FIDIC Red Book Research Articles

Joint and several liability at the interface of national and international law and the FIDIC conditions of contract

Abstract The international terms of the 2017 FIDIC Red Book (reprinted and amended in 2022) state that, when the contractor is a joint venture (JV), all members are jointly and severally liable to the employer. These terms also establish certain procedural rules—the most important ones being the submission to the employer of the JV undertaking and the appointment of a leader. However, these international terms do not provide for substantive rules pertaining to the plurality of the JV members. These require reference to the applicable law that governs the construction contract. The applicable law can be domestic law, such as Qatari law, or an international soft law, such as the Unidroit Principles. Comparing these two possibly applicable laws, it becomes evident that there are no significant differences between the two regarding the substantive rules concerning a plurality of obligors. Furthermore, it is argued that the majority of these substantive legal rules, whether national or international, are inoperative in a construction contract incorporating the international terms of the FIDIC Red Book.

The FIDIC red book contract: an international clause-by-clause commentary

The FIDIC red book contract: an international clause-by-clause commentary

The FIDIC Red Book Contract: An International Clause-by-Clause Commentary edited by Christopher Seppälä

The FIDIC Red Book Contract: An International Clause-by-Clause Commentary edited by Christopher Seppälä

Potensi Sengketa Kontrak Konsultan Pengawas Akibat Perpanjangan Waktu Kontraktor pada Proyek Pemerintah Daerah Dki Jakarta Berdasarkan Fidic White Book


 
 
 
 
 
 
 
 
 
 
 
 
 The purpose of this study is the identification of factors that result in supervisory consultants not being extended and not paid. This type of research is a combined study with a sequential form. Where quantitative is based on the philosophy of positivism which emphasizes objective phenomena and is studied qualitatively. A qualitative approach is used to examine the project, several techniques are used to collect data suitable for analysis. The results of the study stated that 7 dominant clauses caused the contractor's claim in the FIDIC Red Book, namely: 1) 8.4 Extension of Completion Time; 11.8 Investigation by the Contractor; 3) 17.1 Indemnification; 3) 7.4 Testing; 4) 8.9 Consequences of Termination; 5) 14.8 Late Payment; and 7) 4.12 Unforeseeable Physical Condition. In conclusion, all respondents the first largest RII value is X.3.4 Article in the Contract "The supervisory consultant contract document on the general terms of the article on the extension of implementation time is not in line with that stated in the SPMK, this has the potential to become a dispute". Then the second largest RII value is X.3.5 Article In the Contract "The submission of the final report of the supervisory consultant must be based on the weight of the contractor's implementation work 100%".
 
 
 
 
 
 
 
 
 
 
 
 
 
 Fidic White Book; Contractor; Government Projects
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Evaluation of the 28-Day Period to the Contractor's Requests for an Extension of Time and Additional Payment Under Article 20/2 in the FIDIC Red Book Regarding with Respect to the General Transaction Conditions in the Turkish Code of Obligations

Yerel ve uluslararası inşaat ve mühendislik faaliyetlerinde kullanılmak üzere çeşitli kurum ve kuruluşlar tarafından hazırlanmış çok sayıda tip sözleşme bulunmakta olup, bunlar içerisinde en çok tercih edileni, temel kitap niteliğinde olan FIDIC Kırmızı Kitaptır. FIDIC Kırmızı Kitap’ta yüklenicinin süre uzatımı ve ek ödeme taleplerine ilişkin izlenmesi gerekli yol 20/2. maddede ayrıntılı olarak düzenlenmiş olup buna göre, yüklenicinin süre uzatımına ve ek ödeme yapılmasına sebep olan olay ya da durumundan haberdar olduğu ya da olması gerektiği tarihten itibaren 28 günlük süre içerisinde süre uzatımı ve ek ödeme talebinde bulunması gerekmektedir. Aksi takdirde iş bu 28 günlük süre bir hak düşürücü süre niteliğinde olması sebebiyle yapılan bildirim geçersiz olacaktır. Ancak Kırmızı Kitap dahil FIDIC sözleşmeleri, emredici uluslararası hukuk kuralı niteliğinde olmayıp, birer özel hukuk sözleşmesi niteliğinde olmaları nedeniyle, sözleşme hükümlerinin, sözleşmeye uygulanacak hukukunun emredici kurallarına aykırı olmaması gerekmektedir. Aksi takdirde, söz konusu sözleşme hükümleri geçersiz sayılacaklardır. Bu kapsamda bizim de içerisinde yer aldığımız Kıta Avrupası Hukuk Sistemine tabi birtakım hukukçular tarafından iş bu 28 günlük sürenin, taraflar arasında müzakere konusu yapılmamış bir genel işlem koşulu niteliğinde olduğu gerekçesiyle geçersizliğine karar verilebileceği ifade edilmektedir. Ancak Türk Borçlar Kanunu’nda yer alan genel işlem koşullarına ilişkin hükümler dikkate alındığında, söz konusu görüşün kabulü mümkün değildir.

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

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.

A Comparative Study of the International Construction Contract (FIDIC Red Book 1999) and the Domestic Contract in Egypt (the Administrative Law 182 for the year 2018)

A Comparative Study of the International Construction Contract (FIDIC Red Book 1999) and the Domestic Contract in Egypt (the Administrative Law 182 for the year 2018)

Selecting feasible standard form of construction contracts using text analysis

Delivering successful projects requires establishing a well-drafted contract, through setting balanced rights and obligations. Nowadays, Standard Forms of Construction Contracts (SFCCs) are being utilized, aiming to manifest the contractual relationships between the parties. This research aims to develop a model that helps in selecting the most appropriate SFCC using text analysis and multi-criteria decision-making techniques. This research studies three SFCCs which are: 1 (FIDIC Red Book 2017, 2 (JCT Standard Building Contract with Quantities 2016, and 3) NEC4 Engineering and Construction Contract. The research compares SFCCs in terms of five aspects which are: 1) Readability, 2) Sharing common goals, 3) Loss and rewards, 4) Dealing with uncertainties, and 5) Suspension by parties. Literature emphasized that these aspects were proven to be crucial in achieving a successful contract agreement. The research starts with contract analysis to extract insights for the selected SFCCs. Where the clauses and provisions of the three SFCCs are compared based on the output of the text analysis process. Accordingly, questions are developed to assist the user in selecting the most suitable SFCC based on a hybrid Multi-Criteria Decision-Making model. Finally, a recommendation system is developed to advise the user for critical success factors to be considered in the contract formation stage. This study adds to the body of knowledge of contract management and aids in proactively avoiding or mitigating conflicts and disputes, by reducing the contractual-related problems that may take place due to inappropriate contract types or provisions.

Design Liability under FIDIC Red Book and Some Civil Law Jurisdictions

AbstractThe construction industry has enormous supply and decision-making chains. Disruptions within these chains can have significant adverse impacts on countries’ economies. There are several met...

Revisiting the Enforceability of FIDIC’s Notice Requirement Under Indian Law: Contractors Cautioned

Contractual clauses like FIDIC’s notice requirement for contractor’s claims has long been perceived to be unenforceable under Indian law, being hit by Section 28(b) of the Indian Contract Act 1872. However, a deeper appreciation of this theme shows something else. It requires an examination of the historical development of Section 28(b) and the surrounding judicial precedents. In light of this, it requires to be seen how/in what way a FIDIC Redbook’s notice requirement (noting its consequence and purpose) falls outside the scope of Section 28(b) of the Contract Act. The issue remains to be finally settled by Indian courts.

ANALISA KONTRAK PROYEK KONSTRUKSI DI INDONESIA

The contract is a very importand document in the project. Contract are seen as laws that must be obeyed, govern and control the rights and obligations between service users and service providers in the project. In world of construction in Indonesia, the standard used for contract documents must be based on Law No.2 of 2017 on construction services as a guide and guidance in constructions activities in Indonesia. In the international world, FIDIC documents has long been recognized, which is a contractual rule that has been used by many countries. FIDIC has also been widely adapted to government and private projects in Indonesia. The first analysis is to identify the contract documents used in several project in North Sumatera region. This analysis shows that the FIDIC red book document is the most suitable document to be used in several project in North Sumatera. The second analysis is comparing the FIDIC document and the analysis shows that the contract document that best matches the points in the questionnaired is Law No. 2 of 2017 on construction services. From the analysis of the previous discussion a conclusion was drawn regarding the philosophy of the work contract discussed was the type of unit price contract based on.

CONSIDERATION OF CONTRACTUAL RISKS ASSOCIATED WITH COASTAL AND MARITIME ENGINEERING WORKS

Coastal and maritime construction projects are fraught with risks associated with working in or around the sea. Common standard contracts such as those within the FIDIC Red Book do not adequately address the peculiarities associated with this unique environment. This paper will document the major areas of generic contractual risk and uncertainty with regard to coastal and maritime projects through review of literature, case law and other published disputes, as well as personal experience. Through identification and comparison of both the risks associated with these projects and the vulnerability within the standard FIDIC language, recommendations will be made for particular conditions to improve contract wording.Recorded Presentation from the vICCE (YouTube Link): https://youtu.be/1BkXEoaZZow

Applicability of the 2017 FIDIC Red Book in Civil Law Jurisdictions

Abstract In 2017, the FIDIC launched a new edition of its Red Book—a recommended construction-related contract for building and engineering works designed by the employer. The roots of this book were influenced by the common law legal system, whereas many countries follow the civil law legal system. Amongst the latter countries is the United Arab Emirates, which has attracted construction parties from all over the world. Those who wish to use the Red Book amongst such parties should be acquainted with the local limitations on its applicability. Such acquaintance can provide them with a proper understanding of their rights and obligations. This article discusses these limitations using the doctrinal research method, which included, inter alia, an examination of all relevant decisions by local higher courts during the 2009-2019 period. The discussion shows that such limitations can be confronted owing to conflicts with local judicial jurisprudence and/or mandatory statutory provisions.

Delay Damages: The Application of Qatari National Law to Article 8(8) of the 2017 Red Book

Abstract This article addresses a common conundrum when a government is a party to a Red Book contract, that is governed by Qatari national law: the inter-relationship between national law and the voluntarily agreed-upon contractual terms. This article sets forth a proposal that is to amend two Qatari laws as applicable to delay damages under contracts based upon the FIDIC Red Book where a governmental entity is a party to that contract and the parties have elected Qatar law as governing the contract. The two laws are the Qatari Civil Code (QCC 2004) and the Tendering and Procurement Law (T&P 2015). QCC 2004 applies when the Employer and Contractor are private law persons. T&P 2015 applies when the Employer is the government. Each law contains provisions that conflict with and supersede the delay damages provisions of the Red Book, in each case depriving the contractual parties of their intended result.

Replacement of the Engineer under the New FIDIC Red Book 2017: Issues of Agency and Privity of Contract, with a Note on Qatar

New rules have been introduced in the 2017 edition of the FIDIC Red Book, particularly in relation to the replacement of the engineer. Hence, the contractor has now become under a time limit to res...

The replacement of the engineer under the new FIDIC Red Book 2017: issues of agency and privity of contract, with a note on Qatar

The replacement of the engineer under the new FIDIC Red Book 2017: issues of agency and privity of contract, with a note on Qatar

Consequences of Quantities Increase under Some Civil Codes and FIDIC Red Book

AbstractThe forms of the International Federation of Consulting Engineers (FIDIC) are frequently used in international projects. Numerous construction contracts in the Arab Middle East countries us...

Hazards in Realization of Railway Investments Carried Out in Poland Based on Red Book FIDIC Contractual Conditions

The article contains information on identified hazards during the implementation of railway investments in Poland. The study covered investments that were carried out on the basis of the FIDIC Contractual Conditions – Red Book. In recent years, railway investments in Poland have been largely implemented in the Design and Build formula. Unfortunately, this formula is fraught with many hazards, both for the contractor and the contracting entity. The aim of leveling the difficult-to-predict hazards (especially those occurring at the stage of investment implementation), whose effects negatively affect the implementation of investments, contracting entities more and more often decide to implement investments according to the FIDIC Red book. This procedure transfers most of the risk to the contractor, but according to the authors, it is also burdened with numerous hazards, which is demonstrated in the presented results. The research was carried out with the participation of a large group of selected experts and developed statistically. The paper presents a list of hazards with an indication of the frequency of their possible occurrence on future railway investments. The analyses were limited to risk factors resulting exclusively from the specificity of railway investments, omitting classical hazards associated with traditional construction. Statistical analyses were performed using the IBM SPSS Statistics 23 package. It was used to test χ2 and a one-way analysis of variance in the intergroup scheme.

Civil Law Context for Understanding Employer’s Payment Obligations under Common Law FIDIC

The Egypt civil law (ECL) is founded upon the French civil law principles as well as Shari’a law. Yet, most of the major construction projects carried out in the Egyptian market are based on the standard conditions of contract for international projects published by the Federation Internationale des Ingenieurs-Conseils (FIDIC, or International Federation of Consulting Engineers), which is based on legal concepts rooted in the common law system. Thus, the stakeholders engaging in construction projects in Egypt need to understand the interpretation of the FIDIC provisions against a civil law background. This paper uses a multistep interdependent desktop research methodology to study the employer’s payment obligation provisions under the FIDIC Red Book 1999 [FIDIC (1999), Conditions of Contract for Construction] [i.e., FIDIC (CONS)] within the context of the ECL. Consequently, similarities and differences between the relevant provisions under the FIDIC (CONS) and the ECL are recognized in relation to contract price, payment mechanisms, and delayed payment. On the basis of such analysis, it was concluded that the allocation of risks related to the contract price under the FIDIC (CONS) is different from the allocation of risks under Article 657 of the ECL [ECL (1948), “Egyptian Civil Law”], which provides the provisions of remeasured contracts. Further, it was clear that the ECL provides a wider range of remedies than the FIDIC (CONS). However, there are limitations on the application of some of the remedies under the ECL. Accordingly, five recommendations were provided to amend Article 657 of ECL in relation to contract price; four suggestions were introduced as additions to delayed payment management under the Muqawala contract; and an amendment to Clause 16.2 of FIDIC (CONS) was introduced. It is expected that this study would better align the stakeholders who are associated with construction projects in the Egyptian market toward managing the payment risks in their projects.

Variations and the Resolution of Disputes under the FIDIC Red Books

Uptake of the 1999 FIDIC Red Book has been slow in the Middle East/GCC, with users preferring the 1987 Fourth Edition of the Red Book instead.This article highlights some of the ways in which users in the region personalize the Red Book. It also identifies those provisions of the Red Book that may conflict with mandatory rules of law set out in the region’s civil codes. These include provisions concerning instructions, variations, omissions and the notification of claims.The authors also discuss the role of the engineer under the 1987 Fourth Edition of the Red Book and the Dispute Adjudication Board procedure in the 1999 Red Book. They comment on the uptake of both within the region, suggest steps that might be taken to overcome their perceived shortcomings, and indicate where developments can be expected.