Contract Conditions

Advocating balanced international conditions of contract
The availability of standard conditions of contracts is an important element for facilitating the tendering for and negotiating of international construction contracts. FIDIC (the International Federation of Consulting Engineers) has played an important pioneering role in this field by issuing over the years a number of standard forms of contract for use on construction projects. Thanks to the customary approach of close cooperation with “friendly reviewers” from the industry itself (international contractors, employers), the FIDIC conditions are characterized by a delicate balance of risks and responsibilities and as such, they have become the baseline conditions for a fair international construction contract. Contracts which are currently in most common use the Conditions of Contract for Construction (‘Red Book’), the Conditions of Contract for Plant and Design-Build (‘Yellow Book’) and the Conditions of Contract for EPC/Turnkey Projects (‘Silver Book’). FIDIC also developed – in close cooperation with the International Association of Dredging Companies (IAC) – a form of contract which is recommended for dredging and reclamation works (‘Dredgers Contract’).

 

Through its active membership of EIC (European International Contactors), NABU wants to contribute constructively to the development of acceptable and fair standard forms of contract for use in the international construction industry. The construction industry attaches great importance to the improvement of existing and the development of new contract forms that follow trends in the international construction market. Driving forces behind new standard contracts are the trend from traditional employer-provided design with re-measurable prices to design-build with lump-sum prices and the transition from publicly financed to privately financed infrastructure. Much effort today is put in the development of a new FIDIC Design, Build and Operate (DBO) Contract for ‘green-field’ construction projects (‘Gold Book’).