Presentation of FIDIC`s present and future Contract Forms held

Kaj Möller,
FIDIC Executive Committee Member (2011-2015)
Liaison with FIDIC Contracts Committee
Head of Export, Sweco Group
FIDIC Contract & Agreement forms
Kaj Möller (SWE). Why me, here?
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FIDIC Executive Committee Member (2011-2015);
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Liaison with FIDIC Contracts Committee; and
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Head of Export, Sweco Group. www.swecogroup.com
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Scandinavian based engineering consultant firm;
Total turnover of app 1 BEUR;
Export assignments in 80 countries (East Europe, Central-, South- and
Southeast-Asia, Africa, South- and Central America) annually; and
Applying all FIDIC contracts and agreement forms in our external
contracting and operations, upstream and downstream.
FIDIC Contract & Agreement forms
Why does FIDIC invest in standard forms for
Contract and Agreements?
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Create a first-class globally recognized contract standard
for industries investing in engineering, construction and
related operations;
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Represent a continuous QA chain, from Basic Project
Considerations through Procurement, Construction,
Completion to Operations and Maintenance;
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Promote the role of the Engineer and its importance in
securing Client´s risk exposure in construction projects.
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Secure integrity, transparence and accuracy in Clients
projects.
FIDIC Contract & Agreement forms
FIDIC Procurement Procedures Guide, 1st edition 2011
FIDIC Contract & Agreement forms
Best 2014 reading recommendation:
FIDIC Procurement Procedures Guide, 2011.
FIDIC Contract & Agreement forms
How does FIDIC do this?
FIDIC produces forms that are:
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CLEAR, COHERENT
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• Essential clauses.
• Detailed definitions.
• Consistent structure.
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FAIR, EQUITABLE
• Range covers most needs.
• Readily adaptable to fit
requirements
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• Essential clauses.
• Detailed definitions.
• Consistent structure
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COMPLETE, FLEXIBLE
THIRD PARTY
• Drafted by consulting
engineers who design and
manage projects.
RECOGNISED
• Positive FIDIC image.
• World-wide acceptance
• Tested for more than 50 years
FIDIC Contract & Agreement forms
How does FIDIC do this?
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Modell agreements for
professionals services:
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Client/Consultant
Joint Venture
Sub-Consultant
Representative
Forms of contract for works:
• Construction and SubContractor
• Construction (MDB)
• Plant, Design & Build
• Turn Key
• Dredging
Forms of contract for works
and operations:
• Design, Build & Operate
(DBO)
FIDIC Contract & Agreement forms
How does FIDIC do this?
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Contract Guides
and Policy Papers.
Conferences, Work-shops
and Training.
Close contact with key users and partners to finetune and improve quality.
FIDIC Contract & Agreement forms
On the drawing board by the CC:
• Task Group 4A – Update of Joint Venture Model Agreement and SubConsultant Model Agreement;
• Task Group 4B – Update of Client / Consultant Model Agreement (White
Book);
• Task Group 6 – Update of 1999 Rainbow Suite (Red, Yellow and Silver
book);
• Task Group 7 – Update of Dredgers Contract;
• Task Group 9 – New Yellow Book / Silver Book Sub-contract Forms
• Task Group 10 – New Tunnelling/Underground Contract;
• Task Group 11 – New Operate, Design & Build (ODB) Form of Contract;
• Task Group 12 – New Contract & Agreement - Glossary of Terms;
FIDIC Contract & Agreement forms
FIDIC Contract & Agreement forms
Which trends do we see 1(2):
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Undoubtedly, fair and balanced contracts generate healthy
project completions. But there is mixed understanding of
the potential by the Clients. Experienced
financiers/employers vis-à-vis “New moneys”;
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With less and less time for construction (from investment
decision to pay-off) the need for the Independent Engineer
is greater than ever. Any de-railed project does not serve
the reputation of our industry;
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The trend for a Turn Key strategy is slowly swinging back
to “A choice of contract = project characteristics”. But there
are still many projects with questionable programming;
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Employers wants stronger focus on “Fit for its purpose” and
thus operations liability contract (e.g. BOT) are more and
more preferred;
FIDIC Contract & Agreement forms
Which trends do we see 2 (2):
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Over-tweaking of FIDIC based contracts, where the
intention of the forms are lost. Yet, still claimed to be
FIDIC contracts;
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A need for more forms available in multiple
languages;
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Health & Safety, Sustainability, Information
Management (e.g. BIM) and Integrity are areas of
interest which are given more and more attention by
the Employers;
Plantagon Green House – Urban Agriculture
FIDIC Contract & Agreement forms
Should we respond to these trends, and if so,
how? 1 (2):
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Is the set of forms from FIDIC matching the needs of the
future? What new form of contracts could be needed? Are
any forms foreseen to become obsolete soon?;
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What is the future role of the Independent Engineer in Turn
Key and/or Design & Build contracts? Are there any
alternatives?
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How about “Golden Clauses” of FIDIC General Conditions?
Clauses not the be changed in order to be a FIDIC based
contract? Introduction of a FIDIC Contract Authentication ID?
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What document formats should be used in the future. Paper
copies, encrypted pdf, format for Tablets/handhelds?
FIDIC CERTIFIED CONTRACT
AUTHENTIFICATION ID. XYZ
FIDIC Contract & Agreement forms
Should we respond to these trends, and
if so, how? 2 (2):
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Health & Safety, Sustainability, Information
Management (e.g. BIM) is a selection of new areas
of interest which are given more and more attention
by the Employers. How deep into these areas should
FIDIC contract and agreement forms reach?
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How should FIDIC charge for its forms? With the
current business model FIDIC are selling a few
thousand copyright protected General Conditions /
year. Yet, no one knows how many millions of
contract based on FIDIC forms that are signed
world-wide every year, without FIDIC receiving any
revenue.