the fidic red book – development from 1987 standard … - mr. toby randle... · the fidic red...
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The FIDIC Red Book Development from 1987 Standard Form to 2010 MDB Harmonised Edition
Toby RandleToby Randle
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What is FIDIC?
Federation Internationaledes Ingenieurs-Conseilsdes Ingenieurs Conseils
Produces a suite of contractscontracts
Founded by international i 1913engineers 1913
First FIDIC Red Book 1973
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The FIDIC Suite
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Why Choose FIDIC?
International favourite
Well known to funders
Well respected
No learning curveg
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Other Options
IChemE
NEC 3
ICEICE
ENNA Japan
AIA, EJDC & AGC USA
RAIC Canada RAIC - Canada
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When to Use FIDIC Red/Pink?
Build-only
Detailed design provided by Employer / Engineer
Major civil engineering
Infrastructure
NuclearNuclear
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Key Features of Red Book
Financial protection for Contractor (clause 2)
Employer not impartial (clause 3)
Any Contractor designed works Any Contractor designed works fit for purpose (clause 4)
Re-measurement (clause 12)
Payment and progress reports (sub-clauses 4.21 and 14.3)
Claims (clause 20)Claims (clause 20)
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Key Features of Pink Book
Engineers authority unlimited (clause 3)( )
Financial protection for Contractor (sub-clause 8.1)Co t acto (sub clause 8. )
Fradulent, corrupt, collusive, coercive collusive, coercive practices (sub-clause 15.6)
Difficult to terminate (sub-Difficult to terminate (subclause 16.2)
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Pitfall 1: Loss and Expense
Sub-clause 20.1 no prolongation cost (also time bar)
Sub-clause 8.4 no prolongation cost
Sub-clause 8.9 increased cost for suspension very limitedfor suspension very limited
Sub-clause 2.1 cost and reasonable loss of profit for delay in accessing sitey g
Sub-clause 1.9 Contractor friendly provision for cost and reasonable loss of profit for delayed drawings or instructionsdelayed drawings or instructions
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Pitfall 2: Appendix to Tender
Complete Appendix to Tender ProperlyTender Properly
Changes in Cost (cl 13.8)
Sectional Completion (cl 8.2 and 8.7)
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Main complaints in relation to Red Book
Are DAB decisions enforceable?
FIDIC Guidance
Attitude of English court
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Conclusion
Flexible contract
Well known to funders Well known to funders
BUT, enforcement may be difficult
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If you only remember these things.
Be careful with loss and expense
Fill in the Appendix to Tender properlyFill in the Appendix to Tender properly
Choose your jurisdiction clause wisely
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And Finally.
Choice of Contract no substitute for:-substitute for:
Quality team
Clarity of design obligations
Good contract management
Effective communication
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The FIDIC Red Book Development from 1987 Standard Form to 2010 MDB Harmonised Edition
Toby RandleToby Randle