Ana Buljanovic’s Post

🔑 Understanding FIDIC Contracts: A Foundation for Global Construction Success 🏗️ In the world of construction, contracts are the backbone of every project. Among the most trusted and widely adopted in international projects are FIDIC contracts—offering a comprehensive framework that balances the interests of employers, contractors, and consultants. What makes FIDIC contracts stand out? 1️⃣ International Standard: Accepted worldwide, FIDIC contracts are used in complex infrastructure projects, providing consistency across borders. 2️⃣ Risk Allocation: They clearly define responsibilities and distribute risks equitably between parties, reducing disputes. 3️⃣ Flexibility: Suitable for a range of projects—whether it's a simple construction contract or a complex engineering project. 4️⃣ Fairness: FIDIC promotes collaboration, ensuring all parties work towards mutual success with well-defined dispute resolution mechanisms. 5️⃣ Sustainability Focus: The latest editions include clauses to address environmental concerns, ensuring a responsible approach to project delivery. As the construction industry faces more global opportunities and challenges, FIDIC remains an essential tool for ensuring efficient, transparent, and fair project execution. If you're working on international construction projects or aiming to expand globally, mastering FIDIC contracts can be a game changer! 🌍💼 #Construction #FIDIC #Contracts #ProjectManagement #RiskManagement #GlobalConstruction #Engineering

Understanding FIDIC's Extension of Time (EOT) Clauses: 1987 vs. 1999 Editions 📚 Recently, I’ve been studying the evolution of the Extension of Time (EOT) clauses in the FIDIC Red Book, and it’s fascinating to see how it has changed between the 1987 and 1999 editions. Here’s what I found: 🔍 1987 Edition: In the 1987 edition, contractors could apply for an EOT in cases such as: Delays due to the employer’s failure to give possession of the site (Clause 42.2) Unforeseeable physical obstructions (Clause 12.2) Delays due to the late issuance of drawings by the engineer (Clause 6.4) The notification process was less formalized, and the contractor needed to provide detailed particulars to the engineer, who would then determine the extension after consultation with the employer. 🛠️ 1999 Edition: The 1999 edition introduced several improvements, including a clearer notification process. Some notable changes include: Clause 8.4: The contractor must provide a "notice of claim" within 28 days of becoming aware of the delay, or they risk losing entitlement to the EOT. Clause 20.1: More structured guidance for handling claims, requiring detailed particulars and allowing for interim assessments if the delay continues. 💡 Key Difference: While both editions allowed for EOT claims, the 1999 edition formalized the process, making the contractor’s obligations and the engineer’s role in assessing delays much clearer and transparent. This change/update ensured that disputes were minimized, and project timelines were managed more effectively. It’s clear that FIDIC’s evolution is focused on better communication, collaboration, and dispute resolution in construction projects. #CivilEngineering #ContractManagement #FIDIC #ConstructionDelays #ProjectManagement

How do FIDIC contracts differ from others? FIDIC contracts, under the 2017 conditions, provide standardized forms for international construction projects, ensuring clarity and fairness. They differ from other contracts by offering specific guidelines for payment procedures, dispute resolution, and risk allocation, which are tailored to the needs of engineering and construction projects. This standardization helps mitigate disputes and ensure compliance with international best practices. #FIDIC #Construction #Engineering #Contracts

FIDIC - International Federation of Consulting Engineers is 111 years old. They've been at this for a while. There's a phrase that comes to mind when I think about construction contracts. "If it ain't broke, don't fix it." That's why FIDIC exists. Every day, we study our clients' contracts. Clause-for-clause. Word-for-word. And we are left speechless. It's as if we have to learn a new language to understand what's going on. And then it finally makes sense why their projects are in trouble. But we believe that change is possible. That the industry will return to using FIDIC. Which is in everyone's best interest. #Construction #FIDIC #Contracts #ConstructionContracts #ContractAdministration #ContractAdministrator #ContractManager #ContractManagement #RiskManagement #RiskManager #CommercialManagement #CommercialManager #ConstructionLaw #ConstructionLaw #ConditionsofContract #ConstructionDisputes #Arbitration #Mediation #Adjudication

🚧 Exploring the Maze of FIDIC Yellow Book Contract Administration: A Real-World Conundrum 🚧 In the dynamic world of construction projects, the unexpected often becomes the norm. But what happens when 'unexpected' stretches the boundaries of standard practice? Imagine a scenario where a project, under the FIDIC Yellow Book contract (EPC), originally scheduled for a 3-year Time for Completion (with a profit margin of ~5%), spirals into an 8-year saga fraught with unforeseen challenges including a global pandemic (COVID), geopolitical conflicts, and relentless inflation (CPI~30 %) impacting material prices. Despite these hurdles, the Contractor's pursuit for recognition of these and other changes or instructions through hundreds of claims meets a wall of rejection from the Engineer. Not a single claim was approved. No additional costs are granted. Yet, with every extension, the Engineer secures additional compensation for his extended services. In a twist of irony, the Engineer issues a claim against the Contractor, equivalent to the total amount of the Contractor’s claims. Amidst this, the Contractor has already shouldered about 50% of the Contract Price from its own money. This scenario raises critical questions about fairness, risk distribution, and the spirit of partnership in construction contracts. 🔍 What's Your Take? 1. How should such complex disputes be navigated to uphold the principles of equity and mutual benefit? 2. Is the current framework adequate to address the multifaceted challenges posed by external factors beyond the control of the contractual parties? 3. In the spirit of collaboration and progress, what reforms or practices could better prepare Contactors and Employers for the unpredictability of the future? I invite you to share your insights, experiences, and suggestions. #fidic #constructionlaw #contractmanagement #projectmanagement #EngineeringEthics

This presentation provides a comprehensive analysis of the application of FIDIC contract clauses related to extensions of time (EOT) and the management of delay claims. It begins by outlining the different types of construction contracts, including fixed-price and cost-reimbursement contracts, and then delves into the nuances of FIDIC's approach to claims, disputes, and arbitration. The presentation highlights the various types of delays, including excusable, non-excusable, and compensable delays, and the factors that determine responsibility for those delays. The presentation then provides a detailed explanation of the different methods for analyzing delay claims, such as the impacted as-planned schedule analysis, the time impact analysis, and the as-built but-for analysis. It also includes guidance on selecting the most suitable analysis method and provides a case study demonstrating the application of these principles. The presentation concludes by emphasizing the importance of effective claim identification, notification, examination, documentation, presentation, and negotiation. #construction #constructioncontracts #FIDIC #EOT #delayclaims #delayanalysis #contractmanagement #arbitration #engineering #projectmanagement #claimsprocess #YasoElmasry

Payment Procedures under FIDIC 2017 Conditions of Contract The FIDIC 2017 Conditions of Contract outline clear and structured payment procedures to ensure timely and fair compensation for work completed. Key aspects include: Interim Payments: Regular payments based on the progress of work. Final Payment: Settlement upon completion of all contractual obligations. Payment Certification: Involves the issuance of payment certificates by the Engineer. Dispute Resolution: Mechanisms to address any payment-related disputes. Credit for someone. #FIDIC2017 #ConstructionLaw #ContractManagement #PaymentProcedures #EngineeringContracts #ProjectManagement #ConstructionIndustry #LegalCompliance #Contractors #Engineering

🚧 Today’s Quick Tip: FIDIC Contract Changes! 🚧 Stay informed and ahead in the construction industry! #ConstructionManagement #ProjectSuccess #FIDICGuidance #SmallBusiness #ContractManagementSimplified

FIDIC Contracts and Important of FIDIC Key FIDIC Contracts: 1. Red Book – Construction Contract: This is used for building and engineering works designed by the employer. 2. Yellow Book – Plant and Design-Build Contract: Suitable for projects where the contractor designs and builds the project. 3. Silver Book – EPC/Turnkey Contract: Common in projects where the contractor is responsible for the majority of risks, often in complex infrastructure works like power plants or industrial facilities. 4. Green Book – Short Form of Contract: Typically used for simple or low-value contracts. 5. Gold Book – Design, Build, and Operate (DBO): This contract is used when the contractor is responsible for both designing, constructing, and operating the project. Why FIDIC Contracts are Important: 1. International Recognition: FIDIC contracts are widely recognized and accepted globally, especially in cross-border projects. 2. Risk Allocation: They clearly define roles, responsibilities, and risks between parties involved. 3. Dispute Resolution: FIDIC contracts include mechanisms for resolving disputes, often through a Dispute Adjudication Board (DAB) or arbitration.

🚧 Mastering Construction with FIDIC Contracts 🏗️ In the fast-paced world of construction, precision, clarity, and risk allocation are key to project success. That's where FIDIC contracts make the difference! 📚 Each color-coded contract is tailored to different project types, helping ensure smooth operations and accountability. 🔴 Red Book: For traditional construction where the employer provides the design, ideal for roads, bridges, and buildings. 🟡 Yellow Book: Best for design-build projects, where the contractor handles both design & construction—great for industrial facilities or infrastructure projects. ⚪ Silver Book: Turnkey/EPC contracts, where the contractor takes full responsibility for delivering a complete, operational facility. Certainty in cost and delivery is the goal here. 🟢 Green Book: Short-form contracts for small or straightforward projects. It simplifies paperwork while ensuring quality. 🟠 Gold Book: Extends beyond construction with design-build-operate contracts, where the contractor also manages long-term operations—ideal for projects like water treatment plants. Choosing the right FIDIC contract ensures better project control, fewer disputes, and clear allocation of responsibilities. 💼 Whether you're managing a high-rise, a bridge, or a plant, FIDIC keeps your projects running smoothly! #FIDIC #ConstructionSuccess #ProjectManagement #RiskManagement #ContractStrategy #EngineeringLeadership #EPC #DesignBuild #ConstructionInnovation