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FIDIC contracts and the mechanisms

of solving its disputes
1- Definition the International Federation of Consulting
Engineers (FIDIC).
2 - patterns and the types of FIDIC contracts.
3 - The obligations and rights of the FIDIC contract parties .
4 - Financial balance in FIDIC contracts .
5 - The reasons and the factors of FIDIC contracts disputes .
6 - The mechanisms of the solving FIDIC contracts disputes .
7 - The role of the engineer in solving FIDIC contracts disputes .
8 - The effect of force majeure at the obligations and rights ,of the its
parties .

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 WHAT,S FIDIC
 Overview of FIDIC

 FORMS OF FIDIC CONTRACTS .

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 Overview of FIDIC
* FIDIC “Fédération Internationale des
Ingénieurs Conseils” .

* Headquarters locate in Geneva, Switzerland .

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 The history of FIDIC
• FIDIC is the international federation of national
associations of independent consulting engineers .

 Founded in 1913 by the national associations of

three European countries.

Now with membership from over 90 countries .

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Member of Egyptian Society for
Consulting Engineers (ESCONE),
established in 1971 and joined to
FIDIC 1991.

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 The founding of FIDIC
FIDIC was founded
in July 1913 as the
result of an
invitation by Belgian
and French
engineers to attend
“le Premier Congress
International des
Ingénieurs-conseils Participants to the
et Ingénieurs- 1913 Congress in
experts”. Ghent, Belgium
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 The founding of FIDIC

 The first FIDIC Congress convened

representatives of seven countries.

 However, the real founders of FIDIC

were the National Associations of
Belgium, France and Switzerland.
The first FIDIC logo
“With Objectivity and
Integrity”
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 The FIDIC consulting engineer
circa (1914)
“….. is he who possessing One year later, in
technical scientific the programme of
knowledge and practical its 2nd Congress in
experience exercises the Bern, Switzerland,
profession with full FIDIC included the
discussion of
impartiality on behalf of
measures to combat
his client and does not extortion and
receive any remuneration corruption.
except from the said
client.”
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 Most growth outside Europe has taken
place since the Second World War, with
developing countries particularly being
encouraged to join.

• FIDIC now represents most of the

private practice consulting engineers in
the world .

• Members comply with a code of ethics

guiding their professional standards .
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• FIDIC works to promote the common
interests of consulting engineers through
seminars, conferences and regular
discussions with the national associations
and international financial institutions
(such as the World Bank)

• Preparation of standard forms of

contract and other documents is a major
activity

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 FIDIC
1- Why FIDIC :
( why it's better to use FIDIC formulation of contracts)

2- What's FIDIC :
A- FIDIC Vision .
B - FIDIC Mission .
C -The FIDIC Strategic Objectives .

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 Why FIDIC
1 – Does FIDIC contracts achieve the
traditional conditions of contracts?

2 -Does FIDIC contracts achieve the

common and principles rules common
of contracts ?

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 Why FIDIC

Does FIDIC contracts achieve what's the

global market looking for?

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 The global market
What is the global market looking for?
1- Quality .
2- integrity .
3- Responsiveness .
4- Innovation .

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What's FIDIC contracts

* mechanism contractual .

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 Fair and balanced to both parties

• Risk is allocated to the party that is best able to

bear and control that risk
• Recompense and time extension allowed when
uncalculated hindrances occur
• ‘Engineer’ whose job is principally to supervise
and monitor the work
– in strict accordance with the Contract to the
satisfaction of the Engineer
– with formal ‘Engineer’s Decision’
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 FIDIC Vision

“ recognising global voice

for the consulting
engineering industry”.

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 FIDIC Mission
“improving the business
climate and promote the
interests of consulting
engineering firms, either
globally or locally,
*consistent with the
responsibility to provide
quality services for the
benefit of society and the
environment”.
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 The FIDIC Strategic Objectives

*Representivity Image .
* Business Practices .
*Globalisation .
* Integrity .
* Sustainability .
* Quality .

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FIDIC'S forms contracts Collections
Contracts and Agreements

Construction Plant & DB EPC/Turnkey CLIENT/CONSULTANT

MODEL SERVICES

:: Contract formats
:: About contracts
:: Which contract?
:: Terms of use
:: Translations policy
CONSTRUCTION Short form Contract for Design,
Multilateral contract Build and Operate
Development Banks Projects
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Fidic,s Business practice

:: Quality Management
:: Integrity Management

Quality Base Quality Business

Selection Management Integrity

:: Environmental
Management
:: Sustainability

Quality Business
Quality Based
Management Integrity
Selection
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Fidic,s Business practice

:: Training Events
:: Capacity Building
:: Consultant Selection

Capacity Consultant Risk Management

Building Selection

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 OLD NEW

Plant and
Electrical &
Design
Mechanical
Build
„Yellow Book‟ (Mainly
3th Edition Contractor
1987,1988 design)
Yellow ?!

Design-Build
and
Turnkey EPC
„Orange Book‟ Turnkey
First Edition Projects
1995
Silver Book

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 OLD NEW

Civil Construction
„Red Book‟ (mainly)
4th Edition Employer-
1987,1992 Design
1999

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 FIDIC in numbers (2005/2006)
* 96 National aassociations 90
countries (4 Arab countries) 30
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* 600 thousand consulting
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engineer
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* Fees of 100 billion USD per year 0

MAs in developed countries

MAs in emerging countries
MAs in developing countries

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The mechanisms of the solving
FIDIC contracts disputes .
1- Amicable settlement of disputes
-- Negotiation
-Mediation and conciliation
 Disputes Settlement Mechanism Provided for by
the FIDIC 1987 Edition .
 Criticism of Disputes Settlement Mechanism,
According to the FIDIC 1987 Edition .
Conditions to refer the dispute to the engineer in
fourth addition of red book (1987 )
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The mechanisms of the solving
FIDIC contracts disputes .

 Disputes Settlement Mechanism According to 5th

FIDIC Edition

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 Disputes Settlement Mechanism According to
5th FIDIC Edition
 THE DISPUTE ADJUDICATION BOARD (DAB)
 DISPUTES TO DAB
 DAB SELECTION OF MEMBERS
 DAB CONSTITUTION
 SELECTION OF MEMBERS
 OBLIGATIONS OF THE DAB MEMBERS
 OBLIGATIONS OF THE PARTIES
 PAYMENT OF DAB MEMBERS
 TERMINATION OF DAB
 DEFAULT OF MEMBER
 TRIPARTITE AGREEMENT 30
THE DISPUTE ADJUDICATION BOARD (DAB)
 FAILURE TO COMPLY WITH A DAB DECISION
 ENFORCEMENT

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 ARBITRATION in FIDIC contracts
 Advantages of arbitration
 What is a disputes
 What is arbitration.
 The arbitration agreement
 Sources of law in arbitration
 The arbitrator
 The arbitration agreement under clause 67 of the Red Book
 The 1996 supplement to the Fourth Edition of the Red Book
 The ICC Rules of Arbitration
 Why does arbitration in construction disputes continue to lose
favor
 Concluding remarks

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 ARBITRATION in FIDIC contracts
 Terms resort to arbitration in accordance with the
rules of FIDIC
 Begin arbitration proceedings
 Appointment of arbitrators and their replacement

 The arbitration proceedings

 Powers of the court of arbitration on the dispute

 Arbitration hearings

 Taking provisional measures and temporary

 Issuance of the arbitration Judgment

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