What Are the Types of Fidic Contracts

Over the years, FIDIC has continuously improved its contracts. The organization added new forms of contracts, replaced previous ones, and updated important terms. The following table gives a brief overview of fidic contracts to date: [1] See fidic`s website, available at: fidic.org/about-fidic If you wish, select the general conditions for the construction of employer-designed construction and engineering works (the construction contract), which effectively update and replace the existing 1987 Red Book. In 2005, FIDIC granted the Multilateral Development Banks (MDS) the license to use the MDB harmonized edition of the construction contract for bank-financed projects. The MDS construction contract mainly contains specific conditions for the Red Book used by the World Bank in its standard tender documents before it and the other MDBs adopt the harmonized edition. 2. Will the contractor take over most of the design? As with traditional projects, e.B electrical and mechanical work, including on-site assembly (The Yellow Book), the contractor (or supplier) performed the majority of the design, e.B. detailed planning of the plant or equipment so that the plant meets the sketch or performance specification created by the employer, and in relatively recent design-build and turnkey projects, the contractor has also carried out the majority of the design, not only of the plant projects, but also of various infrastructure projects and other types of projects, and the project had to meet the “employer requirements”, i.e. a sketch or service description prepared by the employer (The Orange Book), In this contract, the contractor has greater freedom to meet the end-user`s requirements under the terms of the contract.

This type of contract seems to be more profitable for the entrepreneur than the traditional form of contracts, and he is therefore willing to accept the highest level of risk. FIDIC contracts are now the most widely used standard form of international construction contracts worldwide. Standard FIDIC contracts are often used in large and small construction projects and are suitable for parties of different nationalities who speak different languages and come from different jurisdictions. Other lesser-known FIDIC contracts include the “Green Paper”, which is a short-form contract for relatively small projects of a repetitive nature or of short duration when the employer provides the design. According to FIDIC guidelines, $500,000 and 6 months are considered an appropriate capital and duration limit for projects that use Green Book forms. FIDIC (International Federation of Consulting Engineers) is an international professional organization composed of advisory chambers of engineers. Model contracts established by FIDIC on the basis of the organization`s years of experience are often used in international projects as they unify technical, operational and legal issues. Two of the best-known FIDIC contracts are the Red Book, in which the employer executes the design, and the Yellow Book, where the contractor executes the design. After FIDIC introduced new model contracts that offered parties more flexibility for different needs and released updated versions to spread risk between the parties in a more balanced way, the use of FIDIC contracts became much more widespread.

Today, FIDIC contracts are used in both international and local projects. These contracts include a number of conditions suitable for the supply of electrical and/or mechanical equipment, as well as for the design and construction of buildings or civil engineering services. Under this Agreement, the Contractor designs and delivers the equipment and other work, which may include any combination of construction, mechanical, electrical and/or construction work, in accordance with the employer`s requirements. Since 1957, future FIDIC treaties have successfully adopted the principles of other legal systems, in particular the civil law system. However, the basic framework of English legal principles has survived. For example, the provisions on lump-sum compensation have been maintained. Over the years, FIDIC has become famous for its secondary activity in creating model contracts for the construction and mechanical engineering industries. Today, the legal relations established on the international scene are developing rapidly and diversifying. It has become necessary to ensure consensus among parties belonging to different nations and legal systems in construction work that is often carried out. This has created the need to develop international model contracts.

This type of contract, now called FIDIC, was co-prepared by the International Federation of Consulting Engineers and the International Federation of Building and Public Works and published in 1957. The standard documents and contracts that have been used for many years have been developed and revised over time, in particular to take into account the evolution of technology and needs over the past decade. Although the FIDIC family covers a wide range of contracts, there are some similarities: in Turkey, some technically and financially important projects abroad are carried out with FIDIC contracts. These can be listed as Marmaray project, Baku-Tbilisi-Ceyhan pipeline, Istanbul-Ankara highway project. The Yellow Book are the contractual conditions for the installations and construction of electrical and mechanical engineering installations as well as for the construction and engineering work of the contractor. It has been mainly used in construction projects for the supply of electrical and mechanical systems as well as in equipment work. However, after emphasizing the method of procurement and removing the term “electrical and mechanical work” from the title of the contract, the Yellow Book became applicable to all types of construction work designed by the contractor. The Yellow Book is now widely used for the supply of electrical and mechanical equipment, as well as for the planning and execution of construction and engineering works. According to the Yellow Book, the shooter is paid at a flat rate. It has become a tradition for FIDIC contracts to be popularly known by the color of their envelope. If desired, select EPC/Turnkey projects (EPC/Turnkey Contract).

3. Is it a construction project where the employer wants his or her building(s) to be built on a fixed turnkey price basis, usually complete with all furniture, accessories and appliances? As indicated in point 2 above, in the case of a building construction or fitting-out project, the employer or his architect may have carried out part or most of the design, but – with appropriate modifications in terms of design responsibility – the contractual conditions for EPC/turnkey projects (EPCTurnkey contract) can be chosen. D. Conversion or renovation or any other type of project Check questions A1, B1 and B2 above or questions C1 to C3, if applicable, and make your choice accordingly. If you wish – select the contract terms for EPC / Turnkey (EPC / Turnkey Contract) projects – the FIDIC book adapted for this purpose. .