Global January 9 Introduction FIDIC has long been renowned for its flexible suite of standard forms of contract for use on international construction and engineering projects. Two of the key strengths, or attractions, of the FIDIC suite of contracts are, firstly, that they are capable of use across a diverse range of legal systems and, secondly, that they have been pro-actively updated and added to over time to respond to the needs of the industry. In earlyFIDIC formed a working group to focus on updating its existing suite of contracts and to add entirely new forms of contract including sector-specific tunnelling and renewables forms ; with intentions to release such new and updated contracts over the course of the next two years.
FIDIC Contracts are widely used in the international construction industry and their purpose is to define the contractual relationship between the parties and to allocate the risks between the Contractor and the Employer.
The following note aims at providing a brief introduction to the main features of the Silver Book. The Silver Book deals with turn-key projects ie those projects for which the Contractor takes care and is responsible for the engineering, the procurement and the construction. The Contractor will then deliver to the Employer a plant, a factory or an infrastructure ready to be used by the Employer.
The introductory note of the Silver Book states that the aim of the Book is to give certainty as to the time and costs of the works. The main features of the Silver Book are that: The Contractor's obligations are specified under Clause 4. Certainly of the most relevant is that under Sub-Clause 4.
The fit-for-purposes obligation is rather burdensome for the Article on fidic silver book and some disputes may arise in connection with its legal meaning and construction depending on the governing law of the Contract even if the obligation is specified to refer to what is "defined in the Contract".
That means that particular attention should be given first of all to what it is stated in the Contract and in the technical specifications. Said Clause must be read in conjunction with Sub-Clause 5.
Again particular attention should be given to the Employer's Requirements to avoid any liability actually unknown to the Contractor. The Contractor shall in addition satisfy himself as to the "correctness and sufficiency of the Contract Price" Sub-Clause 4.
Administration of the Contract. The administration of the Contract remains in the hands of the Employer unless the latter appoints, under Clause 3. However, the Employer's Representative does not play an independent role.
The Representative is expressly the longa manus of the Employer. The Employer shall act via determinations which shall be "fair" as provided by Clause 3. Variations and adjustments Sub-Clauses The rationale of the clause stays in that in almost all the construction contracts the need to vary the works may arise during the construction phase and after the contract has already been awarded.
There are three main types of variations: Unless the Contractor gives a notice to the contrary in case of specific and limited cases, the latter will be bound by any variation instructed by the Employer.
Variations initiated by the Contractor are instead governed by Sub-Clause The proposal submitted by the Contractor shall clearly specify any impact that the variation will have on costs and time for completion.
If no agreement is reached between the parties in such respect, the Employer shall proceed according to Sub-Clause 3. Clearly one point to be also considered is that any Variation may have an impact on the liabilities of the Contractor and this should be carefully considered especially in the case the Contractor simply execute an Employer's Instruction.
Claims One of the most important issues for any contractor is the entitlement to submit claims. There are various clauses which provides expressly said right. In general terms however, the most relevant provision of the Silver Book is contained in Sub-Clause It must be stressed that the provision is a time-bar-limit provision and this is expressly stated in the second paragraph of the same Sub-Clause which provides that:In the FIDIC Gold Book , there is a new clause, sub-cl(a) which gives the Dispute Board an element of discretion noting that: “However, if the Contractor considers there are circumstances which justify the late submission, he .
FIDIC’s Silver Book Silver Book. This article explores how a court in Queensland (Australia) has dealt with the Silver Book’s provision.
Contractors have good cause to be wary.
Role of interim payment certificate In Dawnays Ltd v . Huse J. A., in his article, "The use of the FIDIC Silver Book in the Context of a BOT Project" () 17 ICLR , at , refers to the Silver Book as being "a good starting point for the drafting and negotiation.
Article. Turnkey contracting under the FIDIC Silver Book:What do owners want? What do they get?
by Jonathan Hosie November iccbooks. The thesis developed is that owners do not get the turnkey solution they want. •FIDIC Silver Book – Clause “The Contractor shall set out the Works in relation to the original points, lines and levels of reference specified in the Contract.
Feb 09, · FIDIC Contracts are widely used in the international construction industry and their purpose is to define the contractual relationship between the parties and to allocate the risks between the Contractor and the Employer.
Italy Real Estate and Construction BdaLaw 9 Feb