William Godwin - The 2017 FIDIC Contracts

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Provides a clear and comprehensive guide to the 2017 FIDIC contracts—written by a member of the FIDIC Updates Task Group FIDIC contracts are the most widely used engineering standard form contracts internationally but until 2017 the three main forms (the Red, Yellow and Silver Books) had not been amended or updated for nearly two decades, since the first editions were published in 1999. Written by a specialist lawyer who was member of the FIDIC Updates Task Group responsible for writing the new contracts, this book examines in detail the many substantial changes they have introduced. After providing an overview the contracts are examined clause by clause with the aim of showing how each compares and contrasts with the others and how the second editions compare and contrast with the first.
The first chapter describes how the Red, Yellow and Silver Books evolved from earlier contract forms and the distinctive characteristics of each, before providing an overview of the updates, including new potential risks for both Employer and Contractor, and then examining, in the second chapter, key general provisions such as the new rules on notices and limitation of liability. Chapter 3 examines the enhanced role of the Engineer in the Red and Yellow Books/Employer’s Representative’s function in the Silver including the new procedure for determinations as well as the Employer’s obligations and contract administration. The Contractor’s obligations are considered in chapter 4 while chapter 5 examines his responsibility for design in the Yellow and Silver Books. Chapters 6 to 14 deal respectively with plant, materials and workmanship and staff and labour; time-related provisions in the three contracts including extensions of time, and the Employer’s right to suspend the works; testing on and after completion and the Employer’s taking over of the works; defects after taking over, acceptance of the works and unfulfilled obligations; measurement (in the Red Book), the Contract Price and payment; the new variations regime and adjustments to the Price; termination and suspension; care of the works and indemnities and Exceptional Events (previously, Force Majeure). An important feature of the new contracts is their increased emphasis on clarity in the claims process and on dispute avoidance. These topics are examined in the final two chapters, 15 and 16, which deal respectively with the new claims and dispute resolution provisions of the 2017 forms.
FIDIC contracts are the most widely used standard forms of contract for international engineering and construction projects Provides a clear and comprehensive guide to the 2017 FIDIC Red, Yellow and Silver Books Written by a senior specialist lawyer and member of the FIDIC 2017 Updates Task Group responsible for writing the new contracts Accessible to those with little or no familiarity with FIDIC contracts
is an important guide for anyone engaged in international projects, including employers, contractors, engineers, lawyers, suppliers and project financiers/sponsors.

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The right of William Godwin QC to be identified as the author of this work has been asserted in accordance with law.

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While the author and publisher have tried to ensure that the information contained in this work is accurate and complete, they make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives, written sales materials or promotional statements for this work. The fact that an organization, website, or product is referred to in this work as a citation and/or potential source of further information does not mean that the publisher and authors endorse the information or services the organization, website, or product may provide or recommendations it may make. This work is sold with the understanding that the publisher is not engaged in rendering professional services. The contents of this work do not constitute advice, legal or otherwise, and should not be relied upon in relation to any matter. Suitable professional advice should be obtained in each case. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Library of Congress Cataloging‐in‐Publication Data

Names: Godwin, William QC, author.

Title: The 2017 FIDIC contracts / William Godwin QC.

Other titles: FIDIC contracts

Description: First edition. | Hoboken : Wiley, 2020. | Includes index.

Identifiers: LCCN 2019035412 (print) | LCCN 2019035413 (ebook) | ISBN

9781119514633 (hardback) | ISBN 9781119514640 (adobe pdf) | ISBN

9781119514657 (epub)

Subjects: LCSH: Construction contracts. | Engineering contracts. |

Architectural contracts. | Contracts (International law) | Standardized

terms of contract.

Classification: LCC K891.B8 G635 2019 (print) | LCC K891.B8 (ebook) | DDC

343.07/8624–dc23

LC record available at https://lccn.loc.gov/2019035412

LC ebook record available at https://lccn.loc.gov/2019035413

Cover Design: Wiley

Cover Image: © ivanastar/iStock/Getty Images Plus

Foreword

Since their publication in 1999 the three FIDIC contract forms or, as also aptly named, Books, have become not just well known and respected in international infrastructure contracting in all its many guises, but a major force for international cooperation and understanding. To those who have seen the free‐for‐all that can result from the absence of accepted norms in infrastructure procurement, FIDIC is a lifeline, more successful in its quiet deliberations than other over‐politicised international bodies but exercising a major and largely unseen influence over the well‐being of international projects which can lead less developed nations towards prosperity or financial ruin. Given the now truly global reach of FIDIC it remains a matter of national pride that the body was founded and modelled on UK practices, that the official and authentic texts remain the versions in the English language and that the now multifarious committees and other bodies of FIDIC retain many of its UK representatives and experts. These include the author of this work who has been closely involved with the new task group charged with writing the second editions of these three major FIDIC publications, still known as the Red, Yellow and Silver Books.

However well regarded, there inevitably comes a time for review and updating to take account of more recent developments in contracting and to build on the substantial experience gained from use of the forms over the intervening years. While the author is a specialist construction lawyer with wide experience of legal issues generated by the forms, the drafting and review bodies also have the inestimable advantage of including many distinguished specialists in other areas covered by the forms, from engineering and management to insurance and finance, and with access to FIDIC experts and commentators from many different jurisdictions and regions. The forms therefore remain a major international and cross‐disciplinary statement of good and accepted practice in this economically vital field.

The new Books will inevitably be the subject of renewed commentary and analysis, particularly in the light of issues and disputes which will arise in as yet unpredictable circumstances. It is notable that the books are now some 50% longer and thus cover in considerably greater detail many provisions, from the extended definitions section to enhanced notice provisions. Whether they will be regarded as over prescriptive and complex remains to be seen but, as pointed out in the introduction to the book, the forms must be usable to parties and individuals whose first language in not English. Thus one of the main aims of the new editions has been to increase clarity and certainty. Another aim has been to promote improved project management and dispute avoidance, important objectives which necessarily result in greater complexity.

This book provides, with the benefit of the author's unrivalled experience, a clear overview and comprehensive guide to each of the 2017 FIDIC Books. For the detailed contract provisions the forms themselves must be read along with the commentary which shows how each Book compares and relates to the others as well as pointing out changes from earlier editions including the 2008 Gold Book, the FIDIC Design‐Build‐Operate form. The book achieves all this with remarkable concision, being somewhat shorter than the three forms themselves and well illustrated with authorities on the earlier editions. No doubt the new forms will generate fresh rounds of court decisions and commentaries but the FIDIC Books will remain at the core of the international infrastructure industry which will continue to benefit from its accumulated experience and guidance.

Professor John Uff CBE QC

Preface

In early 2016 FIDIC asked me if I would be willing to join a new task group to write the second editions of the Red, Yellow and Silver Books. Since the first editions of the three Books were published in 1999 they have become the most widely used engineering standard form contracts internationally, and among the best regarded. It was felt nevertheless that the Books needed to be reviewed and updated to take account of developments in contracting since 1999 and to build on the substantial experience gained from use of the forms over the years. Much work had already been done by the FIDIC Contracts Committee and an earlier task group, but it remained to write the new editions with a view to publication in 2017. As a specialist lawyer I welcomed the opportunity to contribute to the writing of the new contracts and felt honoured to have been asked.

I could not have been in better company. My colleagues on the task group were all highly experienced engineers and FIDIC experts: they were Simon Worley, who became our group leader, Siobhan Fahey, Contracts Committee liaison, John Greenhalgh, Leo Grutters, Aisha Nadar and, assisting throughout as secretary to the group, Shelley Adams. I would like to pay tribute to them all. I would also like to acknowledge with gratitude the close involvement throughout of William Howard, president‐elect of FIDIC and the Executive Committee's primary liaison, and Zoltan Zahonyi, chair of the Contracts Committee.

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