Ahmed's Blog

Introducing the Golden Principles of FIDIC 2017

FIDIC contracts are the most common forms of contracts used in Egypt and many other countries. The flexible, fair and balanced suite of FIDIC 1999 contracts are usually the go to form of contract.

However, employers, engineers and main contractor's usually use the particular conditions to alter the well-balanced risk allocation to their favour, to an extent that it completely change the characteristic of a FIDIC contract.

Fast forward to the 2017 suite of FIDIC contract, FIDIC has opted to define some "Golden Principles" which it adheres to in its contracts. Contracts that are modified to change these principles change the very nature of the FIDIC contracts, and aren't 'FIDIC' anymore.

These Golden Principles, introduced in 2017, and which should be preserved as much as possible, are as follows:

Golden Principle 1 (GP1): #

The duties, rights, obligations, roles and responsibilities of all the Contract Participants must be generally as implied in the General Conditions, and appropriate to the requirements of the project.

Golden Principle 2 (GP2): #

The Particular Conditions must be drafted clearly and unambiguously.

Golden Principle 3 (GP3): #

The Particular Conditions must not change the balance of risk/reward allocation provided for in the General Conditions.

Golden Principle 4 (GP4): #

All time periods specified in the Contract for Contract Participants to perform their obligations must be of reasonable duration.

Golden Principle 5 (GP5): #

Unless there is a conflict with the governing law of the Contract, all formal disputes must be referred to a Dispute Avoidance/Adjudication Board (or a Dispute Adjudication Board, if applicable) for a provisionally binding decision as a condition precedent to arbitration.