What is a FIDIC contract?
A FIDIC contract is a standard construction or engineering agreement published by the International Federation of Consulting Engineers. Different forms allocate design, payment and project risks in different ways.
by Jack Butler-Kettle · About 4 min readShare
The answer
A FIDIC contract is a standard form of agreement published by the International Federation of Consulting Engineers. FIDIC is the abbreviation of its French name. Its contract families are used for construction and engineering projects in different countries.
The form provides a framework for responsibilities, payment, changes, completion, claims and disputes. FIDIC is the publisher, not a party that manages or guarantees the project.
What is it used for?
FIDIC agreements are used for construction and engineering work, including projects involving parties from different countries. Different forms allocate design and delivery responsibilities differently.
The project's procurement approach, governing law and intended risk allocation matter when choosing a form. A familiar book colour does not establish suitability for the project.
What are the main contract forms?
The colours distinguish contract families. FIDIC's selection guidance explains their intended uses:
- Red Book: construction where the employer provides most of the design. The contractor may still have specified design responsibilities.
- Yellow Book: plant and design-build work, with contractor design to meet the employer's requirements.
- Silver Book: EPC/turnkey work, with a different allocation of design and delivery risk.
FIDIC also publishes shorter forms and consultancy agreements. The book and edition both matter; 1999 and 2017 forms have different procedures.
What documents make up the agreement?
The General Conditions provide the standard framework. Project information and Particular Conditions complete or amend it, alongside the other documents identified in the agreement. These may include specifications, drawings, schedules and the contractor's tender.
The 2017 Red Book description distinguishes General Conditions from project-specific Particular Conditions. Read the complete set and its stated order of priority. A published summary cannot reveal amendments to a signed agreement.
How does payment work?
The applicable form sets the requirements for payment applications, assessment or certification, and payment. The book, edition and amendments determine the details.
Red and Yellow Books assign specified functions to an Engineer; the Silver Book has a different administration structure. Retention, advances and final payment also depend on the agreed terms.
A FIDIC project outside the UK should not be assumed to follow UK statutory payment rules. Check the governing law and contract together.
How are changes dealt with?
The contract's variation and claims provisions govern changes and any associated adjustment. Identify the authorised instruction, valuation basis and separate notification requirements.
FIDIC's contract FAQs explain differences between the 1999 and 2017 forms. A later edition does not automatically replace the procedure in an existing agreement.
The FIDIC contract checks cover the practical review of the form, amendments and commercial obligations.
How are time and completion dealt with?
The applicable contract defines completion obligations, extensions of time, taking over and the later defects process. Notice and supporting-record requirements must be read from the chosen book and edition.
Taking over does not automatically settle all financial or defects matters. Distinguish the completion position from final certification, remaining claims and security release.
How are disputes dealt with?
Check the agreement's dispute-board, amicable-settlement and arbitration provisions, including any amendments and governing-law requirements. The 1999 and 2017 arrangements should not be treated as interchangeable.
The 2017 Red Book overview describes its dispute avoidance and adjudication provisions. Our dispute-resolution comparison explains the different kinds of procedure.
How does it apply to subcontractors?
A FIDIC main contract does not automatically make the subcontract FIDIC too. The agreement may use a FIDIC subcontract or bespoke terms. Identify what it incorporates and which party receives notices and applications.
The main contract's name does not establish a subcontractor's payment rights or deadlines. The FIDIC subcontractor cheat sheet helps organise obligations once the actual agreement is known.
Separate cheat sheets cover main contractors and clients. A Construction contract review before signing examines the proposed commercial terms within an agreed scope.
Example
The facts
Fictional example: an employer proposes a Red Book contract, but the tender documents also allocate some design to the contractor.
What happens
The team identifies the exact book, edition, Particular Conditions and documents describing the design responsibilities.
It compares the actual allocation with the proposed scope instead of assuming the colour determines every duty.
What this shows
The family name provides context. The agreed documents establish the project-specific responsibilities.