Despite a stated intention to be suitable for international project finance pf, the. The silver book is recommended for turnkey provision of process or. These editions were published further to the industrywide responses to consultative drafts initially issued by fidic in late short form of contractwhich is recommended for building or engineering works of relatively small capital value. The fidic silver book impact for project financed epc.
Designed as a companion for both the firsttime and also more experienced user the book presents an accessible guide to the 21 clauses of the 2017 fidic conditions of contract, using the conditions of contract for epc turnkey projects silver book. Gpp big field llp v solar epc solutions sl 2018 ewhc 2866 comm news analysis. The silver book is designed for turnkey infrastructure projects such as power plants, factory and sewage plants. These are projects that require the contractor to provide a completed facility to the employer that is ready to be operated at the turn of a key. Engineering, procurement, and construction wikipedia. It is recognisable to the vast majority of the international contracting community, and has thus gained a foothold as a useful template on which to base an epc contract.
Epc turnkey contract 2nd ed silver book international federation of consulting engineers. Designed as a companion for both the firsttime and also more experienced user, the book presents an accessible guide to the 21 clauses of the 2017 fidic conditions of contract, using the conditions of contract for epc turnkey projects silver book as a basis. Within fidic contracts, we find this difference between epc and designbuild contracts between the silver and yellow book, respectively. Conditions of contract for epc turnkey projects silver book first edition 1999 copies of the silver book can be obtained. Eic contractors guide to the fidic conditions of contract for epc turnkey projects 30. The silver book is recommended for turnkey provision of process. Contract for epc turnkey projects silver book, obtainable via direct quotations from the fidic silver book in this paper retain the formatting of the original. The initialism epcm is also encountered frequently on international projects, but this is very different from epc. Conditions of contract for plant and designbuild 1st edition 1999. A talk on the use of the fidic conditions of contract for epcturnkey projects in power projects. Fidic conditions of contract for epc turnkey projects. It provides clausebyclause analysis of the contract, accompanied by practical guidance on its application in specific projects. Under the usual arrangements for this type of contract, the entity carries out all the engineering, procurement and construction. Download fidic silver book conditions of contract for epc turnkey projects 2nd edition 2017.
Scl the new 2017 fidic red, yellow and silver books with. Designed as a companion for both the firsttime and also more experienced user the book presents an accessible guide to the 21 clauses of the 2017 fidic conditions of contract, using the conditions of contract for epc turnkey projects silver book as a basis. The silver book conditions of contract for epcturnkey projects the epc turnkey contract the silver book is drafted for use on epc engineer, procure, construct projects. Silver book 1999 conditions of contract for epc turn key projects. An unfortunate shift from fidics tradition of being evenhanded and of focusing on the best interests of the project by a h gaede, jr, of the us, and eic contractor s guide to the fidic conditions of contract for epc turnkey. Epc contracts international construction construction. The provisions of this standard contract have recently been redrawn, necessitating a revision of popular text. Epcturnkey contract 2nd ed 2017 silver book international. Red, silver and yellow books, depend on the scope of the works to be carried out by the contractor in india, there is generally, no accepted standard form contract and the choice of precedent is. This article will analyse the concept of reliance data in epc contracts and provide a methodology to identify it. He serves on fidic contracts, such as red, yellow, silver, gold, yellow plus operation, gold book, white book, or epc contracts, also concession, bot or bootagreements and various kinds of tailor made contracts. The fidic silver book impact for project financed epc contracts.
This work is a practical commentary on the fidic standard turnkey contract widely used in the international construction industry. The conditions of contract for construction the red book is designed for traditional procurement, where the contractor constructs according to the employers design. These are projects that require the contractor to provide a completed facility to the employer that is. Silver book fidic silver book conditions of contract for epc turnkey projects, first edition 1999 and second edition 2017. Conditions of contract for epc turnkey projects, which are recommended where one entity takes total responsibility for the design and execution of an engineering project. The silver book represents a turnkey, fixed price, lump sum arrangement, whereby the contractor assumes the majority of key construction risks. Fidic silver book 2017 5 implications for project finance.
The stakes are enormous for all parties involved and this is the reason why the fidic silver book conditions of contract for epc turnkey projects is growing in popularity as the main form of construction contract. Fidic silver book conditions of contract for epc turnkey projects 2017 usevfidic silver book for conditions of contract for epc turnkey projects 2017. Epcm is a servicesonly contract, under which the contractor performs engineering, procurement and construction management services. Understanding and negotiating turnkey and epc contracts. Fidic silver book epc turnkey contract where i a higher degree of certainty of firm price and time is required, and ii the contractor takes total responsibility for the design and execution of the project, with little involvement of the employer.
Reliance data also named rely upon data is the data identified in an epc contract that the epc contractor can take for granted. At the end of 2017, fidic released its longawaited update to the 1999 first edition of the silver book. Termination of epc contracts 10 things you need to know. Application of epc contracts in international power projects. Reliance data in epc contracts like fidic silver book. Fidic contracts are widely used in the international construction industry the silver book which refers to conditions of contract for epc turnkey projects. In the 1990s, following trends in the construction industry, significant changes to the original fidic contracts were introduced and the fidic silver book was published. This form of contract is covered by the fidic silver book containing the title words epc turnkey. Download pdf fidic silver book conditions of contract for epc. Most major and supermajor oil companies have their own standard form contracts which will set out bespoke rules for termination. The introductory note to the silver book states that during recent years it has been noticed that much of the construction market requires a construction contract where certainty of final price. Epc contracts key issues to consider ran chakrabarti partner may 2018. Fidic conditions of contract for epcturnkey projects.
Eic contractors guide to the fidic silver book eic federation. This contract places significant risks on the contractor. The silver book the fidic contracts wiley online library. The use of standard or model forms of epc contract saves time for the parties and has the potential to reduce transaction costs. Liquidated damages clauses were not unenforceable penalties gpp big field v solar epc. Conditions of contract for epcturnkey projects, silver book. 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.
Understanding and negotiating epc contracts, volume 1. Pierke bosschieter rated it really liked it feb 17, 2019. Designed as a companion for both the firsttime and also more experienced user, the book presents an accessible guide to the 21 clauses of the 2017 fidic conditions of contract, using the conditions of contract for epcturnkey projects silver book as a basis. Under the usual arrangements for turnkey projects, the contractor carries out all engineering, procurement, and construction epc. Fidic silver book conditions of contract for epc turnkey projects subclause 20 claims, dispute and arbitration 20. European international contractors eic contractors guide to the fidic conditions of contract for epc turnkey projects the eic silver book guide, 2nd edition, 2003. This article starts by focusing on these issues in context of the red, yellow and silver books there are others.
Conditions of contract for epc turnkey projects published by fidic, otherwise known as the silver book. Fidic recognised this throughout the 1990s and in 1999 published its conditions of contract for epc turnkey contracts the silver book. This second edition of the conditions of contract for epc turnkey projects has been published by the federation internationale des ingenieursconseils fidic as an update of the fidic 1999 conditions of contract for epcturnkey projects silver book, first edition. Fidic silver book is a practical guide for anyone involved in preparing, administering, or contributing to the fidic suite of contracts, 2017 edition. All delegates will be provided the following materials, in english. It was published to fulfil the need for a combination contract with designbuild obligation and longterm operation commitment. The fidic epc conditions of contract the silver book. Provides insight and guidance when dealing with turnkey and epc contracts includes a comparison of the terms of the principle designbuild epc and turnkey contracts takes a practical clausebyclause approach offering practical commentary and guidance on the fidic standard turnkey contract offers drafting suggestions for selected contract provisions of the fidic silver book from the. Nonetheless, in english law, the principles set out in fidic silver book are a good guide for how termination will likely be dealt with. The silver book conditions of contract for epc turnkey projects the epc turnkey contract the silver book is drafted for use on epc engineer, procure, construct projects. Before this there was only the fidic guidance memorandum to users of the 1999 conditions of contract. Eic contractors guide to the fidic epc turnkey contract 1999 silver book 2nd ed 2003. If the contract is terminated, in what circumstances is the.
Internationale des ingenieursconseils fidic as an update of the fidic 1999 conditions of contract for epcturnkey projects silver book, first edition. Released in 1999, the silver book is for turnkey projects. It also shows any time frames during which the obligations should be completed and the specific consequences of non. This chapter lists the obligations of the employer, the contractor and the dispute adjudication board dab under the fidic conditions of contract for epc turnkey projects the silver book, first edition 1999. Introduction to fidic silver book real estate and construction italy.
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