The FIDIC Red Book Development from 1987 Standard Form to 2010 MDB Harmonised Edition

Toby RandleToby Randle

What is FIDIC?

Federation Internationaledes Ingenieurs-Conseilsdes Ingenieurs Conseils

Produces a suite of contractscontracts

Founded by international i 1913engineers 1913

First FIDIC Red Book 1973

The FIDIC Suite

Why Choose FIDIC?

International favourite

Well known to funders

Well respected

No learning curveg

Other Options

IChemE

NEC 3

ICEICE

ENNA Japan

AIA, EJDC & AGC USA

RAIC Canada RAIC - Canada

When to Use FIDIC Red/Pink?

Build-only

Detailed design provided by Employer / Engineer

Major civil engineering

Infrastructure

NuclearNuclear

Key Features of Red Book

Financial protection for Contractor (clause 2)

Employer not impartial (clause 3)

Any Contractor designed works Any Contractor designed works fit for purpose (clause 4)

Re-measurement (clause 12)

Payment and progress reports (sub-clauses 4.21 and 14.3)

Claims (clause 20)Claims (clause 20)

Key Features of Pink Book

Engineers authority unlimited (clause 3)( )

Financial protection for Contractor (sub-clause 8.1)Co t acto (sub clause 8. )

Fradulent, corrupt, collusive, coercive collusive, coercive practices (sub-clause 15.6)

Difficult to terminate (sub-Difficult to terminate (subclause 16.2)

Pitfall 1: Loss and Expense

Sub-clause 20.1 no prolongation cost (also time bar)

Sub-clause 8.4 no prolongation cost

Sub-clause 8.9 increased cost for suspension very limitedfor suspension very limited

Sub-clause 2.1 cost and reasonable loss of profit for delay in accessing sitey g

Sub-clause 1.9 Contractor friendly provision for cost and reasonable loss of profit for delayed drawings or instructionsdelayed drawings or instructions

Pitfall 2: Appendix to Tender

Complete Appendix to Tender ProperlyTender Properly

Changes in Cost (cl 13.8)

Sectional Completion (cl 8.2 and 8.7)

Main complaints in relation to Red Book

Are DAB decisions enforceable?

FIDIC Guidance

Attitude of English court

Conclusion

Flexible contract

Well known to funders Well known to funders

BUT, enforcement may be difficult

If you only remember these things.

Be careful with loss and expense

Fill in the Appendix to Tender properlyFill in the Appendix to Tender properly

Choose your jurisdiction clause wisely

And Finally.

Choice of Contract no substitute for:-substitute for:

Quality team

Clarity of design obligations

Good contract management

Effective communication

The FIDIC Red Book Development from 1987 Standard Form to 2010 MDB Harmonised Edition

Toby RandleToby Randle