FIDIC commonly refers to a set of construction and infrastructure contract templates often used in large, international projects. In fact, FIDIC is the acronym for the organization Fédération Internationale Des Ingénieurs-Conseils (in English: the International Federation of Consulting Engineers). We would like to introduce you to the framework behind FIDIC. The FIDIC contract conditions have been used worldwide for decades. In 2017, FIDIC published revised versions of the Red Book, Yellow Book and Silver Book, which focus on modernisation and balanced risk distribution. The new versions are more comprehensive, contain more detailed provisions, new terms and revised terminology.
Overview and new structure
In December 2017, FIDIC introduced the revised 2017 FIDIC Suite, which offers greater clarity, active contract management and dispute avoidance. The structure is similar to the 1999 version but now includes 21 clauses with new definitions and clearer management obligations such as "Advance Warning".
Extensions of time
The provisions governing extensions of time (EOT) remain largely unchanged but are now found in sub-clause 8.5. Claims for exceptionally bad weather conditions are now limited to unforeseeable circumstances. In the event of parallel delays on the part of the Contractor and the Employer, the claim for EOT will be examined in accordance with the specific contract conditions or taking all circumstances into account, which does not rule out possible disputes. Stricter obligations regarding programme updates and early warnings of possible delays (clauses 8.3 and 8.4) are also important in order to enable better delay management.
Variations
The FIDIC Suite 2017 contains a more detailed change procedure with clear deadlines in sub-clause 13.3: the Contractor must respond to an instruction by the Engineer within 28 days and provide detailed information. The Engineer then has up to 42 days to reach an agreement or make a decision. There are new methods for evaluating changes, as well as expanded Contractor objections to changes, for example in the case of unforeseeable work or safety concerns.
Liability and compensation
The limitation of liability (sub-clause 1.15) has become more elaborated and now contains more exceptions, for example for loss of profit or damage caused by delay. The new compensation provisions in the FIDIC Suite 2017 are more balanced and contain more mutual obligations. A new and controversial innovation is the Contractor's obligation to pay compensation for Defects that result in unsuitability for the intended purpose, despite liability limitations.
Claims Procedure
The FIDIC 2017 version introduces a comprehensively revised and more detailed compensation procedure, which now applies equally to Employers and Contractors. These changes increase the administrative burden and require careful contract management, as missed deadlines can result in the loss of claims. It is particularly important to report a claim for compensation within 28 days in a timely and correct manner.
Disputes and arbitration
The FIDIC 2017 suite divides the dispute resolution procedures previously regulated in Clause 20 into two clauses: Clause 20 now deals only with claims, while Clause 21 regulates disputes and arbitration. The most important principles of dispute resolution remain unchanged, such as the submission of claims to the Engineer and subsequent attempts at conciliation by a dispute resolution committee (DAAB). This has been developed from an ad hoc DAB to a permanent DAAB, which meets regularly and also helps the parties informally in conflicts, but this leads to higher costs. DAAB decisions are immediately enforceable, and only parts of the decisions can be appealed. In the event of non-compliance, the matter can be referred directly to an arbitration tribunal. The number of arbitrators has been changed from three to "one or three".
Building Information Modelling
The FIDIC Suite 2017 does not contain any direct contract terms relating to Building Information Modelling (BIM) but considers BIM to be a mechanism for providing relevant information to those involved in the project. It provides initial guidance on BIM in the form of Advisory Notes, including background information, benefits, coordination using BIM protocols and execution plans, and risks such as data quality, security and the transition from the construction phase to the inventory phase. FIDIC also plans to publish detailed technology and scope guidelines specifically for BIM in order to include BIM obligations in contracts for Contractors, consultants and subcontractors in the future. However, important questions remain unanswered, such as the selection of BIM service providers, resource requirements, costs, copyrights and the coordination of BIM protocols with other contracts. Overall, BIM is part of the ongoing digitalisation of the construction industry, which is evolving with technological innovations such as AI and global networking.
