Structure of the Documents and Forms

The FIDIC contracts follow a structured format that includes various documents and forms. Here is an overview of the typical structure:

1. Contract Agreement: This is the primary document that establishes the legal relationship between the parties involved in the project. It outlines the rights, obligations, and responsibilities of the Employer and the Contractor.

   Sample specimen of a Contract Agreement based on the FIDIC template:

   CONTRACT AGREEMENT

   This Contract Agreement (the "Agreement") is made on [Date] between:

   [Name of the Employer], located at [Address], hereinafter referred to as the "Employer"

   and

   [Name of the Contractor], located at [Address], hereinafter referred to as the "Contractor"

   WHEREAS, the Employer intends to undertake [Description of the Project] (the "Project"), and the Contractor has submitted a tender for the execution of the Project;

   NOW, THEREFORE, the Employer and the Contractor hereby agree as follows:

   1. Scope of Work: The Contractor shall execute and complete the Project in accordance with the provisions of the Contract Documents, including the Employer's Requirements, Technical Specifications, and Drawings.

   2. Contract Price: The Employer shall pay the Contractor the agreed contract price of [Amount in Currency] for the satisfactory execution and completion of the Project, subject to the payment terms specified in the General Conditions of Contract.

   3. Contract Period: The Contractor shall commence the work on [Start Date] and complete it within [Contract Duration] from the date of commencement, as specified in the Contract Documents.

   4. Performance Security: The Contractor shall provide a performance security in the form of [Type of Security], equivalent to [Percentage] of the Contract Price, to be submitted within [Timeframe] from the signing of this Agreement.

   5. Contract Administration: The Employer shall appoint a Contract Administrator to administer the contract and handle communications between the parties. The Contractor shall promptly provide all necessary information and documents as required by the Contract Administrator.

   6. Variations: Any variations to the scope of work shall be carried out in accordance with the provisions outlined in the General Conditions of Contract, including the procedures for variation orders, valuation of variations, and the impact on contract price and time.

   7. Dispute Resolution: Any disputes arising under or in connection with this Agreement shall be resolved through amicable negotiation between the parties. If the dispute remains unresolved, it shall be referred to [Dispute Resolution Mechanism] as specified in the General Conditions of Contract.

   8. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Applicable Jurisdiction].

   IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement on the day and year first above written.

   [Signature of Employer] [Signature of Contractor] For and on behalf of the Employer For and on behalf of the Contractor

2. General Conditions of Contract (GCC): The GCC provides the contractual framework and sets out the standard terms and conditions applicable to the project. It covers areas such as contract administration, payment provisions, variations, claims, disputes, and termination.

   Sample specimen of the General Conditions of Contract (GCC) based on the FIDIC template:

   GENERAL CONDITIONS OF CONTRACT (GCC)

   1. Definitions 1.1 In these General Conditions, the following terms shall have the meanings ascribed to them unless otherwise specified: a) "Employer" refers to [Name of the Employer]. b) "Contractor" refers to [Name of the Contractor]. c) "Engineer" refers to [Name of the Engineer]. d) "Contract" refers to the agreement between the Employer and the Contractor. e) "Works" refers to the scope of work to be executed by the Contractor as described in the Contract Documents. f) "Time for Completion" refers to the period specified in the Contract for the completion of the Works.

   2. Contractor's Obligations 2.1 The Contractor shall execute and complete the Works in accordance with the Contract, including the drawings, specifications, and instructions issued by the Engineer. 2.2 The Contractor shall provide all necessary labor, materials, equipment, and services required for the execution and completion of the Works.

   3. Engineer's Role 3.1 The Engineer shall administer the Contract, issue instructions, and determine the value of variations and claims. 3.2 The Engineer shall inspect the Works, certify completion, and issue Taking Over Certificates and the Final Certificate.

   4. Time for Completion 4.1 The Contractor shall complete the Works within the Time for Completion specified in the Contract. 4.2 The Contractor shall be liable for liquidated damages for each day of delay in completing the Works beyond the Time for Completion.

   5. Payment 5.1 The Employer shall make payments to the Contractor in accordance with the provisions outlined in the Contract. 5.2 The Contractor shall submit interim payment applications, accompanied by supporting documents, for the Engineer's certification.

   6. Variations 6.1 The Engineer may issue variation orders for changes to the Works. The Contractor shall carry out such variations and shall be entitled to additional payment or extension of time as per the Contract provisions.

   7. Suspension and Termination 7.1 The Employer or Contractor may suspend or terminate the Contract under specified circumstances as outlined in the Contract.

   8. Dispute Resolution 8.1 Any disputes arising under or in connection with the Contract shall be resolved through amicable negotiation, failing which they shall be referred to arbitration or other specified dispute resolution mechanism.

   9. Governing Law 9.1 The Contract shall be governed by and construed in accordance with the laws of [Applicable Jurisdiction].

   IN WITNESS WHEREOF, the parties have executed these General Conditions of Contract on the day and year first above written.

   [Signature of Employer] [Signature of Contractor] For and on behalf of the Employer For and on behalf of the Contractor

3. Particular Conditions of Contract (PCC): The PCC modifies or supplements the GCC to address specific project requirements and conditions. It includes project-specific provisions and any additional terms agreed upon between the parties.

   Sample specimen of the Particular Conditions of Contract (PCC) based on the FIDIC template:

   PARTICULAR CONDITIONS OF CONTRACT (PCC)

   1. Scope 1.1 The Particular Conditions of Contract (PCC) shall supplement and/or amend the General Conditions of Contract (GCC). 1.2 In case of any discrepancies or conflicts between the PCC and the GCC, the provisions of the PCC shall prevail.

   2. Contract Documents 2.1 The Contract Documents consist of the following: a) General Conditions of Contract (GCC) b) Particular Conditions of Contract (PCC) c) Specifications d) Drawings e) Schedules f) Bill of Quantities g) Any other documents specifically mentioned in the PCC

   3. Scope of Work 3.1 The Contractor shall perform the work as described in the Scope of Work section of the PCC. 3.2 The Scope of Work shall define the nature, extent, and quality of the work to be performed by the Contractor.

   4. Contract Price and Payment Terms 4.1 The Contract Price shall be the sum specified in the PCC or as agreed upon between the parties. 4.2 The payment terms, including the schedule and method of payment, shall be as set forth in the PCC.

   5. Time for Completion and Milestones 5.1 The Time for Completion and any specific milestones shall be clearly stated in the PCC. 5.2 The Contractor shall adhere to the agreed timelines and milestones and shall be liable for liquidated damages in case of delay.

   6. Performance Security 6.1 The Contractor shall provide a performance security in the form and amount specified in the PCC. 6.2 The performance security shall be furnished by the Contractor to ensure faithful performance of the Contract.

   7. Insurance and Indemnity 7.1 The Contractor shall obtain and maintain appropriate insurance coverage as specified in the PCC. 7.2 The Contractor shall indemnify and hold harmless the Employer from any claims, damages, or liabilities arising from the performance of the Contract.

   8. Applicable Laws and Jurisdiction 8.1 The Contract shall be governed by and construed in accordance with the laws of [Applicable Jurisdiction]. 8.2 Any disputes arising under or in connection with the Contract shall be subject to the exclusive jurisdiction of the courts of [Applicable Jurisdiction].

   IN WITNESS WHEREOF, the parties have executed these Particular Conditions of Contract on the day and year first above written.

   [Signature of Employer] [Signature of Contractor] For and on behalf of the Employer For and on behalf of the Contractor

4. Tender Documents: These documents are used during the procurement phase and include the invitation to tender, instructions to bidders, specifications, and drawings. They provide the necessary information for bidders to submit their proposals.

   Sample specimen of the Tender Documents:

   TENDER DOCUMENTS

   1. Invitation to Tender

      • The Invitation to Tender provides an overview of the project and invites prospective contractors to submit their bids.

   2. Instructions to Tenderers

      • The Instructions to Tenderers outline the procedures and requirements for submitting a bid, including the deadline, format, and documentation to be included.

   3. Form of Tender

      • The Form of Tender is a standard document that the tenderer must complete, providing their proposed price and other relevant details.

   4. Conditions of Contract

      • The Conditions of Contract outline the general terms and conditions that will govern the contractual relationship between the employer and the successful tenderer.

   5. Scope of Work

      • The Scope of Work defines the nature and extent of the work to be performed, including any technical specifications, drawings, or other documentation.

   6. Bill of Quantities

      • The Bill of Quantities provides a detailed breakdown of the quantities and prices of all the items and activities involved in the project.

   7. Form of Agreement

      • The Form of Agreement is the contract document that will be signed between the employer and the successful tenderer, formalizing their legal obligations and rights.

   8. Specifications

      • The Specifications provide detailed information on the technical requirements, quality standards, and performance criteria for the project.

   9. Drawings

      • The Drawings illustrate the design, layout, and dimensions of the project, providing visual guidance for the construction or implementation.

   10. Tender Evaluation Criteria

       • The Tender Evaluation Criteria specify the factors and weightage that will be considered in evaluating the submitted bids, including price, technical competence, experience, and other relevant aspects.

   11. Contract Data

       • The Contract Data includes specific information related to the project, such as the contract duration, payment terms, performance security requirements, and any special conditions.

   12. Appendices

       • The Appendices may include additional information, forms, or documents that are relevant to the tender process or the specific project.

   Note: The above list provides a general overview of the typical documents included in tender documents. The actual content and structure may vary depending on the specific project and contracting organization.

   Please note that this is a generic sample, and the actual content and structure of tender documents may vary based on the specific requirements and regulations of the project and the contracting entity. It is advisable to consult the relevant procurement guidelines and regulations for a specific project to ensure compliance and completeness of the tender documents.

5. Employer's Requirements: This document outlines the detailed requirements, specifications, and performance criteria expected by the Employer. It serves as a basis for the Contractor's design and construction activities.

   Sample specimen of the Employer's Requirements:

   EMPLOYER'S REQUIREMENTS

   1. Project Overview

      • Provide a detailed description of the project, including its purpose, objectives, and scope.

   2. Technical Specifications

      • Specify the technical requirements for the project, including materials, equipment, and performance standards.

   3. Design Criteria

      • Outline the design criteria that the contractor must adhere to, including architectural, structural, and engineering specifications.

   4. Functional Requirements

      • Define the functional requirements of the project, such as space utilization, operational needs, and user requirements.

   5. Compliance Standards

      • Specify any relevant codes, regulations, and standards that the project must comply with, including safety, environmental, and quality requirements.

   6. Performance Criteria

      • Outline the performance criteria that the completed project must meet, such as durability, efficiency, and operational performance.

   7. Project Timeline

      • Provide a detailed project schedule, including key milestones, deliverables, and completion dates.

   8. Documentation Requirements

      • Specify the documentation that the contractor must provide throughout the project, including design drawings, technical reports, and as-built documentation.

   9. Quality Control and Assurance

      • Define the quality control and assurance measures that the contractor must implement to ensure the project meets the required standards.

   10. Health and Safety

       • Outline the health and safety requirements and procedures that the contractor must follow to protect the well-being of workers and the public.

   11. Environmental Considerations

       • Specify any environmental considerations and measures that the contractor must address, including waste management, conservation, and sustainable practices.

   12. Contract Administration

       • Provide details on the contract administration process, including communication protocols, progress reporting, and dispute resolution procedures.

   13. Payment Terms

       • Specify the payment terms and conditions, including milestone payments, retention, and any specific invoicing requirements.

   14. Insurance and Liability

       • Outline the insurance and liability requirements that the contractor must fulfill, including minimum coverage and indemnification provisions.

   15. Project Deliverables

       • Clearly define the expected deliverables of the project, such as completed structures, equipment installations, and operational systems.

   Please note that this is a generic sample, and the actual content and structure of the Employer's Requirements may vary based on the specific project and contracting organization. It is advisable to consult the relevant project documentation and contract templates for a specific project to ensure accuracy and completeness of the Employer's Requirements.

6. Contractor's Proposal: The Contractor's Proposal is prepared by the Contractor and submitted as part of the tender process. It includes the proposed methodology, schedule, pricing, and any other relevant information requested by the Employer.

   Sample specimen of a Contractor's Proposal:

   CONTRACTOR'S PROPOSAL

   Project: [Project Name] Contractor: [Contractor Name] Date: [Date]

   1. Introduction:

      • Provide an introduction to the proposal, including a brief overview of the project and the contractor's qualifications.

   2. Scope of Work:

      • Clearly define the scope of work to be performed by the contractor, including the specific tasks, deliverables, and timelines.

   3. Methodology:

      • Describe the methodology and approach the contractor will employ to execute the project, highlighting any unique or innovative strategies.

   4. Project Team:

      • Present the key members of the project team, including their qualifications, roles, and responsibilities.

   5. Schedule:

      • Provide a detailed project schedule, outlining the major milestones, activities, and estimated completion dates.

   6. Pricing:

      • Present the pricing structure for the project, including a breakdown of costs, rates, and any applicable taxes or fees.

   7. Resources and Equipment:

      • Detail the resources, equipment, and materials that the contractor will utilize to complete the project, ensuring they align with the project requirements.

   8. Quality Control:

      • Describe the quality control measures and processes the contractor will implement to ensure the project meets the required standards.

   9. Health and Safety:

      • Outline the health and safety protocols that the contractor will adhere to throughout the project to ensure the well-being of workers and the public.

   10. Insurance and Liability:

       • Specify the insurance coverage the contractor will maintain and the liability protections in place to safeguard both the contractor and the client.

   11. Subcontractors:

       • If applicable, identify any subcontractors that will be engaged by the contractor, along with their qualifications and scope of work.

   12. Contract Terms and Conditions:

       • Provide an overview of the proposed contract terms and conditions, including payment terms, dispute resolution, and any specific contractual provisions.

   13. References:

       • Include references or testimonials from previous clients or projects that highlight the contractor's expertise, reliability, and successful project completion.

   14. Conclusion:

       • Summarize the proposal and express the contractor's enthusiasm and commitment to delivering a high-quality project on time and within budget.

   Please note that this is a generic sample, and the actual content and structure of the Contractor's Proposal may vary based on the specific project and contracting requirements. It is advisable to tailor the proposal to address the unique aspects and specifications of the project at hand.

7. Forms of Contractual Correspondence: FIDIC contracts include various forms of correspondence, such as letters, notices, certificates, and requests for information. These forms are used by the parties to communicate with each other during the project's execution.

   Sample specimen of a Form of Contractual Correspondence:

   [Your Company Name] [Your Address] [City, State, ZIP] [Date]

   [Contractor's Name] [Contractor's Address] [City, State, ZIP]

   Subject: Contractual Correspondence - [Project Name]

   Dear [Contractor's Name],

   We hope this letter finds you well. We are writing to address the following matter(s) pertaining to the [Project Name] contract:

   1. Variation Request:

      • Description of the proposed variation/change.
      • Reason for the variation/change.
      • Impact on project cost, schedule, and any other relevant aspects.
      • Request for contractor's acknowledgement and agreement to proceed with the variation/change.

   2. Delay Notice:

      • Description of the event(s) causing the delay.
      • Date(s) of occurrence and expected impact on the project schedule.
      • Request for contractor's acknowledgement and proposal to mitigate the delay.

   3. Payment Claim:

      • Description of the payment claim, including supporting documentation.
      • Amount claimed and payment milestones.
      • Request for contractor's review, verification, and response within a specified timeframe.

   4. Non-Conformance Report:

      • Description of the identified non-conformance or defective work.
      • Reference to the contractual requirements and specifications.
      • Request for contractor's acknowledgement, corrective actions, and proposed remedies.

   5. Extension of Time Request:

      • Description of the circumstances necessitating the extension of time.
      • Duration of the requested extension and impact on project schedule.
      • Request for contractor's acknowledgement, evaluation, and response within a specified timeframe.

   6. Notice of Termination:

      • Grounds for termination as per the contract provisions.
      • Notice period and steps required for a smooth transition.
      • Request for contractor's acknowledgement and compliance with the termination process.

   Please consider this letter as an official record of our correspondence, and we kindly request your prompt attention and response to the matters raised. Should you have any questions or require further clarification, please do not hesitate to contact us.

   We value our working relationship and believe in open and transparent communication to resolve any contractual issues that may arise during the course of the project. We look forward to your timely response and cooperation.

   Thank you for your attention to these matters.

   Yours sincerely,

   [Your Name] [Your Position/Title] [Your Contact Information]

8. Appendices and Annexes: Additional documents may be included as appendices or annexes to the contract. These can include technical specifications, schedules of rates, drawings, performance guarantees, and other supporting information.

   Sample specimen of Appendices and Annexes for a contract:

   Appendices

   1. Appendix A: Technical Specifications

      • Detailed technical specifications outlining the requirements for the project.
      • Includes information on materials, dimensions, performance standards, etc.

   2. Appendix B: Schedule of Rates

      • Comprehensive schedule of rates for various items of work or services.
      • Provides unit rates, quantities, and extended amounts for cost estimation.

   3. Appendix C: Drawings

      • Set of detailed drawings illustrating the design and layout of the project.
      • Includes architectural, structural, electrical, and mechanical drawings.

   4. Appendix D: Bill of Quantities

      • Itemized list of all the quantities and specifications required for the project.
      • Provides a breakdown of materials, labor, and equipment required.

   Annexes

   1. Annex A: Contract Milestones

      • Timeline of key project milestones and delivery dates.
      • Indicates the schedule for completion of different project stages.

   2. Annex B: Performance Bond

      • Document outlining the performance bond requirements for the contract.
      • Includes details such as the bond amount, issuing bank, and expiration date.

   3. Annex C: Insurance Coverage

      • Summary of the insurance coverage required for the project.
      • Specifies the types of insurance policies and coverage limits.

   4. Annex D: Compliance Certificates

      • Certificates and documentation required for compliance with applicable regulations.
      • Includes certificates for safety, environmental compliance, and quality standards.

   These Appendices and Annexes are an integral part of the contract and provide additional details, specifications, and supporting documents for the successful execution of the project. They serve as references and guidelines for both the employer and the contractor throughout the contract period.

   Please note that the specific Appendices and Annexes may vary depending on the nature and requirements of the project and can be customized accordingly.

   It is recommended to review and refer to these Appendices and Annexes as necessary during the contract implementation to ensure adherence to the agreed terms and conditions.

The structure of the documents and forms ensures clarity, consistency, and a standardized approach to construction contracts. It provides a clear understanding of the project requirements, establishes the contractual framework, and facilitates effective communication between the parties throughout the project lifecycle.

Next 👉 FIDIC & ICTAD Comparison