Prospects of application of typical agreements of International Federation of Consulting Engineers (FIDIC) in Russia in the practice of public procurement

Abstract

The subject of this research is the general terms of three standard contracts set by International Federation of Consulting Engineers (FIDIC) in 2017 – conditions of contract for engineering, construction and installation works designed by the contractor; conditions of contract for engineering, construction and installation works designed by the employer; conditions of contract for “turnkey projects” and norms of the Federal Law “On contractual system in the sphere of procurement, works, and services for state and municipal needs; as well as bylaws in the area of public procurement and urban development, which regulate the establishment and change of conditions of construction contracts regarding the types and volume of works, their cost and deadline. The novelty of this research consists in the fact that the conditions of standard FIDIC contracts are analyzed in comparison with the current legislation of the Russian Federation on regulation of public procurement. The conducted comparison revealed discrepancies in the legal regimes of contractual relations emerging thereof. The law establishes rigid requirements to agreeing and setting conditions on the source, cost and completion time of works which impede differentiation of the level of their detailing in contract documentation, and thus the creation of a favorable environment for implementation of investment and construction projects. Excessively rigid rules of public procurement legislation pertaining to the changes of contract terms block the action of risk management procedures enshrined in the FIDIC standard contracts. As a result, the parties are not able to respond adequately and promptly to the impact of external and internal factors that affect project environment. A conclusion is made on impossibility of mutually agreed terms of application of FIDIC standard contracts and Russian legislation on public procurement without making substantial amendments to the content of standard contracts.