Introduction to FIDIC Forms of

Contract

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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FIDIC

• Fédération Internationale des

Ingénieurs-Conseils (FIDIC)

• International Federation of Consulting

Engineers

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• Founded in 1913 by 3 engineers
associations in France, Switzerland,
and Belgium

• To promote the professional interests of

Member Associations

• Today, there are 70 national Member

Associations in FIDIC representing
620,000 professionals
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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FIDIC new forms

• In 1999, FIDIC published the following
4 forms of contract:

(1) FIDIC Conditions of Contract for

Construction

(2) FIDIC Conditions of Contract for Plant

and Design-Build
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(3) FIDIC Conditions of Contract for
Engineering Procurement and
Construction / Turnkey Projects

(4) FIDIC Short Form Contract

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(1) FIDIC Conditions of Contract for

Construction
• Recommended for
building or
engineering works
designed by the
Employer or by his
representative, the
Engineer

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• However, the works may include some
elements of Contractor-designed civil,
mechanical, electrical, and/or
construction works

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(2) FIDIC Conditions of Contract for

Plant and Design-Build
• Recommended for
the provision of
electrical and/or
mechanical plant,
and for building or
engineering works
designed by the
Contractor

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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 (3) FIDIC Conditions of Contract for
Engineering Procurement and
Construction (EPC) / Turnkey
Projects
• May be suitable,
where:

(i) A higher degree of

certainty of final
price and time is
required, and
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(ii) The Contractor takes total

responsibility for the design and
execution of the project, with little
involvement of the Employer

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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 (4) FIDIC Short Form Contract
• Recommended:
– If the price for the
contract is relatively
small (say under
$500,000)
– Or the work involved
is relatively simple or
repetitive

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• Such recommendation is valid:

– Irrespective of whether the design is
provided by the Employer or the
Contractor, and

– Of whether the project involves

construction, mechanical, or other
engineering work

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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Selecting the appropriate FIDIC book

• Selection of the appropriate book is

critical to the success of a project

• Check the following scenarios:

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(1) Is the Employer (or the Engineer)

going to do most of the design?

• The Employer does nearly all the design,

• And the Engineer administers the

Contract, monitors the construction work,
and certifies payment

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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 • And the Employer is kept informed, could
make variations, etc.,

• And with payment according to bills of

quantities or lump sums for approved
work done

• If this is what is wanted – choose

CONS

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(2) Is the Contractor going to do most

of the design?

• The Contractor does the majority of the

design (i.e., the detail design of the plant
or equipment), so that the plant meets the
outline or performance specification
prepared by the Employer,

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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 • And the Engineer (or Employer’s
representative) administers the Contract,
monitors the manufacture and erection on
site or construction work and certifies
payment,

• And with payment according to achieved

milestones generally on a lump sum
basis

• If this is what is wanted – choose

P&DB
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(3) Is it privately financed (or

public/private financed) project, of
the Build-Operate-Transfer or
similar type, where the
Concessionaire [‫ ]ﺻﺎﺣﺐ اﻻﻣﺘﻴﺎز‬takes
total responsibility for the
financing, construction and
operation of the project?

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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 • Then the Employer probably requires to
have a contract with the construction
Contractor (i.e., an EPC Contract –
Engineer, Procure, Construct), where the
Contractor takes total responsibility for
the design and construction of the
infrastructure or other facility, and where
there is a higher degree of certainty that
the agreed contract price and time will not
be exceeded,

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• And the Employer does not wish to be involved

in the day-to-day progress of the work, provided
the end result meets the performance criteria he
has specified,

• And the parties concerned (i.e., sponsors,

lenders, and the Employer) are willing to see the
Contractor paid more for the construction of the
Project in return for the Contractor bearing the
extra risks associated with enhanced certainty of
final price and time

• If this is what is wanted – choose EPCT

Contracts & Specs

Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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