The Effect of FIDIC red book 2017 to avoid disputes in Egyptian construction field

Abstract

Egypt incurred about 74 billion of Egyptian pounds in the last decade due to arbitration cases. This paper aims to find a solution for the Egyptian construction industry to avoid disputes among project parties, which convert the project from win-win situation to lose-lose situation and the project may not be completed. Methods/Analysis: This study uses the new approach of contracts administration of avoiding disputes from its inception represented in FIDIC 2017 and the approach of disputes settlement represented in FIDIC 1999 instead of the used ad-hoc construction contracts in Egypt. After analyzing the Egyptian construction field, it is found that each of badly written contract and poor contract administration are the main reasons for most of disputes among project parties. as a try to solve this issue, a case study been applied to use the standard contract of FIDIC 2017 to be the project’s contract instead of used regular ad-hoc contracts in Egyptian construction field, results confirmed that the new approach of disputes avoidance is in the line of the nature of Egyptian construction projects, in addition to FIDIC 2017 mentions more detailed conditions and scenarios which avoid almost all project disputes and deliver the project to the completion date with win–win situation for all project parties. Novelty/Improvement: the application of standard contract of FIDIC 2017 as the project contract in Egypt shall be a solution for the badly written contract and facilitate the contract administration for all project stages which shall be a great step to improve the Egyptian construction field and save billions of Egyptian pounds in arbitration courts.