International Federation of Consulting Engineers
Evgeny Smirnov
European Bank for Reconstruction and Development
FIDIC MDB Harmonised Construction Contract Conference
Regional Issues
Pros and Cons of using FIDIC Contracts
Background
EBRD
3,374 projects for EUR 210.7 billion
EUR 71.1 billion invested by EBRD:
EUR 55.7 billion – private sector
EUR 15.4 billion – public sector
FIDIC MDB Harmonised Construction Contract Conference
Regional Issues
Pros and Cons of using FIDIC Contracts
“There is nothing either good or bad, but thinking makes it so…”
Hamlet, William Shakespeare
Questionnaire, April 2012
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20 questions about FIDIC contracts
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Section A; General Information
Section B; Overall experience with FIDIC contracts
Section C; Specific issues (anti-corruption, social and environmental provisions, Engineer’s role, DAB)
Responses
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12 countries in Eastern Europe, Turkey and FSU countries
Power, Transport, Municipal and Nuclear Safety sectors
38 respondents
Contracts range: EUR 3 million to EUR 991 million
FIDIC MDB Harmonised Construction Contract Conference
Regional Issues
Pros and Cons of using FIDIC Contracts
“Beauty is bought by judgement of the eye,
Not utter'd by base sale of chapmen's tongues…”
Love's Labours Lost, William Shakespeare
View of EBRD
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Well balanced contracts
Easily adoptable to specific country conditions
Specific MDB provisions included
Suitable for a wide range of projects
Well known on the market
Aimed at timely completion within the original cost
Presence of a professional engineering support
Efficient dispute resolution mechanism
FIDIC MDB Harmonised Construction Contract Conference
Regional Issues
Pros and Cons of using FIDIC Contracts
“What's in a name? That which we call a rose…”
Romeo and Juliet, William Shakespeare
View of Respondents
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Users are generally satisfied
Well balanced risks of the parties
Fair and complete
Well known throughout the industry
Simple, but covering main contractual issues well, being based on vast experience
Standardisation and availability of the documents for different type of projects
FIDIC MDB Harmonised Construction Contract Conference
Regional Issues
Pros and Cons of using FIDIC Contracts
“Oft expectation fails, and most oft there
Where most it promises…”
All’s well that ends well, William Shakespeare
Some Other Findings
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Needs to be localised, as there are some conflicts with national regulations
Not well known by local contractors
Lack of experience and gaps with understanding on the Employer’s side
Open to claims
No control over delays during implementation
Cost and time over-runs are relatively common
Requires a comprehensive delay and disruption protocol
Engineers are biased and often act reactively
DAB is rarely used and inefficient
Sometimes forms of FIDIC contract used are inadequate to a project
International Federation of Consulting Engineers
President
Geoff French, UK
Vice-President
Pablo Bueno, Spain
Secretariat
FIDIC
World Trade Center 2
Geneva Airport
Box 311
CH-1215 Geneva 15
Switzerland
Tel: +41 22 799 49 00
Fax: +41 22 799 49 01
fidic@fidic.org
www.fidic.org
Managing Director Enrico Vink