When it comes to construction contracts, the FIDIC (Fédération Internationale des Ingénieurs-Conseils) contracts are widely used and recognized around the world. However, with several FIDIC contracts available, choosing the right contract can be overwhelming. In this article, we will discuss which FIDIC contract is suitable for your construction project.
Firstly, let`s understand what FIDIC contracts are and their types. FIDIC is an international organization that provides standard forms of contracts for the construction industry. These contracts have been developed through years of experience and are widely accepted by contractors, consultants, and clients. FIDIC has various contracts to cover projects of different sizes, types, and complexities.
The most commonly used FIDIC contracts are:
1. The FIDIC Red Book: This contract is commonly used for building and engineering projects that are designed by the employer. The contractor is responsible for executing the works according to the employer`s design and specifications.
2. The FIDIC Yellow Book: This contract is used for projects that are based on a design prepared by the contractor. The contractor is responsible for designing and executing the works in accordance with the employer`s requirements.
3. The FIDIC Silver Book: This contract is used for turnkey projects, where the contractor takes responsibility for the design, construction, and commissioning of the project.
Now, let`s discuss how to choose the right FIDIC contract for your project. The choice of contract will depend on the project`s nature, complexity, and level of risk. Some factors to consider are:
1. Project scope: What type of project are you undertaking? Is it a building or engineering project? Is it a turnkey project?
2. Contract structure: How do you want the contract to be structured? Will the project be based on a design prepared by the contractor or the employer?
3. Risk allocation: Who will take responsibility for the project`s risks, such as unforeseen site conditions or delays? The parties must decide whether the risk allocation is fair and balanced.
4. Payment structure: How will the contractor be paid? Will it be based on a lump sum or a unit rate?
Once you have answered these questions, you can determine which FIDIC contract is best suited for your project. It is essential to carefully review and understand the contract`s terms and conditions before signing it.
In conclusion, FIDIC contracts provide standard forms for construction projects of different sizes and complexities. Choosing the right contract depends on the project`s nature, contract structure, risk allocation, and payment structure. By carefully analyzing these factors, you can select the appropriate FIDIC contract for your project.