FIDIC and FIDIC Contracts - Dr. Ahmed H....
Transcript of FIDIC and FIDIC Contracts - Dr. Ahmed H....
Fédéra
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FIDIC CONTRACTS
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What is FIDIC ?
• An international federation of consulting engineers,
founded in 1913 with its headquarters located in
Lausanne, Switzerland, whose objective is to promote the
common interests of the member associations and
disseminate information to its members for the
development of consulting industry.
• What does FIDIC do?
• Arrange seminars and conferences and prepare standard
documents, in the furtherance of its goals.
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FIDIC CONTRACTS
Conditions of Contract for Construction (Red Book)
Conditions of Contract for Plant and Design-Build (Yellow Book)
Conditions of Contract for EPC/Turnkey Projects(Silver Book)
Short Form of Contract ( Green Book)
CLIENT/CONSULTANT MODEL SERVICES AGREEMENT
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The New Red Book
• For Construction of major building or engineering projects
in general
• Employer’s Responsibility for Design
• Unit Price Contract/Remeasurement (monthly payment)
• Administration of Contract by Engineer
• Pro-contractor in terms of risk allocation
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The New Yellow Book
• For provision of mechanical and electrical plant, and for
design and execution of building or engineering projects
• Contractor’s Responsibility for Design(design extent?)
• Lump-sum, with adjustments (stage/milestone or monthly
payment)
• Administration of Contract by Engineer
• Pro-contractor in terms of risk allocation
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The Silver Book
• For provision on a turnkey basis of a process or power
plant, etc.
• Contractor’s Total Responsibility for Design
• Normally fixed Lump-sum, with few adjustments
(stage/milestone or monthly payment)
• Administration of Contract by Employer’s Representative
• Pro-employer in terms of risk allocation
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The Green Book
• For Building or Engineering Works of Small Capital Value
or containing mostly simple or repetitive work
• Contractor’s or Employer’s Responsibility for Design
• Lump-sum, with adjustments (monthly payment)
• Administration of Contract by Employer’s Representative
• Pro-contractor in terms of risk allocation
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CONDITIONS OF CONTRACT
Guide
published 2001
published 1999
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WHICH BOOK TO USE?
STRAIGHTFORWARD
PROJECT ? EMPLOYER DESIGN ?
CONTRACTOR DESIGN
plant and/or high
unforeseen risks
fixed price - lump sum
little employer involvement
no major unforeseen risks
no
no
no
DISCUSS IN DETAIL
Employer ’s requirements
with the Contractor, and
negotiate a modified
FIDIC contract
no
yes yes
yes yes
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FEATURES AND ADVANTAGES
fair apportioning of risks, rights and obligations between the parties
BALANCED
WELL TRIED
long case history for earlier contracts
ACCEPTED
known and recognized; in wide use for international contracts
SUPPORTED
recommended or required by development banks,
EFFECTIVE
clear and complete conditions; time limits; provisions for attribution
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Key points: CONSTRUCTION
• Employer designs
• Engineer, working for the Employer
• Bill of Quantities
• Payments based upon measurements
• Certification of payments by Engineer
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Key points: PLANT & DESIGN-BUILD
• Contractor designs
• Engineer, working for the Employer
• Lump sum pricing
• Payments according to progress
• Certification of payments by Engineer
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Key points: EPC/TURNKEY PROJECTS
• Contractor designs and takes full responsibility
• Employer may appoint a Representative
• Fixed price, to cover risks taken on by Contractor
• Payments according to progress
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Key points: SHORT FORM
• Simple projects
• Design by either party
• Employer may appoint a Representative
• Valuation as appropriate; to be agreed
• Payments according to value of Works executed and
Materials and Plant delivered to site
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Key points: CLIENT/CONSULTANT
• Agreed Scope of Services: Appendix A (the agreed scope
of services)
• Normal, Additional and Exceptional Services
• Normal Services priced as agreed
• Additional and Exceptional Services at rates agreed
• Payment schedule as agreed
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USE OF FIDIC CONTRACTS
• Match contract and project
• Decide the form of contract early
• Appoint Dispute Arbitration Board early
• preparation of the contract should be done by
professionals
• Do not touch the General Conditions
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PRINCIPLES OF PROCUREMENT
• Effectiveness
• Economy
• Efficiency
• Accountability
• Transparency / confidentiality
• Strong competition
• Publicity, wide participation
• Fair and equal conditions
• Standard procedures
• Standard documentation
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PROCUREMENT CATEGORIES
• Goods
• Works
Versus
• Consultant services
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TENDERING PROCEDURES
• Development bank / public procurement procedures
• Open tendering / International Competitive Bidding
• Local tendering / National Competitive Bidding
• Restricted tendering / Limited Bidding
• Two stage tendering
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SELECTION PROCEDURES/CRITERIA
• Criteria defined and published in advance
• Economically most advantageous offer
• Quality based selection for intellectual services
• Quality and cost based selection
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PROCUREMENT STEPS
• Preparation
• Publication
• Pre-qualification / short-listing
• Invitation
• (Submission)
• Evaluation
• Award, contracting
• Supervision, contract administration
• Lessons learned
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PREPARATION OF PROCUREMENT
• Determination of needs and objectives
• Determination of constraints
• Identification of parties
• Planning, budgeting, financing
• Contract type
• Selection procedure
• Requirements / Specifications / Bills of Quantities /
Terms of Reference
• Pre-qualification and evaluation criteria
• Particular conditions
• Tender documents
• Publicity
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CONTRACT ADMINISTRATION
• Supervision
• Implementation of rule
• Quality and quantity
• Invoice verification
• Payments
• Extensions, variation orders, modifications
• Termination
• Disputes and their resolution
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RISKS IN PROCUREMENT
• Wrong goods, works, services
• Bad value for money
• Fraud
• Corruption
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QUESTIONS?
25
Contact:
Ahmed Elyamany
019-4100-824