Contracts: advanced questions MDB Harmonised Construction May 2005 Contract Question/Answer

MDB publication

Question

When was the MDB contract published?

Answer

The General Conditions of the MDB Harmonised Edition of the FIDIC Construction Contract were released by the World Bank in its Standard Bidding Docuements in May 2005. FIDIC published these General Condition, with minor editorial corrections, as an electronic version of a complete contract (General Conditions, Particular Conditions and Forms) in June 2005. A printed version was published in September 2005.
 

Coefficents and use on non-bank funded projects

Question

I have just reviewed the MDB Harmonised Edition of the Conditions of Contract for Construction and as an initial judgment believe that it is an improvement on the 1999 Edition from which it as based. However, while the changes have been noted I would like to question why, in Part A Contract Data, the Adjustment for Changes in Cost, Clause 13.8, if it applies, does not include a schedule which indicates the contractors choice of coefficient, scope of index, etc. as in the 1999 Edition. The other question is: can this MDB contract be used for contracts which may not be funded by any of the participating banks and, are other banks or funding agencies likely to join up and also adopt this MDB Conditions of Contract as their standard.

Answer

The Participating Banks decided not to incorporate the table of coefficents that appeared in the 1995 Edition Appendix to Tender. An appropriate response requires that FIDIC ask the banks for their comments. Regarding the use on non-MDB financed projects, the contract is licenced to the Participating Banks for exclusive use on their projects. It would be infringing copyright to use the contract on non-bank funded projects. All the major MDBs participating in agreeing the terms of the General Conditions. Many have already completed the licencing formalities, and most if not all will have done so by the end of 2005.
 

Harmonised Plant Contract

Question

We are currently working for the Government of Fiji on a project with Asian Development Bank funding and have been requested to use the General Conditions of Contract jointly prepared by FIDIC and the Particiapting Banks, refered to as the Multilateral Development Bank Harmonised Edition dated May 2005. We have down loaded the Conditions of Contract for Construction but can find no reference to a corresponding revision to the previous FIDIC 1999 Conditions of Contract for Plant and Design-Build for Electrical and Mechanical Plant and Building and Engineering Works, designed by the Contractor. As we are preparing documents for a Design Build Contract we would be pleased if you could advise whether the 1999 document refered to above has been modified or is intended to be modified. If it is intended to modify this document but this has not yet been completed can you please advise when this modified document is expected to be available.

Answer

The harmonised edition you refer to is the MDB Harmonised Edition of the Construction Contract, published by FIDIC in 2005, the General Conditions of which have been licenced to the Participating Banks. The General Conditions and each Participating Bank's Particular Conditions and Forms are occasionally published by a Bank. In most cases, however, the banks ask users to obtain the Harmonised Construction Contract from FIDIC. The FIDIC contract has the General Conditions and and Particular Conditions and Forms essentially identical to those contained in the World Bank Standard Bidding Document for Works, May 2005. This contract is available as a download at no charge and as a printed volume from the FIDIC Bookshop costing Euro 30. Discussions have started with the MDBs on preparing and licencing a harmonised edition of the FIDIC Plant Contract, 1999, that you refer to. However, a draft has not yet been prepared and licencing conditions have not been discussed in any detail.