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FIDIC

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The International Federation of Consulting Engineers — publisher of the standard forms of contract that are the default framework for international construction and EPC projects across much of the world.

FIDIC's contract forms are the closest thing international construction has to a common law. The main forms are keyed by risk allocation, and known by cover colour: the Red Book for construction to the employer's design, the Yellow Book for plant and design-build with contractor design, and the Silver Book for EPC/turnkey delivery with maximum risk on the contractor — with variants and companions around them. Multilateral lenders and cross-border projects reach for FIDIC precisely because both sides' lawyers have seen it before: the machinery of programme, payment, variations, claims and disputes is standardised, tested and translated.

Two features of that machinery do disproportionate work. The contract administrator role — the Engineer in the Red and Yellow Books — determines and certifies between the parties; and the claims regime runs on strict notice: the famous 28-day windows within which a party must notify a claim or, under the default drafting, lose it. Time-bars convert contractual rights into administrative discipline, and they harvest the undisciplined annually.

The standard forms' standard abuse is amendment: particular conditions that quietly rebalance the allocation the form was chosen for, producing a contract that looks like FIDIC and behaves like something else. The form's name reassures; the mark-up governs.

See this workflow in practice.

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