The FIDIC Red Book – Development from 1987 Standard Form to 2010 MDB Harmonised Edition

Toby RandleToby Randle

What is FIDIC?

• Federation Internationaledes Ingenieurs-Conseilsdes Ingenieurs Conseils

• Produces a suite of contractscontracts

• Founded by international i 1913engineers 1913

• First FIDIC Red Book 1973

The FIDIC Suite

Why Choose FIDIC?

• International favourite

• Well known to funders

• Well respected

• No learning curveg

Other Options

• IChemE

• NEC 3

• ICEICE

• ENNA – Japan

• AIA, EJDC & AGC – USA

• RAIC Canada• RAIC - Canada

When to Use FIDIC Red/Pink?

• Build-only

• Detailed design provided by Employer / Engineer

• Major civil engineering

• Infrastructure

• NuclearNuclear

Key Features of Red Book

• Financial protection for Contractor (clause 2)

• Employer not impartial (clause 3)

• Any Contractor designed works Any Contractor designed works fit for purpose (clause 4)

• Re-measurement (clause 12)

• Payment and progress reports (sub-clauses 4.21 and 14.3)

• Claims (clause 20)Claims (clause 20)

Key Features of Pink Book

• Engineer’s authority unlimited (clause 3)( )

• Financial protection for Contractor (sub-clause 8.1)Co t acto (sub clause 8. )

• Fradulent, corrupt, collusive, coercive collusive, coercive practices (sub-clause 15.6)

• Difficult to terminate (sub-Difficult to terminate (subclause 16.2)

Pitfall 1: Loss and Expense

• Sub-clause 20.1 – no prolongation cost (also time bar)

• Sub-clause 8.4 – no prolongation cost

• Sub-clause 8.9 – increased cost for suspension very limitedfor suspension very limited

• Sub-clause 2.1 – cost and reasonable loss of profit for delay in accessing sitey g

• Sub-clause 1.9 – Contractor friendly provision for cost and reasonable loss of profit for delayed drawings or instructionsdelayed drawings or instructions

Pitfall 2: Appendix to Tender

• Complete Appendix to Tender ProperlyTender Properly

• Changes in Cost (cl 13.8)

• Sectional Completion (cl 8.2 and 8.7)

Main complaints in relation to Red Book

• Are DAB decisions enforceable?

• FIDIC Guidance

• Attitude of English court

Conclusion

• Flexible contract

• Well known to funders Well known to funders

• BUT, enforcement may be difficult

If you only remember these things…….

• Be careful with loss and expense

• Fill in the Appendix to Tender properlyFill in the Appendix to Tender properly

• Choose your jurisdiction clause wisely

And Finally….

• Choice of Contract no substitute for:-substitute for:

• Quality team

• Clarity of design obligations

• Good contract management

• Effective communication

The FIDIC Red Book – Development from 1987 Standard Form to 2010 MDB Harmonised Edition

Toby RandleToby Randle