Practice areas
FIDIC Contracts
Contract provisions interpreted and adapted. Clear agreements prevent disputes.
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drafting the Particular Conditions
interpreting individual clauses
legal opinions
acting on the Dispute Adjudication Board
FIDIC tailored to your project
Team
Our people in this area
Maja Koršič Potočnik
Attorney-at-law (specialist), head of the firm
Maja Koršič Potočnik, LL.M., is an attorney-at-law and partner at Potočnik in partnerke Law Firm, specialising in public procurement, construction and commercial law. She advises and represents contracting authorities, tenderers and companies in demanding public procurement procedures, commercial disputes and construction projects, with a particular focus on FIDIC contracts. She is the author of the Slovenian handbook on the use of the FIDIC Red and Yellow Books, a member of the national list of FIDIC adjudicators, and a recognised lecturer and author of professional publications.
Questions and answers
Frequently asked questions
One caveat matters especially with FIDIC: every answer must be checked against the particular book, edition and Particular Conditions of the contract in question. FIDIC offers several models in which risk and responsibility are allocated differently. Among others, FIDIC distinguishes the Red Book, the Yellow Book and the Silver Book, and the 2017 editions substantially develop the earlier models.
What is a FIDIC contract?
FIDIC contracts are standard forms for construction, engineering and other projects. Their purpose is to set out in advance the relationships between the employer, the contractor and the other parties involved in the project. The standard form is not enough on its own: each project calls for a review of the Particular Conditions and for the contract to be adapted accordingly.
Which FIDIC contract should you choose?
The choice depends chiefly on how the project is to be delivered and on who takes responsibility for the design and other key risks. The Red Book is generally intended for projects where the design is provided by the employer, and the Yellow Book for projects where the contractor takes on a significant part of the design. Where risk is transferred more comprehensively, the Silver Book is also used.
What is the difference between the FIDIC Red Book and the Yellow Book?
The Red Book assumes that the contractor carries out the works on the basis of a design provided by the employer. Under the Yellow Book, the contractor takes on a more significant part of the design. The allocation of risk and responsibility therefore differs between the two books.
What are the Particular Conditions of a FIDIC contract?
The Particular Conditions supplement or amend the General Conditions and adapt them to the specific project. When drafting them, it is essential to check that the individual provisions are consistent with one another and that they genuinely fit the project. Poorly drafted Particular Conditions can create more risk, not less.
What is a FIDIC claim?
A claim is the formal assertion of a contractual right, for example the right to additional payment or to an extension of time. Under FIDIC the claims procedure matters a great deal: it requires timely notice, a fully detailed submission in support, and evidence of how the particular event affected time, cost or other contractual rights.
What happens if the contractor misses the deadline for giving notice of a claim?
The consequences can be severe. FIDIC contracts impose short and strictly formal time limits for notices of claim. In some editions the 28-day notice period is significant, but the particular edition and the Particular Conditions must always be checked. A late notice may restrict, or even bar altogether, the right to additional time or payment.
Can the contractor claim both an extension of time and additional payment?
Yes, provided the contract gives you a basis for it. It is important to note that the right to an extension of time and the right to additional payment are not necessarily linked automatically. For each right, the specific contractual mechanism, the cause of the event and compliance with the notice and evidential requirements must be examined separately.
What is the role of the Engineer under FIDIC?
The role of the Engineer depends on the particular FIDIC book and contract, but it generally involves significant duties in administering the contract, certifying and supervising the works, and determining individual contractual questions. In some FIDIC models the Engineer's independence, or the duty to act impartially when making determinations, is of particular importance.
Can the Tests on Completion be carried out if not all the works are finished?
Yes. Under FIDIC it is not necessary for every item of the contract works to be complete before the Tests on Completion are carried out. What must be complete is the work that allows the particular tests to be performed and the works or the structure to be used for their intended purpose. FIDIC also allows taking over where minor outstanding work or defects remain that do not materially affect use.
How are disputes resolved under FIDIC?
FIDIC contracts provide multi-tier mechanisms for avoiding and resolving disputes. Depending on the edition, these may involve a determination or assistance by the Engineer and a DAB or DAAB, followed by further steps including arbitration. Before any particular mechanism is invoked, the specific contract and the law governing it must be checked.
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