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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

20 questions about FIDIC contracts

Section A; General Information


Section B; Overall experience with FIDIC contracts
Section C; Specific issues (anti-corruption, social and environmental provisions, Engineers role, DAB)

Responses

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

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

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
Alls well that ends well, William Shakespeare

Some Other Findings

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 Employers 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

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