FIDIC And its basics

2. CONTENTS
1. LAW VS CONSTRUCTION CONTRACT
2. HISTORY OF FIDIC
3. STANDARD CONTRACT FORMS
4. PEC-1987 VS FIDIC-1999 & 2017 MAJOR SUITES
5. HIERARCHY OF CONTRACT
6. WHILE MAKING A CONTRACT, ONE SHOULD CONSIDER
7. DISPUTE RESOLUTION
8. ALTERNATE DISPUTE RESOLUTION MECHANISM
9. ARBITRATION VS ADJUDICATION

3. LAW VS CONSTRUCTION CONTRACT
• COMPLETE
• ACCURATE
• FINAL
• EXECUTABLE (CONSTRUCTABLE)
Still carried on, because;
People are Willing to Work,
They want to Make it Work.

4. HISTORY OF FIDIC
• FOUNDED IN 1913 (BYBELGIUM,FRANCE&SWITZERLAND)
• 1957 – COC FOR CONSTRUCTION –REDBOOK
• TODAY > 95 ASSOCIATEDMEMBERS
• 1999 – 1ST EDITION OFMAJORSUITOFCONTRACTS
• 2017 – 2ND EDITION OFMAJORSUITOFCONTRACTS

5. STANDARD CONTRACT FORMS
NOTE: ONLY ONE BOOK WILL BE SELECTED ON THE BASIS OF MAJOR/CORE DISCIPLINE* COMING UNDER THE PROJECT WITH A BLEND OF SOME CLAUSES
FROM OTHER BOOK. *(IF PROJECT INVOLVES MULTIPLE DISCIPLINES)
(LIKEINCASE OFHYDRO-POWER PROJECT CHOOSE REDBOOK + CLAUSE #5 OFYELLOW BOOK)
# SCOPE FRAMEWORK
GREEN BOOK Short Form of Contract Low Risk Factor
WHITE BOOK Consultancy Terms used as Client - Consultant
RED BOOK Construction
(CivilGeneralWorksas Major)
Terms used as Employer- Engineer- Contractor
(EmployerDoesDesign)
PINK BOOK Construction Fundedby Multi Lateral
DevelopmentBank
Basically is; Red Book with Minor Modification as
required by MDB
YELLOW BOOK EPC - Mechanical&ElectricalasMajor EPC Contractor takes the whole Design Responsibility,
evenifEmployerhavetheInitial Design/FEED
SILVER BOOK Turnkey Projects Risk Imbalance as All Responsibility Shifts to Contractor,
(Thereis noEngineerinSilverBook)
GOLDEN BOOK Design, Build & Operate
EMARALD BOOK Underground Works Published in 2019, consideringtheimportanceof HighRisk
involvementwhileworkingUnderground

6. PEC-1987 VS FIDIC-1999 & 2017 MAJOR SUITES
• PEC IS CURRENTLY USING 1987 - 4TH EDITION RED BOOK & 3RD EDITION YELLOW BOOK
EACHBOOKCONTAINSDIFFERENT NUMBEROFCLAUSES
(DIFFICULT TOMAKEAHYBRID CONTRACT)
• 1999 SUIT IS MORE HARMONISED AS ALL BOOKS CONTAINS 20 CLAUSES
(EASYTOMAKEAHYBRID CONTRACT)
• 2017 IS VERY AUTHORITATIVE & RESTRICTED (SHALLIS USED MOREOFTEN),
LOTSOFMETHODOLOGIESINCLUDED IN GCC
CLAUSE#20 FURTHER SPLITS INTOCLAIMS&DISPUTES
(FORSMOOTHTRANSITION ITWOULDBEBETTERTOFIRST TRY1999 SUIT FORSOMETIMEBEFORESWITCHING TO2017VERSION)

7. HIERARCHY OF CONTRACT
1. LETTER OF AWARD
2. PCC/GCC
3. SPECIFICATIONS
4. DRAWINGS
NOTE: THISISGENERALHIERARCHY,ONECANINJECTANYTHINGIN-BETWEENOROVER-RIDEIT,
LIKEFINANCE,SCHEDULES,BOQ’SETC.

8. WHILE MAKING A CONTRACT, ONE SHOULD CONSIDER
• FIDIC
• PEC & FIDIC
• LAW OF THE COUNTRY FIT IN.
(LIKECONTRACTHASSOMEDURATIONFORSPECIFICCLAIM,BUTINSHARIALAW;CLAIMNEVEREXPIRESETC.)
• FIDIC DOESN’T OVER-RIDE THE LAW OF THE COUNTRY.

9. DISPUTE RESOLUTION
• DISPUTE RESOLUTION (THROUGHNATIONALCOURTS)
• ALTERNATE DISPUTE RESOLUTION(ANYTHINGBUTNATIONALCOURTS)
TO WAYS TO SETTLEIT:
1. DECISIONIMPOSED
2. CONSENSUS

10. ALTERNATE DISPUTE RESOLUTION MECHANISM
1. DECISIONIMPOSED
• ARBITRATION
• ADJUDICATION
• EXPERT DETERMINATION
2. CONSENSUS
• TALKING
• MEDIATION
• NEGOTIATION
• EXPERT OPINION

11. ARBITRATION VS ADJUDICATION
• ARBITRATION
• LEGALTYPE; LIKE A COURT, BUT OUTSIDETHECOURT
• PRIVATE& CONFIDENTIAL
• OUTCOME IS FIXED& BINDING
(NATIONAL COURT CAN’T REVIEW THE JUDGMENT, BUTONLY CHECK IF ARBITRATOR FOLLOW THE PROCEDURES OR NOT)
• ADJUDICATION
• MR. ENGINEER REVIEW & GIVERECOMMENDATION
• OUTCOME IS NEITHERFIXED NOR BINDING