FIDIC stands for Federation International des Ingenieurs Conseils (International Federation of Consulting Engineers). It was founded in the year 1913 in Europe, and now has 60 countries as members. The Secretariat is situated in Switzerland. The FIDIC form of contract has evolved over a period. The contract conditions are equally suitable for use on domestic contract. In September 1999, FIDIC published four new editions of the forms of contract. They are complete replacement of old forms.
Conditions of Contract for construction: (Red logo).
Conditions of Contract for Plant and Design-Build: (Yellow logo).
Conditions of Contract for EPC/Turnkey projects:(grey logo).
Short Form of Contract: (Green logo).
Features of the FIDIC Contract fair apportioning of risks, rights and obligations between the parties, long case history for earlier contracts, known and recognized; in wide use for international contracts, recommended or required by development banks, ISPA, etc., clear and complete conditions; time limits, provisions for adjudication
PWC - In May 2004 the government decided as part of a reform of construction procurement in
the Public Sector to introduce a new form of construction contract and this has been used in Public Sector projects since 2007. The stated strategic objectives were: greater cost certainty, value for money and more efficient delivery of projects. This government initiative now comprises a comprehensive suite of contracts and associated documentation of which the five main forms of contract are:
PW-CF1 Public Works Contract for Building Works designed by the Employer.
PW-CF2 Public Works Contract for Building Works designed by the Contractor.
PW-CF3 Public Works Contract for Civil Engineering Works designed by the Employer.
PW-CF4 Public Works Contract for Civil Engineering Works designed by the Contractor.
PW-CF5 Public Works Contract for Minor Building and Civil Engineering Works designed by the Employer.
In all cases the five forms of contract lead to Lump Sum Contracts and, while in many instances a Bill of Quantities is prepared, its purpose is generally restricted to the evaluation of tenders, the valuation of change orders and also of interim payments.
The NEC Engineering and Construction Contract (ECC) (previously the New Engineering Contract) has been developed to meet the current and future needs for a form of contract to be used in engineering and construction generally, which is an improvement on existing standard contracts under three main headings – Flexibility, Clarity and simplicity, Stimulus to good.
COMPARISON –
FIDIC –
QUALITY AND TESTS –
Rejection - If, at the time and place agreed at, the materials or Plant are not ready for inspection or testing or if, as a result of the inspection or testing referred to in this Clause, the Engineer determines that the materials or Plant are defective or otherwise not in accordance with the Contract, he may reject the materials or Plant and shall notify the Contractor thereof immediately. The notice shall state the Engineer's objections with reasons. The Contractor
shall then promptly make good the defect or ensure that rejected materials or Plant comply with the Contract. All costs incurred by the Employer by the repetition of the tests shall, after due consultation with the Employer and the Contractor, be determined by the Engineer and shall be recoverable from the Contractor by the Employer The engineer shall examine foundations before any part of the Works is placed thereon. The Contractor shall give notice to the Engineer whenever any such part of the Works or foundations is or are ready or about to be ready for
examination.
Removal of Improper Work - The Engineer shall have authority to issue instructions from time to time, for the removal or the substitution of work.
MANAGEMENT –
In FIDIC the obligations of contractor as well as owner and engineer are set out clearly. Under FIDIC conditions, the Engineer may be the employee of the Employer department, but is not a signatory or party to the contract between the Employer and the Contractor. He has to perform as an interpreter of the contract and as a judge of its performance by both the parties. Decision taken by the Engineer may be opened up, reviewed or revised by the arbitrator if challenged within the stipulated time.
NEC (EEC)
MANAGEMENT –
The Contract Data identifies the Employer, Project Manager, Supervisor and Contractor and states what each is required to do. It is important, in using this section, not to contradict these obligations and duties. The Contractor is required to co-operate with Others in obtaining and providing information which they need in connection with the works. the services and other things that are to be provided by the Employer for use by the Contractor, and by the Contractor for use by the Employer, Project Manager or Others needs to stated initially.
QUATILY AND TESTING –
Tests and inspections required and which parties are involved in the test and inspection process need to be detailed out either in the contract or in the specification of works. Tests and inspections- Objective, procedure and standards to be used, When they are to be done, Where they are to be done, Who does the tests, and who is in attendance, Testing and inspection method, The Equipment required and who provides it, Access arrangements, Information or instructions required to be provided, Materials, facilities and samples to be provided, Involvement of specialists, Acceptable results and deviations, Test environment, Documents to be provided before and after the test, Whether or not authorization to proceed to the next stage of the work depends in the test results.
Management of tests and inspections – All the requirement for a test and inspection schedule, containing all relevant information must be considered.
Covering up – completed work clause must specify the timescales for the covering up of works
that have been tested.
PWC CONTRACTS (Ireland)
QUALITY AND TESTING –
The contract structure obliges the Employer to ensure that all materials and goods that are supplied by the Employer are fit for purpose. There are very few differences in this clause of the PWC contract. Also if the cost of repairing a defect is grossly disproportionate to the impact of the defect on the Works, in such circumstances the Contractor is not obliged to rectify the defect but the Employer is entitled to compensation for the loss of value to the Works.
MANAGEMENT –
This is the longest clause in the Conditions of Contract. Management deals with the relationship of the Employer’s Representative with the Employer and the Contractor.
The most significant points relate to the Employer’s Representative role who shall be deemed to
act for the Employer whenever carrying out duties or exercising authority, specified in or implied by the contract. Representative shall consult with each party in an effort to reach agreement. This approach to the Employer’s Representative is largely based on the FIDIC Form of Contract.
SOURCES –
Conditions of contract for works of civil engineering construction. Federation Internationale Des Ingineurs – Conseils.
Engineering and Construction Contract Works Information Guidance. NEC.
Conditions of Contract for construction. FOR BUILDING AND ENGINEERING WORKS DESIGNED BY THE EMPLOYER.
Fahy Ciaran & Hussey Anthony. How the Public Works Contracts might be used in the Private Sector. Engineers Ireland. http://www.jica.go.jp/english/our_work/types_of_assistance/oda_loans/oda_op_info/guide/tender/c8h0vm0000011e2j-att/civil_02.pdf
http://www.engineersireland.ie/EngineersIreland/media/SiteMedia/services/dispute-resolution/docs/04-07-13-Paper.pdf
