHMENT
• As a result of a search for independent expert consultants for the World Fair
Exhibitions in 1913, several consulting engineers met to discuss the possibility
of forming a global Federation.
• The meeting was a success in that it led to the formal constitution on 22 July
1913 of FIDIC.
• The founding principles adopted were Quality, Integrity, and Sustainability.
• There were 59 participants at the inaugural meeting; official delegates from
Austria, Belgium, Canada, Denmark, France, Germany, Hungary, Netherlands,
Russia, Switzerland, the United Kingdom and the USA.
7. FIDIC ESTABLISHMENT
• Three countries, Belgium, France and Switzerland decided to found the
Federation. The other countries maintained provisional links during the
initial years.
• Due to the World Wars and other major political disturbances, FIDIC
development was slow until the late 1940’s. The number of member
countries changed constantly, and all came from Europe.
• In 1959, they were joined by Australia, Canada, South Africa, and the USA.
This made FIDIC a truly international Federation.
8. PRINCIPLE OF FIDIC
• FIDIC’s key role and that of its Member Associations around the world is to
improve people’s quality of life through the promotion of quality, integrity
and sustainability in the infrastructure industry and the projects and
services it delivers on a global scale
1. Quality
2. Integrity
3. Sustainability
9. The order of priority is as stated below and in the event of
inconsistency the first on the list takes precedence:
1. The Contract Agreement
2. The Letter of Acceptance (this is the formal acceptance of the
tender and marks the formation of the contract)
3. The Letter of Tender • Part II – the conditions of application
4. Part I – general conditions of contract
5. The Specification and Drawings (Red Book), The Employer’s Requirements
(Yellow Book), the Schedules (Red and Yellow Books)
6. Further documents (if any), listed in the Contract Agreement or in the
Letter of Acceptance
10. FIDIC CONTRACT
FIDIC contract Year released Notes
The(old) Red Book First published in 1957, the
fourth and final edition was
published in 1987, with a
supplement added in 1996
These contracts were aimed
at the civil engineering sector,
as differentiated from the
mechanical/electrical
engineering sector.
The(old) Yellow Book First published in 1967 with
the third and last edition in
1987.
These contracts were aimed
at the mechanical/electrical
engineering sector.
11. FIDIC CONTRACT
FIDIC contract Year Released Notes
The Orange Book The first and only edition of
this contract was released in
1995.
This was the first design and
build contract released by
FIDIC.
The (new) Red Book Released in 1999. The Red Book is suitable for
contracts that most design
rests with the Employer.
The (new) Yellow Book Released in 1999. The Yellow Book is suitable
for contracts that the
contractor has most of the
design responsibility.
12. FIDIC CONTRACT
FIDIC contract Years Released Notes
The Silver Book Released in 1999. The Silver Book is for turnkey
projects. This contract places
significant risks on the
contractor. The contractor is
also responsible for most of
the design.
The Pink Book First published 2005 – an
amended version was
published 2006, with a further
edition in June 2010.
This is an adaptation of The
Red Book created to fit the
purposes of Multilateral
Development Banks.
13. THE RED BOOK (FIRST EDITION 1999)
Conditions of Contract for Construction For Building and Engineering works
designed by the Employer.
• The Red Book is intended for use on projects where the employer carries out
the design, but it also allows for some elements of the project to be
designed.
• The Red Book is not suitable for use where most of the works are to be
designed by the Contractor and for such projects it would be more
to use the Yellow Book or Silver Book.
• As with earlier versions of the Red Book administration of the project and
supervision of the works is carried out by an Engineer who is employed by the
Employer.
14. THE RED BOOK (FIRST EDITION 1999)
• Payments are normally determined by measurement and applying the rates
and prices from the bill of quantities.
• If an engineer’s determination is not agreed by either of the parties then
the dispute will be referred to a Dispute Adjudication Board for a decision.
• The DAB is formed of one or three people who are jointly appointed by the
parties. If the decision of the DAB is not accepted by any of the parties,
then the final step will be resolution via an international arbitration.
15. THE RED BOOK (SECOND EDITION 2017)
This Second Edition of the FIDIC Red Book continues FIDIC’s fundamental
principles of balanced risk sharing while seeking to build on the substantial
experience gained from its use over the past 18 years. For example, this edition
provides:
1. Greater detail and clarity on the requirements for notices and other
communications;
2. Provisions to address Employers’ and Contractors’ claims treated equally and
separated from disputes;
3. Mechanisms for dispute avoidance and
4. Detailed provisions for quality management, and verification of Contractor’s
contractual compliance.
16. THE RED BOOK (SECOND EDITION 2017)
• These Conditions of Contract for Construction include conditions, which are
likely to apply to most of such contracts. Essential items of information which
are particular to each individual contract are to be included in the Particular
Conditions Part A – Contract Data.
• In addition, it is recognized that many Employers, especially governmental
agencies, may require special conditions of contract, or procedures, which
differ from those included in the General Conditions. These should be included
in Part B – Special Provisions.
• This publication also includes several sample forms to help both Parties to
develop a common understanding of what is required by third parties such as
providers of securities and guarantees.
17. THE YELLOW BOOK
• The Yellow Book provides conditions of contract for construction works where
the design is carried out by the Contractor.
• Under the usual arrangements for this type of contract, the Contractor designs
and provides the works in accordance with the Employer’s requirements which
may include any combination of civil, mechanical, electrical and/or construction
works.
• Administration of the project and supervision of the works is carried out by an
Engineer who is employed by the Employer.
• Engineer is responsible, amongst other things, for issuing instructions,
certifying payments and determining completion
18. THE YELLOW BOOK
• The General Conditions and the Particular Conditions together comprise
the Conditions. Guidance is provided for the preparation of Particular
Conditions should it be necessary to modify the General Conditions.
• The Guidance also contains various forms of security such as parent
company guarantee, advance payment bond and a retention guarantee
which can be selected as applicable.
• The Yellow Book concludes with example forms for the Letter of Tender, the
Contract Agreement, and a Dispute Adjudication Agreement.
19. FORM OF FIDIC CONTRACT
• In 1999, FIDIC published four new editions of forms of contracts :-
1. Conditions of contract for construction
2. Conditions of contract for plant and design-build
3. Conditions of contract for EPC and Turnkey projects
4. Short form of Contract
20. FORM OF FIDIC CONTRACT
Conditions of Contract for Construction
• The Contract for construction includes a set of conditions recommended
for building or engineering works where the owner provides most of the
design. However, the contract work may also include some contractor-
designed civil, mechanical or electrical works.
• These days many contractors design a significant portion of the work on
their own, so the conditions of contract for construction includes more
provisions which are applicable under such cases.
21. FORM OF FIDIC CONTRACT
Conditions of Contract for Plant and Design-Build
• These contracts include a set of conditions suitable for the provisions of
electrical and/or mechanical plant and for design and construction of
or engineering works.
• Under this contract, the contractor designs and provides the plants and other
works which may include any combination of civil, mechanical, electrical
construction works, as per the requirement of the employer.
• This type of FIDIC contract is also suitable for design and construction of
building and engineering works. This contract requires the appointment of an
engineer to administer the contract.
22. FORM OF FIDIC CONTRACT
Conditions of Contract for Turnkey Projects or EPC
• EPC stands for engineering, procurement and construction. This contract is
suitable for turnkey projects such as power plants, process factory,
infrastructure projects or any developmental works. The projects under this
type of contract have a higher degree of certainty on project cost and time of
completion.
• The contractor has the responsibility of design and execution of the project
including the guarantees of the performance.
• In this contract, the contractor has greater freedom to satisfy the
of the end-user as specified in the conditions of the contract.
• This type of contract seems more profitable to the contractor than the
traditional form of contracts, and thus, they are ready to accept the greater
degree of risks.
23. FORM OF FIDIC CONTRACT
Short Form of Contract
• Short form of contract is suitable for small construction works (small capital
value projects) of short duration or of relatively simple and repetitive
works.
• This contract is suitable for any type of engineering and construction
projects irrespective of who provides the engineering.
• The contractor must carry out the construction works as per the design
provided by the owner. This contract may also include contractor-designed
civil, mechanical, electrical and/or construction works.
25. ASSOCIATION OF CONSULTING ENGINEERS
PAKISTAN
• The Association of Consulting Engineers Pakistan (ACEP) was founded
in 1989 as a registered non-profit society to promote advancement of
the profession of Consulting Engineers in Pakistan, disseminate
engineering knowledge amongst members, foster ethical practices in
engineering services sector and promote fraternity between public and
private sectors. ACEP now has 120 members with its head office at
Karachi and chapter offices at Lahore, Islamabad and Peshawar.
26. ASSOCIATION OF CONSULTING ENGINEERS
PAKISTAN
• ACEP is a representative body of consulting engineers in Pakistan and is the only
body of consulting profession recognized by Pakistan Engineering Council (PEC) as
the most representative body and represents Pakistan as international level, being
also the only member of International Federation of National Association of
Consulting Engineers (FIDIC).
• ACEP protects the right of Consultants and provides a neutral forum to take up
issues with Government and International Agencies to enhance the working
relationship between these organizations and the Consultants. ACEP also serves as
a body to which any Government agency can seek help or assistance in developing
policies and legislation that is required to be passed through parliament and other
legislative bodies.
27. MEMBERS OF ASSOCIATION OF CONSULTING
ENGINEERS PAKISTAN
• ACEP Members provide services in variety of disciplines, some of them
are strong in a particular discipline while the large ones are multi-
disciplinary companies. If need be, there can be combinations or
consortiums of consulting houses to fulfill the needs of a client to his
entire satisfaction. Many of them have worked as a partner in a joint
venture at home and abroad. In fact, ACEP Members are capable
professionals to work with.
28. ASSOCIATION OF CONSULTING ENGINEERS
PAKISTAN
• ACEP is officiated to FIDIC (International Federation of National Association of
Consulting Engineers), ASPAC (The Asia-Pacific Grouping of FIDIC Member
Associations) and TCDPAP (Technical Consultancy Development Programme for Asia
and the Pacific). Member firms are individually registered with international
development financing institutions.
• ACEP subscribes to the general principles and standards of professional code of
conduct laid down by FIDIC.
• ACEP Elections are held every 2 years. Engr. M. Waseem Asghar was elect President
and Engr. Wasif Nazar Siddiqui as Hon. Secretary in 2020.
29. ASSOCIATION OF CONSULTING ENGINEERS
PAKISTAN
Generally, the services provided by consulting engineers may be grouped
under following headings:
Pre-Project Stage
• Feasibility Studies
• Master Plans
• Technical Evaluation Studies
• Detailed Project Report
30. ASSOCIATION OF CONSULTING ENGINEERS
PAKISTAN
Advisory Services
• Business Plans
• Training / Knowledge Transfer
• Management Services
• Technical Assistance
• Renovation & Modernization (R&M)
Studies
• Operation & Maintenance (O&M)
Studies
• Due Diligence Studies
Project Stage
• Detailed Design & Engineering
• Tender Specifications & Tender Documents
• Procurement Assistance
• Inspection & Expediting
• Construction Monitoring/ Supervision
• Project Management
• Quality Management
• Health, Safety & Environment (HSE)
• Assistance during Commissioning
