Contract and Tender Conditions
For more than 40 years, EIC's Working Group “Contract Conditions” reviews and comments on the FIDIC standard Forms of Contract. The work of the group has been condensed into several high-quality publications which are influencing the international debate amongst clients, financiers and their advisers. The group does not only concentrate on Conditions of Contract but also scrutinises the tender conditions of the International Financing Institutions and Multilateral Development Banks and it follows the latest developments in international arbitration.
EIC's view on current international contracting practice
FIDIC presented in 1999 a suite of three Standard Forms of Contract known as the "Red, Yellow and Silver Books". In 2009, FIDIC added the "Gold Book", its first form for Design-Build and Operate, to the list. In 2010, FIDIC published its third version of the so-called "Pink Book", the MDB Harmonised Construction Contract.
EIC observes that today the Red Book is no longer the unrivalled form on the market. Whilst it is still one of most frequently used standard forms, its traditional concept of an independent and impartial engineer is no longer the standard in international contracting. For many years now, employers are determined to keep the engineer firmly in their camp, partly because the Anglo-Saxon concept of an independent third party to a contract is unknown in civil law countries where the contractual relationship is based on a two party approach. So the impartial engineer has defected and joined the employer’s ranks. This has been reflected in the 1999 Red Book conditions of contract, and the balance of risk has swung very much against the contractor.