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The use of FIDIC Contracts and

Agreements in the Nordic market

Kaj Möller (SWE), FIDIC Exec. Committee member 2011 – 2014.
Liaison with the FIDIC Contracts Committee.

International Federation of Consulting Engineers

Professional Services Agreements
FIDIC publishes model
agreements for professionals
services:
- Client/Consultant
- Joint Venture
- Sub-Consultant
- Representative

e-book…… More than 40. Hard Copies. soft copies.000 copies supplied each year .Works Contracts – Rainbow Collection FIDIC publishes internationally recognized forms of contract for infrastructure works as well as for industry investments.

. •The 2011 Subcontract for Construction-only contract form.Works Contracts – Red book spin-offs Originating from the Construction-only (Red Book): •The 2010 Multi-Lateral Bank (MDB) Harmonized Red Book (Pink Book).

Build and Operate form (The Gold book).Works Contracts – Silver book spin-offs Originating from the 1999 EPC/Turnkey (Silver book) •The 2008 Design. .

. World-wide acceptance Tested for more than 50 years. bear it. RECOGNISED Positive FIDIC image.FIDIC Contracts . COHERENT Essential clauses. Readily adaptable to fit requirements. COMPLETE. EQUITABLE Risk allocated to party best placed to control it. FLEXIBLE Range covers most needs. and deal with it.Advantages CLEAR. Detailed definitions. Consistent structure. THIRD PARTY Drafted by consulting engineers who design and manage projects. FAIR.

•Sub-Consultant 1st edition 1992 update. •Tunnelling Contract form. first release. •Sub-Contracts forms for Yellow and Silver Books.. •Short form (Green Book). Plant and Design-Build (Yellow Book). 1st edition 2006 update.Procurement & Business Practice – Work in Progress Contracts & Agreements in progress •Design. first release. additional updates. EPC/Turnkey (Silver Book). Retention Guarantees and ICC ref. Construction (Red Book). 1st edition 1999 (Rainbow Suite) update. •Joint Venture 1st edition 1992 update. •Client / Consultant 4th edition 2006 update. . Build and Operate 1st edition 2008 (Gold Book) form. •Dredging and Reclamations. first release. •Operate. Design and Build (ODB) Contract form.

The use of FIDIC Contracts and Agreements in the Nordic market Kaj Möller (SWE). Liaison with the FIDIC Contracts Committee. International Federation of Consulting Engineers . Committee member 2011 – 2014. FIDIC Exec.

. e. • Finish General Conditions for Engineering Consulting Services (KSE 1995). Civil Engineering and utilities (ABT 06). • Danish General Conditions for Consulting Services (ABR 89).g: • Swedish General Conditions of Contract for Consulting Agreements for Architectural and Engineering Assignments (ABK 09). • Swedish General Conditions of Contract for Design and Construct Contracts for Building.National forms in the Nordic market All Nordic countries have their own Conditions of Contract for works and services. • Swedish General Conditions of Contract for Building and Civil Engineering Works and Building Service (AB 04).

Global players use global suppliers.The Nordic construction and eng. market Globalization has finally reached the Nordics in full force. In the home market as well as overseas! .

International Federation of Consulting Engineers .

market From a protected national monopoly to full international competition. .The Nordic construction and eng. Even the public funded Clients are looking around for alternative supplier! Developed national markets for international suppliers have now reached the Engineering Consulting industry.

“North ring road Stockholm” – one main contractor Bilfinger (GER). are the competitors (contractors) coming? “Copenhagen Cityring” – main civil contractor Salini Construttori (ITA). EPC contractor Areva (FRA) / Siemens (GER). . Helsinki. Olkiluoto 3 Nuclear power plant”. market So.The Nordic construction and eng.

40 EUR / h to a supplier with bulk engineering provided from Poland. Total Project budget app 3 BEUR. with some 18 km in tunnels.The Nordic construction and eng. Swedish National Transport Authorities. Employer. market So. are the competitors (consultants) coming? “Bypass Stockholm” A 22 km long section of the freeway ringroad around Stockholm. Main engineering design agreement (25 MEUR) awarded at app. .

market So. Danish State and the Municipality of Frederiksberg. . are the competitors coming (consultants)? Copenhagen “Cityringen” A15.The Nordic construction and eng.5 km long new subway line with 17 new sub-surface stations Client. Salini procured Detailed Design services at app 55 EUR / h from Italian Engineering Consultant Technimont. Metroselskabet I/S through Municipality of Copenhagen. Main Civil (EPC) Contract won by Italian Contractor Salini Construttori.

inexpensive cooling capacity without restrictions. Access to renewable energy.The Nordic construction and eng. . Easy to achieve required security level in this remote area. Luleå (A). Cold climate in rural area and thus reduced need for. but yet access to. wind and hydro-electrical power.      Access to highly developed internet fiber network. •Location deciding factors. global Clients also invest in the Nordic countries! Facebook Data Server Centre. Sweden •Facebook´s first Data Server Centre outside the US. Access to nearby international full-scale cargo airport. market Thanks to the global exposure.

However. Prefer globally recognized forms such as FIDIC. no regulatory obstacles to apply FIDIC forms for public works and services. • As for Red. • Private funded global Clients. • Public funded Nordic Clients: Slowly moving towards internationally recognized forms. Variation & Claim resolutions and “DAB´s”. Feel uncomfortable with national forms. which is a very rare case. All Nordic countries has their own National forms. if not having established own corporate contract standard. . Yellow and Silver book.FIDIC forms in the Nordic market What does all this mean in the context of the use of FIDIC Contract and Agreement forms in the Nordic countries 1 (2)? • Private funded Nordic Clients: Well familiar and open to using FIDIC forms both in home market and overseas market. public funded Nordic Clients need to get used to main principles as “The Engineer”.

. this will generate an increased use of FIDIC Services Agreements for sub-suppliers. FIDIC Agreement forms not necessary popular as they focus on QBS rather than CBS. However. With more international Contractors in the market. • There is an unfortunate development towards “commoditizing” Procurement Departments. • Public funded Clients move towards EPC or Design-Build delivery methods. the trend seems temporary as project tend to fail when being procured on this principle.FIDIC forms in the Nordic market What does all this mean in the context of the use of FIDIC Contract and Agreement forms in the Nordic countries 2 (2)? • English is the Nordic people´s “first” language which reduces the doubt and hindrance of using FIDIC forms.

FIDIC World Consulting Engineering Conference Quality of Life – Our Responsibility .

International Federation of Consulting Engineers President Geoff French.org www.org Managing Director Enrico Vink Nordic Liaison Kaj Möller kaj.se +46 734 12 65 03 .moller@sweco. UK President Elect Pablo Bueno. Spain Secretariat FIDIC World Trade Center 2 Geneva Airport Box 311 CH-1215 Geneva 15 Switzerland Tel: +41 22 799 49 00 Fax: +41 22 799 49 01 fidic@fidic.fidic.