What is FIDIC?
FIDIC is an organization founded in 1913 and its expansion is the "International Federation of Consulting Engineers". Only one organization from each country can become a member of the federation and today there are 102 member s in total. Turkish Consulting Engineers and Architects Association is among the member s.
The purpose of FIDIC is to develop the construction industry in the international arena and help it adapt to constantly changing needs. In this context, FIDIC holds meetings and trainings every year.
What is FIDIC Contract?
A FIDIC uniform contract has been established by FIDIC to ensure unity of opinion and understanding in the field of international construction in terms of law, customs and traditions. These Conventions, which contain uniform rules, were first published in 1957. Contracts that have been used for many years have been revised over time and especially with the development of technology, and have been adapted to today's needs.
What are FIDIC Contract Books?
FIDIC Contracts answer questions such as who will bear the risk during the construction process, who will do the design, who will manage the contract, etc. It consists of books such as FIDIC, Red Book, Yellow Book, Silver Book, Green Book. These books contain specifications that comply with construction contracts.
1. Conditions of Contract for Construction: This specification, also called the "Red Book", shows the basic principles of the tender and construction contract.
2. Conditions of Contract for Plant and Design-Build: This specification, also known as the "Yellow Book", is used in construction and engineering works to be designed, built or installed by the contractor.
3. Conditions of Contract for EPC/ Turnkey: This specification, also known as the "Silver Book", is recommended for turnkey works such as a power plant, factory or treatment plant.
4. Short Form of Contract: According to this specification, also known as the "Green Book", the employer accepts that the administration can provide the supervision services for the building or any engineering work with a contract value of less than $ 500,000 and expected to be completed in 6 months. It is not obligatory to employ consulting engineers for the supervision of this construction business.
The Red Book is mostly used in construction works in our country.
Implementation of FIDIC Contracts in the International Area
FIDIC Contracts, after being accepted by the "International Federation of Asian and Western Pacific Contractors Associations" in 1969 and by the "United States General Contractors Association" and "International American Construction Industry Federation" in 1971, have spread to a wide area internationally.
The application of FIDIC Contracts has increased in the world as a result of the World Bank's request for the implementation of FIDIC Contracts in construction works financed by it.
Implementation of FIDIC Contracts in Turkey
FIDIC Contracts are used in construction works tendered by the Central Finance and Contracts Unit of the Ministry of Treasury and Finance, the Ministry of Industry and Technology Competitive Sectors Program, the Ministry of Environment and Urbanization, Department of EU Investments, and the Ministry of Transport and Infrastructure Transport Operational Program institutions.
Binding of the Provisions Regulated in FIDIC Contracts for the Parties
The rules regulated in FIDIC are not binding for the parties. The parties can use these provisions exactly and make various changes as well as use them in their contracts.
What are FIDIC Contracts Dispute Resolution Methods?
Based on the dispute resolution methods organized around the world, FIDIC has brought solution methods in accordance with the FIDIC structure. There are four solution methods introduced by FIDIC.
1) Dispute Resolution by the Engineer
According to the FIDIC Contract, the contractor will be able to apply to the engineer before a dispute arises. The engineer will try to solve the problems that do not reach the level of conflict, but if a conflict occurs, he will have to turn to other solution methods.
2) Dispute Resolution Board
The Dispute Resolution Board is a body that the parties must apply before going to arbitration. This board consists of experts determined by the parties at the beginning of the contract. Their aim is to resolve conflicts while they are at the stage of their birth.
The decisions of the Dispute Resolution Board are binding. However, if one of the parties objects to this decision within 28 days and the objection is not concluded within 84 days, the parties will try amicable solutions to the dispute. The dispute that is not resolved in this way is transferred to arbitration.
3) Amicable Solution
The amicable solution method of the parties is a solution through peace. The parties have to choose this way before going to arbitration.
4) Arbitration
In cases where the decisions of the Dispute Resolution Board are not binding and final, arbitration may be applied if the dispute cannot be settled amicably. Unless the parties agree otherwise, dispute resolution is carried out according to the ICC rules. In addition, it is regulated in the FIDIC Contracts that the arbitral tribunal should be three persons and the language to be used should be the language used when making the FIDIC contract.