FIDIC Contracts
FIDIC stands for the International Federation of Consulting Engineers (FIDIC). FIDIC is an international organization that draws up and monitors standards for consulting engineering contracts. These contracts are used internationally, particularly in the public sector. FIDIC contracts can be seen as the international standard for engineering and construction contracts.
The purpose of FIDIC contracts is to provide a framework for fair and harmonious relationships between employers and contractors in the engineering and construction industry. The contracts are designed to minimize the risks of misunderstanding and provide clear information about responsibilities, rights and obligations.
The main features of FIDIC contracts are as follows:
1. The contracts are based on the principles of cooperation and collaboration between the parties. They are designed to establish a foundation for successful projects by recognizing the rights of both parties and providing a framework for an open and transparent process.
2. These contracts are flexible and can be customized to meet the specific needs of each project. The FIDIC contracts provide the broad framework of the rights and obligations of the involved parties, while allowing scope for adapting the contract to better serve each project’s specific needs.
3. FIDIC contracts protect both parties from litigation, as they are based on fair and clear terms. They also include a dispute resolution process which allows the parties to settle disputes without going to court.
4. The contracts have a clause that defines the roles and responsibilities of each party to the contract.
5.FIDIC contracts include clauses that guarantee that the contract between the parties will remain valid regardless of the nature of any third-party claims. This provides greater stability for the contracting parties.
6. FIDIC contracts are easily recognizable and easy to understand, as they contain standard clauses that have been used for many years. This is also beneficial to the project participants, as they can be sure that they are entering into a valid contract.
7. FIDIC contracts are carefully drafted to ensure that they are legally binding and enforceable in any country. This provides assurance that the parties can rely on the contract and will be protected in the event of a dispute.
FIDIC contracts provide important protections to employers and contractors and help to create a solid foundation for successful projects. By providing a well-defined framework, they ensure that both parties understand their respective rights and obligations and that their project is conducted in an efficient and successful manner. As the contracts are of international standard, they can also be used in different countries, providing further protection from litigation.
