FIDIC – Conditions of Contract for EPC-Turnkey NY 01/03/09 PM. GENERAL CONDITIONS. GUIDANCE. 18 Apr After 18 Years, FIDIC Updates EPC Contract. Forms. When owners and contractors begin discussions on the form of EPC contract they propose. Documents Similar To FIDIC (Silver Book) – EPC Contract – Fidic Red Book. Uploaded by. umairshafiq FIDIC Silver Book. Uploaded by.
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For example, this edition provides:. Group Extras More information Product code:.
The introduction of the Golden Rules is an intriguing foray by FIDIC into seeking to promote certain behaviours and risk allocation between the parties — in that sense, it has commendable goals.
Relatively small value, short construction time or involving simple or repetitive work.
Which FIDIC Contract should I use?
Accordingly, we have summarised the below changes as being relevant to parties considering using the new template. This article does not attempt to list out all the changes made in the Second Edition but instead focuses on the key changes to the Silver Book that are likely to be relevant for those using it as the basis for their EPC contracts in the project finance context.
The Silver Book represents a turnkey, fixed price, lump sum arrangement, whereby the contractor assumes the majority of key construction risks. Contrach Second Edition of the FIDIC Silver Book maintains the principles of risk sharing established in the edition, while seeking to build on the substantial experience gained from its use over the past 18 years.
The difference in risk allocation between the FIDIC suite of contracts has been reflected in the market by differential pricing even taking into account the differences in scope for which the different Books were designednamely, a contractor bidding epx a Red Book risk profile is likely to offer a lower price than for a Silver Book risk profile.
The FIDIC Silver Book – Impact for Project Financed EPC contracts – a detailed analysis
FIDIC has long been renowned for its standard forms of contract for use between employers and contractors on international construction projects, in particular:. Accordingly FIDIC fiidic not only updated the standard ffidic but has expanded the range, and has – in September – published a suite of four new Standard Forms of Contract which are suitable for the great majority of construction and plant installation projects around the world.
For example, this edition provides: FIDIC very much appreciates the time and effort devoted by all the above persons. For the purposes of this article, our comments relate to the use of the Silver Book in that context, rather than applying more generally to all uses of the Silver Book, although a number of our comments will also apply to other geographies and sectors, and where construction is being financed other than by fixic recourse debt.
The charts are illustrative, however, and must not be taken into consideration in the interpretation of the Conditions of Contract. In drafting Special Provisions, if clauses in the General Conditions are to be replaced or supplemented and before incorporating any example wording, Employers are urged to seek legal and engineering advice in an effort to avoid ambiguity and to ensure completeness and consistency with the other provisions of epx contract.
Essential items of information which are particular to each individual contract are to be included in the Particular Conditions Part A — Contract Data. Initial Update Task Group: If this is what is wanted – choose the Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer The Construction Contractwhich effectively updates and supercedes the existing Red Book from Watermarked Contracts and Agreements Collection English only electronic version.
The contractor assumes the majority of risk on key matters such as design, specifications, contact, price, site conditions and certain unforeseen risks. Special Advisers to the Contracts Committee provided invaluable and continued support in the various drafting and revision stages: Is the Employer epf the Engineer going to do most of the design? Our team and biographies News Focus Newsletter. Notes on the Preparation of Tender Documents This sets it apart from the Red and Yellow Books, where the Employer retains a number of these key risks, in line with the purpose and scope for which the contract is being used.
These should be included in Part B — Special Provisions. However, it is likely that Employers conract lenders will be resistant to these changes given the fact that contractors have set a precedent in recent years by accepting the previous risk allocation.
Electronic version in encrypted PDF. FIDIC has long been renowned for its standard forms fiduc contract for use between employers and contradt on international construction projects, in particular: In project financed transactions, the preference for a Silver Book allocation has arisen from the need to ensure price and completion date certainty given that the coontract SPV generally does not ffidic a balance sheet capable of absorbing cost increases beyond levels covered by its committed financial resources.
It is recognisable to the vast majority of the international contracting community, and has thus gained a foothold as a useful template on which to base an EPC contract.
Acknowledgement of all reviewers above does not mean that such persons or organisations approve the wording of all clauses.
EPC/Turnkey Contract 2nd Ed ( Silver Book) | International Federation of Consulting Engineers
This has to be balanced against the low likelihood of them being adopted by parties to contracts where the Contractor is being paid to assume all relevant risks and obligations under amended Conditions of Contract, and where such parties are used to doing so under fidoc of the Silver Book that have often been heavily negotiated.
Notes on the Preparation of Special Provisions Larger or more complex projects 1. Shopping basket Your shopping basket is empty. General Conditions; Guidance for the Preparation of particular conditions and Annexes: General Conditions; Part 2: Then the Employer wishes the Contractor to take total responsibility for the confract and construction of the infrastructure facility.
Drafts were reviewed by many persons and organisations, including those listed below. Is it an Infrastructure Project e. Shopping basket Your shopping basket is empty. Drafters of contract documents are reminded that the General Conditions of all FIDIC contracts are protected by copyright and trademark and may not be changed without specific written consent, usually in the form of a licence to amend, from FIDIC.
If drafters wish to amend the provisions found in the General Conditions, the place for doing this is in the Particular Conditions Part B — Special Provisions, as mentioned above, and not by making changes in the General Conditions as published.
In addition it is recognised that many Employers, especially governmental agencies, may require special conditions of contract, or particular procedures, which differ from those included in the General Conditions. At this point it is worth clntract ourselves that market practice in the project finance sector has led to a situation where most EPC contracts are a fortified version of the basic Silver Book provisions to ensure a comprehensive allocation of key construction phase risks to the contractor.
Clauses 1 to Is the Contractor going to do most of the design?