Everything You Need To Know About FIDIC Contracts
What led to the emergence of the FIDIC contracts is that the world of construction and real estate has recently witnessed significant development and growth like never before. This prompted the contracting companies to develop a transparent and approved contract model that includes all the rights, obligations and responsibilities of both parties to the contract and called it FIDIC contracts.
The main objective of this international model is to reduce the potential risks that can occur after the conclusion of contracts for engineering projects between consultants, engineers and contractors if those contracts are not subject to any standards that preserve the rights of both parties.
As for FIDIC contracts, the matter is entirely different, especially as it is a set of standard and model contracts that take into account all types and forms of contracts that construction and investment engineering companies may need, including conditions and means to preserve the rights of the parties to the contract.
After your initial reading about the FIDIC Contracts, you may have been curious to know more about them. Therefore, we focused on preparing a comprehensive and brief study that would save you time and effort in the long search for this topic.
What are FIDIC Contracts?
FIDIC contracts are one of the legal documents that regulate engineering contracts and various construction contracts, which are essential pillars in any construction company concerned with civil engineering.
The International Federation of Professional and Technical Engineers Create the idea of the FIDIC contract to help model companies avoid excessive liability concluding their contracts.
Consequently, construction companies worldwide often use FIDIC standard contracts for different building and construction contracts to better organise their contracting processes.
And if this indicates anything, it indicates that the legal provisions included in the FIDIC contract models aim to keep construction projects moving forward, regardless of their type, in addition to their earnest pursuit to achieve the interests of organisations and keep them away from various types of disputes and their impact.
What are the main advantages of a Fidic contract?
To understand why FIDIC contracts are the first choice for all the work of contracting and construction companies, you must be aware of the advantages and benefits of these contracts.
These advantages will help you know how and where to use these contracts, enabling better contract management in your organisation.
- Focus on corporate projects
To implement any new contract, you have to start from the base, which is to identify the participating parties and appoint a lawyer who will manage the terms of the contract as well as the procedures for settling the general claims between the parties.
Of course, all of these circumstances will take a great deal of time and effort that you can shorten in FIDIC contracts, especially since they are prepared for this type of contract, that is, through which you will be able to focus directly on the intended project as well as efficiently manage potential risks.
- Greater chance of price competition
One of the main reasons is that many contractors rely on FIDIC contracts in their contracts, as they allow an increase in the number of people participating in the bid or bid price within the bidding.
That is, it encourages excellent price competition between bidders and thus can guarantee lower prices.
- Reduce time and cost
It is known to everyone that the sessions for signing contracts are endless, mainly since they include two parties to a contract whose views may not apply even to the lowest clauses. Who will take over the role of the arbitration committee at that time?
Undoubtedly, FIDIC contracts will stand judgment and take on the task of converging the views of the parties to the contract and thus will speed up the stage of claims and discussions about the terms and conditions of the contract. That is, it will also reduce the costs of appointing a specialist for this task.
- Various contracts
FIDIC standard contracts are divided into different shapes and colours; companies can choose any of them according to considerations and features that fit the subject of their contract.
Such as the size and nature of the project, the type of construction, the purpose of the contract, and other considerations that cannot be limited to one contract form, but more than one type must be conducted according to the appropriate terms and conditions.
- practical items
If we wanted to praise FIDIC contracts from this aspect, we would infer from significant companies and organisations that FIDIC contracts have become a major part of the plan of organising their contracts, and they cannot abandon it in any way, whether to the right or the left.
Were it not for the fact that the clauses included in the FIDIC contracts are practical and specific to the work of this vast network of construction companies; they would not have relied entirely on them in covering all the terms of their contracts of obligations, rights, responsibilities and settling disputes.
- Multiple languages
All the patterns and forms of FIDIC contracts have been published in English and 20 languages, including primary languages such as French, English, Chinese, Japanese and other languages that we will not mention now to avoid getting bored.
This means that these contracts are ready for use in more than 100 countries and without additional costs to be translated into the language of the person concerned or one of the parties to the contract.
- High success rate
As FIDIC contracts have become approved for international engineering consultancy and used worldwide, the contract issued by these series of contracts has become highly trusted by engineers and contract parties from different companies.
In addition to taking it as a global standard for writing work contracts that revolve around the construction and construction orbit, it is the result of its successive successes, making it the most widely used and approved contract year after year.
Finally,
The goal of creating the idea of FIDIC contracts is to link the parties to the contract so that one of these parties is not preferred over the other. This way, FIDIC contracts seek to establish themselves as a common starting point for all construction contracts worldwide.
Therefore, to employ these contracts in your organisation, you need to know more comprehensive details about FIDIC contracts. We can only advise you to attend specialised FIDIC Contracts Management Training.
These courses will ensure that you are familiar with all the information you need to conclude your contracts.
