CRCICA-FIDIC-ESCONE Regional Conference FIDIC Contracts Latest Developments

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1 FIDIC Contracts Latest Developments CRCICA Conferences Annex Cairo Regional Center for International Commercial Arbitration International Federation of Consulting Engineers

2 FIDIC first became active in 1957 when it published its FIDIC Conditions of Contract for Works of Civil Engineering Construction. In 1995, the conditions were extended to include mechanical and electrical works, as well as design-build and turnkey projects. The World Bank and other international funding institutions adopted the 1987 Conditions of Contract for Works of Civil Engineering Construction with some amendments to produce their own version. Based mainly on risk allocation, FIDIC introduced in 1999 a completely new set of four contracts known as the FIDIC CONSTRUCTION, PLANT and DESIGN BUILD, EPC / TURNKEY and SHORT FORM conditions of contract. As before, the World Bank and other international funding institutions adopted the 1999 Conditions of Contract for CONSTRUCTION with some amendments to produce the FIDIC MDB HARMONISED EDITION to be used on MDB-financed projects. Agenda Guidelines Introduction to FIDIC Contracts A summary of FIDIC s works contracts that are widely used industry standards. - The FIDIC suite of contracts and agreements - Review of the principles behind the major works contracts - The growing influence of FIDIC s suite of contracts in establishing world-class industry standards - How FIDIC s major works contracts are being used worldwide - Emerging FIDIC user s regions and hot spots - On-going projects and future outlook Updates to the FIDIC 1999 Suite of Contracts Future editions will both adopt innovations introduced in the MDB Harmonised Construction Contract and in the new DBO Contract as well as take into account extensive feedback. Latest concepts and issues being taken up in the updating of the FIDIC 1999 suite of contracts include: - Increased challenges to the engineer s role - Design requirements and the contractor s proposal - Programme requirements and commencement of work - Advance warning and exceptional risks - Communications and manuals Operating Under the FIDIC DBO Contract The DBO approach to contracting combines design, construction and long-term operation and maintenance of a facility into one single contract awarded to a single contractor. - The main provisions of the Design-Build-Operate Contract - Application to brown field projects - Recent experience of using the DBO contract - Review of elements of the contract that will bear upon the future development of other FIDIC contracts MDB Harmonised Construction Contract The Multilateral Development Banks and an increasing number of development agencies have adopted the MDB Harmonised Edition of the FIDIC Conditions of Contract for Construction for their projects. - Differences between the 1999 Edition of the FIDIC Construction Contract and the MDB edition - The scope of clarifications introduced in June Rational behind key modifications The Roles of the Parties in FIDIC Contracts: Project Management and Programme Perspectives The Engineer as central to the FIDIC approach - Successfully integrating third parties in projects with a single construction contract - What happens in the case of multiple contracts and contractors? - How an engineer-centred FIDIC system can help minimise conflict and disputes Page 2

3 Agenda Guidelines - FIDIC s experience of using the contract - MDB perspective - Updated financial requirements - New and strengthened social provisions - Mitigation of contractor s risk FIDIC Construction Subcontract The FIDIC Construction Subcontract has been published for use with the FIDIC Construction Contract, both the 1999 Edition and the MDB Harmonised Edition. - Scope, main features and the main provisions - Key issues - Feedback to the Test Edition - Using the subcontract alongside FIDIC s Construction Contract recent experiences - Possible features of a new subcontract for FIDIC s Plant and Design-Build Contract Design-Build Contracts: Key Aspects The key aspects of the FIDIC Plant and Design-Build Contract which is widely used in both the private and public sectors: - A review of key issues (Measurement and Payment; Role of the Engineer and Variations; Performance certificate liability in accordance with the governing law; Unforeseeability; Provisional Sums) - Acceptance in different legal jurisdictions - Challenges in establishing a programme - Impact of works remeasurement - Performance certificate liability in accordance with the governing law - Review of suggested amendments Claims under FIDIC Contracts Developments in presenting and pursuing a claim under a FIDIC contract with particular reference to: - Time bars - Documentation - Expectations of the Dispute Adjudication Board The Role of Mediation The role of mediation if resolving disputes in the construction sector. - The role the International Finance Corporation (IFC) in promoting mediation - Amicable settlement what are the options? - How mediation relates to adjudication and arbitration Navigating the Dispute Adjudication Process Dispute Adjudication Boards (DAB) have been introduced as FIDIC s method for primary dispute resolution and has been made mandatory by the MDBs for the MDB Harmonised Construction Contract. - Construction industry trends affecting disputes and claims - Benefits and the perceived barriers to DABs - Enforcement of DAB decisions - Procedural developments - An update on new procedures - Issues concerning the use of DABs in various types of projects - Strategies for forming a DAB and reinforcing its role Arbitrating Construction Disputes A review of the increased use of arbitration, including changes in the supporting procedural law. - General developments - How the FIDIC contract is viewed under national law - Enforcement - Making international arbitration work: good practice and good decisions - The impact of revised arbitration provisions Page 3

4 SPEAKERS Dr. Ahmed Fathy Waly, Managing Partner, Waly Arbitration and Contract Administration Firm (Egypt) Ms. Aisha Nadar, Nadar Consulting, UK; Member, FIDIC Updates Task Group (UK) Dr. Christoph Theune, Senior Vice President, Pöyry Environment GmbH, Member, FIDIC Contracts Committee (Germany) Eng. Daud Khalaf, Former Minister of Water and Irrigation (Jordan) Eng.Emhemmed Ghula, Executive Board Member, Senwan Engineering & Real Estate Development Consultancy, (Lybia) Eng. Fawzi Abu Moghli, Arabtech Jardaneh AJ Group (Jordan) Dr. Gamal Nassar, Secretary-General, The Egyptian Society of Consultative Engineers, ESCONE (Egypt) Eng. Dr. Kamal Malas, Director, TAKAMOL Consulting, Owner at Dr. Kamal Malas & Associates (Syria) Eng. Maged Kholosy, Chairman of the Chamber of Arbitration, the Federation of Engineering Organizations in Islamic Countries (Egypt) Prof. Dr. Mohamed Badran, International Arbitrator and Lawyer, Professor of Public Law, Faculty of Law, Cairo University (Egypt) Eng. Mohamed Said Fatha, Deputy Secretary General for Eastern Arab Region in the Arab Federation of Arab Engineers (Jordan) Dr. Munther Saket, Contracts Consultant, Allied Planning & Engineering Corporation (Jordan) Dr. Nabil Abbas, General Manager, Abbas Architects and Construction Consultants (Saudi Arabia) Dr. Nabil Elaraby, Director, The Cairo Regional Centre for International Commercial Arbitration, CRCICA (Egypt) Dr. Peter Boswell, General Manager, International Federation of Consulting Engineers, FIDIC (Switzerland) Eng. Sami Ahmad Furuqi, Divisional Manager, Operations, Policy & Procurement, Islamic Development Bank (Saudi Arabia) Eng. Dr. Sherif El Haggan, Partner, Contract Administration & Arbitration Bureau (Egypt) Eng. Sherif El-Nazer, Consultative Engineer and International Arbitrator (Egypt) Eng. Waleed M. Migdadi, owner and General Manager of Migdadi Center for Contract Administration and Arbitration. (Jordan) For further details, please contact Conferences and External Relations Department, Cairo Regional Centre for International Commercial Arbitration 1 Al-Saleh Ayoub St., Zamalek , Cairo, Egypt Tel. (00202) /5/ /3 Fax (00202) Address: conferences@crcica.org.eg web site: Page 4

5 Registration fee EGYPTIANS: 1000 L.E. NON EGYPTIANS: 300 US $ - Attendance of the working sessions - Lunch for the participant - Coffee Breaks Method of payment : Cash payment Cer ed cheque to be issued in the name of the Cairo Regional Centre for Internaonal Commercial Arbitraon Direct bank transfer to : Account No. : (SWIFT CODE: NSGBEGCX), Naonal Societe Generale Bank, Zamalek Branch, Cairo. In case of direct bank transfer, please make sure that the bank transfer expenses are not deducted from the total transferred amount and we will much appreciate providing CRCICA with a copy of the bank transfer order to check with our Bank and con rm receiving to you later. Please note that in its capacity as an internaonal organizaon working in Egypt CRCICA is exempted from all direct taxes by virtue of the Presidenal Decree No. 399/1987. Registration Form Please fill in clear BLOCK CAPITAL for ease of registration Title : ( Mr.- Ms.- Dr..) Name : Nationality: Occupation: Place of Business : Address : Tel : Mobile : Fax : Payment method : ( cash - check - Bank transfer) Date of payment: Notes: Page 5

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