FIDIC is an international federation of consulting engineers that publishes standard forms of contract. It was founded in 1913 and is headquartered in Geneva. Some of FIDIC's most well-known standard forms include the Red, Yellow, and Silver Books. The Red Book covers construction projects, the Yellow Book covers electrical and mechanical works, and the Silver Book covers EPC/turnkey projects. FIDIC contracts establish important procedures like priority of contract documents, the engineer's role, extensions of time, insurance requirements, and dispute resolution processes involving negotiation, mediation, and arbitration.

1. FIDIC FORM
OF
CONTRACT
- CONTRACT LAWS & REGULATION
M. Tech (Construction Engineering Management), 2nd Semester.
KIIT UNIVERSITY.

2. WHAT IS FIDIC?
• FIDIC - Fédération Internationale Des Ingénieurs-Conseils.
• Founded – 1913
• Located – Geneva, Switzerland
• Best Known for: - Dredgers Contract; Short Form of Contract;
Construction Contract; Plant & DB Contract; DBO Contract;
and EPC/Turnkey Contract.
French Term

3. TIMELINE
SEPTEMBER
1999
Till Date
Founded
22 July 1913
• Red Book – Civil Engineering Construction
• Yellow Book – Electrical & Mech Works
• Orange Book – Design-Build & Turnkey Contracts
• Red Book – Construction for Building &
Engineering Works designed by Employer.
• Yellow Book – Plant & DB Works for
Electrical & Mech Works by Contractor
• Silver Book – EPC/ Turnkey Projects
• Green Book – Short Form of Contract
2017

4. • Priority of Contract Documents (Sub-Clause 5.2).
• Role of Engineer (Sub-Clause 1.1 (a-iv), 2.1, 2.4, 2.6 & 67.1).
• Instruction in Writing (Sub-Clause 2.5).
• Programme to be Submitted (Sub-Clause 14.1).
• Cash Flow Estimate to be Submitted (Sub-Clause 14.3).
• Performance Security (Sub-Clause 10.1).
• Insurance (Sub-Clause 25.1)
FIDIC RED BOOK CLAUSES
Various Important Sub-Clauses

5. • Delay of Drawing and Instruction by the Engineer. (Sub-Clause 6.3/6.4).
• Occurrence of Unforeseeable Physical Obstructions or Conditions. (Sub-Clause 12.2)
• Discovery of Fossils, Coin, Articles of value, etc. (Sub-Clause 27.1)
• Execution of additional test required by Engineer. (Sub-Clause 36.5)
• Suspension of the Work instructed by the Engineer. (Sub-Clause 40.1/ 40.2/ 40.3)
• Employer’s failure to give Possession of the Site and Access Thereto (Sub-Clause 42.1/42.2)
• Contractor’s Entitlement to Suspend Work (Sub-Clause 69.4)
• Extension of Time for Completion (Sub-Clause 44.1/ 44.2/ 44.3)
EVENTS ENTITLING CONTRACTOR FOR EXTENSION OF TIME AND COST.

6. • Incorrect Setting Out Data given by Engineer. (Sub-Clause 17.1).
• Loss or Damage due to Employer's Risk Event. (Sub-Clause 20.3)
• Facilities for other Contractor. (Sub-Clause 31.2)
• Uncovering of the Work. (Sub-Clause 38.2)
• Remedying Defect not Attributable to the Contractor. (Sub-Clause 49.3)
• Contractor to Search. (Sub-Clause 50.1)
EVENTS ENTITLING CONTRACTOR FOR COST ALONE.

7. • Variations. (Sub-Clause 51.1, 51.2 & 52.1)
• Variation exceeding 15% of Contract Price. (Sub-Clause 52.3)
• Provisional Sums. (Sub-Clause 58).
• Delayed Payment. (Sub-Clause 60.1)
• Special Risks. (Sub-Clause 65.1 to 65.6)
• Increase or Decrease of Cost. (Sub-Clause 70.1)
• Subsequent Legislation. (Sub-Clause 70.2)
• Notice of Claim. (Sub-Clause 53.1 to 53.3)

8. DISPUTES
• A disagreement arising out of a contract.
• Implies an assertion of right by one party and repudiation by the other.
• In First Instance, if claim by the contractors demanded, then it is submitted to the
Project Engineer/Project Management Consultant.
• If disagreed, this becomes a dispute.
• Clause 67 – Dispute Settlement Clause in FIDIC. – 3 Stage Process.
Engineer’s Decision Amicable Settlement. Arbitration.

9. DISPUTE REVIEW BOARD (DRB) Clause – 67.1
• Traditional method of resolution of dispute.
• Constant monitoring by visiting site during the construction and is advised of the
contract.
• Consists of 3 members.
• The members are appointed by each party.
• The third member who becomes the chairman, is selected by two members and approved by the
parties.

10. • The members are expected to have: -
• Experience with the Type of Construction.
• Familiarity with Interpreting Contract Documents.
• Adequate Background in the Construction Industry.
• The must not have any Affiliation with the Parties.
• After recording submissions, they suggest for settlement, if not, they put in further
efforts or pursue litigations or arbitrations.

11. ADR MECHANISM A D R
ALTERNATIVE
DISPUTE
RESOLUTION
Four Basic Methods of Dealing Disputes:-
• Negotiation
• Mediation
• Conciliation
• Arbitration.

12. CLAIM
CLAIM is a demand or assertion by one of the parties seeking, as a matter of right, adjustment
or interpretation of contract terms, payment of money, extension of time or other reliefs w.r.t.
terms of contract.
Construction Claims:-
• Conflicting Conditions of Contract.
• Delay in Supply of Drawings by the Client.
• Incorrect Drawing Supplied by the Client.
• Drawing/ Specifications Discrepancies.
• Insufficient Specifications.
• Late Information/ Approval by Client.
• Discovery of Fossil, Coins, Articles or Value.
• Execution of Additional Test Required by the Client.

13. • Suspension/Termination of Work by Client.
• Delay in Commencement of the Project.
• Damage Due to Force Majeure.
• Loss or Damage to Works due to the Use or Occupation by the Employer.
• Bad Weather.
• Variation in Total Contract Price.
• Delay in Supply of Materials, When the same is in Client’s Scope.
• Delay in Payment by the Client.

14. CLASSIFICATION OF CLAIM
• CONTRACTUAL CLAIMS.
• EXTRA CONTRACTUAL CLAIMS.
• QUANTUM MERUIT CLAIMS
• EX-GRATIA CLAIMS.
• COUNTER CLAIMS.

15. THANK YOU