Asim Ahmed and Hazem Balbaa provide an overview of the new version, out this year…
The FIDIC suite of construction contracts is written and published by the International Federation of Consulting Engineers. The FIDIC acronym stands for the French version of the Federation’s name (Federation Internationale des Ingenieurs-Conseil).
FIDIC’s Contracts Committee produces standard forms of contract for civil engineering projects, which are used globally. The purpose of these standard forms is to define the contractual relationship between parties and to allocate risks between the contractor and the employer. FIDIC states that their contracts allocate risks fairly to the party that is best able to bear and control that risk.
The Green Book is FIDIC’s Short Form of Contract, recommended for use on smaller value projects (less than USD 500,000) or when the construction time is shorter (less than six months) – although it is often used for higher value, longer projects. The first edition was launched in 1999 and consists of 15 clauses across 10 pages.
Under the usual arrangements for this type of contract, the Contractor constructs the Works in accordance with design provided by the Employer. However, it may also be suitable for contracts that include, or wholly comprise, the contractor’s design. There is no reference to an impartial Engineer in the contract – something that has been an area of concern for contractors. The second edition of the Green Book, first introduced at FIDIC’s annual conference, will be launched in 2021 and is intended to be a ‘Pro’ version, ‘fixing’ the issues or gaps felt by all parties in the original edition. The new Green Book will be substantially longer than the first edition – but still shorter than other FIDIC books – and will be more wide-reaching, providing greater clarity. The Appendix in the 1st edition has also been developed into a more detailed list of Particular Conditions in the pre-release version.
Some of the key areas addressed by the new Green Book include:
The new Green Book has also been designed for ease of use, with some new structural amends, as follows:
Overall, given that the 1999 Green Book was being used increasingly for projects of higher value, the new version will be gratefully received, as it gives all parties more clarity and structure. The inclusion of some familiar FIDIC provisions – but which are new to the FIDIC Green Book – such as intellectual property and confidentiality, are also much needed. It is certainly in keeping with FIDIC’s stated mission: “To improve the business climate and promote the interests of consulting engineering firms globally and locally, consistent with the responsibility to provide quality services for the benefit of society and the environment.” At last, the FIDIC Green Book can take its rightful place with the Red, Silver, Yellow and Pink Books.
Other releases in 2021 of note are:
Other contracts to look out for are:
Asim Ahmed is Head of Litigation, BSA Ahmad Bin Hezeem & Associates LLP. He may be reached at asim.ahmed@bsabh.com.
Hazem Balbaa is Associate, BSA Ahmad Bin Hezeem & Associates LLP. He may be reached at hazem.balbaa@bsabh.com
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