The Constructor

FIDIC Contracts – Forms of FIDIC Contracts and Their Uses

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FIDIC Stands for Fédération Internationale Des Ingénieurs-Conseils (International Federation of Consulting Engineers) which has about 102 countries as members. The FIDIC forms of contract have conditions suitable for use in all types of construction, electrical, mechanical and domestic contracts.

Forms of FIDIC Contracts and Their Uses

In 1999, FIDIC published four new editions of forms of contracts :

  1. Conditions of contract for construction
  2. Conditions of contract for plant and design-build
  3. Conditions of contract for EPC and Turnkey projects
  4. Short form of Contract
Forms of FIDIC Contracts

1. Conditions of Contract for Construction

The Contract for construction includes a set of conditions recommended for building or engineering works where the owner provides most of the design. However, the contract work may also include some contractor-designed civil, mechanical or electrical works.

These days many contractors design a significant portion of the work on their own, so the conditions of contract for construction includes more provisions which are applicable under such cases.

Also Read: Standard Contract Documents in Construction

2. Conditions of Contract for Plant and Design-Build

These contracts include a set of conditions suitable for the provisions of electrical and/or mechanical plant and for design and construction of buildings or engineering works. Under this contract, the contractor designs and provides the plants and other works which may include any combination of civil, mechanical, electrical and/or construction works, as per the requirement of the employer.

This type of FIDIC contract is also suitable for design and construction of building and engineering works. This contract requires the appointment of an engineer to administer the contract.

3. Conditions of Contract for EPC or Turnkey Projects

EPC stands for engineering, procurement and construction. This contract is suitable for turnkey projects such as power plants, process factory, infrastructure projects or any developmental works. The projects under this type of contract have a higher degree of certainty on project cost and time of completion.

The contractor has the responsibility of design and execution of the project including the guarantees of the performance. The contractor carries out the engineering, procurement and construction providing a fully equipped facility ready for operation.

In this contract, the contractor has greater freedom to satisfy the requirements of the end-user as specified in the conditions of the contract. This type of contract seems more profitable to the contractor than the traditional form of contracts, and thus, they are ready to accept the greater degree of risks.

4. Short Form of Contract

Short form of contract is suitable for small construction works (i.e. small capital value projects) of short duration or of relatively simple and repetitive works. This contract is suitable for any type of engineering and construction projects irrespective of who provides the engineering. Depending on the type of work and circumstances, this type of contract may also be suitable for contracts of higher values.

The contractor has to carry out the construction works as per the design provided by the owner. This contract may also include contractor-designed civil, mechanical, electrical and/or construction works.

Also Read: Units of Measurement for Payments of Civil Construction Works

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