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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General Conditions; Guidance for the Preparation of particular conditions and Annexes: 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 project SPV generally does not have a balance sheet capable of absorbing cost increases beyond levels covered by its committed financial resources.

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 cnotract geographies and sectors, and where construction is being financed other than by limited recourse debt. This article does not attempt to list out all the changes made cidic 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.

Group Extras More contracg Product code:. For example, this edition provides:. If drafters wish to amend the provisions found in the General Conditions, the place for doing fidif is in the Particular Conditions Part B fiidic 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.

Which FIDIC Contract should I use?

Accordingly, we have summarised the below changes as being relevant to parties considering using the new template. Clauses 1 to 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 the contract.

Essential items of information which are particular to each individual contract are to be included in the Particular Conditions Part A — Contract Data. Drafts were reviewed by many persons and organisations, including those listed below.


The charts are illustrative, however, and must not be taken into consideration in the interpretation of the Conditions of Contract. Acknowledgement of all reviewers fiidic does not mean that such persons or organisations approve the contrract of all clauses.

Special Advisers to the Contracts Committee provided invaluable and continued support in the various drafting and revision stages: Electronic version in encrypted PDF. 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.

FIDIC has long been renowned for its standard forms of contract for use between employers and contractors on international construction projects, in particular: Our team and biographies News Focus Newsletter. conrtact

EPC/Turnkey Contract 2nd Ed ( Silver Book) | International Federation of Consulting Engineers

Is the Contractor going to do most of the design? 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 under a Red Book risk profile is likely to offer a lower price than for a Silver Book risk profile.

These should be included in Part B — Special Provisions. Shopping basket Your shopping basket is empty. Equally, most SPVs do not have the human resources and expertise available to call upon to deal with technical risks as they materialise on site.

The FIDIC Silver Book – Impact for Project Financed EPC contracts – a detailed analysis

FIDIC very much appreciates the time and effort devoted by all the above persons. This publication also includes a number of sample forms to help both Parties fidlc develop a epx understanding of what is required by third parties such as providers of securities and guarantees. Relatively small value, short construction time or involving simple or repetitive work. 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 Contraxt from Initial Update Task Group: The Silver Book represents a turnkey, fixed price, lump sum arrangement, whereby the contractor assumes the majority of key construction risks.

Is the Employer or the Engineer going to do most of the design? This sets it apart from the Red and Yellow Books, where the Employer retains a number of these e;c risks, in line with the purpose and scope for which the contract is being used.

This is in addition to rpc general requirement from many lenders and their credit committees to have extremely robust conditions of contract that insulate their borrowers contracr cost and delay risks to the maximum extent possible.


As in traditional projects, e. 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 forms of the Silver Book that have often been heavily negotiated.

This 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.

Watermarked Compilation of all Collections English electronic version. FIDIC has long been renowned for its standard forms of contract for use between employers and contractors on international construction projects, in particular:. 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.

Is it a Building Project where the Employer wishes to have his building s constructed on a Fixed-Price Turnkey Basis generally elc with all furniture, fittings and equipment? The Red Book.

Shopping basket Your shopping basket is empty. Larger or more complex projects 1.

Notes on the Preparation of Tender Documents Notes on the Preparation of Special Provisions The contractor assumes the majority of risk on key matters such as design, specifications, time, price, site conditions and certain unforeseen risks. Then the Employer wishes the Contractor to take total responsibility for the design and construction of the infrastructure facility.

Even then, although the Silver Book is used as the basis of the construction arrangements, more often than not, the standard clauses end up being heavily amended. At this point it is worth reminding 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.

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. Second Stage Update Task Group: Watermarked Contracts and Agreements Collection English only electronic version.

For example, this edition provides: