Conditions of Contract for Construction


Conditions of Contract for Construction

A number of the Multilateral Development Banks (MDBs) have for many years adopted
the FIDIC Conditions of Contract for Construction as part of the Standard Bidding

Documents which the MDBs require their borrowers or aid recipients to follow. In

using the FIDIC Conditions it has been the regular practice of the MDBs to introduce

additional Clauses in the Conditions of Particular Application (or “Particular
Conditions”) in order to amend provisions contained in the FIDIC General Conditions.
These additional clauses in many cases have standard wording which has to be
repeated whenever procurement documents are being prepared for a new project.
Furthermore, the provisions in bid documents, including the additional clauses
contained in the Particular Conditions, varied between the MDBs, and this created
inefficiencies and uncertainties amongst the users of the documents, and increased
the possibilities for disputes.

These problems were recognised by the Heads of Procurement (HOPs) of the MDBs
as significant, as were the benefits of standardisation. In response, the HOPs resolved
to harmonise their bid documents on an international basis, by making use of the
FIDIC General Conditions. For this purpose, the HOPs further resolved that there
should be a modified form of the FIDIC Conditions of Contract for Construction, 1st
Edition 1999, in which the General Conditions would contain the standard wording
which previously has been incorporated by MDBs in the Particular Conditions.
FIDIC also recognised the major benefits to the users of the contracts of
harmonisation and the inclusion in the General Conditions of the main common
changes required by Particular Conditions in MDB contracts. Accordingly, the
Federation was pleased to work with the HOPs to produce this MDB Harmonised
Edition of the 1999 Conditions for MDB financed contracts.


1 comment:

  1. This book will actually help a lot of bidding construction from reviews to have a better perspective of their bidding position in the construction field. There are a lot of reported corruption during a construction bidding process that's why its very important that bidders will have a proper guidelines.


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