A STUDY ON INTERNATIONAL STANDARD FORM OF COSNTRACT, FIDIC

FIDIC is the world large organisation. It produces standard forms of contract for
engineering construction and provision of mechanical and electrical plant. The FIDIC itself stand
for Fédération Internationale des Ingénieurs-Conseils means the International Federation of
Consulting Engineers. It was founded in Belgium in 1913. The original founding countries were
France, Belgium and Switzerland.

FIDIC is an association of national member associations. Thus, individual firms of

consulting engineers are not themselves members of FIDIC. Many of these national associations
represent other construction professionals. For the example are architects in addition to
consulting engineers. Besides, FIDIC also has affiliate members who are not engineers of
construction professional but organisations that have an interest in the work it undertakes. The
example of this profession is lawyer or insurer.

Since its formation, FIDIC has addressed a whole range of professional issues affecting
consulting engineers. They are working together in preparing and publishing standard form of
contract that are often referred to as the ‘FIDIC Rainbow’. The document which currently make
up the ‘Rainbow’ are; Construction Contract First Edition 1999, Plant and Design-Build Contract
First Edition 1999, and EPC/Turnkey Contract First Edition 1999.

The Construction Contract First Edition 1999 contains the conditions of contract for
construction. The condition is applied for building and engineering works that are designed by
the employer. Other, The Plant and Design-Build Contract First Edition 1999 contain the
condition of contract that is applied for electrical and mechanical plant and for building and
engineering works that are designed by the contractor. Else, The EPC/Turnkey Contract First
Edition 1999 contains the condition of contract for EPC or Turnkey project.
 The document referred are relate to contracts for the carrying out of works or supply of
plant and equipment. One of the guides objective is to indicate what the drafting committees
intended in preparing the documents. If any dispute occurs, the ultimate interpretation of
individual clauses in a specific contract will be determined by the courts or by arbitration.

In preparing document, FIDIC are consult widely with the sectors likely to be involved
with the use of the documents. The examples of the sectors are the European International
Contractors and International Bar Association. However, the content of the FIDIC documents are
essentially determined by engineers drawing on their extensive experience in contract
management. The likely involved sector such as lawyer just performed important role in ensuring
legal consistency by the topics covered.

FIDIC has periodically updated its standard forms. The aim in producing the new
document is to meet the market demands that will assist in good project management. It will
ensure completion of projects on time and within the budget. Besides that, it may provide fair
payment provisions for both employer and contractors.