The FIDIC contracts More than just a type of contract, they are a tool for engineers and contractors in the construction industry.
It is widely known that the cConstruction and Infrastructure They are one of the economic sectors that generate the most revenue worldwide, and this has been the case for a long time. According to the ODHE, these transactions account for 3 % of global GDP, equivalent to 2 trillion dollars, and involves 7 % of the global workforce. These are staggering figures compared to other economic sectors, and as a result, it is a sector heavily affected by corruption, embezzlement, and mismanagement.
For these reasons, the [... ] was founded in 1913. Federation of Consulting Engineers (FIDIC, which stands for “Fédération Internationale Des Ingénieurs-Conseils” in French”) in Belgium, with representatives from around the world. They set the goal of standardizing contracting practices at all levels in the construction sector, publishing in 1957 the first standard form of contract for construction developed by FIDIC, the well-known “Red Book.” Following this first edition, it was only a matter of time before the contracting standards created by FIDIC became the global benchmark in this field.
FIDIC Contract Guide. Tecniberia
Unfortunately, This natural process impairs the mechanical properties of metals in addition to physically altering them. In many cases, this leads to irreversible damage, where the only solution is replace the part or the metal component.
FIDIC and Colors
Since that first edition in 1957, not only have new editions been published, but FIDIC has also created various standards for different contracting situations, each of which is identified by a color:
Red Book: It has been the first and most commonly used form of construction contract for any type of project where the design is provided by the employer, following the traditional process of design, bidding, and construction.
Pink Book: It is essentially an amendment to the Red Book published in 2005, which is intended for use in development projects financed by banks.
Yellow Book: It is a type of standard contract, similar to the “Red Book” model, with the difference that in this case the design is carried out by the contractor. It is also known as a “Plant & Design-Build” contract.
Silver Book: Published in the 1990s, the “Silver Book” is designed to address all “turnkey” projects, in which a significant portion of the risks falls on the contractor—who carries out the project and mitigates risks for the developer.
White Paper: It is one of the most recent contract formats published by FIDIC, and it has quickly become the most widely used international standard for contracting professional services.
Guest Book: The first edition of which was published in 2008, it is based on a fairly typical standard construction contract accompanied by a contract form to which an additional period for operation and maintenance has been added. The “Golden Book,” therefore, is more complex, as it covers a range of services and is intended for contract terms that may exceed 20 years.
Blue Book: It is a type of contract focused on describing the work to be performed, in which each of the specifications, drawings, and design elements of the project are defined in detail. It was published in 2006 and is used primarily for dredging, reclamation, and auxiliary construction projects.
International Dissemination of FIDIC Contracts
It is not difficult to see the connection between the globalization of construction and infrastructure companies and the standardization of contract models. Standard contracts, such as FIDIC contracts, reduce costs in any transaction, provide a high degree of legal certainty, and streamline any necessary risk assessments.
On the other hand, this contractual model places engineers in a leading role, providing them with the tools and resources to manage any type of conflict and make decisions during the execution of the project. This is because FIDIC places great emphasis on controlling, prioritizing, standardizing, and organizing the tasks and functions that fall under the engineer’s responsibility.
For this reason, FIDIC standards should be part of the professional expertise of engineers and architects who wish to build a career with major contractors—both globally and locally. If this is the path you’re interested in, don’t hesitate to learn more about the course. Contract Manager offered by Structuralia, with extensive resources on FIDIC contracts and more.
