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NEWS
The International Federation of Consulting Engineers (FIDIC) has announced the appointment of Alfredo Ingletti as its first Italian president at the 2025 general assembly held in Cape Town on 21 September 2025. FIDIC has also appointed four new board members from France, Sweden, Georgia and Indonesia, along with two new vice presidents from the USA and Poland.
NEWS
The International Federation of Consulting Engineers (FIDIC) has announced the renewal and expansion of its agreement with the African Development Bank (AfDB) for a further five years. The new agreement grants AfDB a non-exclusive licence to use ten key FIDIC standard contracts, including the 2022 Rainbow Suite, the Green Book 2021, the reprint of Emerald Book 2023 contract for Underground Works, and the Dredgers contract 2016. These contracts will be incorporated into the AfDB's main standard bidding documents for projects it finances.
FLOWCHARTS
Introduction This Practice Note sets out the process for Variations under the FIDIC Red, Yellow and Silver Books 1999 where the Variation is instructed by the Engineer or Employer, where the Engineer or Employer requests a proposal for a Variation or where the variation is initiated by the Contractor (value engineering). For more on Variations under the 1999 editions see Practice Note: FIDIC contracts (pre-2017 editions)—variations. Variations are primarily governed by clauses 13.1 to 13.3, which set out the right to vary the Works and the procedure to be followed. In the Red and Yellow Books, the Employer is not entitled to instruct
PRACTICE NOTES
It is vital for contractors to follow the correct procedure for making claims for additional costs and/or extensions of time under the FIDIC contracts. The consequences for not doing so are severe, and will lead to a contractor being unable to claim successfully and potentially being liable for liquidated damages if completion is delayed. This Practice Note looks at the procedure for notifying contractors' claims under the 1999 Red, Yellow and Silver Books, and the Pink (MDB) Book 2010 and Gold Book 2008. For information about the procedure for employers' claims in these contracts, see Practice Note: FIDIC contracts (pre-2017 editions)—Employer claims. The claims procedure in the 2017 editions of the Red, Yellow and Silver Books is different—for example, Contractor and Employer claims are subject to the same regime. For more information, see Practice Note: FIDIC contracts 2017—Contractor and Employer claims. Contractors' claims The procedure for making contractors' claims is set out in clause 20.1. Provisions entitling the contractor to make a claim as a result of various events are scattered throughout the contract. Different
PRACTICE NOTES
This Practice Note considers the procedure to be followed by an employer wishing to make a claim for payment from the contractor or for an extension to the defects notification period under the 1999 FIDIC Red, Yellow and Silver Books, the Pink (MDB) Book 2010 and the Gold Book 2008. For information about the procedure for contractors' claims under these contracts, see Practice Note: FIDIC contracts (pre-2017 editions)—Contractor claims. The claims procedure in the 2017 editions of the Red, Yellow and Silver Books is different—for example, Contractor and Employer claims are now subject to the same regime. For more information, see Practice Note: FIDIC contracts 2017—Contractor and Employer claims. Employers' claims—Red, Yellow, Silver and Pink Books An employer may have a claim for payment from a contractor for various reasons—eg the contractor might be liable to pay delay damages or costs incurred by the employer because progress of the works has fallen behind the programme. The procedure for employer's claims is set out in clause 2.5. Clause 2.5 also applies to claims by the employer to extend
PRACTICE NOTES
This Practice Note looks at the Conditions of Contract for Plant and Design Build 1999 (commonly referred to as the FIDIC Yellow Book 1999), and the Conditions of Contract for EPC/Turnkey Projects 1999 (the FIDIC Silver Book 1999). Both contracts are intended for use where the Contractor, as opposed to the Employer, is carrying out the design of the Works but there are some key differences, which are described in this Practice Note. For a more detailed look at the individual contracts, see Practice Notes: FIDIC contracts—introduction to the Yellow Book 1999 and FIDIC contracts—introduction to the Silver Book 1999. New editions of the Yellow and Silver Books were published in December 2017. For more information, see Practice Note: FIDIC contracts 2017—what’s changed? [Archived]. What types of projects are the contracts suitable for? While both the contracts envisage that the Contractor will be responsible for carrying out all or the vast majority of the design, and both are fixed price 'lump sum' contracts, that is not to say that they are both suitable
PRACTICE NOTES
Introduction This Practice Note examines design under the 1999 editions of the Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. For a look at design under the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—design. Under the Yellow, Silver and Gold Books, the design is carried out by the contractor to comply with the employer's requirements which are prepared by or on behalf of the employer, whereas under the Red and Pink Books the design is prepared by or on behalf of the employer. The design is contained in the following documents: • the specifications and drawings (the Red and Pink Books) • the employer's requirements and contractor's proposals (the Yellow Book) • the employer's requirements and Tender (the Silver Book) • the employer's requirements, contractor's proposals and operation management requirements (the Gold Book) Contractor design obligations under the Red and Pink Books FIDIC considers the Red and Pink Books to be 'traditional construction' contracts, because the contractor will carry out and
PRACTICE NOTES
This Practice Note considers the use of dispute adjudication boards (DABs) in the 1999 editions of the FIDIC Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. These contracts all provide for disputes to be referred to a DAB (called a 'Disputes Board' in the Pink Book), which issues a binding decision. If a party is dissatisfied with a DAB's decision, it can refer the dispute to amicable settlement and ultimately arbitration, provided it complies with the contractual time limits. For more information about the multi-tiered dispute resolution procedure in these contracts, see Practice Note: FIDIC contracts (pre-2017 editions)—dispute resolution. In December 2017, FIDIC published new versions of the Red, Yellow and Silver Books. The DAB is called the Dispute Avoidance/Adjudication Board (DAAB) in those contracts. For information about the role of the DAAB in the 2017 FIDIC contracts, see Practice Note: FIDIC contracts 2017—Dispute Avoidance/Adjudication Boards. References in this Practice Note to the Red, Yellow and Silver Books and/or to clauses within them are to the 1999 editions of
PRACTICE NOTES
The FIDIC contracts contain a 'multi-tiered' dispute resolution procedure that escalates from adjudication of the dispute by a dispute adjudication board (DAB) to amicable settlement and finally arbitration. The dispute provisions are contained in clauses 20.2 to 20.8 of the Red, Yellow and Silver Books 1999 and the Pink Book and in clauses 20.3 to 20.11 of the Gold Book. This Practice Note looks at the dispute resolution provisions in the 1999 editions of the Red, Yellow and Silver Books, the 2010 MDB Harmonised edition of the Red Book (commonly known as the Pink Book) and the 2008 edition of the Gold Book. FIDIC published new versions of the Red, Yellow and Silver Books in 2017. References in this Practice Note to FIDIC contracts and/or to the Red, Yellow and Silver Books are to the pre-2017 contracts unless otherwise stated. For guidance on the 2017 contracts, see Practice Note: FIDIC contracts 2017—dispute resolution. When does a 'dispute' arise? With the exception of the Gold Book, there is no definition of 'dispute' in the contracts, but a likely,
PRACTICE NOTES
This Practice Note considers the insurance provisions in the 1999 editions of the FIDIC Red, Yellow and Silver Books. For guidance on the 2017 editions, see Practice Note: FIDIC contracts 2017—insurance. The FIDIC insurance provisions The insurance requirements in the FIDIC contracts, setting out which party takes out insurance, the amount and the type of cover required, can be found in: • the letter of acceptance of tender • the particular conditions (amendments to the general conditions), or • the general conditions This list is the order of precedence for determining which insurance provisions apply. The below sets out the requirements in the general conditions. Liability or risk in the works The Contractor’s risks The Contractor’s liability for the works, that gives it an insurable interest in the works, is found at clause 17.2. The Contractor is required to take care of the works until take over. Any damage to the work must be rectified at the Contractor’s own risk and cost unless the damage was caused by an Employer risk. The Employer’s risks The
PRACTICE NOTES
This Practice Note examines performance and testing under the 1999 editions of the Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. For detail on the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—performance and testing requirements. One of the key concerns for both the employer and the contractor (the 'parties') is knowing when the works will be considered 'complete'. The employer will want to ensure that the works are fully constructed in accordance with the requirements of the contract and the contractor will want to know what these requirements are and the way to satisfy them. For this reason it is essential that the contract makes explicit exactly what performance requirements there are. Manner of execution Under clause 7.1 of the Red, Pink, Yellow and Silver Books the contractor is obliged to execute the works: • in the manner specified in the contract • in a proper workmanlike and careful manner, in accordance with recognised good practice, and • with properly equipped
PRACTICE NOTES
This Practice Note examines price under the 1999 editions of the Red, Yellow and Silver Books, the Gold Book 2008 and the Pink Book 2010. For information on price in the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—price. Price is a key consideration of any construction contract. The FIDIC forms of contract follow two different methods of determining the price. The Red and Pink Books are remeasurement contracts, whereas the Yellow, Silver and Gold Books are lump sum fixed price contracts. Remeasurement contracts An initial estimate of the value of the works is determined by measuring the quantity of each work item (which will be set out in a document referred to as a bill of quantities) and multiplying it by the agreed rate for that particular item. This calculation is then made again at the end of the project once all the quantities have been remeasured to ascertain the contract price. The contractor is typically paid a portion of the contract price on a monthly basis following monthly