FIDIC contracts: the Red, Yellow and Silver Books explained
By PMCEPC (NEEV INTERNATIONAL) · Updated
A plain-language guide to FIDIC conditions of contract: which book to use, the Engineer's role, notices, variations, time claims and dispute boards.
Which book for which project
The Red Book is generally used where the employer provides the design and the contractor builds. The Yellow Book suits plant and design-build work where the contractor designs. The Silver Book is for EPC and turnkey projects where the contractor takes most design and ground risk. Choosing the wrong form shifts risk in ways neither side planned.
General and particular conditions
FIDIC publishes general conditions that are meant to be adapted through particular conditions. Most disputes arise from the amendments, so read the particular conditions before the general ones, and check how they change time, payment and risk.
The Engineer or Employer's representative
In the Red and Yellow Books the Engineer administers the contract, issues instructions, certifies payments and determines claims. Understanding who has authority to instruct and certify prevents unauthorised variations and unpaid work.
Notices and time bars
FIDIC contracts depend on timely notice. A claim for extra time or cost typically has to be notified within a fixed period, often 28 days from becoming aware of the event, followed by detailed particulars. Missing a notice can bar the claim, so build a notice routine and keep contemporaneous records.
Variations and extensions of time
Variations change the work and may change price and time. Extensions of time are assessed against the critical path of the programme. A realistic, updated programme is the strongest evidence for both sides.
Disputes
The 2017 editions use a standing Dispute Avoidance and Adjudication Board, and earlier editions use a Dispute Adjudication Board. Parties are expected to use these steps before arbitration.
Frequently asked questions
Do I need a lawyer as well as a contract consultant?
For binding agreements and formal disputes, yes. Contract consultants help with administration, notices and commercial analysis, and lawyers advise on legal rights and proceedings.
Which FIDIC edition applies to my project?
The contract names it. Check the edition and the particular conditions, because notice periods and dispute procedures differ between editions.
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