FIDIC SILVER BOOK 1999
FIDIC - Conditions of Contract for EPC-Turnkey myavr.info 01/03/09 PM. ERRATA to the First Edition, The following significant. Conditions of Contract for EPC Turnkey Projects (First Edition, ) in PDF. Guide to the FIDIC EPC/Turnkey Contract ( Silver Book) 2nd Ed This note highlights the key issues and commonly amended provisions of FIDIC's Silver Book (). Free Practical Law trial. To access this resource, sign up.
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FIDIC (Silver Book) - EPC Contract - myavr.info - Download as PDF File .pdf) or read online. FIDIC Edisi Short Form of Contract (Green Book). Found in: Construction. This Practice Note looks at the FIDIC Conditions of Contract for EPC/Turnkey Projects (commonly known as the Silver Book). , the first edition of its standard form, “Conditions of EPC and Turnkey Huse J. A., in his article, "The use of the FIDIC Silver Book in the Context of a BOT .
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Summary This chapter contains sections titled: Introduction The Silver Book: Related Information. The Tenderer should then be permitted and required to verify all relevant information and data and make any necessary investigations.
He shall also carry out any necessary design and detailing of the specific equipment and plant he is offering, allowing him to offer solutions best suited to his equipment and experience. Therefore the tendering procedure has to permit discussions between the Tenderer and the Employer about technical matters and commercial conditions.
All such matters, when agreed, shall then form part of the signed Contract. Thereafter the Contractor should be given freedom to carry out the work in his chosen manner, provided the end result meets the performance criteria specified by the Employer.
Consequently, the Employer should only exercise limited control over and should in general not interfere with the Contractor's work. Clearly the Employer will wish to know and follow progress of the work and be assured that the time programme is being followed.
A feature of this type of contract is that the Contractor has to prove the reliability and performance of his plant and equipment. FIDIC recognizes that privately-financed projects are usually subject to more negotiation than publicly-financed ones and that therefore changes are likely to have to be made in any standard form of contract proposed for projects within a BOT or similar type venture.
Among other things, such form may need to be adapted to take account of the special, if not unique, characteristics of each project, as well as the requirements of lenders and others providing financing. Nevertheless, such changes do not do away with the need of having a standard form.
FIDIC wishes to record its appreciation of the time and effort devoted by all the above.
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Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with a design provided by the Employer. Conditions of Contract for EPC Turnkey Projects, which are recommended where one entity takes total responsibility for the design and execution of an engineering project.
Short Form of Contract, which is recommended for building or engineering works of relatively small capital value. Depending on the type of work and the circumstances, this form may also be suitable for contracts of greater value, particularly for relatively simple or repetitive work or work of short duration.
The forms are recommended for general use where tenders are invited on an international basis. FIDIC standard forms are generally recognised as being well balanced because both parties bear parts of the risks arising from the project.
In the eyes of English contractors and lawyers there is nothing too bad in assuming risk Pickavance, Delay and Disruption in Construction Contracts, 2. They are challenged by the tasks to identify the risk retained and to recognize the fact that there is a risk Pickavance, Delay and Disruption in Construction Contracts, 2.
Remarks for in depth studies: Civil law countries usually provide for a complete set of concepts and rules as to frequently used types of transactions also referred to as default rules.
Hence one will find a particular type of sales contract, a particular type of contract for services and a one for works, each having particular characteristics such as a locatio conductio operis compared with a locatio conductio operarum and each being shaped in a way which has been considered being appropriate. Hence it can be said that under civil law the parties will make their contract in contemplation of a pre-determined contractual framework which they may shape and modify in order to meet the common intentions.
The extent to which a pre-determined type of contract may be modified without switching to another pre-determined type of contract depends on the applicable law.
Although contractual freedom is widely recognised being a rule so called innominate contracts, whether bespoke or standardised such as FIDIC forms of contracts , are rarely accepted as such although being generally admitted. Instead the opinion prevails that contracts may have a mixed nature thus being amended partially by the pre-existing framework of one nominate contract and partially amended by the pre-existing framework of a another nominate contract, as it may the case for a design, build and operate contract if the operation service meets the elements of a simple service contract by which the contractor undertakes to perform services with due skill and care only best efforts approach whilst the contractor shall deliver the Works under the regime of a locatio conductio operis.
This statue provides that standard terms of contract are invalid if they put that party to the contract, which has not drafted these terms, in a position which is unreasonably disadvantageous and this is a result of bad faith of the drafter. If there is doubt, an unreasonable disadvantage is assumed if a standard contract term cannot be reconciled with essential basic principles of the statutory rule from which the contract term deviates.
Only within these statutory limits the parties of a construction contract are free to assume risks in standard business terms. Just recently the German legislator has enacted a privilege that partially makes Part B of the contracting rules for governmental contracts immune against judicial review.
However, German courts are allowed to review the Vergabe- und Vertragsordnung part B in the event that a consumer is a party to the contract. Thus, the main German law books on construction law do not even treat contract based risk assessment and risk allocation as a topic or issue because it does not seem worth to talk about.
FIDIC Silver Book (1999)
Instead the German legal risk allocation concept as to a locatio conductio operis contract Werkvertrag will be accepted as a given fact. This does not mean that Germans are not aware of the risks inherent to a construction contract. They have to understand that German law and German standard forms are not necessarily the only possible approach in respect to risk allocation.
To the contrary of current German practise they have to take into consideration different risk allocation philosophies and concepts by learning the internationally recognized principles of risk apportionment, such as.
Sub-Clause 4. The Contractor is usually able to overcome subsoil problems.
However, he is not always able to make allowance for all additional expenditure which may become necessary in doing so. Hence Sub-Clause 4. On the other hand: Anglo - American contractors should be aware of some more or less substantial particularities of some civil code systems.
In German law specific performance is not a discretionary extraordinary remedy but the general rule. If the employer claims supplementary performance, the contractor may, at his option either remove the defect or produce an entirely new product Section BGB.
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Additionally, the principle of good faith is generally recognized, meaning that the contractor cannot just follow the orders of the employer without regarding possible consequences.
Instead there is a general duty to give advice and to cooperate. Contrary to English Law liability for breach of contract means that the party in breach is liable for all losses including consequential losses which follow from the breach, provided that there is adequate causation between the breach and the loss.
The concept of liquidated damages, well known in common law jurisdictions, is currently either unknown or at least not used in civil law countries.
In these countries penalty-clauses are common and valid as well.Like this: Therefore the tendering procedure has to permit discussions between the Tenderer and the Employer about technical matters and commercial conditions. Insofar acceptance should not be confused with the type of acceptance that is required to form a binding contract. Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with a design provided by the Employer.
The Contractor will be given freedom to carry out the work in his chosen manner, provided the end result meets the performance criteria specified by the Employer.
For example, the fitness for purpose obligation is now reinforced by an indemnity in clause For example, Sub-Clause
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