The World Bank has signed an agreement with the International Federation of Consulting Engineers to use six standardised Fidic contracts for projects it funds and tenders.
This announcement came as Fidic’s chief executive officer announced that the organisation would translate its 2017 contract editions into Arabic as one of the five languages that will allow the Fidic suite to be used more effectively around the world.
Fidic has granted a non-exclusive license to the World Bank to refer to six major Fidic contracts that will be referred to by the global organisation for its standard bidding documents.
Mainly featuring the 2017 Second Edition Fidic contracts, the World Bank’s agreement pertains to guidelines for construction and infrastructure work.
Among the World Bank’s project portfolio in the Middle East are the Greater Beirut Water Supply and Greater Beirut Public Transport projects in Lebanon, and the Noor Solar Power scheme in Morocco.
The Fidic documents covered under the agreement include Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer, popularly referred to as the Red Book; Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by the Contractor, or the Yellow Book; and Conditions of Contract for EPC Turnkey Projects, commonly called Silver Book. All three are part of the 2017 Second Edition suite.
Also included in the agreement are 2017 Fifth Edition’s Client/Consultant Model Services Agreement (White Book); 2008 First Edition’s Conditions of Contract for Design, Build and Operate Projects (Gold Book); and 1999 First Edition’s The Short Form of Contract (Green Book).
In a statement, Fidic said the agreement with World Bank is “a major endorsement for the contracts from a major international funding organisation”, adding that it would likely announce similar collaborations with other multilateral development banks in the future.
Fidic’s chief executive officer, Dr Nelson Ogunshakin, said the World Bank’s agreement would “create more certainty in the market”.
He continued: “By adopting Fidic contacts on major projects the World Bank is saying that they endorse the fair and balanced approach that these documents offer to parties on major construction contracts. The familiarity that the Fidic contracts bring make it easier to get projects under way as many of the typical commercial risks are clearly addressed in the contracts and all the parties understand their obligations and responsibilities.
“Over the coming months, we will be working with our member associations and strategic partners to ensure that the Fidic 2017 contract editions are translated into five major languages – Arabic, Chinese, French, Portuguese, and Spanish – to aid effective use across the World Bank and other multilateral development banks’ operating countries.”
Chief procurement officer at the World Bank, Enzo De Laurentiis, said the organisation will use the 2017 Fidic suite alongside its Conditions of Particular Application (Copa) guidelines for its future infrastructure projects.
De Laurentiis added: “Together, the 2017 FIDIC standard conditions and our Copa will ensure that infrastructure contracts financed by the World Bank continue to be based on an internationally recognised standard and reflect key aspects of our policies and practice related, among others, to managing environmental, social and integrity risks.”