Book). ▻ Conditions of Contract for EPC/Turnkey Projects(Silver Book). ▻ Short
Form of Contract ( Green Book). ▻ Short Form of Contract ( Green Book).
Engineering And Construction Contract Specifications [CVE449]
FIDIC CONTRACTS Dr. Ahmed Elyamany
Objectives By the end of this lecture, you will: 1. Define FIDIC Contracts 2. CONDITIONS OF CONTRACT 3. FEATURES AND ADVANTAGES 4. TENDERING PROCEDURES
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What is FIDIC ? An international federation of consulting engineers, founded in 1913 with its headquarters located in Lausanne, Switzerland, whose objective is to promote the common interests of the member associations and disseminate information to its members for the development of consulting industry.
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What does FIDIC do? Arrange seminars and conferences and prepare standard documents, in the furtherance of its goals.
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FIDIC CONTRACTS Conditions of Contract for Construction (Red Book) Conditions of Contract for Plant and Design-Build (Yellow Book) Conditions of Contract for EPC/Turnkey Projects(Silver Book) Short Form of Contract ( Green Book) CLIENT/CONSULTANT MODEL SERVICES AGREEMENT
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The New Red Book For Construction of major building or engineering projects in general Employer’s Responsibility for Design Unit Price Contract/Remeasurement (monthly payment) Administration of Contract by Engineer Pro-contractor in terms of risk allocation
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The New Yellow Book For provision of mechanical and electrical plant, and for design and execution of building or engineering projects Contractor’s Responsibility for Design(design extent?) Lump-sum, with adjustments (stage/milestone or monthly payment) Administration of Contract by Engineer Pro-contractor in terms of risk allocation
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The Silver Book For provision on a turnkey basis of a process or power plant, etc. Contractor’s Total Responsibility for Design Normally fixed Lump-sum, with few adjustments (stage/milestone or monthly payment) Administration of Contract by Employer’s Representative Pro-employer in terms of risk allocation
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The Green Book For Building or Engineering Works of Small Capital Value or containing mostly simple or repetitive work Contractor’s or Employer’s Responsibility for Design Lump-sum, with adjustments (monthly payment) Administration of Contract by Employer’s Representative Pro-contractor in terms of risk allocation
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CONDITIONS OF CONTRACT
Guide published 2001
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published 1999
WHICH BOOK TO USE? STRAIGHTFORWARD PROJECT ?
EMPLOYER DESIGN ? yes
no yes no
CONTRACTOR DESIGN fixed price - lump sum little employer involvement no major unforeseen risks no yes no
DISCUSS IN DETAIL Employer ’s requirements with the Contractor, and negotiate a modified 11 FIDIC contract
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plant and/or high unforeseen risks yes
FEATURES AND ADVANTAGES
BALANCED
WELL TRIED
Known and recognized; in wide use for international contracts
SUPPORTED
Long case history for earlier contracts
ACCEPTED
Fair apportioning of risks, rights and obligations between the parties
Recommended or required by development banks,
EFFECTIVE
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Clear and complete conditions; time limits; provisions for attribution
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Key points: CONSTRUCTION
Employer designs
Engineer, working for the Employer
Bill of Quantities
Payments based upon measurements
Certification of payments by Engineer
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Key points: PLANT & DESIGN-BUILD
Contractor designs
Engineer, working for the Employer
Lump sum pricing
Payments according to progress
Certification of payments by Engineer
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Key points: EPC/TURNKEY PROJECTS
Contractor designs and takes full responsibility
Employer may appoint a Representative
Fixed price, to cover risks taken on by Contractor
Payments according to progress
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Key points: SHORT FORM
Simple projects
Design by either party
Employer may appoint a Representative
Valuation as appropriate; to be agreed
Payments according to value of Works executed and Materials and Plant delivered to site 16
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Key points: CLIENT/CONSULTANT
Agreed Scope of Services: Appendix A (the agreed scope of services)
Normal, Additional and Exceptional Services
Normal Services priced as agreed
Additional and Exceptional Services at rates agreed
Payment schedule as agreed 17
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USE OF FIDIC CONTRACTS
Match contract and project
Decide the form of contract early
Appoint Dispute Arbitration Board early
preparation of the contract should be done by professionals
Do not touch the General Conditions
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PRINCIPLES OF PROCUREMENT
Effectiveness Economy Efficiency Accountability Transparency / confidentiality Strong competition Publicity, wide participation Fair and equal conditions Standard procedures Standard documentation 19
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PROCUREMENT CATEGORIES
Goods
Works Versus
Consultant services
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TENDERING PROCEDURES
Development bank / public procurement procedures
Open tendering / International Competitive Bidding
Local tendering / National Competitive Bidding
Restricted tendering / Limited Bidding
Two stage tendering
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SELECTION PROCEDURES/CRITERIA
Criteria defined and published in advance
Economically most advantageous offer
Quality based selection for intellectual services
Quality and cost based selection
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PROCUREMENT STEPS
Preparation Publication Pre-qualification / short-listing Invitation (Submission) Evaluation Award, contracting Supervision, contract administration Lessons learned
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PREPARATION OF PROCUREMENT
Determination of needs and objectives Determination of constraints Identification of parties Planning, budgeting, financing Contract type Selection procedure Requirements / Specifications / Bills of Quantities / Terms of Reference Pre-qualification and evaluation criteria Particular conditions Tender documents Publicity 24
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CONTRACT ADMINISTRATION
Supervision Implementation of rule Quality and quantity Invoice verification Payments Extensions, variation orders, modifications Termination Disputes and their resolution
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RISKS IN PROCUREMENT
Wrong goods, works, services
Bad value for money
Fraud
Corruption
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Questions? Contact: Dr. Ahmed Elyamany 0109-4100-824
[email protected] http://drahmedelyamany.weebly.com 27
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