Fidic’s Red Book 1999 edition: a study review

Abstract

The paper describes the main features of the 1999 edition of Fidic’s Red Book, possibly the most commonly used standard-form construction contract in international projects. The paper is addressed to construction professionals who already have an understanding of English construction contracts but have not yet looked into Fidic contracts. The 1999 Red Book is for use when the contractor has been given the design by the employer. The contract features general and particular conditions, the latter of which have to be drafted by the parties before the contract is entered into. A typical feature of the 1999 Red Book is the role of the engineer. Whether he has to act for the employer or whether he has to make a fair determination depends on the matter in question. There are two striking differences from the contract JCT SBC 2005 regarding claims of the contractor. First, only the 1999 Red Book contains strict time bars. Second, the clauses which contain events that justify claims are spread out over the whole contract and not contained in comprehensive lists of events. New features are clause 13.2 on value engineering and clause 20 on the impartial dispute adjudication board.

Residual Risks of Payment Provisions in Fidic and JCT Conditions: A Quantity Surveyor’s View

“…FIDIC states that their contract condition allocates risks fairly to the party that is best able to bear and control those risks (Fonseka, 2010). This position is corroborated by Hillig (1999) that the Red Book (1987 edition) is regarded by many employers and contractors as the preferred starting point for any new construction contract. The Red Book imposes strict time limits on claims (Sub-clause 20.1) by the contractor, which must be commenced not later than 28 days after the contractor became aware, or should have become aware of the event or circumstance giving rise to claim (Welagedar, 2010).…”

“…The FIDIC recognizes the Engineer and JCT recognize the Architect/Contract Administrator as the Third-Party Certifier to the contract. The most commonly used FIDIC suite for contract administration is the conditions of contracts for Works of Civil engineering construction, Fourth Edition (1987 Red Book), which is still regarded by many employers and contractors as the preferred starting point for any new construction contract (Hillig, 1999). Since 1931, the JCT has produced standard form of construction contracts, guidance notes and other standard forms of documentation for use by the construction industry (International Bar Association, IBA; nd).…”

Editorial

“…Peter Elliott responds to the recently published paper comparing the Fidic Red Book with the Joint Contracts Tribunal (JCT) form of contract (Hillig et al, 2010) expressing reasons as to why he believes it would have been more appropriate to compare the Fidic '99 suite of contracts with NEC3, rather than JCT, as NEC3 is designed for civil engineering works, as is Fidic '99, and pointing out that there are other aspects of Fidic contracts which would also be worthy of discussion. In his reply, Jan-Bertram Hillig accepts the point that the JCT suite of contracts is not designed for civil engineering contracts, but argues that there is a lot that can be learnt from the differences between these two standard forms.…”

FIDIC Sözleşmeleri’ndeki Yeniliklerin Değerlendirilmesi ve Eski Versiyonlarla Karşılaştırılması

“…Burada pek çok yazarın da altını çizdiği üzere geleneksel Tasarla-İhale et-İnşa et yöntemi geleneksel, doğrusal, taraflar arasında bir takım çalışmasına en az uygun proje teslim yöntemi olmakta ve bu yüzden de bu türden taraflar arası ilişkileri düzenleyen FIDIC Kırmızı Kitap'ı bilmek ve yönetmek önem kazanmaktadır. Örneğin, Katar dahil Orta Doğu projelerinin çoğunda, FIDIC Kırmızı Kitap tercih sözleşmesi olmaya devam etmektedir [7,8]. Birçok yayında belirtildiği gibi sarı ve kırmızı kitap uluslararası en yaygın benimsenen sözleşme formudur [9,10].…”