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2
 
     !" #$% "&
A NEW Course !

1. New contents--
contents--FIDIC
FIDIC
2. New language†
language†English

Use English to study FIDIC conditions of

Contract!
 0oals of this course:

1. Be familiar with FIDIC Conditions of

Contract for Construction
2. Be able to express, communicate
FIDIC Conditions of Contract for
Construction
3. Both in English
 New Concept to study†
study†
USIN0:
1. Study for using:
use FIDIC in your future international
construction works;
1. Study by using:
use your English for what you have
worked very hard for more than 10 years.
Suggestions to reach your goals:

1. Be confident in yourself and in

your English!
2. Be active at :
w Preparation†
Preparation †before class
w Discussion†
Discussion †in class
w Communication†
Communication †after class
w Usage†
Usage †in the future
Introductions to FIDIC
w FIDIC ơᚤᨑԎƢ
ơᚤᨑԎƢ::

w F¦d¦ration Internationale des Ing¦

Ing¦nieurs
nieurs--
Conseils

w ü


w uhe International Federation of

Consulting Engineers
 uhe History of FIDIC

1. 1913: founded by three national associations of

EuropeơFrance and
consulting engineers within Europeơ
Ƣ
BelgiumƢ
Belgium
2. 1949: the association of English Civil Engineers
3. 1950: England hosted a forum of FIDIC, Birth-
Birth-year!
4. 1959 America, South Africa, Australia, and Canada
5. uoday 67 countries from all parts of the globe
6. represents most of the private practice consulting
ơጐО୭χሇ
Ƣ in the world
engineersơጐО୭χሇ
Ƣ
engineers
7. In 1996 China became one of its members
 uhe goals of FIDIC

w FIDIC arranges seminars, conferences and other

events in the furtherance of its goals:
1. maintenance of high ethical and professional
ơᩈੱ‫ڔ‬ᔉχඓՋƢ
standardsơᩈੱ‫ڔ‬ᔉχඓՋƢ
standards
2. informationơБ༴ᠷဿ‫ڔ‬ҴૉƢ
exchange of views and informationơБ༴ᠷဿ‫ڔ‬ҴૉƢ
3. discussion of problems of mutual concern among
member associations and representatives of the
institutionsơü
 Ƣ
international financial institutionsơü
4. development of the consulting engineering industry in
developing countries.
uhe publicationsơՠႝႪƢ of FIDIC
publicationsơՠႝႪƢ
w proceedings(L
proceedings( L
¨ of various conferences and

¨
seminars
w engineersơ
Ƣ,,
information for consulting engineersơ
Ƣ
project owners ơᲇሩχϜƢ
ơᲇሩχϜƢand
and international
agenciesơü Ƣ,
development agenciesơü Ƣ,
w standard pre- formsơᤨඨᲒःඓՋඨਭƢ
pre-qualification formsơᤨඨᲒःඓՋඨਭƢ
w documentsơL Ƣ
contract documentsơL
w agreementsơऄୗξ

and client/consultant agreementsơऄୗξ

Ƣ
 Conditions of Contract of FIDIC
ᚤᨑԎ

w 1999, FIDIC published the first Editions of four

contract ::
new standard forms of contract 
 Conditions of Contract for Construction
Construction 

 Conditions of Contract for Plant  and
Plant
Design--Build
Design 
Build
 EPC
Conditions of Contract for EPC
Projects
/uurnkey Projects !
" Short Form of Contract #$ 
#$ 
 . for Construction

w building or engineering works ơਢ᎐ୈᲇሩƢ

ơᡷᡝƢ by the Employer
designedơᡷᡝƢ
designed ơᰵϜƢ or
EmployerơᰵϜƢ
representativeơ Ƣ,, the Engineerơ
by his representativeơ Ƣ Engineerơ
Ƣ
w the Contractorơ୻‫ׇ‬۵Ƣ constructs
Contractorơ୻‫ׇ‬۵Ƣ ơ಴Ƣ
constructsơ಴Ƣ
the works in accordance with a design
provided by the Employer
Þ. for Plant and Design-
Design-Build

w plantơᆀ
the provision of electrical and/or mechanical plantơᆀ
ພƥᡷࠩҖᤋƢ
w executionơ಴Ƣ of building or
and for the design and executionơ಴Ƣ
engineering works
w Under the usual arrangements for this type of contract,
the Contractor designs and provides,
provides, in accordance
with the Employer's requirements,
requirements, plant and/or other
works
­. for EPC/uurnkey Projects

w turnkeyơБᬂ‫א‬Ƣ basis
the provision on a turnkeyơБᬂ‫א‬Ƣ
1. processơ֨Ƣ or power plantơ֤֬ᡷࠩƢ
of a processơ֨Ƣ plantơ֤֬ᡷࠩƢ
2. of a factory ơƢ
ơƢor facilityơᡷ಴Ƣ
or similar facilityơᡷ಴Ƣ
3. or of an infrastructure project ơ߰ኦᡷ಴ᲇሩƢ
4. developmentơᲇሩƢ
or other type of developmentơᲇሩƢ
w Preconditions to use EPC/uurnkey Projects :
1. a higher degree of certainty of final price and time
the Contractor takes total responsibility for the design
and execution of the project,
project, with little involvement
of the Employer
w EngineeringơᡷᡝƢ,,
the Contractor carries out all the EngineeringơᡷᡝƢ
ơᤑϹƢ and Constructionơ಴Ƣ
ProcurementơᤑϹƢ
Procurement Constructionơ಴Ƣ (EPC¨,
providing a fully-
fully-equipped facility, ready for operation
(at the Áturn of the key ï֬ᬂ‫א‬
ï֬ᬂ‫¨א‬.
¨.
. Short Form of Contract

w building or engineering works of relatively small

valueơᤨല Ƣ
capital valueơᤨല Ƣ

w for contracts of greater value, particularly for

 relatively simpleơᎢƢ or
simpleơᎢƢ
workơ᫕ࠪપƢ or
Þ repetitive workơ᫕ࠪપƢ
durationơƢ
­ work of short durationơƢ
 Application of FIDIC Standard
Forms of Contract

w uhe forms are recommended for general use where

basisơü 
tenders are invited on an international basisơü
ඓƢ
w áodifications may be required in some jurisdictions
ơ‫ـ‬໿Ꭻ᧥ᘲ‫އ‬Ƣ,, particularly if the Conditions are to
ơ‫ـ‬໿Ꭻ᧥ᘲ‫އ‬Ƣ
contractsơü Ƣ
be used on domestic contractsơü

 FIDIC considers the official and authentic texts to

languageơFIDIC
be the versions in the English languageơ ᡠϛƥ
FIDICᡠϛƥ
๡ਭሇˉ
๡ਭሇ ˉ഼ࢌሇLലϛᘫLႝƢ
w \ü
Characteristics\
Characteristics પ(internationalism¨
પ( ˉᨭᅶપ
internationalism¨ˉ
(widely ¨ˉԚ๡પ
idely recognized ¨ˉ Ԛ๡પ(fairness¨ ‫ڔ‬ώघપ
(fairness¨‫ڔ‬ώघપ
(strictness¨

w æecognised widely: ý Bank¨ˉЋ༬

(World Bank¨ˉ

(World

(Asian

 Bank¨ˉೃലü
(Asian Development Bank¨ˉ ֤

Bank¨ˉᱡ༬

(Japan International Cooperate Bank¨ˉ
Bank¨ü
!"ሇඓL
(Afric Development Bank¨ü
!"ሇඓL
ᘲലަмFIDIC
ᘲലަм ϛ߰ኦˊ
#ϛ߰ኦ
FIDIC# ˊ
 uhe Internationalizing
Project mangement in China
w ሩ֏୅ü$%&ᅶሇ

w Áᲇሩ໿Оᤇчց

w Áඓஃඓց

w Áਢᡷሠᄮց

w ÁᎫᄮց

w ˜ 'ަൌྶЃFIDIC ሇᨅጕљᑏาਭˊ
'ަൌྶЃFIDICሇᨅጕљᑏาਭ ˊ
Project Examples managed according
to FIDIC:

w ~ ()*+,-
w ./01*ᆀ፠ƥைၯFIDIC
./01*ᆀ፠ƥைၯ Ꭻᄮาਭƥᗩᐛ5.5
FIDICᎫᄮาਭƥᗩᐛ5.5РР
Оຜ৆
w J-a-
Ԛ᥶

Ԛ᥶ˉˉ༽‫׬‬
༽‫׬‬--ᱜॱ
Ԛ᥶ˉ
ᱜॱ
Ԛ᥶ˉ‫׬‬ೖ-
‫׬‬ೖ-ϲ໅
ሇδ୸ý

Ԛ᥶ሇδ୸ý

Ԛ᥶
#ᲇሩ
w è -ല྽
Ԛ᥶
ല྽
Ԛ᥶ˉˉᮿೠ
ᮿೠ--.2
Ԛ᥶ሇδ
.2
Ԛ᥶ሇδ
୸Ћ༬
#ᲇሩ
China has entered the international
engineering market

w 2005r
2005 r
χ217.6РᒼԈƥ34ᮿ24.6

χ217.6РᒼԈƥ34ᮿ ƞƴ
24.6ƞƴ
w 2005 r296
2005r РᒼԈƥ34ᮿ24.2
296РᒼԈƥ34ᮿ ƞƴ
24.2ƞƴ
w ୅ü56୻‫ׇ‬789:;<ሩ֏ীᑀ߰ലੋ

ÁЋ༬ϛϜƥ=ᱡ༬ƥ:=>ᒼˉ
Ћ༬ϛϜƥ=ᱡ༬ƥ:=>ᒼˉடᒼ‫ ࠷׬ڔ‬ሇ࠰Ԉ‫׎‬
89ඨॊˊ
89ඨॊ ˊ
For what do we study FIDIC
Conditions of Contract for Construction?

 

w master FIDIC Conditions of

Contract in English to
1. maximize rights and interests
2. minimize the risks
;uestions

1. What are the four standard forms of

contract published by FIDIC in 1999?
2. What are the characteristics of them?
3. What kind of works or projects are they
suitable for?
4. How shall we study FIDIC Conditions of
Contract for Construction?

Lecture-
Lecture- Pratice-
Pratice-
Enlightening
+ áastering
 æeferences
1. ü
ƥϔü
FIDIC

ƥϔü
FIDIC
Procedure, ϔüᡝհՠႝየ
uendering Procedure,

2. ü
ƥϔü
ƥ
æeferences
Construction,
Conditions of Contract for Construction,
χՠႝየ

3. http://www.worldbank.org

4. http://www.afdb.org

5. http:// www.fidic.org
uip:




  


 
   

  
 
 


w building or engineering works ơਢ᎐ୈ

ᲇሩƢdesigned
ᲇሩƢ ơᡷᡝƢ by the Employer
designedơᡷᡝƢ
ơᰵϜƢ or by his representativeơ Ƣ
representativeơ Ƣ,,
EngineerơƢ
the EngineerơƢ
Contents of this course:

1. uhe Public uendering and Bidding Law of

the Peopleó
Peopleós æepublic of China
2. FIDIC uendering Procedure
3. FIDIC Conditions of Contract for
Construction
u  u
 u
ơஃඓƢ 
  
 
 

Effective since January 1, 2000

 Contents of this law:

w 6 Chapters and 68 Articles

w Chapter 1. 0eneral Principles ơ1-7 Articles Ƣ
w Chapter 2. Invitation uo Bid ơ8-24 Articles Ƣ
w Chapter 3. Bidding ơ25
25--33 Articles Ƣ
w Chapter 4. Opening And Evaluation Of Bids
w and Selection Of Winning Bids ơ34
34--48 Articles Ƣ
w Chapter 5. Legal æesponsibilities ơ49
49--64 Articles Ƣ
w Chapter 6. Supplementary Articles ơ65
65--68 Articles Ƣ
Chapter 1 0eneral Principles ơ઱մƢ
ơ7 articlesƢ
articlesƢ

w uhe goal of this law

w Application
w Competitive bidding
w Principles
w No restriction
w Supervision


u  
 

uhis Law is formulated to:

1. biddingơஃ
regularize activities of competitive biddingơஃ
ඓƢ;;
ඓƢ
2. in order to safeguard the national interest, public
interest, and the legitimate rights and interests of
parties to competitive bidding and
3. to ensure project quality.


u   
 

uhis Law is applicable to all activities of

competitive bidding carried out inside the
People's æepublic of China
"

 
!



ơ‫־‬ठƢ 
? 

 
 


ơ‫־‬ठƢ 

 ơᡷᡝƢ
ơᡷᡝƢ    ơ಴Ƣ
ơ಴Ƣ 

ơሠᄮƢ 


ơሠᄮƢ

 

   

  
 

  
  
  
  

 

    state
state--
fundsơü?ᤨ ஃᤨƢ 
owned investment fundsơü?ᤨ ஃᤨƢ state
state--gathered
funds !ü@
ᤨ
ü@
ᤨ¨ ¨
" ơ#Ƣ 
 ơప֭ᤨ Ƣ


 ơ#Ƣ ơప֭ᤨ Ƣ from
international organizations or foreign governments 


#

w No unit or individual shall evade

competitive bidding on a project that is
subject to competitive bidding according
to law by dismembering ơ‫׎‬ಜϛ᱃Ƣ the
dismemberingơ‫׎‬ಜϛ᱃Ƣ
project or by any other means.
$

u   
!

w ? 

 

 



 openness,
openness, fairness,
justice, honesty and credit worthiness
ơԚˉ
ơԚ ˉԚ2Ԛ2ˉ ˉԚ๡ˉ
Ԛ๡ˉᢑ˜ ᢑ˜ˉ ˉҴᅶƢ
ҴᅶƢ
%

no regional or departmental restrictions

w Competitive bidding activities on projects subject to

competitive bidding according to law shall be subject
restrictionsơν‫ךޞا‬
to no regional or departmental restrictionsơ
ୈᓥ᪇ᯀሇᰊցƢ . No unit or individual shall illegally
exclude legal persons or other organizations from
outside its or his region or system from making bids,
nor shall it or he illegally interfere with competitive
bidding activities in any other way.
&

administrative supervision departments

ơሠቓ᪇ᯀ Ƣ

w Competitive w uhe relevant

bidding administrative supervision
activities and ơሠቓ᪇ᯀ Ƣ
departmentsơሠቓ᪇ᯀ
departments
parties shall shall investigate illegal
comply with ơᨈ໿ϛ Ƣ in
conductơᨈ໿ϛ
conduct
supervision competitive bidding
carried out activities according to law
according to and take actions
law. accordingly.
 ;uestions to the general principles

1. What construction projects shall be

conducted through competitive bidding?
2. uhe principles of the competitive bidding?
Chapter 2 Invitation to Bid
ඓ¨¨ơ17 articles¨
(ඓ

w uhe persons who invite tenders

w Bidding agency

Public notices
w Invitation to bid {
Special requests

w Bid Documents
'

u    !
ơඓОƢ

1. personsơ໿ОƢ or other
shall be legal personsơ໿ОƢ
organizations
2. proposedơటՠƢ projects for
have proposedơటՠƢ
competitive bidding
3. executeơ୭៞Ƣ competitive bidding
will executeơ୭៞Ƣ
(

!

ơः୸ξᤨ Ƣ

1. Proposals for competitive bid projects that are

subject to project approval procedures according to
the relevant rules shall be submitted according to
prescribed procedures to get approval.
approval.
2. uhe person who invites tenders shall have secured
the funds for the bid project or have established
sources of funds for the project and shall truthfully
state the facts in the bid documents.
documents.
)

 "  #  !

Ԛඓ‫ڔ‬ᩖ᢭ඓ

Invitation to Bid ơඓƢ

public notices special invitation

ơԚඓƢ ơᩖ᢭ඓƢ

unspecifiedơνႯࣽሇƢ
unspecifiedơνႯࣽሇƢ requestsơஃඓᩖ᢭Ƣ
written requestsơஃඓᩖ᢭Ƣ
legal persons or other to invite bids from specified
organizations.
ơႯࣽሇƢ legal persons or
other organizations.


national key project local key project

ơü@᫕ဿᲇሩƢ ơ‫;ޞ‬᫕ဿᲇሩƢ

the development the people's government

planning of a province,
departments of the autonomous region, or
State Council municipality directly
under central
government jurisdiction

requestsơᩖ᢭ඓƢ
special requestsơᩖ᢭ඓƢ



 
$
ơඓ Ƣ

uhe persons who invite Persons inviting tenders

tenders are entitled to who possess the
select, independently
independently,, professional capability for
agenciesơඓ
bidding agenciesơඓ documents(
preparing bid documents(
ᄮƢ that will be ցඓL ¨ and organizing
authorized to execute evaluations(!"Aඓᕜ
bid evaluations(!"Aඓᕜ
bidding operations. ֤¨ can execute bidding
ơᖪ ᄮඓЀ
operationsơᖪ ᄮඓЀ
operations
ࣿƢ..
ࣿƢ
"

   %

 

/ Bidding agency is a social intermediary

ơየϔЫ!"¨¨ƥestablished
organizationơየϔЫ!"
organization
according to law, will execute bidding operations
and provide relevant services, shall have the
following qualifications :
1. funds(χ9B‫ڔ‬ሮਁᤨ ¨¨ ;
business location and funds(χ9B‫ڔ‬ሮਁᤨ
2. Having the professional capability for preparing
bid documents and organizing bid evaluations;
3. Having a pool of technical, economic, and other
ơ୼ഴˉ
expertsơ୼ഴ
experts ˉᑀ༽ρ@C
ᑀ༽ρ@C¨. ¨.
 14.

  %

ᤨඨᡠࣽ
w A bidding agency in charge of bidding operations for a
construction project shall have been qualified by the State
departmentơਢᡷ
Council or the construction administration departmentơਢᡷ
Ꭻᄮ᪇ᯀƢ of the people's government of a province,
autonomous region, or municipality directly under central
government jurisdiction.
w u ere s
 be no supervisory
supervisory--
b 
e
subordin
e e

re
  

  e e e e
  be ee b
ee



e e
e   e e e
§
ඓ DE៞ಈFGHIü@FJKL
e
e§
e
e
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   &


 
ඓ ᄮᨆඓ

w Bidding agencies shall execute bidding

operations according to rules set by
the person who invites tenders, and
shall follow provisions on bid
solicitation by the person who invites
tenders in this Law.
%

Issue of bid solicitation notice ơඓԚ‫ٴ‬Ƣ

w uhe notice soliciting bids w shall contain such

shall be published in
designatedơü@R
state--designatedơ
state
ࣽ Ƣ newspapers,
periodicals, information
networks, or other
media.
information as the
name and address of
the person who invites
tenders, the nature,
quantity, execution
location and time, and
ways to obtain the bid
documents.
&

lettersơஃඓᩖ᢭Ƣ
bid request lettersơஃඓᩖ᢭Ƣ

w When using the special request method, the person

lettersơஃඓ
who invites tenders shall send bid request lettersơஃඓ
ᩖ᢭Ƣ to at least three selected legal persons
w the name or other
and address of
organizations that have the capability
the personto who
execute the
invites
standing ơᤨҴᗟ࡛Ƣ
bid project and good credit standingơᤨҴᗟ࡛Ƣ
tenders, the nature,.
w quantity,
Bid request letters shall contain executionlisted
the information
location
in Article 16, paragraph 2, of this Law.and time, and
ways to obtain the bid
documents.
'

'  

w Based on the requirements of the bid project, the person

who invites tenders may, in its bid solicitation notice or
bid request letters,
1. request potential bidders to provide: (1¨relevant
documents(ᤨᤌ᡺೗L ¨, (2¨
qualification certification documents(ᤨᤌ᡺೗L
performance(χᑘ૮Ճ¨¨
information on their business performance(χᑘ૮Ճ
2. carry out verification of those qualifications
3. shall not apply unreasonable requirements to restrict or
exclue any potential bier or ive iscriminatory
treatment to any potential bier.
(

uhe bid documents

(ඓL ¨

1. technical specifications (୼ഴᠸᘲ

୼ഴᠸᘲ¨of
¨of the bid project
2. conditionsơ˜ᤌપ
all substantive requirements and conditionsơ˜ᤌપ
ᠳຸ‫ڔ‬ Ƣ regarding such things as criteria for
verifying biddersó
biddersó qualificationsơᤨඨःඇሇඓՋƢ
qualificationsơᤨඨःඇሇඓՋƢ
3. pricesơஎцᠳຸƢ
requirements on bid pricesơஎцᠳຸƢ
4. criteriaơAඓඓՋƢ
evaluation criteriaơAඓඓՋƢ
5. contractơሇϜᠳ#Ƣ
the main provisions of the contractơሇϜᠳ#Ƣ
to be concluded.
Article 20.

w uhe bid documents shall not ask for

ơᠳຸƢ or nameơඓ೗Ƣ
nameơඓ೗Ƣ any specific
ơᅴД۵Ƣ or supplier
producerơᅴД۵Ƣ
producer ơҖਁ۵Ƣ
supplierơҖਁ۵Ƣ
or contain other means of favoring or
excluding any potential bidder.


inspect the project site

Å‫־‬ᲇሩᄕ9

w In view of specific circumstances of

the bid project, the person who invites
tenders may arrange for potential
bidders to inspect the project site.


Keep secret

1. uhe person who invites tenders shall not disclose

ơᨦ࿡Ƣ the names and number of potential
bidders that have obtained bid documents, or
other bidding information that may affect fair
competition.
2. uhe person who invites tenders shall keep the
(ඓ)¨¨ secret if a base price has been
base price (ඓ)
established.
"

clarifications or revisions
(ᠳሇကྊ‫ڔ‬һಅ
ᠳሇကྊ‫ڔ‬һಅ¨¨

w (ᠳሇ
uo make necessary clarifications on or revisions (ᠳሇ

ကྊ‫ڔ‬һಅ¨¨ of the bid documents already distributed,

ကྊ‫ڔ‬һಅ

the person who invites tenders shall notify, in writing,

writing,

documentsơඓL ‫ا‬ОƢat
all recipients of the bid documentsơඓL ‫ا‬ОƢat

deadline(୒๠೎ᯋƢ for
least 15 days before the deadline(୒๠೎ᯋƢ

bidsơటБஃඓL Ƣas
submitting bidsơటБஃඓL Ƣas required by the bid

documents.
#

    

 

 

ցஃඓL BSᠳሇᄮ೎ᯋ

w uhe person who invites tenders shall determine the

reasonable amount of time necessary for bidders to
prepare bids
w However, for a project subject to bidding according to
law, the period from sending out the bid documents to
submission of bids by bidders shall be no shorter than
20 days.
;uestions to bid invitation:

w uhe persons who invite tenders?

w Bidding agency?

w Invitation to bid methods?

w Bid Document contents?