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The Benefits and Challenges of the FIDIC Red Book 1987 for Civil Engineering Works


FIDIC Red Book 1987 PDF: A Comprehensive Guide for Civil Engineers




If you are a civil engineer involved in international or domestic projects, you may have heard of FIDIC and its conditions of contract. FIDIC stands for Fédération Internationale des Ingénieurs Conseils, which is French for International Federation of Consulting Engineers. FIDIC is an organization that represents the interests of engineering consulting firms worldwide and publishes standard forms of contract for various types of engineering works.




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One of the most popular and widely used FIDIC contracts is the Conditions of Contract for Works of Civil Engineering Construction, also known as the Red Book. The Red Book was first published in 1957 and has been revised several times since then. The fourth edition of the Red Book was published in 1987 and reprinted in 1988 and 1992 with editorial amendments. It is still in use today by many civil engineers and contractors around the world.


But what exactly is the Red Book and what does it cover? Why is it important for civil engineers to know about it? How can you use it effectively in your projects? In this article, we will answer these questions and more. We will provide you with a comprehensive guide on the Red Book 1987 PDF, its structure, content, benefits, challenges, and best practices. By the end of this article, you will have a clear understanding of what the Red Book is and how to use it in your civil engineering projects.


The General Conditions of the Red Book




The Red Book consists of two parts: Part I - General Conditions and Part II - Conditions of Particular Application. Part I contains the general terms and conditions that apply to all contracts based on the Red Book. It has 72 clauses that cover various aspects of the contract, such as definitions, obligations, risks, liabilities, payments, variations, tests, completion, defects, claims, disputes, arbitration, etc. Part I also includes forms of tender and agreement that can be used by the parties to enter into a contract.


The General Conditions are designed to be suitable for general use for any type of civil engineering works where tenders are invited on an international basis. They are based on the principle that the Contractor carries out the design (if any) and construction in accordance with the Employer's requirements and specifications. The Engineer acts as the Employer's representative and administers the contract impartially.


Some of the main clauses and their implications in Part I are:


  • Clause 1: Definitions. This clause defines some key terms used in the contract, such as Contract Price, Force Majeure, Subcontractor, Variation Order, etc. It is important to understand these definitions clearly to avoid confusion or ambiguity.



  • Clause 4: Subcontracting. This clause allows the Contractor to subcontract any part of the works with the consent of the Engineer. However, the Contractor remains responsible for all acts and omissions of his Subcontractors as if they were his own.



  • Clause 12: Measurement and Evaluation. This clause specifies how the works are measured and evaluated for payment purposes. It also provides for adjustments to be made for changes in legislation, taxes, duties, etc.



  • Clause 14: Programme. This clause requires the Contractor to submit a detailed programme for the execution of the works within 28 days after receiving the Engineer's order to commence work. The programme should include all activities necessary for completing the works within the time specified in the contract.



  • Clause 20: Claims, Disputes and Arbitration. This clause sets out the procedure for dealing with claims, disputes and arbitration arising from or in connection with the contract. It requires both parties to attempt to settle any dispute amicably before referring it to arbitration. It also provides for a Dispute Adjudication Board (DAB) to be appointed by mutual agreement or by FIDIC to give decisions on disputes within 84 days.



The forms of tender and agreement are standard documents that can be used by both parties to express their intention to enter into a contract based on Part I General Conditions. They contain basic information such as names, addresses, descriptions, prices, signatures, etc.


The Conditions of Particular Application of the Red Book




Part II contains the conditions of particular application that apply to each specific contract based on the Red Book. Part II contains clauses that modify or supplement the general conditions in Part I to suit the particular circumstances and requirements of the project. Part II must be drafted by the parties or their consultants with care and expertise to avoid inconsistencies or conflicts with Part I.


To assist in the preparation of Part II, FIDIC has published a separate document entitled Conditions of Contract for Works of Civil Engineering Construction, Part II - Conditions of Particular Application, with Guidelines for preparation of Part II Clauses, Fourth Edition. This document provides explanatory material and example clauses for various topics that may need to be addressed in Part II, such as site conditions, design responsibility, quality assurance, environmental protection, health and safety, etc.


Some of the supplements and amendments to the Red Book that have been published by FIDIC are:


  • Supplement to FIDIC Fourth Edition 1987 of Conditions of Contract for Works of Civil Engineering Construction (First Edition 1996). This supplement contains three sections that can be incorporated into Part II to address some issues that were not adequately covered in the original edition. Section A provides for a Dispute Adjudication Board (DAB) to be appointed by mutual agreement or by FIDIC to give decisions on disputes within 84 days. Section B provides for payment on a lump sum basis instead of measurement and evaluation. Section C provides for late certification by the Engineer.



  • Guide to the Use of FIDIC Conditions of Contract for Works of Civil Engineering Construction (First Edition 1989). This guide includes comments on the provisions of the fourth edition of the Red Book and some suggestions for drafting Part II clauses. It also includes a copy of the Red Book conditions.



  • Conditions of Subcontract for Work of Civil Engineering Construction (First Edition 1994). This document contains conditions of subcontract that are compatible with the Red Book conditions and can be used by the Contractor to subcontract any part of the works with the consent of the Engineer.



  • Introduction to the FIDIC Conditions of Subcontract for Work of Civil Engineering Construction (First Edition 1995). This document provides an introduction and overview of the conditions of subcontract and some guidance on how to use them.



The Benefits and Challenges of Using the Red Book




The Red Book is one of the most widely used standard forms of contract for civil engineering works in the world. It has many benefits and advantages for both parties, such as:


  • It provides a clear and comprehensive framework for defining the rights and obligations of both parties and allocating the risks and responsibilities between them.



  • It reflects the international best practices and standards for civil engineering works and incorporates the principles of fairness, transparency, cooperation and dispute resolution.



  • It facilitates the tendering and contracting process by reducing the time and cost involved in drafting and negotiating bespoke contracts.



  • It enhances the reputation and credibility of both parties by demonstrating their adherence to a globally recognized and respected contract.



  • It promotes consistency and uniformity in contract administration and interpretation across different projects and jurisdictions.



However, using the Red Book also poses some challenges and difficulties for both parties, such as:


  • It may not be suitable or applicable for all types of civil engineering works or all legal or regulatory environments. It may require extensive modifications or adaptations to fit the specific needs and expectations of each project.



  • It may not reflect the current market conditions or technological developments that may affect the performance or outcome of the works. It may need to be updated or revised periodically to keep pace with the changes in the industry.



  • It may create conflicts or ambiguities with other documents or agreements that are part of the contract, such as drawings, specifications, bills of quantities, etc. It may require careful coordination and integration with these documents to ensure clarity and consistency.



  • It may give rise to disputes or claims due to different interpretations or understandings of its provisions by different parties or stakeholders. It may require professional advice or assistance to resolve these disputes or claims amicably or through arbitration.



Best Practices and Tips for Using the Red Book




Using the Red Book effectively requires both parties to have a good understanding of its provisions and their implications. It also requires both parties to act in good faith and cooperate with each other and the Engineer throughout the project. Here are some best practices and tips for using the Red Book:


  • Before entering into a contract based on the Red Book, both parties should carefully review Part I General Conditions and Part II Conditions of Particular Application and make sure they agree on all the terms and conditions. They should also consult with their legal and technical advisors to ensure that the contract is suitable and compliant with the applicable laws and regulations.



  • When drafting Part II Conditions of Particular Application, both parties should follow the guidelines and examples provided by FIDIC and avoid introducing clauses that are inconsistent or contradictory with Part I General Conditions. They should also avoid using ambiguous or vague language that may lead to disputes or misunderstandings.



  • When executing the works, both parties should comply with their obligations and responsibilities under the contract and respect the role and authority of the Engineer. They should also communicate regularly and promptly with each other and the Engineer and keep records of all correspondence, notices, instructions, decisions, etc.



  • When dealing with changes, variations, claims or disputes, both parties should follow the procedures and mechanisms specified in the contract and try to resolve them amicably or through the DAB before resorting to arbitration. They should also provide sufficient evidence and documentation to support their positions and claims.



  • When completing the works, both parties should cooperate with each other and the Engineer to ensure that the works are tested, inspected and certified in accordance with the contract. They should also settle any outstanding issues or payments before issuing or receiving the final certificate.



Conclusion




The Red Book is a standard form of contract for works of civil engineering construction that has been widely used and accepted by civil engineers and contractors around the world. It provides a clear and comprehensive framework for defining the rights and obligations of both parties and allocating the risks and responsibilities between them. It also reflects the international best practices and standards for civil engineering works and incorporates the principles of fairness, transparency, cooperation and dispute resolution.


However, using the Red Book also poses some challenges and difficulties for both parties, as it may not be suitable or applicable for all types of civil engineering works or all legal or regulatory environments. It may also create conflicts or ambiguities with other documents or agreements that are part of the contract, or give rise to disputes or claims due to different interpretations or understandings of its provisions by different parties or stakeholders.


Therefore, using the Red Book effectively requires both parties to have a good understanding of its provisions and their implications. It also requires both parties to act in good faith and cooperate with each other and the Engineer throughout the project. By following some best practices and tips for using the Red Book, both parties can achieve a successful outcome for their civil engineering projects.


FAQs




Here are some frequently asked questions about the Red Book:


  • What are the differences between the Red Book and other FIDIC contracts?



The Red Book is one of several standard forms of contract published by FIDIC for different types of engineering works. Some of the other FIDIC contracts are:


  • The Yellow Book: Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by Contractor.



  • The Silver Book: Conditions of Contract for EPC/Turnkey Projects for Engineering Procurement Construction (EPC) / Turnkey Projects.



  • The Green Book: Short Form of Contract for Works of Relatively Small Capital Value.



  • The Gold Book: Conditions of Contract for Design Build Operate Projects for Design Build Operate (DBO) Projects.



The main differences between these contracts are related to the extent of design responsibility assumed by the Contractor and the Employer, the degree of risk and responsibility assumed by the Contractor, and the payment method used by the Employer. For example, the Yellow Book is suitable for projects where the Contractor carries out most of the design and is paid on a lump sum basis, while the Silver Book is suitable for projects where the Contractor carries out all of the design and assumes most of the risks and liabilities and is paid on a lump sum turnkey basis.


  • How can I access the Red Book online or offline?



The Red Book can be purchased online or offline from FIDIC or its authorized distributors. The electronic version of the Red Book is available in encrypted PDF format and can be downloaded from FIDIC's website or other online platforms. The printed version of the Red Book can be ordered from FIDIC's website or other offline sources. The price of the Red Book varies depending on the language, format and edition.


  • How can I resolve disputes arising from the Red Book contract?



The Red Book provides a procedure for resolving disputes arising from or in connection with the contract. The procedure consists of three steps: amicable settlement, dispute adjudication board (DAB) and arbitration. The parties are required to attempt to settle any dispute amicably before referring it to the DAB or arbitration. The DAB is a panel of one or three independent experts appointed by mutual agreement or by FIDIC to give decisions on disputes within 84 days. The DAB's decisions are binding unless and until revised by arbitration. The arbitration is conducted under the rules of arbitration of an institution agreed by the parties or under UNCITRAL arbitration rules.


  • How can I update or modify the Red Book contract?



The Red Book contract can be updated or modified by using Part II Conditions of Particular Application or by issuing variations orders during the execution of the works. Part II allows the parties to modify or supplement Part I General Conditions to suit their specific needs and expectations. Variation orders allow the Engineer to instruct changes to the works, such as quantity, quality, design, sequence, etc., subject to adjustments in time and cost.


  • How can I get more information or guidance on using the Red Book contract?



The Red Book contract is accompanied by several documents that provide more information or guidance on using it, such as:


  • The Conditions of Contract for Works of Civil Engineering Construction, Part II - Conditions of Particular Application, with Guidelines for preparation of Part II Clauses, Fourth Edition. This document provides explanatory material and example clauses for various topics that may need to be addressed in Part II.



  • The Guide to the Use of FIDIC Conditions of Contract for Works of Civil Engineering Construction (First Edition 1989). This document provides comments on the provisions of the fourth edition of the Red Book and some suggestions for drafting Part II clauses.



  • The User Guide for Procurement of Works - FIDIC Red Book (2017). This document provides guidance for borrowers on how to prepare a bidding document for an admeasurement (unit price) type of works contract using FIDIC Red Book (2017) general terms and conditions.



  • The FIDIC website (www.fidic.org). This website provides access to various publications, training courses, events and news related to FIDIC contracts.



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