International engineering federation FIDIC has granted the World Bank a non-exclusive licence to use its six major FIDIC contracts for projects it finances.
The contracts mainly include the 2017 Second edition FIDIC contracts, which cover a wide range of international construction and infrastructure work.
FIDIC said the move represents an endorsement for the contracts from a major international funding organisation.
FIDIC also expects to announce a similar agreement with the other multilateral development banks.
FIDIC chief executive Dr Nelson Ogunshakin said: “This will create more certainty in the market as by adopting the FIDIC contacts on major projects the World Bank is saying that they endorse the fair and balanced approach that these documents offer to parties on major construction contracts.
“The familiarity that the FIDIC contracts bring make it easier to get projects underway as many of the typical commercial risks are clearly addressed in the contracts and all the parties understand their obligations and responsibilities.”
He said the challenge now was to get the FIDIC 2017 contract editions translated into five major languages – Arabic, Chinese, French, Portuguese and Spanish – so they can be used in countries receiving Worl Bank loans for infrastructure.
The six FIDIC contracts covered by the agreement are:
- Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (“Red book”), Second edition 2017;
- Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by the Contractor (“Yellow book”), Second edition 2017;
- Conditions of Contract for EPC Turnkey Projects (“Silver book”), Second Edition, 2017);
- Client/Consultant Model Services Agreement (“White book”), Fifth Edition 2017;
- Conditions of Contract for Design, Build and Operate Projects (“Gold book”) First Edition 2008; and
- The Short Form of Contract (“Green book”), First Edition 1999.