INTRODUCTION
For many years the FIDIC Standard of Conditions of Contract have been in common use in civil engineering and other projects around the world. They are regarded as a satisfactory compromise position for complex international contracts and as being usable under various legal and commercial systems. They include a suite of documents and are updated on a regular basis. They have been particularly used in the Middle East and in addition to their direct usage have formed the basis for many of the standard contracts for oil and gas and other companies in the region and are increasingly the standard contract of choice on major projects in the Gulf and elsewhere. An understanding of their terms and conditions is therefore particularly important. This training session is designed to:
- examine the way in which the FIDIC contracts are structured and the various individual contracts that are available
- consider which of the available contract forms should be used in different circumstances
- look in detail at the wording of some of the more important clauses in the contracts
- consider how risks and responsibilities are apportioned within the contracting structure
- examine how variations and change are dealt with
- review how claims can arise, and how they should be handled
- review the current dispute resolution provisions in the context of international best practice
WHO SHOULD ATTEND?
- contracts personnel
- project managers
- cost engineers
- quantity surveyors
- procurement personnel
- tendering personnel
- buyers
- financial personnel involved with contractors
- legal and commercial staff new to FIDIC forms, or needing a refresher
- all those involved in the selection of contract forms or their negotiation or management
PROGRAMME OBJECTIVES
- the different types of contracts available within the FIDIC suite
- how risks and responsibilities are apportioned within the contracts
- how individual clauses within the contracts work
- how to deal with variation and change
- how to deal with the financial aspects of payment under FIDIC contracts
- how claims can arise, and how they should be handled
- how to deal with disputes as they arise
TRAINING METHODOLOGY
The training session will combine conventional teaching including practical examples including hands-on review of actual clauses from the FIDIC contracts. It is intended to use an interactive approach to involve participants in discussion of topics and through exercises. Participants are also encouraged to bring their own experiences forward for discussion and debate.
PROGRAMME SUMMARY
The sessions will look at the overall system of FIDIC contracts and specific clauses within the contracts. While some of these clauses are set out in the outline below, if there are other clauses which raise specific issues for individual delegates, these will be discussed either during the course or outside as appropriate.
ORGANIZATIONAL IMPACT
The training session will ensure that the organization is making the right decision as to which of the FIDIC suite of contracts to use and also to make sure that management systems and controls are aligned to the requirements of such contracts. Where FIDIC has been used as the basis for in-house standard contracts the course will address the present form of the relevant FIDIC contracts and should provide the basis for considering whether any updating is required. It will also allow a better understanding of how claims arise and of the different ways in which any disputes can be resolved, both under the FIDIC structure and by alternative approaches.
PERSONAL IMPACT
It will enable delegates to be more confident in dealing with negotiations on establishing contracts under FIDIC or in dealing with claims and disputes arising from such contracts. Delegates will be better able to understand which suites of contract to use and will also have a better understanding of the significance of wording particularly when FIDIC is used as the basis for in-house standard contracts.
COMPETENCES EMHASISED
- understanding of risk and how it is apportioned in contracts
- the use of standard form contracts
- selection of the appropriate standard form contract
- understanding of the main provisions of contract and how they apply in practice
- handling variations and changes within standard form contract structures
- understanding how claims arise, and how they should be handled
- resolving disputes during the life of the contract and after the end of the contract
- ability to discuss complex contractual documentation with confidence
PROGRAMME OUTLINE
DAY 1 -
Background
- FIDIC - background to the contracts
- Current suite of contracts available including Construction: Plant: EPC Turnkey and Design and Build. Consideration will also be given to the various Annexes
- A review of other FIDIC contracts, including Consultants, Joint Ventures and Representatives
- Selection of appropriate contract form
- The law and the Engineer
- Interpretation - Problems with differing legal systems
DAY 2 - Responsibilities and Risks
-
Risk apportionment
-
Responsibility of parties
- Employer
- Contractor
- Engineer
- Sub-contractor
-
Interface between parties
DAY 3 - Management and Suspension/Termination
- Management of Project
- Commencement
- Acceptance
- Delay and extension of time
- Suspension
- Termination
- Force Majeure
DAY 4 - Financial
- Financial
- Measurement
- Variations and Changes
- Contract
- Scope of work
- Timing
- Contract Price
- What is included
- Adjustments
- Bonds and Guarantees
- Claims
- Management of Variations and Changes under FIDIC
- How claims arise
- How they should be presented under the FIDIC model
- How they should be managed
DAY 5 - Disputes and Dispute Resolution
- Insurance
- Disputes
- Distinguished from Variations and Claims
- Dispute Resolution
- Dispute Review Board
- Arbitration
- Comparison with other forms
- Possible alternative dispute resolution methods
- Negotiated settlement
- Mediation
- Other alternative methods
- Review of Course and final questions
