FIDIC CONTRACT

Theory & Practice

A Comprehensive Introduction to “Design Build” & “EPC/Turnkey ”

By Andy Satya Nugraha, ST, MT (Contract Management Practitioner)

Andy Satya Nugraha, ST, MT
- Bachelor Degree, Civil Engineering, University Of Gadjah Mada, Indonesia

- Magister Degree, Construction Management, University Of Atma Jaya, Indonesia

- 16++ years solid experience on Project Contract Management across industry; Energy
(Power Plant & Electrical Substation), Oil&Gas (Gas Pipeline, Gas Station, Oil
Facility Production), Construction (High Rise Building), Infrastructure (Toll Road
Highway & Railway), Industrial Plant , Telecommunication; at various position in the
project organization such as: Project Owner, Project Management Consultant (PMC),
EPC Contractor, Vendor/Contractor Specialist, & Engineering Consultant.

- “FIDIC User / Practitioner” acknowledged by FIDIC President

- Indonesian Representative & Trainer of AACM (Asian Association Contract

Management)

- Founder & Owner - Indonesia Contract Management Community

-
Outline Of Training
1. Definition Design Build Project and EPC/Turnkey Project
2. Characteristic of Design Build Project and EPC/Turnkey Project
3. FIDIC Rainbow Book Overview
4. FIDIC Yellow Overview (Design & Build)
5. FIDIC Silver Overview (EPC/Turnkey Project)
6. Risk Profile Of FIDIC Yellow vs FIDIC Silver
7. Parties in FIDIC Contract
8. Obligation Of Parties in FIDIC Contract
9. FIDIC Sequence Of Work
10. Overview Claim Management in FIDIC Contract
11. Overview Dispute Mechanism in FIDIC Contract
12. FIDIC Golden Principle to prepare Particular Condition
13. FIDIC System Law
14. Case Study in FIDIC Contract Implementation
15. Question And Answer
1.1. Definition Of Design Build Project
Design–build (or design/build, and abbreviated D–B or D/B
accordingly) is a project delivery system used in the construction
industry. It is a method to deliver a project in which the design
and construction services are contracted by a single entity
known as the design–builder or design–build contractor.
1.2. Definition Of EPC/Turnkey Project
EPC stands for Engineering, Procurement, Construction and is a
prominent form of contracting agreement in the construction industry.
The engineering and construction contractor will carry out the detailed
engineering design of the project, procure all the equipment and
materials necessary, and then construct to deliver a functioning facility
or asset to their clients. Companies that deliver EPC Projects are
commonly referred to as EPC Contractors.
2.1. Characteristic Of Design Build Project vs EPC Projec t
DESIGN & BUILD Project EPC Project
EPC project typically results in a turnkey facility. A design-build contract closes out similarly to
At closeout, the EPC contractor hands over a design-bid-build contracts, with the owner and
working facility that’s ready to go its construction manager or designer taking an
active role in punching out the facility.
EPC contractors are often handed little more design-build contracts provide at least some
than performance requirements (output levels, design detail in the bridging documents
uptime levels, maintenance expense
maximums, etc.),
More involvement Employer/Owner on Design Less involvement/Owner on Design
2.2. Characteristic Design Build Project vs EPC Project
3.1 What is FIDIC ?
The International Federation of Consulting Engineers (commonly
known as FIDIC, acronym for its French name Fédération
Internationale Des Ingénieurs-Conseils) is an international
standards organization for the construction industry, best known
for the FIDIC family of contract templates. The fact that the
organization has a French title bears testimony to its foundation
in 1915 by three countries each wholly or partly francophone.
The founding member countries of the FIDIC were Belgium,
France and Switzerland.
3.2. FIDIC RAINBOW BOOK
3.3 Which FIDIC Book Should I Used ???
4.1. FIDIC Yellow Overview
4.2. FIDIC Yellow Overview
5.1. FIDIC Silver Overview
5.2. FIDIC Silver Overview
6. Risk Overview Of FIDIC Contract
7. Parties in FIDIC Contract
8.Obligation Of Parties In FIDIC Contract
8.1 YELLOW BOOK
9.1.1. Obligation Of Employer
9.1.2. Obligation Of Engineer
9.1.3. Obligation Of Contractor

8.2. SILVER BOOK

9.2.1. Obligation Of Employer
9.2.3. Obligation Of Contractor

Reference : The FIDIC Contract – Obligations Of The Parties (Andy Hewitt)

8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.1. Yellow Book – Obligation Of Employer
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.2. Yellow Book – Obligation Of Contractor
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.1.3. Yellow Book – Obligation Of Engineer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.1. Silver Book – Obligation Of Employer
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
8.2.2. Silver Book – Obligation Of Contractor
9. FIDIC Sequence Of Work
10.1. Overview Claim Management in FIDIC Contract
Reference : Sarwono Hardjomuljadi DRBF
10.2.1 Employer’s Claim
10.2.2. Employer Claim
10.3.1. Contractor’s Claim
10.3.2 Contractor’s Claim
10.3.3 Contractor’s Claim
11.1. Overview Dispute Settlement in FIDIC Contract
Reference : Sarwono Hardjomuljadi DRBF
11.2. Overview Dispute Settlement in Indonesia Jurisdiction
Reference : Sarwono Hardjomuljadi DRBF
12.1. FIDIC Golden Principle
12.2. FIDIC Golden Principle

The FIDIC Golden Principles June 2019.pdf

13. FIDIC System Law
• FIDIC drafted for all jurisdiction
• Need to adjust in the particular Condition to suit
with applicable Law
• Drafted consensus by Engineers and vetted by
Lawyer
• Civil Law vs Common Law vs Sharia Law
14.1. Case Study In FIDIC Contract
DELAY BY EMPLOYER (CONTRACTOR’S CLAIM)
Employer A of Gas Utility State Owned Company has granted transmission
pipeline work to Contractor B under FIDIC Yellow Book 1999 edition. It is
clearly mentioned in the Contract that obligation to provide principal permit
of possession of site shall be under Employer obligation. During execution of
the work it was discovered that Contractor hindered to install the pipe due to
local people demonstration due of site acquisition, accordingly Contractor
delayed to deliver the project in accordance with contract completion date.

Contractor to claim EXTENSION OF TIME AND PROLONGATION COST

14.2. Case Study In FIDIC Contract
VARIATION (CONTRACTOR’S CLAIM)

Employer C of private Ammonia Petrochemical Company has granted EPC Contract

to Contractor D to build entire plant under FIDIC Silver book 1999 Edition. During
execution of Civil Foundation Work of plant it was founded that the actual piling
work foundation was deeper than stated in the Contract due to hard soil
characteristic (actual Y meter vs contract X meter, while Y>X).

Contractor ot claim additional cost refer to schedule of rate and price in Contract.
14.3. FIDIC Particular Condition
& Pemern PUPR 01 2020
Sample FIDIC Contract - PGN Gas Pipeline Project.pdf

PermenPUPR1-2020.pdf
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