Conditions of Contract for Construction (First Ed. 1999). For Building and Engineering Works designed by the Employer. General conditions; Guidance for Preparation of Particular Conditions; Forms of Tender, etc. FC-RA-A-AA-09
FIDIC Contracts Guide to the Construction, Plant and Design-Build and EPC/Turnkey Contracts (1st Edition, 2000).
Conditions of Subcontract for Construction (First Edition, 2011). For building and engineering works designed by the Employer.
European International Contractors (EIC) Contractors Guide to the FIDIC Conditions of Contract for Construction (The New EIC Red Book Guide), 2001
Construction Contract: Conditions of Contract for Construction
ADDED APRIL 2013: FIDIC Guidance Memorandum to Users of the 1999 Conditions of Contract dated 1st April 2013
Conditions of Contract for Construction, which are recommended for building or engineering works designed by the Employer or by his representative, the Engineer. Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with a design provided by the Employer. However, the works may include some elements of Contractor-designed civil, mechanical, electrical and/or construction works. Available as:
The preparation was carried out under the general direction of the FIDIC Contracts Committee comprising John B Bowcock, Consulting Engineer, UK (Chairman); Michael Mortimer-Hawkins, SwedPower, Sweden; Axel-Volkmar Jaeger, Schmidt Reuter Partner, Germany; and Hiroyuki Endo, Pacific Consultants, Japan.
Various drafts were reviewed by the following persons or organisations: Mushtaq Ahmad, NESPAK, Pakistan; Peter Batty, Post Buckley International, USA; Manfred Breege, Lahmeyer International, Germany; Pablo Bueno, TYPSA, Spain; Nael G Bunni, Consulting Engineer, Ireland; Ian Fraser, Beca Carter Hollings & Ferner, New Zealand; Roy Goode, Oxford University, UK; Dan W Graham, Bristows Cooke & Carpmael, UK; Mark Griffiths, Griffiths & Armour, UK; Geoffrey F Hawker, Consulting Engineer, UK; Hesse & Steinberger, VDMA, Germany; Poul E Hvilsted, Elsamprojekt, Denmark; Gordon L Jaynes, Whitman Breed Abbott & Morgan, UK; Tonny Jensen (Chairman of FIDIC Quality Management Committee), COWI, Denmark; Philip Loots & Associates, South Africa; Neil McCole, Merz and McLellan, UK; K B (Tony) Norris, Consulting Engineer, UK; Eric Petersen, CEGELEC, France; Matthew Needham-Laing, Victoria Russell & Paul J Taylor, Berrymans Lace Mawer, UK; David R Wightman & Gerlando Butera, Nabarro Nathanson, UK; the Association of Japanese Consulting Engineers; European International Contractors; Organisme de Liaison Industries Métalliques Européennes ("ORGALIME"); the International Association of Dredging Contractors; the International Bar Association; the Asian Development Bank; and the World Bank.
FIDIC wishes to record its appreciation of the time and effort devoted by all the above.
The ultimate decision on the form and content of the document rests with FIDIC.
In the preparation of these Conditions of Contract for Construction, it was recognised that, while there are many sub-clauses which will be generally applicable, there are some sub-clauses which must necessarily vary to take account of the circumstances relevant to the particular contract. The sub-clauses which were considered to be applicable to many (but not all) contracts have been included in the General Conditions, which will facilitate their incorporation into each contract. The General Conditions and the Particular Conditions will together comprise the Conditions of Contract governing the rights and obligations of the parties. It will be necessary to prepare the Particular Conditions for each individual contract, and to take account of those sub-clauses in the General Conditions which mention the Particular Conditions.
For this publication, the General Conditions were prepared on the following basis:
(i) interim and final payments will be determined by measurement, applying the rates and prices in a Bill of Quantities;(ii) if the wording in the General Conditions necessitates further data, then (unless it is so descriptive that it would have to be detailed in the Specification) the sub-clause makes reference to this data being contained in the Appendix to Tender, the data either being prescribed by the Employer or being inserted by the Tenderer;(iii) where a sub-clause in the General Conditions deals with a matter on which different contract terms are likely to be applicable for different contracts, the principles applied in writing the sub-clause were:(a) users would find it more convenient if any provisions which they did not wish to apply could simply be disregarded or deleted, than if additional text had to be written (in the Particular Conditions) because the General Conditions did not cover their requirements; or(b) in other cases, where the application of (a) was thought to be inappropriate, the sub-clause contains the provisions which were considered applicable to most contracts.
(i) interim and final payments will be determined by measurement, applying the rates and prices in a Bill of Quantities;
(ii) if the wording in the General Conditions necessitates further data, then (unless it is so descriptive that it would have to be detailed in the Specification) the sub-clause makes reference to this data being contained in the Appendix to Tender, the data either being prescribed by the Employer or being inserted by the Tenderer;
(iii) where a sub-clause in the General Conditions deals with a matter on which different contract terms are likely to be applicable for different contracts, the principles applied in writing the sub-clause were:
(a) users would find it more convenient if any provisions which they did not wish to apply could simply be disregarded or deleted, than if additional text had to be written (in the Particular Conditions) because the General Conditions did not cover their requirements; or(b) in other cases, where the application of (a) was thought to be inappropriate, the sub-clause contains the provisions which were considered applicable to most contracts.
(a) users would find it more convenient if any provisions which they did not wish to apply could simply be disregarded or deleted, than if additional text had to be written (in the Particular Conditions) because the General Conditions did not cover their requirements; or
(b) in other cases, where the application of (a) was thought to be inappropriate, the sub-clause contains the provisions which were considered applicable to most contracts.
Further information on these aspects, example wording for other arrangements, and other explanatory material and example wording to assist in the preparation of the Particular Conditions and the other tender documents, are included within this publication as Guidance for the Preparation of the Particular Conditions. Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances; if not, it must be amended.
Where example wording is amended, and in all cases where other amendments or additions are made, care must be taken to ensure that no ambiguity is created, either with the General Conditions or between the clauses in the Particular Conditions. It is essential that all these drafting tasks, and the entire preparation of the tender documents, are entrusted to personnel with the relevant expertise, including the contractual, technical and procurement aspects.
This publication concludes with example forms for the Letter of Tender, the Appendix to Tender (providing a check-list of the sub-clauses which refer to it), the Contract Agreement, and alternatives for the Dispute Adjudication Agreement. This Dispute Adjudication Agreement provides text for the agreement between the Employer, the Contractor and the person appointed to act either as sole adjudicator or as a member of a three-person dispute adjudication board; and incorporates (by reference) the terms in the Appendix to the General Conditions.
FIDIC intends to publish guides to the above Conditions of Contract. Another relevant FIDIC publication is "Tendering Procedure", which presents a systematic approach to the selection of tenderers and the obtaining and evaluation of tenders.
In order to clarify the sequence of Contract activities, reference may be made to the charts on the next two pages and to the Sub-Clauses listed below (some Sub-Clause numbers are also stated in the charts). The charts are illustrative and must not be taken into consideration in the interpretation of the Conditions of Contract.
Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with design details provided by the Employer or his representative, the Engineer. Although these Conditions allow for the possibility that the Contractor may be required to design parts of the permanent works, they are not intended for use where most of the works are designed by the Contractor. For these Works, it would be more appropriate to utilise FIDIC's Conditions of Contract for Plant and Design-Build or Conditions of Contract for EPC Turnkey Projects.
The guidance hereafter is intended to assist writers of the Particular Conditions by giving options for various sub-clauses where appropriate. As far as possible, example wording is included, in italics. In some cases, however, only an aide-memoire is given.
Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances. Unless it is considered suitable, example wording should not be used without amendment.
Where example wording is amended, and in all cases where other amendments or additions are made, care must be taken to ensure that no ambiguity is created, either with the General Conditions or between the clauses in the Particular Conditions.
In the preparation of the Conditions of Contract to be included in the tender documents for a contract, the following text can be used:
The Conditions of Contract comprise the "General Conditions", which form part of the "Conditions of Contract for Construction" First Edition 1999 published by the Fédération Internationale des Ingénieurs-Conseils (FIDIC), and the following "Particular Conditions", which include amendments and additions to such General Conditions.
1.1 Definitions1.2 Interpretation1.3 Communications1.4 Law and Language1.5 Priority of Documents1.6 Contract Agreement1.7 Assignment1.8 Care and Supply of Documents1.9 Delayed Drawings or Instructions1.10 Employer's Use of Contractor's Documents1.11 Contractor's Use of Employer's Documents1.12 Confidential Details1.13 Compliance with Laws1.14 Joint and Several Liability
2 THE EMPLOYER
2.1 Right of Access to the Site2.2 Permits, Licences or Approvals2.3 Employer's Personnel2.4 Employer's Financial Arrangements2.5 Employer's Claims
3 THE ENGINEER
3.1 Engineer's Duties and Authority3.2 Delegation by the Engineer3.3 Instructions of the Engineer3.4 Replacement of the Engineer3.5 Determinations
4 THE CONTRACTOR
4.1 Contractor's General Obligations4.2 Performance Security4.3 Contractor's Representative4.4 Subcontractors4.5 Assignment of Benefit of Subcontract4.6 Co-operation4.7 Setting Out4.8 Safety Procedures4.9 Quality Assurance4.10 Site Data4.11 Sufficiency of the Accepted Contract Amount4.12 Unforeseeable Physical Conditions4.13 Rights of Way and Facilities4.14 Avoidance of Interference4.15 Access Route4.16 Transport of Goods4.17 Contractor's Equipment4.18 Protection of the Environment4.19 Electricity, Water and Gas4.20 Employer's Equipment and Free-Issue Material4.21 Progress Reports4.22 Security of the Site4.23 Contractor's Operations on Site4.24Fossils
5 NOMINATED SUBCONTRACTORS
5.1 Definition of "nominated Subcontractor"5.2 Objection to Nomination5.3 Payments to nominated Subcontractors5.4 Evidence of Payments
6 STAFF AND LABOUR
6.1 Engagement of Staff and Labour6.2 Rates of Wages and Conditions of Labour6.3 Persons in the Service of Others6.4 Labour Laws6.5 Working Hours6.6 Facilities for Staff and Labour 6.7 Health and Safety6.8 Contractor's Superintendence6.9 Contractor's Personnel6.10 Records of Contractor's Personnel and Equipment6.11 Disorderly Conduct
7 PLANT, MATERIALS AND WORKMANSHIP
7.1 Manner of Execution7.2 Samples7.3 Inspection7.4 Firsting7.5 Rejection7.6 Remedial Work7.7 Ownership of Plant and Materials7.8 Royalties
8 COMMENCEMENT, DELAYS AND SUSPENSION
8.1 Commencement of Works8.2 Time for Completion8.3 Programme8.4 Extension of Time for Completion8.5 Delays Caused by Authorities8.6 Rate of Progress8.7 Delay Damages8.8 Suspension of Work8.9 Consequences of Suspension8.10 Payment for Plant and Materials in Event of Suspension8.11 Prolonged Suspension8.12 Resumption of Work
9 TESTS ON COMPLETION
9.1 Contractor's Obligations9.2 Delayed Firsts9.3 ReFirsting9.4 Failure to Pass Firsts on Completion
10 EMPLOYER'S TAKING OVER
10.1 Taking Over of the Works and Sections10.2 Taking Over of Parts of the Works10.3 Interference with Firsts on Completion10.4 Surfaces Requiring Reinstatement
11 DEFECTS LIABILITY
11.1 Completion of Outstanding Work and Remedying Defects11.2 Cost of Remedying Defects11.3 Extension of Defects Notification Period11.4 Failure to Remedy Defects11.5 Removal of Defective Work11.6 Further Firsts11.7 Right of Access11.8 Contractor to Search11.9 Performance Certificate11.10 Unfulfilled Obligations11.11 Clearance of Site
12 MEASUREMENT AND EVALUATION
12.1 Works to be Measured12.2 Method of Measurement12.3 Evaluation12.4 Omissions
13 VARIATIONS AND ADJUSTMENTS
13.1 Right to Vary13.2 Value Engineering13.3 Variation Procedure13.4 Payment in Applicable Currencies13.5 Provisional Sums13.6 Daywork13.7 Adjustments for Changes in Legislation13.8 Adjustments for Changes in Cost
14 CONTRACT PRICE AND PAYMENT
14.1 The Contract Price14.2 Advance Payment14.3 Application for Interim Payment Certificates14.4 Schedule of Payments14.5 Plant and Materials intended for the Works14.6 Issue of Interim Payment Certificates14.7 Payment14.8 Delayed Payment14.9 Payment of Retention Money14.10 Statement at Completion14.11 Application for Final Payment Certificate14.12 Discharge14.13 Issue of Final Payment Certificate14.14 Cessation of Employer's Liability14.15 Currencies of Payment
15 TERMINATION BY EMPLOYER
15.1 Notice to Correct15.2 Termination by Employer15.3 Valuation at Date of Termination15.4 Payment after Termination15.5 Employer's Entitlement to Termination
16 SUSPENSION AND TERMINATION BY CONTRACTOR
16.1 Contractor's Entitlement to Suspend Work16.2 Termination by Contractor16.3 Cessation of Work and Removal of Contractor's Equipment16.4 Payment on Termination
17 RISK AND RESPONSIBILITY
17.1 Indemnities17.2 Contractor's Care of the Works17.3 Employer's Risks17.4 Consequences of Employer's Risks17.5 Intellectual and Industrial Property Rights17.6 Limitation of Liability
18.1 General Requirements for Insurances18.2 Insurance for Works and Contractor's Equipment18.3 Insurance against Injury to Persons and Damage to Property18.4 Insurance for Workers
19 FORCE MAJEURE
19.1 Definition of Force Majeure19.2 Notice of Force Majeure19.3 Time of Notice19.4 Duty to Minimise Delay19.5 Consequences of Force Majeure19.6 Optional Termination, Payment and Release19.7 Release from Performance under the Law
20 CLAIMS, DISPUTES AND ARBITRATION
20.1 Contractor's Claims20.2 Appointment of the Dispute Adjudication Board20.3 Failure to Agree Dispute Adjudication Board20.4 Obtaining Dispute Adjudication Board's Decision20.5 Amicable Settlement20.6 Arbitration20.7 Failure to Comply with Dispute Adjudication Board's Decision20.8 Expiry of Dispute Adjudication Board's Appointment
GENERAL CONDITIONS OF DISPUTE ADJUDICATION AGREEMENT
2. GUIDANCE FOR THE PREPARATION OF THE PARTICULAR CONDITIONS
1 GENERAL PROVISIONS 2 THE EMPLOYER 3 THE ENGINEER 4 THE CONTRACTOR 5 NOMINATED SUBCONTRACTORS 6 STAFF AND LABOUR7 PLANT, MATERIALS AND WORKMANSHIP8 COMMENCEMENT, DELAYS AND SUSPENSION 9 TESTS ON COMPLETION10 EMPLOYER'S TAKING OVER11 DEFECTS LIABILITY12 MEASUREMENT AND EVALUATION13 VARIATIONS AND ADJUSTMENTS 14 CONTRACT PRICE AND PAYMENT 15 DEFAULT OF CONTRACTOR 16 DEFAULT OF EMPLOYER17 RISK AND RESPONSIBILITY18 INSURANCE19 FORCE MAJEURE 20 CLAIMS, DISPUTES AND ARBITRATION
FORMS OF SECURITIES
Conditions of Contract for Works of Civil Engineering Construction. Part I: General Conditions with forms of tender + agreement; Part II: Conditions of particular application + guidelines for preparation of Part II clauses. (4th Edit. 1987, reprinted 1988 with editorial amendments, reprinted 1992 with further amendments, reprinted 2011). The 2011 reprint now also includes the Supplement 1st. Ed. 1996. Users wishing to incorporate the part 1-General Conditions are invited either to include a printed version of the entire 2011 reprint or to purchase an electronic version, where Part1-General Conditions can be printed as a separate document.
Conditions of Contract for Works of Civil Engineering Construction (3rd Edit. 1977). With forms of tender and agreement.
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