EPC/Turnkey Contract. REGISTER NOW http://fidicepcturnkeyprojects or call (Globe) (Sun). FIDIC – Conditions of Contract for EPC-Turnkey NY 01/03/09 PM. GENERAL CONDITIONS. GUIDANCE. FIDIC EPC/Turnkey Contract, understanding and its implementation in power plant projects in Indonesia. Dr. Sarwono Hardjomuljadi [email protected] id.

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Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances; if not, it must be amended. Drafts were reviewed by many persons and organisations, including those listed below.

The Employer’s representative, trunkey there is one, is not required to act impartially. Group Extras Related products. Special Advisers to the Contracts Committee provided invaluable and continued support in the various drafting and revision stages: Thus the Employer does not have to attempt to alter a standard form intended for another risk arrangement, and the Contractor is fully aware of the increased risks he must bear.

rurnkey It is essential that all these drafting tasks, and the entire preparation of the tender documents, are entrusted to personnel with the relevant expertise, including the contractual, technical and procurement aspects.

This type of contract is usually negotiated between the parties. Drafters of contract documents are reminded that the General Conditions of all FIDIC contracts are protected by copyright and trademark and may not be changed without specific written consent, usually in the form of a licence to amend, from FIDIC. The sub-clauses which were considered to be applicable to many but not all contracts have been included in the General Conditions, which will facilitate their incorporation into each contract.

The charts are illustrative, however, and must not be taken into consideration in the interpretation of the Conditions of Contract. Group Extras More information Product code:.

Knowledge Management

FIDIC recognizes that privately-financed projects are usually subject to more negotiation than publicly-financed ones and that therefore changes are likely to have to be made in any standard form of contract proposed for projects within a BOT or similar type venture.

Thereafter the Contractor should be given freedom to carry out the work in his chosen manner, provided the end result meets the performance criteria specified by the Employer. These risk tyrnkey principles have been beneficial for both parties, turnmey Employer signing a contract at a lower price and only having further costs when particular unusual risks actually eventuate, and the Contractor avoiding pricing such risks which are hard to evaluate.


Among such projects can be found many projects financed by private funds, where the lenders require greater certainty about a project’s costs to the Employer than is allowed for under the allocation of risks provided for by FIDIC’s traditional forms of contracts. In addition it is recognised that many Employers, especially governmental agencies, may require special conditions of contract, or particular procedures, which differ from those included in the General Conditions.

These risk sharing principles are continued in the new updated versions of the Fodic and Yellow Books. In the preparation of the Conditions of Contract to be included in the tender documents for a contract, the following text can be used: Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances. FIDIC wishes to record its appreciation of the time and effort devoted by all the above. Consequently, turnjey Employer should only exercise limited control over and should in general not ecp with the Contractor’s work.

Compilation of all Collections English electronic version. In order to clarify the sequence of Contract activities, reference may be made to the charts tutnkey the next two pages and to the Sub-Clauses listed below some Sub-Clause numbers are also stated in the charts. Watermarked Compilation of all Collections Didic electronic version.

For this publication, the General Conditions were prepared on the following basis: The charts are illustrative and must not be taken into consideration in the interpretation of the Conditions of Contract. Among other things, such form may need to be adapted to take account of the special, if not unique, characteristics of each project, as well as the requirements of lenders and others providing financing.

Short Form of Contractwhich is recommended for building or engineering works of relatively small capital value. In some cases, however, only an aide-memoire is given. The Employer must also realize that asking serious contractors to price such risks will increase the construction cost and result in some projects not being commercially viable.


This publication concludes with example forms for the Letter of Tender, the Contract Agreement, and alternatives for the Dispute Adjudication Agreement. Contracts and Agreements Collection English only printed version. Contracts and Agreements Collection English electronic version.

Conditions of Contract for EPC Turnkey Projectswhich are recommended where one entity takes total responsibility for the design and execution of an engineering project. Guidance for the Preparation of Conditions Particular Application. In the case of BOT Build – Operate – Transfer projects, which are normally negotiated as a package, the allocation of risk provided for in the turnkey construction Contract negotiated initially between the Sponsors and the EPC Contractor may need to be adjusted in order to take into account the final allocation of all risks between the various contracts forming the BOT package.

Guidance for the Preparation of Conditions Particular Application. For example, Sub-Clause A feature of this type of contract is that the Contractor has to prove the reliability and performance of his plant and equipment.

EPC/Turnkey Contract 1st Ed (1999 Silver Book)

For example, this edition provides: If the Contractor is to carry such risks, the Employer obviously must give him the time and opportunity to obtain and consider all relevant information before the Contractor is asked to sign on a fixed contract price. By providing a standard FIDIC form for use in such contracts, the Employer’s requirements for more risk to be taken by the Contractor are clearly stated. Watermarked Compilation of all Collections English electronic version.

Compilation of all Collections English printed version. Watermarked Contracts and Agreements Collection English only electronic version. Employers on such turnkey projects are willing to pay more – often considerably more – for their project if they can be more certain that the agreed final price will not be exceeded. If drafters wish to amend the provisions gidic in the General Conditions, the place for doing this is in the Particular Conditions Part B — Special Provisions, as mentioned above, and not by making changes in the General Conditions as published.

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