Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
3Activity
0 of .
Results for:
No results containing your search query
P. 1
FIDIC EPC-Silverbook

FIDIC EPC-Silverbook

Ratings: (0)|Views: 104|Likes:
Published by RAGHAVENDRA PK
Standard Contract Conditions of EPC
Standard Contract Conditions of EPC

More info:

Published by: RAGHAVENDRA PK on Nov 22, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/30/2012

pdf

text

original

 
 AN INTRODUCTION TOFIDIC CONDITIONS OF CONTRACTPART (I)FORE.P.C. / TURNKEYPROJECTS
Presented by Prof. Ajit Patwardhan 
 
INTRODUCTORY 
FIDIC’s
Red and Yellow Books have been in widespread use for several decades, and have been recognisedfor their principles of balanced risk sharing between the Employer and the Contractor. The employer signing acontract at a lower price and the Contractor avoiding pricing such risks which are not easy to evaluate.During recent years it has been noticed that much of the construction market required a form of contractwhere certainty of final price, are of extreme importance. Employers on such turnkey projects are willing to paymore. Among such projects can be found many projects financed by private funds.For such projects it is necessary for the Contractor to assume responsibility for a wider range of risks thanunder the traditional Red and Yellow Books. If the Contractor is to carry such risks, the Employer must alsorealize that asking responsible contractors to price such risks will increase the construction cost.Even under such contracts the Employer does carry risks of war, terrorism and the other risks of ForceMajeure. In the case of BOT (Build-Operate-Transfer) type projects, the allocation of risk provided for in theturnkey construction Contract may need to be adjusted in order to make into account the final allocation of allrisks. Apart from the privately financed projects demanding contract terms ensuring increased certainty of price, timeand performance, the public sector, in a wide range of countries have demanded similar contract terms, atleast for turnkey contracts. By providing a standard FIDIC form for use in such contracts, the
Employer’s
 requirements for more risk to be taken by the Contractor are clearly stated. Clearly the Contractor will rightlyincrease his tender price to account for such extra risks.This form EPC/Turnkey Projects is thus intended to be suitable for EPC Contracts within a BOT or similar typeventure.Employers using this must realise
“Employer’s
 
Requirements”
should describe the principle and basic designof the plant on a functional basis. The Tenderer shall also carry out any necessary design and detailing of thespecific equipment and plant he is offering. Therefore the tendering procedure has to permit discussionsbetween the Tenderer and the Employer about technical matters and commercial conditions.
 
FOREWORD
The Federation international des ingenieurs-Conseils (FIDIC) published, in 1999, First Editions of four newstandard forms of Contract :-
CONDITIONS OF CONTRACT FOR CONSTRUCTION
Which are recommended for building or engineering works designed by the Employer or by his representative,the Engineer. Under the usual arrangements for this type of contract, the Contractor constructs the works inaccordance with a design provided by the Employer. However, the works may include some elements of Contractor 
 –
designed civil, mechanical, electrical and / or construction works.
CONDITIONS OF CONTRACT FOR PLANT AND DESIGN-BUILD
Which are recommended for the provision of electrical and / or mechanical plant, and for the design andexecution of building or engineering works. Under the usual arrangements for this type of contract, theContractor designs and provides, in accordance with the
Employer’s
requirements, plant and / or other works;which may include any combination of Civil, Mechanical, Electrical and/or construction works.
CONDITIONS OF CONTRACT FOR EPC / TURNKEY PROJECTS
Which may be suitable for the provision on a turnkey basis of process or power plant, of a factory or similar facility, or of an infrastructure project or other type of development, where (I) a higher degree of certainty of final price and time is required, and (ii) the Contractor takes total responsibility for the design and execution of the project, with little involvement of the Employer. Under the usual arrangements for turnkey projects, theContractor carries out all the engineering, Procurement and Construction (EPC) : providing a fully equippedfacility, ready for operation (at the
“turn
of the
key”)
.
SHORT FORM OF CONTRACT
Which is recommended for building or engineering works of relatively small capital value.These forms are recommended for general use where tenders are invited on an international basis.Modifications may be required in some jurisdictions, particularly if the Conditions are to be used on domesticcontracts. FIDIC considers the official and authentic texts to be the versions in the English language.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->