EIC Announces Launch of New Guides in 2020

EIC attracted a large audience at the FIDIC International Users Conference on 03-04 December 2019 in London, when EIC Director Frank Kehlenbach and Nabeel Khokhar, Member of the EIC Working Group “Contract Conditions” announced the upcoming publication of the EIC Contractor’s Guide to the FIDIC 2017 Conditions of Contract for Plant and Design Build (the “Yellow Book”) for January 2020. This new EIC publication, as well as the EIC Guides to the FIDIC 2017 “Red & Silver Books” – to be published later in 2020 – will be of great interest for all users of the FIDIC standard forms of contract.

EIC comparison between the FIDIC 1999 and 2017 editions

During the seminar dedicated to the new EIC Contractor’s Guide, EIC emphasised that the most notable difference between the FIDIC 2017 Yellow Book and its predecessor is that the update edition is far more prescriptive. The 2017 suite of contracts has increased significantly in volume necessitating greater diligence by project teams of both, contractors and employers. EIC recalled that the success of the FIDIC 1999 edition lay perhaps in its robustness and simplicity.  Whereas additional prescription is welcome where the FIDIC 1999 conditions were lacking, the introduction of highly complex contractual processes and procedures and the attempt to anticipate all arguments that may be raised by way of dispute, may well prove costly and more difficult to manage.

EIC assessment of the FIDIC 2019 “Emerald Book” 

Kurt Hechenblaickner, Member of the EIC Working Group “Contract Conditions”, informed the audience about EIC’s assessment of FIDIC’s standard form for Underground Works, the FIDIC “Emerald Book”, which was published in May 2019. The latest addition to the FIDIC suite of standard contract forms is a design-build contract which, however, allows for adjustments of time and cost due to unforeseeable or unexpected subsurface conditions. The concept requires the employer to set out his perspective on project delivery in his Employer’s Requirements and a Geotechnical Baseline Report whilst the contractor is asked to provide firm production rates or durations against each activity or item of excavation or lining work. EIC congratulated FIDIC on the new achievement which integrates a large variety of cultures and opinions from across the globe.

EIC Case Studies

Stefan Ciufu-Hayward and João Ascensão, Members of the EIC Working Group “Contract Conditions”, shared their experience on some lessons learned with the FIDIC contracts in the session dedicated to international case studies from FIDIC users. EIC speakers concurred that the FIDIC standard is generally helpful to facilitate the successful implementation of international construction projects but called upon employers to choose the right FIDIC form of contract which reflect their needs. The question was raised whether the FIDIC forms should provide for an early termination clause in case of excessive risk.