What Advantages are Given to the Employer by FIDIC?
Before getting started with a project, any Employer is facing a problem of choice as to to the methods of project implementation, including the documentation which has to be dealt with: the selection of a contractor, project management, building, taking-over and other work and procedures.
Lately, in such cases, Employers working in construction area have increasingly started to consider the model forms prepared by the International Federation of Consulting Engineers.
What is so attractive in these FIDIC model forms for the Employer? What are the advantages for the Employer as compared to traditional forms of construction agreements and tender documentation?
(a) FIDIC provides the Employer with a ready set of tools for tendering process in order to make a choice of the most competitive Contractor (from the point of view of the opportunities concerning a project implementation).
(b) the model forms comprise efficient superintendence and monitoring tools. Not only these tools allow to control the Contractor as to his work on a project but they also provide reasonable financing of a project by the Employer.
(c) using model forms does allow to understand the whole of construction activity as well as to obtain, at any time, relevant information as to any part being under construction.
(d) the Employer is actually released from liability for the Contractor's failures (The Contractor shall hold the Employer harmless from any issues thereto related).
(e) the Employer is given the wide powers as to construction management, and such powers affect not only the Contractor's activity but his respective personnel and subcontractors either.
(f) the Employer has right to discontinue or resume work at any stage of construction.
(g) there are efficient ways of dispute resolution, including prejudicial and extrajudicial procedures.
(h) there are well-defined guarantees as to the Contractor's performance.
Therefore, the main advantages of a FIDIC model form based contract consist in its initial intended purpose: the creation of certain works at minimum expenses (and saving such money) and under the Employer's maximum control.