The Red Book is the "Conditions of Contract for Works of Civil Engineering Construction": the fourth edition was published in and amended in and The Yellow Book is the "Conditions of Contract for Electrical and Mechanical Works": the third edition was published in and amended in Soft cover; pages Foreword The Red Book is intended for the construction of works designed by or on behalf of the Employer, with evaluation by measured quantities and contract rates. The Yellow Book is intended for the provision and erection of plant, often for items which are to be part of a large project. Recognizing that some Employers wanted to procure the construction of project works on a lump-sum contractor-design basis, FDIC initiated the preparation of an appropriate form of contract: it became known as the Orange Book. It had been prepared by a drafting committee referred to as the Orange Book Task Group, which consisted of.
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This assistance is focused on particular features of the Orange Book: the Guide is not intended to provide complete training material for the expertise required for the preparation of tender documents. Also, the comments are not intended to provide an authoritative legal interpretation of every aspect of each subject, which must depend on the law applicable to the particular contract. It is envisaged that the FIDIC Orange Book - Conditions of Contract for Design — Build and Turnkey can be the basis of all contracts which involve the provision of facilities designed by the Contractor, whether such facilities comprise building, civil engineering, chemical engineering, electrical engineering, mechanical engineering, or any combination.
Throughout the drafting, the intention was to incorporate provisions applicable to for example housing, roads, refineries, generators, turbines, treatment works, etc. However, the Orange Book is not appropriate for the provision of facilities designed by the Employer or his consulting engineer, or for similar arrangements where the Contractor is not to be responsible for design. This arrangement reduces the problems which may on occasions arise from the division of responsibility between designer and constructor.
Design-build may also encourage economies, not only in terms of price, but at the expense of quality. Therefore, it is considered essential that the Employer has or procures expert technical services, in order to ensure that his requirements are elaborated in the tender documents and are achieved in practice. If expertise is unavailable, problems may arise, particularly in respect of the need for variations.
FIDIC Orange Book - Conditions of Contract for Design — Build and Turnkey, Ideally, variations under a design-build contract should be instructed by reference to requirements not by a redesign by the Employer ; and their costs and other consequences should be agreed in advance, in order to minimize disputes.
In practice, these aspects can make the design-build process appear somewhat inflexible. The design-build process is thus less amenable to variations initiated by the Employer, compared with the alternative where the designer is separately employed by the Employer and is independent of the Contractor.
The design-build option prevents the Employer from having a close involvement in the design process. The latter overlap may or may not lessen the total period between the commencement of the preparation of tender documents and the completion of construction.
The Employer should first analyze the project financing arrangements, their consequences, the risks inherent in the type s of works and the other factors which affect the procurement process.
Design-Build and Turnkey (1995 Orange Book) Guide (1st Ed 1996)
The FIDIC Conditions of Contract are divided into separate parts, each serving the purpose of collecting together clauses applicable to most forms of construction, to allow the Employer to define any special arrangements or conditions which he requires to control effectively his function in the Enterprise, and also to identify clearly whether he or the Contractor is to accept specified constructional or financial risks. Part I contains standardised clauses in respect of responsibilities, authorities, liabilities, each to the other, and in general terms gives a clear explanation of the nature and standards of the construction required but, more particularly, to the Contractor, provides specific definitions of the timing and the basis of the payment he is to receive. Part II identifies again the selected conditions already contained in Part I, for particular application. These clauses gives positive identification to the name of the Employer and the Engineer and also the specific involvement of the Employer and a number of clarifications in respect of inter alia insurance, liquidated damages, nominated sub-contractors, certificates and payments. The remaining parts of the document are the Form of Tender and Form of Agreement, and these need not be limited to the terms as listed therein because further terms could be added as necessary should circumstances are the wishes of the Employer or the Contractor make his desirable, but the content of any such conditions once accepted cannot be modified other than by mutual agreement of the two parties involved in contact. The Employer can himself provide one or both of these functions, or he can allocate them to one or more third parties.
Download: Fidic Orange Book.pdf
It was started in by the trio of France, Belgium and Switzerland. The United Kingdom joined the Federation in Over the years, FIDIC has become famous for its secondary activity of producing standard form contracts for the construction and engineering industry. As the title indicated, this first contract was aimed at the Civil Engineering sector and it soon became known for the colour of its cover, and thus, The Red Book. It has become the tradition that FIDIC contracts are known in popular parlance by the colour of their cover. Because of the broad support it enjoys, FIDIC contracts are the foremost contracts in international construction.