This will be problematic for Employers who often do not have absolute control over the access routes. The first member associations from the developing world joined in Central Africa, now Malawi, Zambia and Zimbabwe and in Colombia. Views Read Edit View history. This means the Contractor is required to indemnify the Employer for the Works or any substantive part thereof, not being fit for purpose. 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 other geographies and sectors, and where construction is being financed other than by limited recourse debt. Presumably FIDIC has added this to ensure that contractors are not left exposed to uncertain timescales.

fidic epc contract

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FIDIC has mentioned that these provisions are designed to ensure that payment-related issues are resolved at the soonest opportunity. Views Read Edit View history.

Retrieved from ” https: Nonetheless, this is likely to be a key area of concern for contractors who are required to accept this clause.

fidic epc contract

Project finance transactions will likely seek to revert to the position that the access contravt are a matter for the Contractor only, and a normal aspect of doing business which must be managed by the Contractor. The charts are illustrative, however, and must not be taken into consideration in the interpretation of the Conditions of Contract. Dpc new regime is more punitive than in the previous edition and hence may be an issue for some Employers, since it results in the convenience termination trigger being virtually identical to termination for Employer default in terms of the compensation that arises.

Whilst this seems helpful in isolation, the change in law provisions are often amended so as to mirror the equivalent provisions in a key project document further up the chain such as a power purchase agreement or concession agreement and hence these provisions will need to be reviewed accordingly.

FIDIC – Wikipedia

Typically, this limb was included by many Employers that used the Silver Book prior to the new edition. The Employer must in response to a Statement provide supporting particulars in support of any differences between the amounts the Contractor has claimed and those that have been notified by the Contractor in the Statement as being payable.


These should be included in Part B — Special Provisions. In addition, bespoke conditions of contract usually sanction the Contractor if it fails to increase the value of the performance security, and the new Silver Book does eppc cover this aspect. Taking into account that the cintract will have undertaken extensive financial due diligence, the need for such provisions has been typically considered unnecessary.

EPC/Turnkey Contract 2nd Ed (2017 Silver Book)

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. If drafters wish to amend the provisions found in the General Conditions, the place for doing this is in the Particular Conditions Part B — Special Provisions, as mentioned above, and not by making changes in the General Conditions as published.

fidic epc contract

This ocntract it apart conrtact the Red and Yellow Books, where the Employer retains a number of these key risks, in line with the purpose and scope for which the contract is being used. By using this site, you agree to the Terms of Use and Privacy Policy. 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.

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

This article does not attempt to list out all the changes made in 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.

Indeed, participants in such sectors will likely have forms of wording with which they are already comfortable, and which are often more intricate than the new drafting proposed in the Silver Book.

Ultimately if these matters are not resolved then this can lead to a Claim under Sub-Clause This page was last edited on 24 Septemberat At this point it is worth reminding ourselves that market practice cintract 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 contravt key construction epcc risks to the contractor.


We believe that in project finance transactions however, lenders and fisic will continue to require such provisions to be removed. This is probably one of the most significant changes to the edition insofar as it has put the parties on a level playing field in respect of claims.

There were contact participants at an inaugural meeting during the World Exhibition in GhentBelgiumin Julyto discuss the possibility of forming a global federation of consulting engineers.

fidic epc contract

Also, there are sub-headings to assist with interpretation as opposed to long paragraphs of text under only one sub heading. There is, however, additional drafting that provides that where a delay is caused by matters for which the Employer is responsible which are concurrent with delays caused by the Contractor, then they need to be dealt with under the Particular Conditions. The provisions in Sub-Clause 16 allowing the Contractor to conrract performance of the Works and then terminate for non-compliance with Sub-Clause 2.

FIDIC very much appreciates the time and effort devoted by all the above persons. 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.

We expect this is an area where contractors will look to ensure that Silver Ccontract EPC contracts contain the new wording so as to ensure parity of treatment and clarity for claims and disputes. If the delay damages cap assuming the same is specified is exceeded. 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.

Special Advisers to the E;c Committee provided invaluable and continued support dontract the various drafting and revision stages: