adriana spassova fidic accredited trainer & adjudicator...

Adriana Spassova FIDIC Accredited Trainer & Adjudicator

How to use FAC-1 with FIDIC contracts MILAN 9TH MAY 2019 CONFERENZA INTERNAIONALE

C O L L A B O R A R E NELL’INTERESSE PUBBLICO

BSCL Chair ESCL Vice President


FIDIC - Federation Internationale Des Ingenieurs-Conseils от европейски страни

Founded in 1913 by 3 European Associations. One Member Association per country

Represents nearly 1 million staff in more than 100 countries FIDIC issued its first Conditions of Contract in 1957, copying mostly ICE Conditions of Contract, 4th Edition


«The conditions of contract prepared by the Federation Internationale Des Ingenieurs-Conseils (International Federation of Consulting Engineers, FIDIC) are nowadays the most widely used sample forms of contracts for construction projects.

These sample documents are known as the «International Best Practice Documents» and are enjoying ever growing popularity.

This is mainly thanks to significant international lenders who demand generally accepted and proven «rules of the game» in their construction projects.» Lukas Klee, International Construction Contract Law, 2nd ed 2018 John Wiley & Sons


Suite for construction Ø  FIDIC Rainbow Suite 1999 Ø  Gold Book incl. operation 2008 Ø  Subcontract 2011 Ø  Blue Book for dredging 2016 Ø  3 books for major works 2017 Ø  Emerald Book for tunnels 2019


Suite for services 2017 Ø Client/Consultant (White Book) Ø JV(Consortium) Agreement Ø Sub-Consultancy Agreement


On 14th February 2019 FIDIC announced that it has secured a major agreement with the World Bank to adopt the use of six FIDIC standard contracts for the next five years as follows: - Red book 2017 - Yellow book 2017 - Silver book 2017 - White book 2017 - Gold book 2008 - Green book 1999 http://fidic.org/world-bank-signs-five-year-agreement-use-fidic-standard-contracts


Early Contractor’s Involvement in FIDIC design-build and EPC turn-key standard forms But for buildings architects are not happy to be governed by the Contractor, limiting their opportunity to develop the design, under pressure for bigger profit and easier construction operations

The FIDIC Gold Book links

design, construction and operation


According to the Principal Drafter of the 2017 updates Siobhan Fahey, the 2017 edition develops many of the project management procedures and mechanisms from the 1999 General Conditions of Contract, enhancing and clarifying them to reflect modern international best-practice.

Steps towards collaboration?


3.7 [Agreement or Determination] - 2 paragraphs in 1999, in 2017 almost 3 pages

A 42-day consultation of the Engineer/ Employer’s Representative with the Parties to encourage them to reach agreement provides an obligatory first step in solving any issues/ Claims.

The Engineer in the Red/ Yellow Books, though paid by the Employer, is required to “act neutrally between the Parties” and “not be deemed to act for the Employer”.

The authority of the Engineer cannot be restricted to obtain the Employer’s consent when a determination has to be issued under Clause 3.7.



3.6 Silver Book / 3.8 Red/ Yellow Books [Meetings] - a new 2017 Clause The new clause was added to promote effective communication: Ø management meeting may be held to discuss

arrangement for future works and/or other matters; Ø  The Employer’s other Contractors, the personnel of

public authorities and private utility companies, and/or Subcontractors may attend, if invited by the Parties.



8.4 [Advance Warning] - a new 2017 Clause Requires each Party to give advance warning to the other Party of any event that may have an adverse effect on the Works, cause delay or increase the Contract Price. “It would seem that this is an attempt by FIDIC to bring in the concept of ‘partnering’ into the FIDIC contract and to get the parties to co-operate with each other before delay claims start to surface and positions start to become entrenched.” Taner Dedezade, Corbett & Co Knowledge Hub



21.4 [Dispute Avoidance] - a new 2017 Clause Promotes the proactive role of the Dispute Board, now called DAAB – Dispute Avoidance/Adjudication Board.

The DAAB may assist the Parties to resolve any disagreement during meetings, Site Visits or otherwise:

Ø  Following a joint request by the Parties or

Ø  Inviting them to make such a joint request.



In order to have a collaborative working environment, all participants in the construction process using FIDIC contracts may sign a framework alliance contract. This will ensure easier project management with tools for: Ø Early warning; Ø  Innovations; Ø  Time & cost saving; Ø BIM support; Ø Easy transfer of data; Ø Know-how transfer

FAC

DB

Designer Sub1Sub2 Supplier

Services


FAC-1 is designed for international use to integrate projects under FIDIC, JCT, NEC and any other project contract forms.

“Evolution and innovation are key to a dynamic construction industry. The new Framework Alliance Contract combines both and provides an approach to the delivery of infrastructure projects which can be accommodated within and benefit any client’s procurement strategy.”

Dr Nelson Ogunshakin OBE, FIDIC CEO


An integrated FAC-1 multi-party Alliance, entered into with a group of selected consultants, contractors, suppliers or other providers, enables: ü  Increased transparency & improved efficiency through

consistent data shared among Alliance Members

ü  Stronger joint commitment to share Objectives

ü  Closer working relationships on agreed Alliance Activities

ü  Improved joint engagement with the Supply Chain & Stakeholders

ü  Collective self-regulation through the Core Group

ü  More open measurement against agreed Targets

ü  More open motivation to earn agreed Incentives

Integrated multi-party framework alliance Example: Energy Efficiency Framework One or several Employers Several Green Book contracts for construction Several White Book contracts for Consultants •  Direct award of project contracts – lots or •  Competitive award of project contracts


Supervisor 1

Supervisor 2

Supervisor 3

Designer

Contractor 2 Contractor 1


Contractor 5

Employer1

Employer2

AllianceManager

Stakeholders

Integrated multi-party framework alliance Example: School/ Sport Infrastructure One Employer 1 Red Book contract & Subcontracts White Book contracts for design & FIDIC Engineer


Engineer

Designer

Subcontractor 1

Employer

AllianceManager

Subcontractor 2

Contractor

Integrated multi-party EPC Contractor led framework alliance Example: NPP/TPP


Employer’s Representative

Designer Sub 1

Employer

AllianceManager

EPC Contractor

Sub 2

Sub 3

FAC-1

Supplier 1

Supplier 2

Supplier 3

Integrated multi-party framework alliance Example: Water & Sewage Infrastructure One Employer Several Yellow & Red Book contracts for construction Subcontracts Several White Book contracts for Consultants Projects: Rehabilitation & new infrastructure


Engineer 1

Engineer 2

Designer 1

Designer 2

Contractor 1


Contractor 4

Employer1

AllianceManager

Subcontracts

Integrated multi-party framework alliance Example: High Speed Railway One Employer Several Yellow & Red Book contracts for construction Several White Book contracts for Consultants Projects: Related railway sections, stations & facilities


Engineer 1

Engineer 2

Designer 1

Designer 2



Contractor 5

Employer1

AllianceManager

Linked framework alliances Example: High Speed Railway One Employer, several frameworks Yellow & Red Book contracts for works White Book contracts for Consultants Projects: Related railway sections & facilities


Engineer

Designer 1 Designer 2 Section 2 Section1

Employer AllianceManager

Signaling


EBRD supports the use of FAC-1 and reported in March 2018 about the pilot project in Kazakhstan, as a strategic integrator of multiple FIDIC contracts.

The EBRD is arranging a US$ 350 million syndicated loan to JSC ShalkiyaZinc Ltd, a Kazakh mining company, for the expansion of the Shalkiya zinc and lead mine in the Kyzylorda region as well as the construction of a new processing plant at the site.


The German Federal Construction Agency approved the use of FAC-1 as an improved value tool integrating the supply chain and as a BIM enabler, within the EPC FIDIC 1999 Silver Book Contract for the New Chancery and Guardhouse of the German Embassy in Sofia. The EPC Contractor GBS will lead the alliance formed with the subcontractors able to create improved value and/or give timely inputs to BIM.


Thank you!!!

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