The International Federation of Consulting Engineers (commonly known
as FIDIC, acronym for its French name
Fédération Internationale Des Ingénieurs-Conseils is an international standards organization for construction
technology and consulting engineering. The organization is best known for
the FIDIC suite of standard forms of contracts.
History[1]
As a result of a search for independent expert consultants for the World
Fair Exhibitions in 1913, a number of consulting engineers met to discuss
the possibility of forming a global Federation. The meeting was a success in
that it led to the formal constitution on 22 July 1913 of FIDIC, Fédération
Internationale des Ingénieurs Conseils, or later, the International
Federation of Consulting Engineers.
The Federation developed gradually over the years into a truly global
organisation with Member Associations representing countries from all
regions of the world. Today, more than ever, the role of FIDIC has become
essential for the consulting engineering industry. FIDIC not only represents
the countries where Member Association are located, it has become the voice
of the consulting engineering industry in a globalised world.
Publications[2]
FIDIC is renowned for its international standard forms of contract for
use on national and international construction projects. We publish
standard forms of contracts for works and agreements for clients,
consultants, sub-consultants, joint ventures, and representatives. FIDIC
also publishes various business practice documents such as policy papers,
guidelines and training manuals.
These documents cover a range of issues including risk management,
project sustainability management, environment, integrity management,
dispute resolution techniques and insurance and a number of guides for
quality-based selection, procurement and tendering procedures.
FIDIC Standard forms of contracts
FIDIC publishes standard international contracts known as
the “Rainbow Suite,” addressing numerous scenarios and project types in the
construction business which are used globally. These contracts have received
considerable acceptance and are used globally to control international
building projects. Below the most common types of those contracts:
- Red Book.
- Orange Book
- Yellow Book
- Silver Book
- Green Book
FIDIC Golden Principles (GPs)[3]
FIDIC publishes General Conditions (GCs) of Contract that are widely
used for international construction contracts. They are intended to be
used in any jurisdiction.
The brand of FIDIC, amongst other things, represents fair, balanced and
well recognised forms of construction and engineering contract and
agreement forms.
FIDIC GCs are based on fair and balanced risk/reward allocation between
the Employer and the Contractor and are widely recognised as striking an
appropriate balance between the reasonable expectations of these
contracting Parties. Accordingly, a contract recognised as a FIDIC
Contract has real commercial value to both the Employer and the
Contractor, both at the tendering stage, and during execution of the
Contract.
More and more frequently,
FIDIC now experiences applications of “FIDIC contracts”, where significant
changes to the General Conditions are made by means of replacing, changing
or omitting part of the wording of the GCs through the Particular
Conditions (PCs). The replacements and changes introduced have lately been
found to be substantial and of such extent, that the final contract no
longer represents the FIDIC principles, and thus are jeopardising the
“FIDIC brand”, and misleading tenderers and the public.
On FIDIC’s request, the Contracts Committee in order to identify which contractual principles
of each form of FIDIC contract FIDIC considers to be inviolable
and sacrosanct. These principles are referred to as the “FIDIC
Golden Principles” (GPs), The commitee was also requested to consider
and suggest possible ways to prevent, or at least limit, misuses of
FIDIC conditions of contracts.
The Golden Principles are as follows:
- GP1:The duties, rights, obligations, roles and responsibilities of all the Contract Participants must be generally as implied in the General Conditions, and appropriate to the requirements of the project.
- GP2:The Particular Conditions must be drafted clearly and unambiguously.
- GP3:The Particular Conditions must not change the balance of risk/reward allocation provided for in the General Conditions.
- GP4:All time periods specified in the Contract for Contract Participants to perform their obligations must be of reasonable duration.
- GP5:Unless there is a conflict with the governing law of the Contract, all formal disputes must be referred to a Dispute Avoidance/Adjudication Board (or a Dispute Adjudication Board, if applicable) for a provisionally binding decision as a condition precedent to arbitration.