International Construction Law Review
FIDIC’s STANDARD FORMS OF CONTRACT—PRINCIPLES AND SCOPE OF THE FOUR NEW BOOKS
CHRISTOPHER WADE
Chief Engineer, SWECO-VBB, Stockholm, Sweden
INTRODUCTION
The so-called “FIDIC Task Group for the Updating of the existing Red and Yellow Books”, i.e. the FIDIC standard forms of Conditions of Contract for international construction works, has just finished preparation of the new 1999 FIDIC standard forms. Instead of just updating the two Books, the Task Group has actually produced a new suite of three standard forms, which— together with the Short Form, also just finished—means that FIDIC now has a complete set of standard conditions of contract, for use between employers and contractors, suitable to cover the majority of international construction projects of all sizes.
THE FIDIC DOCUMENTS
FIDIC is probably best known to the world as the organisation which produces standard forms of contract for engineering construction and for mechanical and for electrical plant. For example, the form for civil engineering construction, the “Red Book”, is known to many as the “FIDIC contract”. In fact the document is often just called “FIDIC” with many people having no idea of the actual meaning of the five capital letters.
FIDIC actually has published documents and papers on a whole range of professional issues affecting consulting engineers. However, it has become known outside the profession, particularly amongst client bodies, the international financing institutions, lawyers and contractors, because of its work in preparing and publishing standard forms of contract. These are now often referred to as the “FIDIC rainbow” (see Appendix A to this article.)
In preparing documents, FIDIC has always consulted widely with those sectors likely to be involved in the use of the documents. Active participation has long been welcomed from the World Bank, and FIDIC today works closely with the European International Contractors (EIC) and ORGALIME, which represents leading mechanical and electrical manufacturers. FIDIC has also drawn heavily on advice from the International Bar Association (IBA) on the legal drafting, and had help from many experts in specialist fields, such as insurance and project financing.
[2000
The International Construction Law Review
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