About This Course

This course is accredited and approved by the Engineering Council of South Africa (ECSA). On completion of this course professionals will earn 2 ECSA CPD Points. PMI Certificate holders will be eligible to claim 14 PDUs from the Project Management Institute (PMI) The FIDIC (International Federation of Consulting Engineers) Conditions of Contract, also known as the Red Book, is a suite of standardized contract documents commonly used in the construction industry around the world. These contracts provide a balanced and fair set of terms and conditions for construction projects, covering topics such as the roles and responsibilities of parties involved, payment and pricing terms, dispute resolution processes, and detailed provisions on work execution, including quality standards and safety requirements. The Red Book is particularly used for construction projects where the employer is responsible for providing the design and is often utilized for infrastructure projects such as roads, bridges, and tunnels.

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The use of FIDIC contracts offers several benefits, including their international recognition and acceptance in the construction industry, which can help to minimize misunderstandings and disputes. Additionally, FIDIC contracts are regularly updated to reflect current best practices and standards in the construction industry. The 2017 edition of the FIDIC Rainbow Suite, for example, includes improvements such as updated sustainability and environmental provisions, as well as provisions for the use of electronic communication and electronic data.

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A comprehensive understanding of the terms and conditions contained in FIDIC contracts is crucial for those working in the construction industry, as failure to adhere to these procedures can have serious consequences. This course aims to provide a thorough overview of the FIDIC Conditions of Contract and the other contracts in the FIDIC Rainbow Suite, with a focus on the Red Book. It is intended to give participants the confidence and skills to work with these documents, whether representing employers, consultants, or contractors, and to expose them to the principles and practices of contracting the FIDIC way. The course will include case studies, and examples, drawing on the facilitator's experience in dealing with FIDIC contracts and advising clients, to assist with the procurement, management, and administration of these contracts. Overall, this course aims to help construction professionals effectively work with FIDIC contracts to ensure the smooth and successful completion of construction projects.

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Upon completing this course, professionals will be able to:

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• Select the appropriate FIDIC contract for their project

• Prepare various contract documents, including the Appendix to Tender, Specifications or Employer's Requirements, and the Particular Conditions of Contract

• Understand the role and responsibilities of the Engineer in a FIDIC contract

• Understand the process for giving instructions, notices, and other communications in a FIDIC contract

• Familiarize themselves with the requirements for preparing and revising a program

• Effectively handle variations in a FIDIC contract

• Understand when and how to bring claims and follow the appropriate procedures for notification and submission of claims

• Deal with defective work and understand the certification process leading up to the taking-over of the works

• Understand the payment provisions and how to quantify the value of work using the Bill of Quantities or Schedule of Payments

• Understand their obligations as a contractor when they are responsible for the design of the works in a FIDIC contract

• Handle and notify disputes in accordance with the terms of the contract

• Understand the grounds and procedures for termination of a FIDIC contract In addition to the practical skills and knowledge gained through this course, professionals will also earn Continuing Professional Development (CPD) points, which are essential for maintaining their professional designation and supporting the success of their business. Upon successful completion of the course, professionals will receive a certificate of completion that verifies their attendance and demonstrates that they have acquired the necessary skills and knowledge to manage projects effectively.

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Obtain your certificate and differentiate yourself from others

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Additionally, earning a certificate in FIDIC Contracts can help you advance your career and potentially open up new job opportunities. Many employers prioritize hiring candidates with advanced training and certifications, and having a certificate in FIDIC Contracts can make you a more attractive candidate for these positions. Overall, earning a certificate in FIDIC Contracts can be a valuable investment in your career and can help you stand out to prospective employers.

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A detailed look at the course contents that will be covered:

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an Overview of the FIDIC 2017 suite of Contracts
 

• The FIDIC suite of contracts includes a range of standard contracts for use in the construction, plant and design-build, and EPC/turnkey industries.

• The contracts in the suite include the Red Book (Conditions of Contract for Construction), Yellow Book (Plant and Design-Build), and Silver Book (EPC/Turnkey Projects).

• In addition to the main contracts, the suite also includes several annexes and other supporting documents such as the MDB Harmonized Construction Contract.

• Understanding the differences between the different contracts in the suite is important in order to choose the most appropriate contract for a particular project. Factors to consider when selecting a contract include the nature of the works, the allocation of risks and responsibilities, the payment terms, and the dispute resolution mechanisms.
   

Chapter 1: Putting the tender and contract together
 

• The process of preparing a tender and contract involves several steps, including the selection of the contract type, the preparation of the contract documents, and the negotiation and signing of the contract.

• The Contract Agreement is the main document that sets out the terms and conditions of the contract. It includes several parts such as the Contract Data, Particular Conditions, and Special Provisions.

• The Contract Data includes information such as the names of the parties, the contract sum, and the contract period.

• The Particular Conditions contain provisions that are specific to the project, such as the scope of works, the quality standards, and the health and safety requirements.

• The Special Provisions include any additional provisions that are not covered by the general conditions of the contract. These may include provisions related to the employer's requirements, the design and construction of the works, and the testing and commissioning of the works.

• The contract may also include other schedules and annexes such as the program, the drawings, and the specifications.
   

Chapter 2: Design
 

• The contractor's responsibilities for design under a FIDIC contract depend on the type of contract and the specific provisions of the contract.

• Under certain FIDIC contracts, the contractor may be required to carry out design work as part of the works. This may include preparing design documents, obtaining design approvals, and complying with relevant codes and standards.

• The contractor may also be responsible for checking the employer's requirements to ensure that they are consistent with the contract and the design documents.

• The contractor may be liable for errors in the design, including errors that result in additional costs or delays to the project.
   

Chapter 3: Role of the Engineer in Administering the Contract
 

• The Engineer is a key figure in the administration of a FIDIC contract. The Engineer's role is to act as an impartial and independent adviser to the parties, and to ensure that the contract is administered in accordance with its terms and conditions.

• The Engineer is responsible for issuing certificates and instructions, and for making determinations on matters such as variations, extensions of time, and payment issues.

• The Engineer may also be required to carry out inspections, tests, and measurements of the works, and to issue reports and certificates in relation to these activities.

• Payment provisions in a FIDIC contract typically include provisions for interim and final payments, as well as provisions for the retention and release of retention monies. The contractor is required to submit applications for payment, and the Engineer is responsible for issuing payment certificates based on the progress of the works and the materials and equipment supplied.
   

Chapter 4: Contractor's Claims​

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• Claims by the contractor under a FIDIC contract may relate to a revision of the completion date or the payment of additional costs.

• The contractor is required to notify the Engineer of any events or circumstances that may give rise to a claim. The notification must be made within a specified period of time, and must include the details of the claim and the supporting documents.

• The Engineer is required to assess the claim and make a determination within a reasonable period of time. If the claim is accepted, the Engineer may issue a variation order or a supplemental agreement to reflect the revised completion date or the additional costs.

• The employer is also required to respond to and assess claims made by the contractor, and to treat the claims fairly and transparently.
   

Chapter 5: Variations
 

• Variations refer to changes to the scope of the works or the contract conditions that are made during the course of the project.

• Variations may be ordered by the Engineer or the employer, and may be initiated by either the contractor or the employer.

• The procedures for dealing with variations depend on the specific provisions of the contract. In general, the contractor is required to submit a proposal for the variation, including the details of the change and the impact on the time and cost of the project. The Engineer or the employer will assess the proposal and make a determination on whether to accept the variation and, if so, the revised time and cost implications.

• It is important to manage variations carefully to avoid disputes and additional costs.
   

Chapter 6: Quality Control
 

• Quality control measures are put in place to ensure that the works are carried out to the required standards and specifications.

• The contractor is responsible for carrying out quality control tests and inspections, and for ensuring that the works are completed to the required quality.

• The Engineer is responsible for carrying out inspections and tests on behalf of the employer, and for issuing certificates in relation to the quality of the works.

• The contract may include provisions for defective workmanship, including the contractor's liability for defects that arise during the defects notification period. The defects notification period is a specified period of time after the completion of the works during which the employer may notify the contractor of any defects that have been identified.
   

Chapter 9: Dispute Resolution and Claims
 

• Disputes may arise between the parties during the course of a construction project. The contract should include provisions for the resolution of disputes, including the role and function of the DAAB (Dispute Adjudication Board) and other dispute resolution mechanisms such as arbitration and litigation.

• The DAAB is an independent body that is appointed to resolve disputes that arise under the contract. The DAAB is composed of experts in the field of construction, and is responsible for making decisions on disputes that are referred to it by the parties.

• The DAAB's decisions are binding on the parties, although either party may choose to appeal the decision to arbitration or the courts.

• Alternative dispute resolution mechanisms such as mediation and conciliation may also be used to resolve disputes in a less formal and more collaborative manner.

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The future FIDIC Contracts in the Construction Industry and why this is an important skill to have
 

FIDIC, the International Federation of Consulting Engineers, is a global organization that promotes and develops best practices in the consulting engineering industry. It is known for publishing a range of standard forms of contract that are widely used in the construction industry, including the Red, Yellow, and Silver Books.

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In the future, it is likely that FIDIC will continue to play a significant role in the construction industry, as its standard forms of contract are widely recognized and respected by industry professionals. However, it is also possible that FIDIC will face challenges as the industry evolves and new technologies and practices emerge.

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One potential area of change for FIDIC could be in the use of digital tools and technologies in the construction industry. As the use of digital technologies continues to grow, there may be a need for FIDIC to adapt its standard forms of contract to accommodate these new tools and practices.

Another potential area of change could be in the focus on sustainability and environmental responsibility in the construction industry. As concerns about the environmental impact of construction projects continue to grow, it is likely that FIDIC will need to consider how its standard forms of contract can address these issues.

Overall, it is difficult to predict the exact future of FIDIC in the construction industry, but it is likely that the organization will continue to play a significant role in shaping the industry and promoting best practices.

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Accreditation earned on completion of this course:
 

Earning ECSA CPD points is valuable for professionals in the construction industry as it demonstrates their commitment to staying current and continuing their professional development. By completing this course and earning ECSA CPD points, professionals can showcase their dedication to best practices and expertise in Lean and Agile Principles.

Upon completing this course, professionals will earn 2 ECSA Continuing Professional Development (CPD) point and 14 Project Management Institute (PMI) Professional Development Units (PDUs) for PMP certificate holders. 

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Recordings of the live sessions will be made available for attending delegates who miss a session due to load shedding. Please note that the course live sessions must be attended in order to qualify for your certificate. Recordings are only for review purposes.