Due to the economic globalization and international market development, the relations between different legal entities worldwide have increased significantly. This inevitably leads to a growing number of transactions, which, in turn, results in the necessity to create a uniform regulation in order to accelerate transaction completion process.
Professional lawyers from IQ Decision UK, who have been successfully practicing law in the EU countries for years, effectively use FIDIC forms of contracts in construction projects that involve large international companies and leading financial institutions. If you require professional European lawyers’ support in drafting a contract or formalizing a contractual relationship, lawyers from IQ Decision UK are always ready to help you.
FIDICOne of the most authoritative organizations in the international investment and construction industry is The International Federation of Consulting Engineers (FIDIC). It gained its reputation thanks to the release of standard contract documentation. Overall, FIDIC has created more than fifteen widely-applied model contracts covering various aspects of investment and construction relations. FIDIC contracts have recently been in high demand and they continue gaining popularity. It includes about 100 national associations and societies all over the world, and the number of members is growing persistently. In the context of globalization, ensuring the uniformity of contract terms is becoming increasingly important. The various standard forms or the so-called “template of the forms” are specifically designed and implemented to speed up the deal making process. As a rule, standard documents in international trade relations are understood as various standard forms of trade contracts, but standardization is not exclusively limited to them. The ability to standardize contracts is based on the presence of significant similarities in contracts of the same type.
FIDIC Standard contractsFIDIC model contracts offer unified regulation of investment and construction relations throughout the world. FIDIC contracts are very flexible in terms of adapting them to a particular law or legal system. By their legal nature, FIDIC standard contracts are sub-legal documents. Contracts are a regulator of a powerless nature and acquire their legal significance following the principle of freedom of contract and a corresponding agreement between the parties on the regulation of relations between them through the forms. FIDIC model contracts are aimed at ensuring predictability in the regulation of relations between parties with different state affiliation, as well as at facilitating the process of concluding a contract. As contracts that contain all the necessary conditions for a successful transaction, FIDIC forms offer a comprehensive transaction management.
General characteristics of FIDIC standard contractsFIDIC standard contracts are an effective tool for settling contractual relations in the construction industry. They also regulate relations in the fields of insurance, dispute resolution, supply of equipment and materials for construction and others. The main focus of the state cooperation in the sphere of legal policy is the creation of uniform legal norms intended to regulate a certain sphere of public relations. FIDIC is doing its best to create the unified set of standard contracts.
Parties to FIDIC contractThe main FIDIC standard contracts include a similar pool of participants. So, the Orange Book of FIDIC (construction “on a turnkey basis”) names several participants:
- Customer representative (or Consulting engineer);
- Representative of the contractor;
- Dispute Resolution Board.