Guide to the Use of FIDIC Conditions of Contract for Design-build and Turnkey

The book "Design-Build and Turnkey 1st Ed (1995 Orange Book)" by the International Federation of Consulting Engineers (FIDIC) is a comprehensive guide to the Conditions of Contract for Design-Build and Turnkey projects. Here is a detailed overview of the book:

Key Themes

1. Design-Build Contracts: The book focuses on the conditions of contract for design-build projects, where the contractor is responsible for both the design and the provision of the works, in accordance with the employer's requirements. This includes any combination of engineering and building works.

2. Turnkey Contracts: It also covers turnkey contracts, which involve the provision of a fully-equipped facility ready for operation. These contracts typically include design, construction, fixtures, fittings, and equipment, with the scope defined in other contract documents. Turnkey contracts often involve contractor-financed arrangements and may include requirements for the contractor to operate the works for a commissioning period or longer.

3. Payment Arrangements: Part 1 of the Conditions outlines the payment arrangements, ensuring that interim payments are made as construction proceeds. This ensures that the contractor is financially supported throughout the project.

4. Contractual Setting: The book provides guidance on preparing conditions particular to the application, ensuring clarity and specificity in the contractual terms. This includes advice on turnkey arrangements and sample wording for contractor-financed projects.

5. International Use: The Conditions are recommended for use on international projects, with minor modifications suitable for domestic contracts. The English version is considered the official and authentic text for translation purposes.

Plot Summary

The book is structured into two main parts:

• Part 1: General Conditions: This section outlines the general conditions applicable to both design-build and turnkey contracts. It includes clauses related to payment, time, and other essential terms.
• Part 2: Guidance for the Preparation of Conditions Particular Application: This part provides guidance on how to tailor the general conditions to specific project requirements. It includes sample wording and advice on contractor-financed arrangements, particularly for turnkey projects.

Critical Reception

While there is no specific critical reception provided in the sources, the FIDIC Conditions of Contract are widely recognized and respected in the construction industry for their clarity and comprehensiveness. The Orange Book has been a standard reference for many years, reflecting the evolving needs of international construction projects.

Additional Context

• FIDIC Silver Book: For turnkey projects requiring greater certainty of final price and completion date, the FIDIC Silver Book is often used. This book was published in 1999 and is specifically designed for EPC (Engineering, Procurement, and Construction) turnkey projects.
• FIDIC Suite of Contracts: FIDIC offers a suite of contracts, including the Red Book for construction works where the design is carried out by the Employer, and the Gold Book for build-operate-transfer projects. The Orange Book remains a key reference for design-build and turnkey projects.

In summary, the "Design-Build and Turnkey 1st Ed (1995 Orange Book)" by FIDIC provides a comprehensive guide to the Conditions of Contract for Design-Build and Turnkey projects, emphasizing clarity, specificity, and international applicability. Its structured approach and detailed guidance make it a valuable resource for both employers and contractors in the construction industry.