If you’re advising or consulting on a construction project, it’s important to have the right contracts in place to avoid disputes and comply with the latest legislation.
This only becomes more apparent when working on international projects, involving multi-jurisdictional agreements.
This is where FIDIC contracts come in, to define roles and distribute the risks involved in a project for consulting engineers and other construction engineers.
What are FIDIC contracts?
FIDIC contracts are a set of standard form contracts designed by the Fédération Internationale des Ingénieurs-Conseils (FIDIC) based in Switzerland – the International Federation of Consulting Engineers.
They are globally recognised both for their use across many different jurisdictions and for their balance and fairness when assessing and assigning responsibility, risk and roles.
When are FIDIC contracts used?
Due to their versatility, FIDIC contracts are used widely on an international scale.
They contain both non-specific clauses and project-specific clauses, meaning they can be adapted to any number of simple or complex projects when consultancy services are required.
Non-specific clauses include:
- Role and responsibilities of the engineer
- Liability for errors
- Liability for obtaining permits
- Liability for unforeseen delays
- Delays
- Defects liability
Standard form FIDIC contracts are fairly all-encompassing and can be adapted to include additional clauses specific to each project.
Are they right for my project?
FIDIC contracts are known for their adaptability and suitability for complex commercial relationships, so they can be used for a wide variety of projects when an engineer or construction expert is consulting on a build.
In recognition of the variety of projects its contracts are applied to, FIDIC has developed several families of agreements, including:
- The Red Book – Civil Engineering Construction
- The Yellow Book – Electrical and Mechanical Works, including incidental works
- The Orange Book – Design-Build and Turnkey projects
- The Green Book – A short form of contract suitable for smaller projects.
You should seek advice as to which family of contracts you need to use, as well as identifying any amends to the standard form agreement.
Factors which will determine that include the extent of the engineer’s involvement and the complexity of the project.
We can advise you on the use of standard form contracts for consultancy and engineering services in the course of your construction project, ensuring you are working within current legislation and protecting all parties involved in the development.
For further advice on FIDIC contracts, contact a member of our specialist Construction Law team today.