The FIDIC Forms of Contract

Nael G Bunni BSc, MSc, PhD, CEng, FICE, FIEI, FIStructE, FCIArb, FIAE, MConsEI

Part I Background and Concepts of the Red Book;. Chapter 1 Background of the Red Book. 1.1 The ACE Form. 1.2 The First Edition of the Red Book. 1.3 The Second and Third Editions of the Red Book. 1.4 The Fourth Edition of the Red Book. 1.5 The 1996 Supplement to the Red Book. 1.6 Concepts of the Red Book. 1.7 The New Suite of FIDIC Contracts. Chapter 2 The Red Book is based on a domestic contract. 2.1 Introduction. 2.2 Diversity of legal systems. 2.3 The applicable law in international construction. 2.4 The applicable law of the contract. 2.5 Law governing procedure. 2.6 Law governing enforcement of awards. 2.7 Grouping of the contemporary legal systems. 2.8 The Romano-Germanic group. 2.8.1 Sources of law in the Romano-Germanic group. 2.8.2 Legal authoritative writing. 2.8.3 Areas of the law affecting construction in the Romano-Germanic group. 2.9 The common law group. 2.9.1 Sources of law in the common law group. 2.9.2 Areas of the law affecting construction in the common law group. 2.10 The law in Islamic countries. 2.10.1 Sources of Islamic law. Chapter 3 Legal concepts based on the common law system. 3.1 The law applicable to the contract. 3.2 Conflict. 3.3 Some specific concepts under the common law. 3.3.1 Substantive law and procedural law. 3.3.2 Legislation, common law and equity. 3.4 Tort. 3.5 Contract - general principles. 3.5.1 Prerequisites of a contract. 3.5.2 Limitation periods. 3.6 Privity of contract. 3.7 Performance of a contract. 3.8 The contents of a contract. 3.9 Remedies for breach of contract. 3.10 Exclusion clauses. 3.11 The responsibility to complete. Chapter 4 Drafting principles. Chapter 5 The concept of a trusted independent engineer. 5.1 Introduction. 5.1.1 FIDIC's Statutes and By-Laws and the independent engineer. 5.1.2 FIDIC's Code of Ethics. 5.1.3 FIDIC's Quality-Based Selection, 'QBS'. 5.2 Other suppliers of consulting services. 5.3 Services provided by the consulting engineer. 5.3.1 Counselling services. 5.3.2 Pre-investment studies. 5.3.3 Design, preparation of documents and supervision. 5.3.4 Specialised design and development services. 5.3.5 Project management. 5.3.6 Programme manager. 5.4 Independence. Chapter 6 A traditional re-measurement contract. 6.1 Factors governing choice of contract. 6.2 The allocation of essential functions. 6.2.1 The allocation of the function relating to finance. 6.2.2 The allocation of the functions of design and construction. 6.2.3 The allocation of risk, quality control and the method of pricing and payment. 6.3 Re-measurement contracts. 6.3.1 The Red Book is a re-measure contract. 6.3.2 Contracts with a bill of quantities. 6.3.3 Contracts with a schedule of rates. 6.4 Cost-reimbursable contracts. 6.5 Lump sum contracts. 6.5.1 The Supplement to the Fourth Edition of the Red Book, Section B. 6.5.2 Main Features of FIDIC's Form for Payment on a lump sum basis. Chapter 7 Sharing of risks. 7.1 Introduction. 7.2 The definition of 'risk'. 7.3 Measurement of risk. 7.4 Risk management. 7.5 Allocation of risk and their management. 7.6 Allocation of Risks in the Red Book. 7.7 Responsibility and Liability. 7.8 Indemnity and Insurance. Chapter 8 The concepts in practice. 8.1 The Red Book in use. 8.2 Areas of conflict. 8.2.1 A relationship of trust. 8.2.2 The role of the engineer. 8.2.3 Avoidance of risk. 8.2.4 The design function. 8.2.5 Absence of a legal system. 8.2.6 Distrust of changes. 8.2.7 Legal questions. 8.3 EIC/FIDIC survey of 1996. 8.4 A brief summary of Part I. Part II The Fourth Edition: A Commentary. Chapter 9 The revisions - purposes and consequences. 9.1 Introduction. 9.2 Clause 1. 9.2.